Stricken language would be deleted from and underlined language would be added to present law.
Act 782 of the Regular Session
*JLL310* 04-07-2025 18:41:04 JLL310
State of Arkansas As Engrossed: S4/2/25 S4/7/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 538 3
4
By: Senators Gilmore, Hickey, Irvin, J. Dotson 5
By: Representative Wardlaw 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE ARKANSAS PROCUREMENT LAW; AND FOR 9
OTHER PURPOSES. 10
11
12
Subtitle 13
TO AMEND THE ARKANSAS PROCUREMENT LAW. 14
15
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 16
17
SECTION 1. Arkansas Code § 19-11-217(c), concerning the powers and 18
duties of State Procurement Director, is amended to add an additional 19
subdivision to read as follows: 20
(16) Within one hundred twenty (120) days after the effective 21
date of a new or revised statute or rule relating to procurement, shall 22
review the procurement materials of the office and revise the procurement 23
materials to maintain alignment between the procurement materials and the 24
relevant procurement statutes and rules. 25
26
SECTION 2. Arkansas Code § 19 -11-229(f), concerning competitive sealed 27
bidding, is amended to add an additional subdivision to read as follows: 28
(4)(A) A state agency may determine that the cost of the bid is 29
unrealistic. 30
(B) As used in this subdivision (f)(4), "unrealistic" 31
means too low to reflect the ability of the bidder to meet the requirements 32
of the invitation for bids. 33
(C) The director shall promulgate rules concerning the 34
requirements for determining that a bid is unrealistic. 35
36 As Engrossed: S4/2/25 S4/7/25 SB538
2 04-07-2025 18:41:04 JLL310
SECTION 3. Arkansas Code § 19-11-230(c), concerning competitive sealed 1
proposals, is amended to read as follows: 2
(c)(1) Public Except as provided in subdivision (c)(2) of this 3
section, public notice of the request for proposals shall be given in the 4
same manner as provided in § 19 -11-229(d), which refers to public notice of 5
competitive sealed bidding. 6
(2)(A) A request for proposals under this section shall be 7
issued at least twenty (20) business days before the deadline for the 8
submission of proposals. 9
(B) If a request for proposals is reissued before the 10
anticipation to award , the state agency shall extend the original deadline 11
for the submission of proposals by at least ten (10) business days. 12
13
SECTION 4. Arkansas Code § 19 -11-230(d)(4), concerning competitive 14
sealed proposals, is amended to read as follows: 15
(4) A state agency shall : not 16
(A) Not include prior experience with the state as a 17
mandatory requirement for submitting a proposal under this section ; 18
(B) Evaluate the cost of each proposal received from a 19
responsible offeror in response to a request for proposals under this section 20
in the state agency's initial evaluation of the proposals; and 21
(C) Not identify responsible offerors as being reasonably 22
susceptible of being awarded a contract under this section until the cost 23
proposal from each responsible offeror has been evaluated . 24
25
SECTION 5. Arkansas Code § 19 -11-230(d), concerning competitive sealed 26
proposals, is amended to add an additional subdivision to read as follows: 27
(5)(A) A state agency may determine that the cost of the 28
proposal is unreasonable or unrealistic. 29
(B) As used in this subdivision (d)(5): 30
(i) "Unrealistic" means too low to reflect the 31
ability of the offeror to meet the requirements of the request for proposals; 32
and 33
(ii) "Unreasonable" means too high for the 34
requirements of the request for proposals. 35
(C) The director shall promulgate rules concerning the 36 As Engrossed: S4/2/25 S4/7/25 SB538
3 04-07-2025 18:41:04 JLL310
requirements for determining that the cost of a proposal is unreasonable or 1
unrealistic. 2
3
SECTION 6. Arkansas Code § 19 -11-230(e), concerning competitive sealed 4
proposals, is amended to add additional subdivisions to read as follows: 5
(4)(A) Negotiations under this section shall be conducted by a 6
person who is trained and certified in negotiation and procurement processes. 7
(B)(i) The office shall provide for the training and 8
certification required under subdivision (e)(4)(A) of this section. 9
(ii) The training provided by the office under this 10
subdivision (e)(4) shall be specific to Arkansas law. 11
