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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 58th Legislature (2021)
56	56
57	57	SENATE BILL 896 By: Leewright
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to the Oklahoma Central Pu rchasing
66	66	Act; amending 74 O.S. 2011, Section 85.7, as last
67	67	amended by Section 10, Chapter 98 , O.S.L. 2020 (74
68	68	O.S. Supp. 2020, Section 85.7), which relates to
69	69	competitive bid procedures; exempting certain
70	70	acquisitions or contracts by state agencies from
71	71	competitive bidding req uirements; and providing an
72	72	effective date.
73	73
74	74
75	75
76	76
77	77	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
78	78	SECTION 1. AMENDATORY 74 O.S. 2011, Section 85.7, as
79	79	last amended by Section 10, Chapter 98, O.S.L. 20 20 (74 O.S. Supp.
80	80	2020, Section 85.7), is amended to read as follows:
81	81	Section 85.7. A. 1. Except as otherwise provided by the
82	82	Oklahoma Central Purchasing Act, or associated rules:
83	83	a. every state agency shall initiate all acquisitions by
84	84	the submission of a requisition to th e Purchasing
85	85	Division, and
86	86	b. no state agency shall make an acquisit ion for an
87	87	amount exceeding Fifty Thousand Dollars ($50,000.00)
88	88	or the limit determined by the State Purchasing
89	89
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140	140	Director pursuant to rules authorized by Section 85.5
141	141	of this title, not to exceed Two Hundred Fifty
142	142	Thousand Dollars ($250,000.00), without sub mission of
143	143	a requisition to the Purchasing Division for issuance
144	144	of a solicitation for the acquisition on behalf of the
145	145	agency. Any exemption from competitive bid
146	146	requirements of the Okla homa Central Purchasing Act
147	147	further exempts the acquisition from req uisition
148	148	requirements of the act.
149	149	2. The State Purchasing Director may request additional
150	150	information necessary to adequately review a requisition to ensure
151	151	compliance with this act and a ssociated rules. If the State
152	152	Purchasing Director determines that a n acquisition is not necessary,
153	153	excessive or not justified, the State Purchasing Director shall deny
154	154	the requisition.
155	155	3. The provisions of this act shall not preclude a state agency
156	156	from:
157	157	a. accepting gifts or donations in any manner authorized
158	158	by law, or
159	159	b. making an acquisition for itself without submitting a
160	160	requisition under this section when authorized in
161	161	writing by the State Purchasing Director.
162	162	4. Any acquisition a state agency mak es shall be made pursuant
163	163	to this act and associated rules. No agen cy shall use split
164	164
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215	215	purchasing for the purpose of evading the requirement of competitive
216	216	bidding or other requirement of this act or associated rules.
217	217	Violation of this provision shall be cause for discipline of a state
218	218	employee up to and including termina tion.
219	219	5. The State Purchasing Director may waive or increase the
220	220	limit authorized for a state agency acquisition made pursuant to its
221	221	own competitive procedures. To perfect an otherwise valid
222	222	acquisition inadvertently exceeding the limit due to administr ative
223	223	error by a state agency or unforeseeable circumstances, the state
224	224	agency shall request a limited waiver or increase upon the discovery
225	225	of the error or circumstan ce to the State Purch asing Director. The
226	226	State Purchasing Director shall report requests for waivers or
227	227	increases, stating the amount and whether the request was granted or
228	228	denied, upon request by the Governor, President Pro Tempore of the
229	229	Senate or Speaker of the House of Re presentatives.
