S 76 PROCUREMENT CODE CHANGES

Sen Bill Tallman

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 Senate Bill 76 (SB 76) makes changes to procurement code. The bill eliminates the procurement exemptions for Fort Bayard Medical Center. Advertising and marketing are defined. Requirements for chief procurement officer identification and reported are created. The procedures for sole source purchasing and multi-term contracts are established.  

 Senate Bill 76 (SB 76) makes several changes to procurement statutes.

•	Fort Bayard’s exemption from procurement rules for purchasing property, services, and construction.
•	Advertising is defined as the promotion of a product or service through paid media and specifically excludes marketing. Advertising more than $10,000 is subject to the procurement code. 
•	Marketing is defined as the process of identifying public needs or desires and meeting those needs including creation, research, design planning or data mining. Marketing is subject to the procurement code.
•	Agencies and local governments must register chief procurement officers (CPO) on the General Services Division website. State purchasing agent will annually review the list of officers and state agencies and local governments without a CPO or that do not report a CPO will be referred to the state ethics commission and reported to the state auditor.
•	Government entities are permitted in awarding sole source contracts if they provide information to the state purchasing agent that only once source exists, is unique, and similar services cannot meet the intended purpose of the contract. The state purchasing agent will review the documentation within 15 days and approve as if applicable. Sole source or emergency procurement is limited to one year.
•	For construction or services (except professional services) valued at more than $60,000 and professional services more than $5,000 require a contract with scope of work. If the value is between $10,000 and $60,000 three quotes must be obtained.
•	Multi-term contracts cannot exceed a period of five years except for Public Facility Energy Efficiency and Water Conservation Act contract which is limited to 25 years.
•	Maximum cost increases for multi-term contracts are tied to the consumer price index.
•	Multiple indefinite quantity construction contracts may be obtained under a single request for proposals or invitation to bid.
•	Kickbacks are assumed included in the price of a subcontract or order if a subcontractor made a kickback to a prime contractor in connection with the procurement award or if made to a public official or employee. The kickback amount will be imposed as an additional civil penalty on the recipient and subcontractor.

There is no effective date for SB 76. If passed and signed into law, the assumed effective date is 90 days after the end of the session, June 16.