EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 362
102ND GENERAL ASSEMBLY
INTRODUCED BY SENATOR KOENIG.
1467S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal sections 8.250, 8.679, 8.690, 34.040, 34.042, and 34.044, RSMo, and to enact in lieu
thereof six new sections relating to public notice requirements for public contracts.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 8.250, 8.679, 8.690, 34.040, 34.042, 1
and 34.044, RSMo, are repealed and six new sections enacted in 2
lieu thereof, to be known as sections 8.250, 8.679, 8.690, 3
34.040, 34.042, and 34.044, to read as follows:4
8.250. 1. "Project" for the purposes of this chapter 1
means the labor or material necessary for the construction, 2
renovation, or repair of improvements to real property so 3
that the work, when complete, shall be ready for service for 4
its intended purpose and shall require no other work to be a 5
completed system or component. 6
2. All contracts for projects, the cost of which 7
exceeds twenty-five thousand dollars, entered into by any 8
city containing five hundred thousand inhabitants or more 9
shall be let to the lowest, responsive, responsible bidder 10
or bidders after publication of an advertisement for a 11
period of ten days or m ore in a newspaper in the county 12
where the work is located, in two daily newspapers in the 13
state which do not have less than fifty thousand daily 14
circulation, and on the website of the city or through an 15
electronic procurement system. 16 SB 362 2
3. All contracts for projects, the cost of which 17
exceeds one hundred thousand dollars, entered into by an 18
officer or agency of this state shall be let to the lowest, 19
responsive, responsible bidder or bidders based on 20
preestablished criteria after [publication of an 21
advertisement for a period of ten days or more in a 22
newspaper in the county where the work is located, in one 23
daily newspaper in the state which does not have less than 24
fifty thousand daily circulation, and on the website of the 25
officer or agency or through an electronic procurement 26
system] posting an invitation for bid on the website of the 27
officer or agency or advertising the invitation for bid 28
through an electronic medium available to the general public 29
for a period of at least ten days befor e bids are to be 30
opened. For all contracts for projects between twenty -five 31
thousand dollars and one hundred thousand dollars, a minimum 32
of three contractors shall be solicited with the award being 33
made to the lowest responsive, responsible bidder bas ed on 34
preestablished criteria. 35
4. The number of such public bids shall not be 36
restricted or curtailed, but shall be open to all persons 37
complying with the terms upon which the bids are requested 38
or solicited unless debarred for cause. No contract shall 39
be awarded when the amount appropriated for same is not 40
sufficient to complete the work ready for service. 41
5. Dividing a project into component labor or material 42
allocations for the purpose of avoiding bidding or 43
advertising provisions re quired by this section is 44
specifically prohibited. 45
8.679. When, in the discretion of the public owner, it 1
is determined that a public works project should be 2
performed with a negotiated contract for construction 3 SB 362 3
management services, such public owner shall advertise and 4
solicit proposals from qualified construction managers [in 5
the following manner: If the total cost for the erection or 6
construction of any building or structure or the 7
improvement, alteration or repair of a build ing or structure 8
exceeds five hundred thousand dollars, the public owner 9
shall request and solicit proposals by advertising for ten 10
days in one newspaper of general circulation in the county 11
where the work is located. If the cost of the work 12
contemplated exceeds one million five hundred thousand 13
dollars, proposals shall be solicited by advertisement for 14
ten days in two daily newspapers in the state which have not 15
less than fifty thousand daily circulation in addition to 16
the advertisement in the co unty where the work is located ] 17
by posting an invitation for bid on the website of the 18
public owner or advertising the invitation for bid through 19
an electronic medium available to the general public for a 20
period of at least ten days before bids are to be opened. 21
The number of such proposals shall not be restricted or 22
curtailed, but shall be open to all construction managers 23
complying with the terms upon which the proposals are 24
requested. 25
8.690. 1. The office of administration s hall have the 1
authority to utilize: 2
(1) The construction manager -at-risk delivery method, 3
as provided for in section 67.5050; and 4
(2) The design-build delivery method, as provided for 5
in section 67.5060, only as follows: 6
(a) For noncivil works projects, as that term is used 7
in section 67.5060, in excess of seven million dollars; and 8 SB 362 4
(b) No more than five noncivil works projects, as that 9
term is used in section 67.5060, may be contracted for in 10
any fiscal year that are less than seven million dollars. 11
2. The office of administration shall not be subject 12
to subsection 15 of section 67.5050 and subsection 22 of 13
section 67.5060 in executing contracts pursuant to this 14
section. 15
3. The office of administration shall not be subject 16
to subsection 4 of section 67.5060 or the first sentence of 17
subsection 3 of section 67.5050 requiring disclosure of a 18
public meeting. The office of administration shall [publish 19
its advertisement for proposals in the publications, and on 20
the website of the officer or agency or through an 21
electronic procurement system ] advertise a request for 22
qualifications or request for proposals for a design -builder 23
or construction manager -at-risk as set forth in subsection 3 24