230	230	6. Competitive bidding requirements of this section shall not
231	231	be required for the following:
232	232	a. contracts for master custodian banks or trust
233	233	companies, investment managers, investment
234	234	consultants, and actuaries for the state retirement
235	235	systems, and Oklahoma Employees Insurance and Benefits
236	236	Board, pension fund management consultants of the
237	237	Oklahoma State Pension Commission and the
238	238	Commissioners of the Land Office, financial
239	239
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290	290	institutions to act as depositories and manager s of
291	291	the Oklahoma College Savings Plan accounts and other
292	292	professional services as define d in Section 803 of
293	293	Title 18 of the Oklahoma Statutes. When requested by
294	294	the Oklahoma Employees Insurance and Benefits Board or
295	295	the governing board of a state retirem ent system
296	296	authorized to hire investment managers, the Purchasing
297	297	Division shall assist i n the process of selecting
298	298	investment managers,
299	299	b. a state agency making such an acquisition shall notify
300	300	the State Purchasing Director within fifteen (15) days
301	301	following completion of the acquisition. A list of
302	302	the exempt contracts shall be provided, upo n request,
303	303	to a member of the Appropriations and Budget Committee
304	304	of the House of Representatives or Appropriations
305	305	Committee of the Senate .,
306	306	c. purchases of postage by state agencies made pursuant
307	307	to Sections 90.1 through 90.4 of this title,
308	308	d. a sole source acquisition made in compliance with
309	309	Section 85.45j of this title,
310	310	e. an acquisition for design, development, communication
311	311	or implementation of the state employees flexible
312	312	benefits plan; provided, procedures used for the
313	313
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364	364	acquisition are consistent wit h competitive bid
365	365	requirements of this act and associated rules,
366	366	f. any acquisition of a service which the Office of
367	367	Management and Enterprise Services has approved as
368	368	qualifying for a fixe d and uniform rate, subject to
369	369	the following:
370	370	(1) the Purchasing Division shall establish criteria
371	371	and guidelines for those services which may
372	372	qualify for a fixed and uniform rate,
373	373	(2) fixed and uniform rate contracts authorized by
374	374	this subsection shall be limited to contracts for
375	375	those services furnished to persons direc tly
376	376	benefiting from such services and shall not be
377	377	used by a state agency to employ consultants or
378	378	to make other acquisitions,
379	379	(3) any state agency desiring to have a s ervice
380	380	qualified for a fixed and uniform rate shall make
381	381	a request for service qualifica tion to the State
382	382	Purchasing Director and submit documentation to
383	383	support the request. The State Purchasing
384	384	Director shall approve or deny the request. If
385	385	approved, the state agency shall establish a
386	386	fixed and uniform rate for the service. No
387	387	contracts shall be entered into by the state
388	388
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439	439	agency until the rate has been approved by the
440	440	state agency in a public hearing. The proposed
441	441	rate shall be clearly and separately i dentified
442	442	in the agenda of the state agency for the hearing
443	443	and shall be openly and sepa rately discussed
444	444	during such hearing. The state agency shall
445	445	notify the State Purchasing Director of its
446	446	pending consideration of the proposed rate at
447	447	least thirty (30) days before the sta te agency is
448	448	to meet on the proposed rate and deliver a copy
449	449	of the agenda items concerning the proposed rate
450	450	with supporting documentation. The State
451	451	Purchasing Director shall communicate any
452	452	observation, reservation, criticism or
453	453	recommendation to the a gency, either in person at
454	454	the time of the hearing or in writing de livered
455	455	to the state agency before or at the time of the
456	456	hearing. The State Purchasing Director shall
457	457	specifically note in the written communications
458	458	whether the Director has determined th e rate to
459	459	be excessive. Any written communication
460	460	presented in the absence of the State Purchasing
461	461	Director shall be presented orally during the
462	462	public hearing. Whether made in person or in
463	463
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514	514	writing, any comment made by the State Purc hasing
515	515	Director shall be made a part of the minutes of
516	516	the hearing in full,
517	517	(4) within two (2) weeks after the convening of the
518	518	Legislature, the administrative officer of the
519	519	state agency shall furnish to the Speaker of the
520	520	House of Representatives, the Pr esident Pro
521	521	Tempore of the Senate and to any member of the
522	522	House or Senate, if requested by the member, a
523	523	complete list of all of the types of services
524	524	paid for by uniform fixed rates, the amount of
525	525	the rate last approved by the agency for the
526	526	service and the number of contrac ts then in
527	527	existence for each type of service. Any rate
528	528	which has been determined to be excessive by the
529	529	State Purchasing Director shall be specifically
530	530	identified in the list by the state agency, and
531	531	(5) at any time, the State Purcha sing Director may
