OK
Oklahoma Senate Bill SB334

Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB334 Compare Versions

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5353 STATE OF OKLAHOMA
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5555 1st Session of the 60th Legislature (2025)
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5757 SENATE BILL 334 By: Green
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6363 AS INTRODUCED
6464
6565 An Act relating to public buildings and public works;
6666 amending 61 O.S. 2021, Section 103, as amended by
6767 Section 23, Chapter 228, O.S.L. 20 22 (61 O.S. Supp.
6868 2024, Section 103), which relates to public
6969 construction contracts; modifying price threshold for
7070 certain construction contract negotiations with
7171 qualified contractor; providing an effective date;
7272 and declaring an emergency .
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7777 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
7878 SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
7979 amended by Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp. 2024,
8080 Section 103), is amended to read as follows:
8181 Section 103. A. Unless otherwise provided by law, all public
8282 construction contracts exceeding One Hundred Thousand Dollars
8383 ($100,000.00) or construction management trade contracts or
8484 subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be
8585 let and awarded to the lowest responsible bidder, by open
8686 competitive bidding after solicita tion for sealed bids, in
8787 accordance with the provisions of the Public Competitive Bidding Act
8888 of 1974. No work shall be commenced until a written contract is
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140140 executed and all required bonds and insurance have been provided by
141141 the contractor to the awarding public agency.
142142 B. Notwithstanding subsection A of this section, in awarding
143143 public construction contracts exceeding One Hundred Thousand Dollars
144144 ($100,000.00) or construction management trade contracts or
145145 subcontracts exceeding Fifty Thousand Dollars ($ 50,000.00),
146146 counties, cities, other local units of government and any public
147147 trust with a county or a municipality as its sole beneficiary may
148148 provide for a local bid preference of not more than five percent
149149 (5%) of the bid price if the awarding public agency determines that
150150 there is an economic benefit to the local area or economy.
151151 Provided, however, the local bidder or contractor must agree to
152152 perform the contract for the same price and terms as the bid
153153 proposed by the nonlocal bidder or contractor. Any bid preference
154154 granted hereunder must be in accordance with an established policy
155155 adopted by the governing body of the awarding public agency to
156156 clearly demonstrate the economic benefit to the local area or
157157 economy. Provided, further, no local bid preference shall be
158158 granted unless the local bidding entity is the second lowest
159159 qualified bid on the contract. The bid specifications shall clearly
160160 state that the bid is subject to a local bidder preference law. For
161161 purposes of this section, “local bid” means the bidding person is
162162 authorized to transact business in this state and maintains a bona
163163 fide establishment for transacting such business within this state.
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215215 This provision does not apply to any construction contract for which
216216 federal funds are available for expenditure when its provisions may
217217 be in conflict with federal law or regulation.
218218 C. Except as provided in subsection E of this section, other
219219 construction contracts for th e purpose of making any public
220220 improvements or constructing any public buildin g or making repairs
221221 to the same for One Hundred Thousand Dollars ($100,000.00) or less
222222 shall be let and awarded to the lowest responsible bidder by receipt
223223 of written bids or awa rded on the basis of competitive quotes to the
224224 lowest responsible qualified contractor. Work may be commenced in
225225 accordance with the purchasing policies of the public agency.
226226 D. Except as provided in subsection E of this section, other
227227 construction contracts for less than Ten Thousand Dollars
228228 ($10,000.00) Twenty-five Thousand Dollars ($25,000.00) may be
229229 negotiated with a qualified contractor. Work may be commenced in
230230 accordance with the purchasing policies of the public agency.
231231 E. The provisions of this subsection shall apply to public
232232 construction for minor maintenance or minor repair work to public
233233 school district property. Other construction contracts for less
234234 than Twenty-five Thousand Dollars ($25,000.00) may be negotiated
235235 with a qualified contracto r. Construction contracts equal to or
236236 greater than Fifty Thousand Dollars ($5 0,000.00) but less than One
237237 Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
238238 the lowest responsible bidder by receipt of written bids. No work
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290290 shall be commenced on any construction contract until a written
291291 contract is executed and proof of insurance has been provided by the
292292 contractor to the awarding public agency.