of section 8.250. The selection and award shall follow 25
sections 67.5050 and 67.5060, as applicable. 26
34.040. 1. All purchases in excess of ten thousand 1
dollars shall be based on competitive bids, except as 2
otherwise provided in this chapter. 3
2. On any purchase where the estimated expenditure 4
shall be one hundred thousand dollars or over, except as 5
provided in subsection 6 of this section, the commissioner 6
of administration shall: 7
(1) Advertise for bids [in at least two daily 8
newspapers of general circulation in such places as are most 9
likely to reach prospective bidders and may advertise in at 10
least two weekly minority newspapers and may provide such 11
information] through an electronic medium available to the 12
general public at least five da ys before bids for such 13
purchases are to be opened. Other methods of advertisement, 14 SB 362 5
which may include minority business purchase councils, 15
however, may be adopted by the commissioner of 16
administration when such other methods are deemed more 17
advantageous for the supplies to be purchased; 18
(2) Post a notice of the proposed purchase in his or 19
her office; and 20
(3) Solicit bids by mail or other reasonable method 21
generally available to the public from prospective 22
suppliers. All bids for such supplies shall be mailed or 23
delivered to the office of the commissioner of 24
administration so as to reach such office before the time 25
set for opening bids. 26
3. The contract shall be let to the lowest and best 27
bidder. The commissioner of administrat ion shall have the 28
right to reject any or all bids and advertise for new bids, 29
or purchase the required supplies on the open market if they 30
can be so purchased at a better price. When bids received 31
pursuant to this section are unreasonable or unaccept able as 32
to terms and conditions, noncompetitive, or the low bid 33
exceeds available funds and it is determined in writing by 34
the commissioner of administration that time or other 35
circumstances will not permit the delay required to 36
resolicit competitive bids, a contract may be negotiated 37
pursuant to this section, provided that each responsible 38
bidder who submitted such bid under the original 39
solicitation is notified of the determination and is given a 40
reasonable opportunity to modify their bid and sub mit a best 41
and final bid to the state. In cases where the bids 42
received are noncompetitive or the low bid exceeds available 43
funds, the negotiated price shall be lower than the lowest 44
rejected bid of any responsible bidder under the original 45
solicitation. 46 SB 362 6
4. The director of the department of revenue shall 47
follow bidding procedures as contained in this chapter and 48
may promulgate rules necessary to establish such 49
procedures. No points shall be awarded on a request for 50
proposal for a contract l icense office to a bidder for a 51
return-to-the-state provision offer. 52
5. All bids shall be based on standard specifications 53
wherever such specifications have been approved by the 54
commissioner of administration. The commissioner of 55
administration shall make rules governing the delivery, 56
inspection, storage and distribution of all supplies so 57
purchased and governing the manner in which all claims for 58
supplies delivered shall be submitted, examined, approved 59
and paid. The commissioner shall dete rmine the amount of 60
bond or deposit and the character thereof which shall 61
accompany bids or contracts. 62
6. The department of natural resources may, without 63
the approval of the commissioner of administration required 64
pursuant to this section, enter into contracts of up to five 65
hundred thousand dollars to abate illegal waste tire sites 66
pursuant to section 260.276 when the director of the 67
department determines that urgent action is needed to 68
protect public health, safety, natural resources or the 69
environment. The department shall follow bidding procedures 70
pursuant to this section and may promulgate rules necessary 71
to establish such procedures. Any rule or portion of a 72
rule, as that term is defined in section 536.010, that is 73
created under the authority delegated in this section shall 74
become effective only if it complies with and is subject to 75
all of the provisions of chapter 536 and, if applicable, 76
section 536.028. This section and chapter 536 are 77
nonseverable and if any of the powers ve sted with the 78 SB 362 7
general assembly pursuant to chapter 536 to review, to delay 79
the effective date or to disapprove and annul a rule are 80
subsequently held unconstitutional, then the grant of 81
rulemaking authority and any rule proposed or adopted after 82
August 28, 1999, shall be invalid and void. 83
7. The commissioner of administration and other 84
agencies to which the state purchasing law applies shall not 85
contract for goods or services with a vendor if the vendor 86
or an affiliate of the vendor makes sale s at retail of 87
tangible personal property or for the purpose of storage, 88
use, or consumption in this state but fails to collect and 89
properly pay the tax as provided in chapter 144. For the 90
purposes of this section, "affiliate of the vendor" shall 91
mean any person or entity that is controlled by or is under 92
common control with the vendor, whether through stock 93
ownership or otherwise. 94
8. The commissioner of administration may hold reverse 95
auctions to procure merchandise, supplies, raw materials, or 96
finished goods if price is the primary factor in evaluating 97
bids, excluding items in section 34.047. The office of 98
administration shall promulgate rules regarding the handling 99
of the reverse auction process. 100
9. Any rule or portion of a rule, as that term is 101
defined in section 536.010, that is created under the 102
authority delegated in this section shall become effective 103
