2024 -- H 8011

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LC005446

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO STATE PURCHASES -- CHANGE ORDERS

     Introduced By: Representative P. Morgan

     Date Introduced: March 05, 2024

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 37-2-9 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

     37-2-9. Authority and duties of the chief purchasing officer.

     (a) The chief purchasing officer shall have power and authority over, and may, except as

otherwise expressly provided in this chapter, adopt regulations pursuant to § 42-35-2 and consistent

with this chapter governing the purchasing, management, and control of any and all supplies,

services, construction, and other items required to be purchased by the state. The chief purchasing

officer shall consider and decide matters of policy with regard to state procurement. The chief

purchasing officer shall have the power of review with respect to the implementation of regulations

and policy determinations.

     (b) Regulations shall be adopted governing the following:

     (1) Conditions and procedures for delegations of purchasing authority;

     (2) Prequalification, suspension, debarment, and reinstatement of prospective bidders;

     (3) Small purchase procedures;

     (4) Conditions and procedures for the purchase of perishables and items for resale;

     (5) Conditions and procedures for the use of source selection methods authorized by this

chapter including emergency purchases;

     (6) Opening and rejection of bids or offers, consideration of alternate bids, and waiver of

informalities in offers;

     (7) Confidentiality of technical data and trade secrets information submitted by actual or

prospective bidders or offerors;

     (8) Partial, progressive, and multiple awards;

     (9) Supervision of storerooms and inventories, including determination of appropriate

stock levels and the management, transfer, sale, or other disposal of state owned property;

     (10) Definitions and classes of contractual services and procedures for acquiring them;

     (11) To sell, trade, or otherwise dispose of surplus supplies and services for the state;

     (12) To exercise general supervision and control over all warehouses, storerooms, stores,

and all inventories of supplies, services, and construction belonging to the state;

     (13) To establish and maintain programs for the development and use of purchasing

specifications, and for the inspection, testing, and acceptance of supplies, services, and

construction;

     (14) To develop a program which involves and/or utilizes small business and small

disadvantaged business as contractors;

     (15) To develop standards of conduct which supplement the provisions of chapter 14 of

title 36, as amended, for personnel involved in the state of Rhode Island purchasing process;

     (16) For all contracts for supplies and services exceeding ten thousand dollars ($10,000),

contractors must comply with the requirements of federal executive order no. 11246, as amended,

§ 28-5.1-10, and other regulations as issued by the purchasing agent, and administered by the state

equal opportunity office of the department of administration. Failure to comply will be considered

a substantial breach of the contract subject to penalties prescribed in the regulations.

     (c) No contracts for supplies or services may be extended by any state department or state

agency, both in the scope of the work or in the costs incurred, by the utilization of change orders,

as defined in § 37-2-7, if the additional work or services exceeds ten percent (10%) of the original

value of the contract.

     (c)(d) The chief purchasing officer may adopt such other regulations as deemed advisable

to carry out the purposes of this chapter.

     SECTION 2. Section 45-55-6 of the General Laws in Chapter 45-55 entitled "Award of

Municipal Contracts" is hereby amended to read as follows:

     45-55-6. Competitive negotiation.

     (a) When, under regulations adopted by the city or town council, the purchasing agent

determines, in writing, that the use of competitive sealed bidding is not practicable, and except as

provided in §§ 45-55-8, 45-55-9, and 45-55-10 a contract may be awarded by competitive

negotiation.

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     (b) Adequate public notice of the request for proposals shall be given in the same manner

as provided in § 45-55-5(c).

     (c) Contracts may be competitively negotiated when it is determined, in writing, by the

purchasing agent that the bid prices received by competitive sealed bidding either are unreasonable

as to all or part of the requirements, or were not independently reached in open competition, and

for which:

     (1) Each competitive bidder has been notified of the intention to negotiate and is given

reasonable opportunity to negotiate; and

     (2) The negotiated price is lower than the lowest rejected bid by any competitive bidder;

and

     (3) The negotiated price is the lowest negotiated price offered by a competitive offeror.

     (d) The request for proposals shall indicate the relative importance of price and other

evaluation factors.

     (e) Award shall be made to the responsible offeror whose proposal is determined, in

writing, to be the most advantageous to the municipality taking into consideration price and the

evaluation factors stated in the request for proposals.

     (f) Written or oral discussions shall be conducted with all responsible offerors who submit

proposals determined, in writing, to be reasonably susceptible of being selected for award.

Discussions shall not disclose any information derived from proposals submitted by competing

offerors. Discussions need not be conducted:

     (1) With respect to prices, where prices are fixed by law or regulation, except that

consideration shall be given to competitive terms and conditions; or

     (2) Where time of delivery or performance will not permit discussions; or

     (3) Where it can be clearly demonstrated and documented from the existence of adequate

competition or accurate prior cost experience with the particular supply, service, or construction

item, that acceptance of an initial offer without discussion would result in fair and reasonable prices,

and the request for proposals notifies all offerors of the possibility that award may be made on the

basis of the initial offers.

     (g) No contracts for supplies or services may be extended, both in the scope of the work or

in the costs incurred, by the utilization of change orders, as defined in § 37-2-7, if the additional

work or services exceeds ten percent (10%) of the original value of the contract.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE PURCHASES -- CHANGE ORDERS

***

     This act would prohibit the extension of contracts by any state or municipal department or

agency by the utilization of change orders if the additional work or services exceeds ten percent

(10%) of the original value of the contract.

     This act would take effect upon passage.

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