293293 F. The Construction and Properties Division of the Office of
294294 Management and Enterprise Services may award contracts using best
295295 value competitive proposals. As used in this s ubsection, “best
296296 value” means an optional contract award system which can evaluate
297297 and rank submitted competitive performance proposals to identify the
298298 proposal with the greatest value to the state. The Office of
299299 Management and Enterprise Services, pursuant to the Administrative
300300 Procedures Act, shall promulgate rules necessary to implement the
301301 provisions of this subsection.
302302 G. 1. A public agency shall not let or award a public
303303 construction contract exceeding One Hundred Thousand Dollars
304304 ($100,000.00) or a construction management trade contract or
305305 subcontract exceeding Fifty Thousand Dollars ($50,000.00) to any
306306 contractor affiliated with a purchasing cooperative unless the
307307 purchasing cooperative and the contractor have complied with all of
308308 the provisions of the Public Competitive Bidding Act of 1974,
309309 including, but not limited to, open competitive bidding after
310310 solicitation for sealed bids. A public agency shall not let or
311311 award a public construction contract exceeding Ten Thousand Dollars
312312 ($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
313313 contractor affiliated with a purchasing cooperative unless the
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365365 purchasing cooperative and the contractor have complied with a ll of
366366 the provisions of the Public Competitive Bidding Act of 1974,
367367 including submission of a written bid upon notice of competitive
368368 bidding.
369369 2. A purchasing cooperative and its affiliated contractors
370370 shall not be allowed to bid on any public construction contract
371371 exceeding One Hundred Thousand Dollars ($100,000.00) or any
372372 construction management trade contract or subcontract exceeding
373373 Fifty Thousand Dollars ($50,000.00) unless the purchasing
374374 cooperative and its affiliated contractors have complied with al l of
375375 the provisions of the Public Competitive Bidding Act of 1974,
376376 including, but not limited to, open competitive bidding after
377377 solicitation for sealed bids. A purchasing cooperative and its
378378 affiliated contractors shall not be allowed to bid on any publi c
379379 construction contract exceeding Five Thousand Dollars ($5,000.00)
380380 unless the purchasing cooperative and its affiliated contractors
381381 have complied with all of the provisions of the Public Competitive
382382 Bidding Act of 1974, including submission of a written b id upon
383383 notice of open competitive bidding.
384384 3. Local governmental units, or local governmental units
385385 cooperating under the terms of any interlocal cooperative agreement
386386 authorized by state law, may create a purchasing cooperative or
387387 contract with a purcha sing cooperative to provide leverage in
388388 achieving best value or the best terms in contracts. To encourage
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440440 intergovernmental collaboration, any purchasing cooperative or
441441 interlocal cooperative entity may utilize any single legal newspaper
442442 of this state to serve as sufficient compliance for bid notice
443443 requirements of competitive bidding or solicitation of bids. If the
444444 purchasing cooperative or interlocal cooperative entity is engaging
445445 in a project exclusive to a county or group of counties of this
446446 state, and not open to all governmental units or public trusts that
447447 wish to participate statewide, the bid notice shall be published in
448448 a legal newspaper located within the county or group of counties.
449449 Any local governmental unit or public trust that enters into
450450 membership or contracts with a purchasing cooperative or interlocal
451451 cooperative entity may enter into purchases or contracts under the
452452 terms negotiated by the purchasing cooperative or interlocal
453453 cooperative entity. If the purchasing cooperative or interlo cal
454454 cooperative entity complies with the requirements of this section of
455455 law, all local governmental units shall be deemed in compliance with
456456 the requirements set forth for bid notices and publication.
457457 SECTION 2. This act shall become effe ctive July 1, 2025.
458458 SECTION 3. It being immediately necessary for the preservation
459459 of the public peace, health or safety, an emergency is hereby
460460 declared to exist, by reason whereof this act shall take effect and
461461 be in full force from and after its passage and approval.
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463463 60-1-174 RD 1/2/2025 3:39:57 PM