| 3 | 2 | | *JLL019* 02-22-2023 13:49:34 JLL019 |
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| 4 | 3 | | |
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| 5 | 4 | | State of Arkansas As Engrossed: S2/22/23 1 |
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| 6 | 5 | | 94th General Assembly A Bill 2 |
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| 7 | 6 | | Regular Session, 2023 HOUSE BILL 1318 3 |
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| 8 | 7 | | 4 |
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| 9 | 8 | | By: Representative Cavenaugh 5 |
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| 10 | 9 | | By: Senator J. Bryant 6 |
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| 11 | 10 | | 7 |
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| 12 | 11 | | For An Act To Be Entitled 8 |
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| 13 | 12 | | AN ACT CONCERNING TH E ALLOWABLE BASES FO R BIDS FOR 9 |
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| 14 | 13 | | CERTAIN MUNICIPAL PU RCHASES AND CONTRACT S; AND FOR 10 |
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| 15 | 14 | | OTHER PURPOSES. 11 |
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| 16 | 15 | | 12 |
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| 17 | 16 | | 13 |
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| 18 | 17 | | Subtitle 14 |
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| 19 | 18 | | CONCERNING THE ALLOWABLE BASES FOR BIDS 15 |
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| 20 | 19 | | FOR CERTAIN MUNICIPAL PURCHASES AND 16 |
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| 21 | 20 | | CONTRACTS. 17 |
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| 22 | 21 | | 18 |
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| 23 | 22 | | 19 |
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| 24 | 23 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20 |
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| 25 | 24 | | 21 |
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| 26 | 25 | | SECTION 1. Arkansas Code § 14 -58-303(b)(2)(A), concerning municipal 22 |
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| 27 | 26 | | purchases and contracts, is amended to read as follows: 23 |
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| 28 | 27 | | (2)(A)(i) Except as provided under § 14-58-104, in a city of the 24 |
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| 29 | 28 | | first class in which the amount of expenditure for any purpose or contract 25 |
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| 30 | 29 | | exceeds the sum of thirty-five thousand dollars ($35,000), the mayor or the 26 |
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| 31 | 30 | | mayor's authorized representative shall invite competitive bidding on the 27 |
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| 32 | 31 | | purpose or contract by legal advertisement in any local newspaper. 28 |
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| 33 | 32 | | (ii) Bids received pursuant to the advertisement 29 |
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| 34 | 33 | | shall be opened and read on the date set for receiving the bids in the 30 |
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| 35 | 34 | | presence of the mayor or the mayor's authorized representative. 31 |
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| 36 | 35 | | (iii) The mayor or the mayor's authorized 32 |
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| 37 | 36 | | representative has exclusive power to award the bid to the lowest responsible 33 |
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| 38 | 37 | | bidder, subject to the provisions in subdivision (b)(2)(A)(iv) of this 34 |
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| 39 | 38 | | section, and may reject any and all bids received. 35 |
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| 40 | 39 | | (iv) For the purchase of supplies, apparatus, 36 As Engrossed: S2/22/23 HB1318 |
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| 41 | 40 | | |
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| 42 | 41 | | 2 02-22-2023 13:49:34 JLL019 |
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| 43 | 42 | | |
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| 44 | 43 | | |
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| 45 | 44 | | equipment, materials, and other items under this subdivision (b)(2), the city 1 |
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| 46 | 45 | | may base its award on the following method of evaluation if notice of the 2 |
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| 47 | 46 | | method of evaluation is stated in the bid notice : 3 |
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| 48 | 47 | | (a) The lowest immediate cost; 4 |
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| 49 | 48 | | (b) The lowest demonstrated life cycle cost; 5 |
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| 50 | 49 | | (c) The lowest demonstrated term costs; or 6 |
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| 51 | 50 | | (d) A combination of two (2) or more of the 7 |
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| 52 | 51 | | lowest immediate cost, the lowest demonstrated life cycle cost, and the 8 |
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| 53 | 52 | | lowest demonstrated term costs. 9 |
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| 54 | 53 | | (v) A bid, quote, and the documentation related to a 10 |
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| 55 | 54 | | bid or quote shall be maintained as required under § 14 -59-114(a)(1). 11 |
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| 56 | 55 | | 12 |
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| 57 | 56 | | SECTION 2. Arkansas Code § 14-58-303(d), concerning municipal 13 |
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| 58 | 57 | | purchases and contracts, is amended to read as follows: 14 |
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| 59 | 58 | | (d) For purposes of As used in this section: 15 |
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| 60 | 59 | | (1) "Lowest demonstrated life cycle cost" means the cost of an 16 |
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| 61 | 60 | | asset as determined by the mayor or the m ayor's authorized representative to 17 |
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| 62 | 61 | | be credibly established by a bidder over the life cycle of the asset, taking 18 |
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| 63 | 62 | | into consideration the asset's initial capital costs, maintenance costs, 19 |
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| 64 | 63 | | operating costs, and residual value at the end of the life of the asset; 20 |
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| 65 | 64 | | (2) "Lowest demonstrated term cost" means the cost of an asset 21 |
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| 66 | 65 | | as determined by the mayor or the mayor's authorized representative to be 22 |
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| 67 | 66 | | credibly established by a bidder over a portion of the life cycle of the 23 |
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| 68 | 67 | | asset, taking into consideration the asset's initial capital costs, 24 |
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| 69 | 68 | | maintenance costs, and operating costs during the portion of the life cycle 25 |
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| 70 | 69 | | of the asset; 26 |
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| 71 | 70 | | (3) "Lowest responsible bidder" means the bidder who offers 27 |
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| 72 | 71 | | trustworthiness and responsibility concerning the subject purchase and whose 28 |
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| 73 | 72 | | bid offers the lowest cost to the city under subdivision (b)(2)(A) of this 29 |
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| 74 | 73 | | section; 30 |
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| 75 | 74 | | (4) “Reverse internet auction” means an internet-based process 31 |
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| 76 | 75 | | in which bidders: 32 |
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| 77 | 76 | | (A) Are given specifications for items and services being 33 |
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| 78 | 77 | | sought for purchase by a municipality; and 34 |
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| 79 | 78 | | (B) Bid against one another in order to lower the price of 35 |
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| 80 | 79 | | the item or service to the lowest possible level; and 36 As Engrossed: S2/22/23 HB1318 |
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| 81 | 80 | | |
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| 82 | 81 | | 3 02-22-2023 13:49:34 JLL019 |
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| 83 | 82 | | |
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| 84 | 83 | | |
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| 85 | 84 | | (2)(5) “Reverse internet auction vendor” means an internet-based 1 |
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| 86 | 85 | | entity that hosts a reverse internet auction. 2 |
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| 87 | 86 | | 3 |
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| 88 | 87 | | /s/Cavenaugh 4 |
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| 89 | 88 | | 5 |
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| 90 | 89 | | 6 |
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