532	532	review, suspend or terminate a contract entered
533	533	into pursuant to the p rovisions of this paragraph
534	534	if the Director determines the contract is not
535	535	necessary, is excessive or is not justified,
536	536	g. an acquisition for a client of the State Depa rtment of
537	537	Rehabilitation Services; provided, the agency develops
538	538
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589	589	and maintains standards for such an acquisition. The
590	590	agency may elect to utilize the Purchasing Division
591	591	for an acquisition. The standards shall foster
592	592	economy, provide a short response tim e, include
593	593	appropriate safeguards, require written records,
594	594	ensure appropriate competiti on for economical and
595	595	efficient purchasing and shall be approved by the
596	596	State Purchasing Director,
597	597	h. structured settlement agreements entered into by the
598	598	Attorney General’s office in order to settle any
599	599	lawsuit involving the state, the Legislature, any
600	600	state agency or any employee or official of the state
601	601	if:
602	602	(1) prior to entering into any contract for the
603	603	services of an entity to administer a structured
604	604	settlement agreement, the Attorney G eneral
605	605	receives proposals from at least three entities
606	606	engaged in providing such services, and
607	607	(2) the selection of a particular entity is made on
608	608	the basis of the response to the request which is
609	609	the most economical and provides the m ost
610	610	competent service which furthers the best
611	611	interests of the state,
612	612
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663	663	i. an acquisition by a state agency pursuant to a
664	664	contract the State Purchasing Director enters into on
665	665	behalf of a state agency or awards and designates for
666	666	use by state agencies,
667	667	j. an acquisition by the C ommittee for Sustaining
668	668	Oklahoma’s Energy Resources pursuant to a c ontract
669	669	with a local supplier for the purpose of holding a
670	670	special event or an exhibition throughout the state ,
671	671	and
672	672	k. an acquisition or contract by a state agency for
673	673	information technology staff augmentation services or
674	674	technology consulting .
675	675	7. Notwithstanding any other provision of law, an acquisition
676	676	may be exempted from requirements of this section by the State
677	677	Purchasing Director when in the State Purchasing Dire ctor’s
678	678	discretion unusual, time -sensitive or unique circumstances exist
679	679	which make such exemption in the best and immediate interest of the
680	680	state. As used in this subsection, “State Purchasing Director ”
681	681	shall not mean a designee. Any such acquisitions sh all be described
682	682	in detail and public ly posted as a data feed. The description shall
683	683	include the name of the supplier, cost of the acquisition, reason
684	684	for exemption and, as applicable, detailed comparison of the
685	685	acquisition with comparable items, any iden tified cost savings
686	686	resulting from the acquisition and a description of benefits to the
687	687
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738	738	state. The State Purchasing Director shall take no action under t he
739	739	provisions of this subsection prior to such public posting.
740	740	B. Competitively bid acquisitions shal l be awarded to the
741	741	lowest and best, or best value, bidder or bidders.
742	742	C. Bids for an amount requiring submission of requisitions to
743	743	the Purchasing Divis ion shall be evaluated by the Purchasing
744	744	Division and the state agency receiving the acquisition. At a
745	745	minimum, cost and technical experti se shall be considered in
746	746	determining the lowest an d best, or best value, bid. Further, the
747	747	state agency shall prese nt its evaluation and recommendation to the
748	748	State Purchasing Director. A documented evaluation report
749	749	containing the evaluations of the Pu rchasing Division or the state
750	750	agency shall be comp leted prior to the contract award and such
751	751	report shall be a matte r of public record.
752	752	D. Except as otherwise specifically provided by law, the
753	753	acquisition of food item s or food products by a state agency from a
754	754	public trust created pursuant to Sections 17 6 through 180.56 of
755	755	Title 60 of the Oklahoma Statutes shall comply with competitive
756	756	bidding requirements of this section.
757	757	E. Cooperative contracts shall not be utilize d unless the
758	758	purchasing cooperative a nd its affiliated suppliers have complied
759	759	with competitive bid requirements of this act and associated rules.
760	760	F. Notwithstanding any provision of this act, in all cases
761	761	where federal granted funds are involved, the fed eral laws, rules
762	762
763	763
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813	813	and regulations ther eto shall govern to the extent necessary to
814	814	inure to the benefit of such funds to this state.
815	815	G. A court order requi ring an acquisition by a state agency,
816	816	whether or not such state agency is subject to this act, shall not
817	817	invalidate competitive bidding pr ocedures required by this section
818	818	if such court order does not specify a specific supplier. Any such
819	819	acquisition shall comply with competitive bid procedures.
820	820	SECTION 2. This act shall become effective November 1, 2021.
821	821
822	822	58-1-917 QD 1/21/2021 4:32:53 PM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB896 Compare Versions