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ENGROSSED HOUSE
BILL NO. 3930 By: Deck of the House
and
Green of the Senate
An Act relating to public buildings and public works;
amending 61 O.S. 2021, Section 1 03, as amended by
Section 23, Chapter 228 , O.S.L. 2022 (61 O.S. Supp.
2023, Section 103), which relates to public
contracts; modifying provisions related to qualified
contractors; providing for codifica tion; providing an
effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOM A:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
amended by Section 23, Chapter 228, O.S.L. 2022 ( 61 O.S. Supp. 2023,
Section 103), is amended to read a s follows:
Section 103. A. Unless otherwise provided by law, all publi c
construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or construction management trade contracts or
subcontracts exceeding Fifty Th ousand Dollars ($50,000.00) s hall be
let and awarded to the lowest responsible bidder, by open
competitive bidding after solicitation for sealed bids, in
accordance with the provisions of the Public Compet itive Bidding Act
of 1974. No work shall be commen ced until a written contract is
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executed and all required bonds and insurance have been provided by
the contractor to the awarding public agency.
B. Notwithstanding subsection A of this section, in awardi ng
public construction con tracts exceeding One Hund red Thousand Dollars
($100,000.00) or construction management trade contracts or
subcontracts exceedi ng Fifty Thousand Dollars ($50,000.00),
counties, cities, other local units of government and any public
trust with a county or a municipality as its sole beneficiary may
provide for a local bid preference of not more than five percent
(5%) of the bid pric e if the awarding public agency determines that
there is an economic benefit to the local area or econom y.
Provided, however, the local bidder or contract or must agree to
perform the contract for the same price and terms as the bid
proposed by the nonloca l bidder or contractor. Any bid preference
granted hereunder must be in accordance with an established policy
adopted by the governing body of the awardin g public agency to
clearly demonstrate the economic benefit to the local area or
economy. Provided, further, no local bid preference shall be
granted unless the local bidding entity is the second lowest
qualified bid on the contra ct. The bid specificatio ns shall clearly
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 this state and mai ntains a bona
fide establishment for transacting su ch business within this state .
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This provision does not apply to any construction contract for which
federal funds are available for expenditure when its provisions may
be in conflict with federal law or r egulation.
C. Except as provided in subsection E o f this section, other
construction contracts for the purpose of making any public
improvements or constructing any public building or making repairs
to the same for One Hundred Thousand Dollars ($100,000.0 0) or less
shall be let and awarded to the lowest r esponsible bidder by receipt
of written bids or awarded on the basis of competitive quotes to the
lowest responsible qualified contractor. Work may be commenced in
accordance with the purchasing policies of the public agency.
D. Except as provided in sub section E of this section, ot her
construction contracts for less than Ten Thousand Dollars
($10,000.00) Twenty-five Thousand Dollars ($25,000.00) may be
negotiated with a qualified contractor. Work may be commenced in
accordance with the purchasing polici es of the public agency.
E. The provisions of this subsection shall apply to public
construction for minor maintenance or minor repair work to public
school district property. Other construction contract s for less
than Twenty-five Thousand Dollars ($25,0 00.00) 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
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shall be commenced on any construction contract until a written
contract is executed and proof of insurance has been provided by the
contractor to the awarding public age ncy.
F. The Construction and Properties Division o f the Office of
Management and Enterprise Services may award contracts using best
value competitive proposals. As used in this subsection, "best
value" means an optional contract award system which can ev aluate
and rank submitted competitive performance p roposals to identify the
proposal with the greatest value to the state. The Office of
Management and Enterprise Services, pursuant to the Administrative
Procedures Act, shall promulgate rules necessary to implement the
provisions of this subsection.
G. 1. A public agency shall not let or award a public
construction contract exceeding One Hundred Thousa nd Dollars
($100,000.00) or a construction management trade contract or
subcontract exceeding Fifty Thou sand Dollars ($50,000.00) to any
contractor affiliated with a purchasing coopera tive unless the
purchasing cooperative and the contractor have complied with all of
the provisions of the Public Competitive Bidding Act of 1974,
including but not limited to o pen competitive bidding af ter
solicitation for seal ed bids. A public agency sha ll not let or
award a public construction contract exceeding Ten Thousan d Dollars
($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
contractor affiliated wit h a purchasing cooperative unless the
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purchasing cooperative and the contractor have complied with all of
the provisions of the Public Competitive Biddi ng Act of 1974,
including submission of a written bid upon notice of competitive
bidding.
2. A purchasing cooperative and its aff iliated contractors
shall not be allowed to bid on any public construction contract
exceeding One Hundred Thousand Dollars ($1 00,000.00) or any
construction management trade contract or subcontract exceeding
Fifty Thousand Dollars ($50,000.00) unless the p urchasing
cooperative and its affiliated contractors h ave complied with all of
the provisions of the Public Competitive Biddin g Act of 1974,
including but not limited to open competitive bidding after
solicitation for sealed bids. A purchasing cooperative and its
affiliated contractors shall not be allowed t o bid on any public
construction contract exceeding Five Thousand Dollar s ($5,000.00)
unless the purchasing cooperative and its affiliated contractors
have complied with all of the provisions of the Pub lic Competitive
Bidding Act of 1974, including submiss ion of a written bid upon
notice of open competitive bidding.
3. Local governmental units, or local governmental units
cooperating under the terms of any interlocal cooperativ e agreement
authorized by state law, may create a p urchasing cooperative or
contract with a purchasing cooperative to provide leverage in
achieving best value or the best terms in contracts. To encourage
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intergovernmental collaboration, any purchasing coo perative or
interlocal cooperative entity may utili ze any single legal newspaper
of this state to serve as sufficient compliance for bid notice
requirements of competitive bidding or solicitation of bids. If the
purchasing cooperative or interlocal cooper ative 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 notice shall be published in
a legal newspaper located withi n the county or group of c ounties.
Any local governmental unit or public trust that enters into
membership or contracts with a purchasing cooperative o r interlocal
cooperative entity may enter into purchases or contracts under the
terms negotiated by the purchasing cooperative or interlocal
cooperative entity. If the purchasing coop erative or interlocal
cooperative entity complies with the requirements of this section of
law, all local governmental units shall be deemed in compliance with
the requirements set forth for bid notices and publication.
SECTION 2. This act shall become effective July 1, 2024.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is her eby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the House of R epresentatives the 6th day of March, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the ____ day of __________, 2024.
Presiding Officer of the Senate