(5) The director shall promulgate rules detailing the 12
requirements for negotiations under this section. 13
14
SECTION 7. Arkansas Code § 19 -11-230, concerning competitive sealed 15
proposals, is amended to add an additional subsection to read as follows: 16
(j) A state agency using the method of procurement provided for under 17
this section shall adhere to the procurement rules, policies, and guidance 18
issued by the office concerning the scoring of the technical and cost 19
elements of submitted proposals. 20
21
SECTION 8. Arkansas Code § 19 -11-244(a)(5)(B), concerning the 22
resolution of a protest by a person named in an anticipation to award a 23
contract, is amended to read as follows: 24
(B) A response to a protest submitted under subdivision 25
(a)(5)(A) of this section shall be submitted in writing within five (5) 26
calendar days of the date the person is given notice of the protest under 27
subdivision (a)(2)(B) of this section. 28
29
SECTION 9. Arkansas Code § 19 -11-244(d), concerning the resolution of 30
protested solicitations and awards of contracts, is amended to read as 31
follows: 32
(d) A copy of the decision under subsection (c) of this section shall 33
be mailed or otherwise furnished within five (5) calendar days after it is 34
written to the protestor and any other party intervening. 35
36 As Engrossed: S4/2/25 S4/7/25 SB538
4 04-07-2025 18:41:04 JLL310
SECTION 10. Arkansas Code § 19 -11-244(f), concerning the resolution of 1
protested solicitations and awards of contracts, is amended to read as 2
follows: 3
(f) In the event of a timely protest under subsection (a) of this 4
section,: the 5
(1) The state shall not execute a contract that is the result of 6
the protested solicitation or award unless the director or the head of the 7
relevant procurement agency makes a written determination that the execution 8
of the contract without delay is necessary to protect substantial interests 9
of the state; and 10
(2) Contract negotiations with the anticipated awardee may 11
proceed. 12
13
SECTION 11. Arkansas Code § 19 -11-245(e) and (f), concerning debarment 14
and suspension under the Arkansas Procurement Law, are amended to read as 15
follows: 16
(e) Notice of Decision. A copy of the decision under subsection (d) of 17
this section shall be mailed or otherwise furnished within five (5) calendar 18
days after it is written to the debarred or suspended person and any other 19
party intervening. 20
(f) Finality of Decision. A decision under subsection (d) of this 21
section shall be final and conclusive and not an order as defined in the 22
Arkansas Administrative Procedure Act, § 25 -15-201 et seq., but may be 23
appealed to the Secretary of the Department of Shared Administrative Services 24
in accordance with the rules promulgated by the director . 25
26
SECTION 12. Arkansas Code § 19-11-247(a)–(c), concerning the remedies 27
for unlawful solicitation or award of a contract, are amended to read as 28
follows: 29
(a) The provisions of this section apply where it is determined upon 30
any review provided by law that a solicitation or award the creation, 31
solicitation, award, management, or modification of a contract is in 32
violation of law. 33
(b) If prior to award it is determined that a solicitation , or 34
proposed award, or modification of a contract is in violation of law, then 35
the solicitation, or proposed award, or modification shall be: 36 As Engrossed: S4/2/25 S4/7/25 SB538
5 04-07-2025 18:41:04 JLL310
(1) Cancelled; or 1
(2) Revised to comply with the law. 2
(c) If after an award it is determined that a solicitation or award 3
the creation, solicitation, award, management, or modification of a contract 4
is in violation of law, then in addition to or in lieu of other remedies 5
provided by law: 6
(1) If the person awarded the contract vendor has not acted 7
fraudulently or in bad faith: 8
(A) The contract may be ratified and affirmed if it is 9
determined that doing so is in the best interests of the state; or 10
(B) The contract may be terminated; and 11
(2) If the person awarded the contract vendor has acted 12
fraudulently or in bad faith: 13
(A) The contract may be declared null and void; or 14
(B) The person awarded the contract may be directed to 15
proceed with performance of the contract and pay such damages, if any, as may 16
be appropriate if such action shall be in the best interests of the state. 17