only if it complies with and is subject to all of the 104
provisions of chapter 536 and, if applicable, section 105
536.028. This section and chapter 536 are nonseverable and 106
if any of the powers vested with the general assembly 107
pursuant to chapter 536 to review, to delay the effective 108
date, or to disapprove and annul a rule are subsequently 109
held unconstitutional, then the gran t of rulemaking 110 SB 362 8
authority and any rule proposed or adopted after August 28, 111
2019, shall be invalid and void. 112
34.042. 1. When the commissioner of administration 1
determines that the use of competitive bidding is either not 2
practicable or not advantageous to the state, supplies may 3
be procured by competitive proposals. The commissioner 4
shall state the reasons for such determination, and a report 5
containing those reasons shall be maintained with the 6
vouchers or files pertaining to such purchases. All 7
purchases in excess of ten thousand dollars to be made under 8
this section shall be based on competitive proposals. 9
2. On any purchase where the estimated expenditure 10
shall be one hundred thousand dollars or over, the 11
commissioner of administration shall: 12
(1) Advertise for proposals [in at least two daily 13
newspapers of general circulation in such places as are most 14
likely to reach prospective offerors and may advertise in at 15
least two weekly minority newspapers and may provide such 16
information] through an electronic medium available to the 17
general public at least five days before proposals for such 18
purchases are to be opened. Other methods of advertisement, 19
however, may be adopted by the commissioner of 20
administration when such other methods are deemed more 21
advantageous for the supplies to be purchased; 22
(2) Post notice of the proposed purchase; and 23
(3) Solicit proposals by mail or other reasonable 24
method generally available to the public from prospect ive 25
offerors. 26
All proposals for such supplies shall be mailed or delivered 27
to the office of the commissioner of administration so as to 28
reach such office before the time set for opening 29 SB 362 9
proposals. Proposals shall be opened in a manner to avoid 30
disclosure of contents to competing offerors during the 31
process of negotiation. 32
3. The contract shall be let to the lowest and best 33
offeror as determined by the evaluation criteria established 34
in the request for proposal and any subsequent negotiations 35
conducted pursuant to this subsection. In determining the 36
lowest and best offeror, as provided in the request for 37
proposals and under rules promulgated by the commissioner of 38
administration, negotiations may be conducted with 39
responsible offerors who submit proposals selected by the 40
commissioner of administration on the basis of reasonable 41
criteria for the purpose of clarifying and assuring full 42
understanding of and responsiveness to the solicitation 43
requirements. Those offerors shall be accorded fair and 44
equal treatment with respect to any opportunity for 45
negotiation and subsequent revision of proposals; however, a 46
request for proposal may set forth the manner for 47
determining which offerors are eligible for negotiation, 48
including, but not li mited to, the use of shortlisting. 49
Revisions may be permitted after submission and before award 50
for the purpose of obtaining best and final offers. In 51
conducting negotiations there shall be no disclosure of any 52
information derived from proposals subm itted by competing 53
offerors. The commissioner of administration shall have the 54
right to reject any or all proposals and advertise for new 55
proposals or purchase the required supplies on the open 56
market if they can be so purchased at a better price. 57
4. The commissioner shall make available, upon 58
request, to any members of the general assembly, information 59
pertaining to competitive proposals, including the names of 60 SB 362 10
bidders and the amount of each bidder's offering for each 61
contract. 62
34.044. 1. The commissioner of administration may 1
waive the requirement of competitive bids or proposals for 2
supplies when the commissioner has determined in writing 3
that there is only a single feasible source for the 4
supplies. Immediately upon discovering that other feasible 5
sources exist, the commissioner shall rescind the waiver and 6
proceed to procure the supplies through the competitive 7
processes as described in this chapter. A single feasible 8
source exists when: 9
(1) Supplies are proprietary and only available from 10
the manufacturer or a single distributor; or 11
(2) Based on past procurement experience, it is 12
determined that only one distributor services the region in 13
which the supplies are needed; or 14
(3) Supplies are available at a discount from a single 15
distributor for a limited period of time. 16
2. On any single feasible source purchase where the 17
estimated expenditure shall be ten thousand dollars or over, 18
the commissioner of administration shall post notice o f the 19
proposed purchase. Where the estimated expenditure is one 20
hundred thousand dollars or over, the commissioner of 21
administration shall also advertise the commissioner's 22
intent to make such purchase [in at least two daily 23
newspapers of general cir culation in such places as are most 24
likely to reach prospective bidders or offerors and may 25
provide such information ] through an electronic medium 26
available to the general public at least five days before 27
the contract is to be let. Other methods of advertisement, 28
however, may be adopted by the commissioner of 29
administration when such other methods are deemed more 30 SB 362 11
advantageous for the supplies to be purchased. The 31
requirement for advertising may be waived, if not feasible, 32
due to the supplies bein g available at a discount for only a 33
limited period of time. 34