S.B. 313 - *SB313* SENATE BILL NO. 313–SENATOR DALY MARCH 10, 2025 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to state purchasing. (BDR 27-558) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to state purchasing; revising provisions relating to certain contracts for services; revising provisions relating to extensions of contracts for supplies, materials and equipment; and providing other matters properly relating thereto. Legislative Counsel’s Digest: The State Purchasing Act governs the purchasing of services, supplies, 1 materials and equipment by agencies of the Executive Department of the State 2 Government, with certain exceptions. (Chapter 333 of NRS) The Act requires that 3 certain actions be taken before entering into a contract for the purchase of 4 commodities from a sole source. (NRS 333.400) Section 1 of this bill requires the 5 Administrator of the Purchasing Division of the Department of Administration or 6 an agency subject to the Act, as applicable, to take certain actions before entering 7 into a contract for services from a sole source. Section 1 requires the Administrator 8 to submit an annual report to the Interim Finance Committee regarding such 9 contracts. 10 With certain exceptions, the Act authorizes the Administrator to enter into 11 contracts for the furnishing of supplies, materials and equipment for a period of not 12 more than 2 years. Under the Act, the Administrator is authorized to annually 13 extend such contracts in certain circumstances. (NRS 333.280) Section 2 of this bill 14 limits such authority, with certain exceptions, to not more than one extension and 15 prescribes the term of the extension on the basis of the increase in the scope or 16 price of the extension. 17 – 2 – - *SB313* THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 333 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. Before entering into a contract for services from a sole 3 source, the Administrator or a using agency, as applicable, shall: 4 (a) Conduct market research to identify other potential 5 vendors of the services; and 6 (b) Prepare a written report regarding: 7 (1) The efforts made by the Administrator or using agency 8 to identify additional vendors; and 9 (2) The justification for entering into such a contract. 10 2. On or before October 1 of each year, the Administrator 11 shall submit to the Interim Finance Committee a compilation of 12 the reports prepared pursuant to this section during the 13 immediately preceding fiscal year. 14 Sec. 2. NRS 333.280 is hereby amended to read as follows: 15 333.280 1. Except as otherwise provided in this subsection, 16 the Administrator may enter into a contract using a standard form of 17 contract, by solicitation in accordance with the provisions of NRS 18 333.300 or by advertising in accordance with the provisions of NRS 19 333.310, for the furnishing of supplies, materials and equipment for 20 not more than 2 years. If an extended contractual period is necessary 21 to promote the use of a manufacturing process which emphasizes 22 the efficient use of energy or to promote the manufacture of 23 products which use recycled materials, the Administrator may enter 24 into such a contract for not more than 3 years. 25 2. [The] Except as otherwise provided in subsection 3, the 26 original terms of a contract may be extended [annually] only once 27 thereafter if the conditions for such an extension are specified in the 28 original solicitation, and the Administrator determines that an 29 extension is in the best interest of the State. If the scope or price of 30 the extension would constitute an increase in the scope or price of 31 the original contract of: 32 (a) Less than 10 percent, the extension must not exceed 2 33 years; or 34 (b) Ten percent or more but less than 15 percent, the extension 35 must not exceed 1 year. 36 3. If the scope or price of the extension would constitute an 37 increase in the scope or price of the original contract of 15 percent 38 or more, the original contract may not be extended. 39 – 3 – - *SB313* Sec. 3. The provisions of NRS 218D.380 do not apply to any 1 provision of this act which adds or revises a requirement to submit a 2 report to the Legislature. 3 H