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SENATE FLOOR VERSION
February 9, 2023
SENATE BILL NO. 508 By: Hall
An Act relating to public buildings and public works;
amending 61 O.S. 2021, Section 103, as amended by
Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp.
2022, Section 103), which relates to competitive
bidding; designating exemption ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
amended by Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp. 2022,
Section 103), is amended to read as follows:
Section 103. A. Unless otherwise prov ided by law, all public
construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or constru ction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be
let and awarded to the lowest responsible bidder, by open
competitive bidding after solicitation for sealed bids, in
accordance with the provisions of t he Public Competitive Bidding Act
of 1974. No work shall be commenced until a wr itten contract is
executed and all required bonds and insurance h ave been provided by
the contractor to the awarding public agency.
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B. Notwithstanding subsection A of this s ection, in awarding
public construction contracts exceed ing One Hundred Thousand D ollars
($100,000.00) or construction management trade contracts o r
subcontracts exceeding Fifty Thousand Dollars ($50,000.00),
counties, cities, other local units of governme nt and any public
trust with a county or a municipality as its sole beneficiary ma y
provide for a local bid preference of not more than five percen t
(5%) of the bid price if the awarding public agency determines that
there is an economic benefit to the loc al area or economy.
Provided, however, the local bidder or contractor must agree to
perform the contract for the same price and terms as the bid
proposed by the nonlocal bidder or contractor. Any bid preference
granted hereunder must be in accordance wit h an established policy
adopted by the governing body of the awarding public agenc y to
clearly demonstrate the economic benefit to the local area o r
economy. Provided, further, no local bid preference shall be
granted unless the local bidding entity is th e second lowest
qualified bid on the contract. The bid specifications shall clear ly
state that the bid is subject to a local bidder preference law . For
purposes of this section, “local bid” means the bidding person is
authorized to transact business in t his state and maintains a bona
fide establishment for tr ansacting such business wi thin this state.
This provision does not apply to any constructi on contract for which
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federal funds are available for expenditure when its provisions may
be in conflict with federal law or regulation.
C. Except as provided in su bsection E of this section , other
construction contracts for the purpose of making any publ ic
improvements or constructing any public building or making repairs
to the same for One Hundred Thousand D ollars ($100,000.00) or less
shall be let and awarded to the lowest responsible bid der by receipt
of written bids or awarded on the basis of competi tive quotes to the
lowest responsible qualified contractor. Work may be commenced in
accordance with the pu rchasing policies of the public agency.
D. Except as provided in subsection E of t his section, other
construction contracts for less tha n Ten Thousand Dollars
($10,000.00) may be negotiated with a qualified contractor . Work
may be commenced in accordanc e with the purchasing policies of the
public agency.
E. The provisions of this subs ection shall apply to public
construction for minor maintenance o r minor repair work to pu blic
school district property. Other construction contracts for less
than Twenty-five Thousand Dollars ($25,000.00) may be negotiated
with a qualified contractor . Construction contracts equal to or
greater than Fifty Thousand Dollars ($50,000.00) but less than One
Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
the lowest responsible bidder by receipt of written bids. No work
shall be commenced on any construction con tract until a written
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contract is executed a nd proof of insurance has been provided by the
contractor to the awarding public agency.
F. The Construction and Properties Division of the Office of
Management and Enterprise Services may a ward contracts using best
value competitive proposals . As used in this subsection, “best
value” means an optional contract award system which can evaluate
and rank submitted competitive performance proposals to identify the
proposal with the greatest valu e to the state. The Office of
Management and Enterprise Services , pursuant to the Adminis trative
Procedures Act, shall promulgate rules necessary to implement the
provisions of this subsection.
G. 1. A public agency shall not l et or award a public
construction contract exce eding One Hundred Thousand Dollars
($100,000.00) or a construction ma nagement trade contract or
subcontract exceeding Fifty Thousand Dollars ($50,00 0.00) to any
contractor affiliated with a purchasing cooperative unless the
purchasing cooperative and the c ontractor have complied with all of
the provisions of the Public Competitive Bidding Act of 1974,
including but not limited to open competitive bidd ing after
solicitation for sealed bids. A public agency shal l not let or
award a public construction contra ct exceeding Ten Thousand Dollars
($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
contractor affiliated with a purchasing coope rative unless the
purchasing cooperative and the contractor h ave complied with all of
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the provisions of the Public Competitive Bidding Act of 1974,
including submission of a wri tten bid upon notice of competitive
bidding.
2. A purchasing cooperative and its affiliated contractors
shall not be allowed to bid on any public construction contra ct
exceeding One Hundred Thousand Dollars ($100,000.00) or any
construction management tra de contract or subcontract exceeding
Fifty Thousand Dollars ($50,000.00) unless the purchasing
cooperative and its affiliated contractors ha ve complied with all of
the provisions of the P ublic Competitive Bidding Act of 1974,
including but not limited to o pen competitive bidding after
solicitation for sealed bids . A purchasing cooperative and its
affiliated contractors shall not be allowed to bid on any public
construction contract exceed ing Five Thousand Dollars ($5,000.00)
unless the purchasing cooperati ve and its affiliated contractors
have complied with all of the provisions of the Public Competitive
Bidding Act of 1974, including submissi on of a written bid upon
notice of open competi tive bidding.
3. Local governmental units, or local governmental uni ts
cooperating under the terms of any inter local cooperative agreement
authorized by state la w, may create a purchasing cooperative or
contract with a purchasing coop erative to provide le verage in
achieving best value or the best t erms in contracts. To en courage
intergovernmental collaboration, an y purchasing cooperative or
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interlocal cooperative entity may utilize any single legal newspaper
of this state to serve as sufficient compliance for bid notice
requirements of competitive bidding or solicitation o f bids. If the
purchasing cooperative or i nterlocal cooperative entity is engaging
in a project exclusive to a county or group of counties of this
state, and not open to all governmental units or public trusts that
wish to participate statewide, the bid n otice shall be published in
a legal newspaper located within the county or group of counties.
Any local governmental unit or public trust tha t enters into
membership or contracts with a purchasing cooperative or interlocal
cooperative entity may enter int o purchases or contracts under the
terms negotiated by the purchasing cooperative or interloc al
cooperative entity. If the purchasing coopera tive or interlocal
cooperative entity complie s with the requirements of this section of
law, all local governmenta l units shall be deemed in compliance with
the requirements set forth for bid notices and pub lication.
H. The provisions of the Public Competitive Bidding Act of 1974
shall not apply to a monetary donation made to a municipality for a
specific public purpose whic h has been approved by the municipal
government.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
February 9, 2023 - DO PASS