18
SECTION 13. Arkansas Code § 19 -11-279, concerning requests for 19
information, is amended to add an additional subsection to read as follows: 20
(f) A response to a request for information under this section is not 21
required for a vendor's bid, proposal, or statement of qualifications and 22
performance data to be accepted unless the response requirement is: 23
(1) Explicitly stated in the invitation for bids, request for 24
proposals, or request for statements of qualifications and performance data; 25
and 26
(2) Approved by the director or the head of the procurement 27
agency. 28
29
SECTION 14. Arkansas Code § 19 -11-280(a), concerning the training and 30
certification of procurement personnel, is amended to read as follows: 31
(a)(1) The State Procurement Director shall establish a an in-person 32
training and certification program to facilitate the training, continuing 33
education, and annual certification of state agency procurement personnel. 34
(2) The training and certification program required under 35
subdivision (a)(1) of this section may be offered through an in -person 36 As Engrossed: S4/2/25 S4/7/25 SB538
6 04-07-2025 18:41:04 JLL310
training course or a live, virtual course. 1
2
SECTION 15. Arkansas Code § 19 -11-280(c), concerning the training and 3
certification of procurement personnel, is amended to read as follows: 4
(c)(1) Beginning July 1, 2021, a A state agency employee shall not 5
conduct a procurement under this chapter unless the state agency employee is 6
certified annually through the training and certification program required 7
under this section. 8
(2) To maintain certification under this section, a state agency 9
employee shall complete a reasonable number of hours of continuing education 10
each year, as provided for by rule by the director. 11
12
SECTION 16. Arkansas Code § 19 -11-280, concerning the training and 13
certification of procurement personnel, is amended to add an additional 14
subsection to read as follows: 15
(e)(1) The director shall report to the Review Subcommittee of the 16
Legislative Council concerning: 17
(A) The progress made in developing an implementing the 18
training and certification program required under this section; and 19
(B) The state agencies that have had employees complete 20
the training and certification program required under this section. 21
(2) The report required under section shall be presented: 22
(A) For the first year following the effective date of 23
this act, every ninety (90) days; and 24
(B) Annually each subsequent year. 25
26
SECTION 17. Arkansas Code Title 19, Chapter 11, Subchapter 2, is 27
amended to add an additional section to read as follows: 28
19-11-282. Notification to Office of State Procurement. 29
A state agency other than an institution of higher education shall 30
notify the Office of State Procurement that the state agency is going to 31
issue an invitation for bids or a request for proposals at least seven (7) 32
calendar days before issuing the solicitatio n. 33
34
SECTION 18. Arkansas Code § 19 -11-802(c)(2), concerning annual 35
statements of qualifications and performance data and restrictions on 36 As Engrossed: S4/2/25 S4/7/25 SB538
7 04-07-2025 18:41:04 JLL310
competitive bidding, is amended to read as follows: 1
(2) A political subdivision shall may elect to not use 2
competitive bidding for the procurement of other professional services with a 3
two-thirds (⅔) vote of its governing body. 4
5
SECTION 19. DO NOT CODIFY. Repromulgation of rules. 6
(a) Within one hundred twenty (120) days of the effective date of this 7
act, the State Procurement Director shall repromulgate all rules related to 8
the sections of the Arkansas Code amended by this act and the recommendations 9
adopted by the Executive Subcommittee of the Legislative Council upon the 10
conclusion of the procurement study conducted for the 2025 regular session to 11
ensure that the rules promulgated under the sections of the Arkansas Code 12
that are amended by this act are in line with the intent of the General 13
Assembly in enacting this act. 14
(b) The director shall submit a monthly report to the Review 15
Subcommittee of the Legislative Council concerning his or her progress during 16
the reporting period in complying with subsection (a) of this section. 17
18
/s/Gilmore 19
20
21
APPROVED: 4/17/25 22
23
24
25
26
27
28
29
30
31
32
33
34
35
36