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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
SENATE BILL 334 By: Green
AS INTRODUCED
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. 20 22 (61 O.S. Supp.
2024, Section 103), which relates to public
construction contracts; modifying price threshold for
certain construction contract negotiations with
qualified contractor; providing an effective date;
and declaring an emergency .
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. 2024,
Section 103), is amended to read as follows:
Section 103. A. Unless otherwise provided by law, all public
construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or construction 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 solicita tion for sealed bids, in
accordance with the provisions of the Public Competitive Bidding Act
of 1974. No work shall be commenced 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 awarding
public construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or construction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($ 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 price if the awarding public agency determines that
there is an economic benefit to the local 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 with an established policy
adopted by the governing body of the awarding 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 contract. The bid specifications 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 maintains a bona
fide establishment for transacting such 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 regulation.
C. Except as provided in subsection E of this section, other
construction contracts for th e purpose of making any public
improvements or constructing any public buildin g or making repairs
to the same for One Hundred Thousand Dollars ($100,000.00) or less
shall be let and awarded to the lowest responsible bidder by receipt
of written bids or awa rded 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 subsection E of this section, other
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 policies 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 contracts for less
than Twenty-five Thousand Dollars ($25,000.00) may be negotiated
with a qualified contracto r. Construction contracts equal to or
greater than Fifty Thousand Dollars ($5 0,000.00) 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 agency.
F. The Construction and Properties Division of the Office of
Management and Enterprise Services may award contracts using best
value competitive proposals. As used in this s ubsection, “best
value” means an optional contract award system which can evaluate
and rank submitted competitive performance proposals 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 Thousand Dollars
($100,000.00) or a construction management trade contract or
subcontract exceeding Fifty Thousand Dollars ($50,000.00) to any
contractor affiliated with a purchasing cooperative 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, open competitive bidding after
solicitation for sealed bids. A public agency shall not let or
award a public construction contract exceeding Ten Thousand Dollars
($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
contractor affiliated with a purchasing cooperative unless the
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purchasing cooperative and the contractor have complied with a ll of
the provisions of the Public Competitive Bidding Act of 1974,
including submission of a written bid upon notice of competitive
bidding.
2. A purchasing cooperative and its affiliated contractors
shall not be allowed to bid on any public construction contract
exceeding One Hundred Thousand Dollars ($100,000.00) or any
construction management trade contract or subcontract exceeding
Fifty Thousand Dollars ($50,000.00) unless the purchasing
cooperative and its affiliated contractors have complied with al l of
the provisions of the Public Competitive Bidding 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 to bid on any publi c
construction contract exceeding Five Thousand Dollars ($5,000.00)
unless the purchasing cooperative and its affiliated contractors
have complied with all of the provisions of the Public Competitive
Bidding Act of 1974, including submission of a written b id upon
notice of open competitive bidding.
3. Local governmental units, or local governmental units
cooperating under the terms of any interlocal cooperative agreement
authorized by state law, may create a purchasing cooperative or
contract with a purcha sing cooperative to provide leverage in
achieving best value or the best terms in contracts. To encourage
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intergovernmental collaboration, any purchasing cooperative or
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 of bids. If the
purchasing cooperative or interlocal 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 notice shall be published in
a legal newspaper located within the county or group of counties.
Any local governmental unit or public trust that enters into
membership or contracts with a purchasing cooperative or interlocal
cooperative entity may enter into purchases or contracts under the
terms negotiated by the purchasing cooperative or interlocal
cooperative entity. If the purchasing cooperative or interlo cal
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 effe ctive July 1, 2025.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-1-174 RD 1/2/2025 3:39:57 PM