Introduced By: Representative Watson
Date Introduced : February 2, 1999
It is enacted by the General Assembly as follows:
SECTION 1. Sections 37-2-4, 37-2-7, 37-2-12, 37-2-15, 37-2-17, 27-2-18, 37-2-19, 37-2-20, 37-2-21, 37-2-22, 37-2-31, 37-2-33, 37-2-40, 37-2-41, 37-2-45, 37-2-54, 37-2-56, 37-2-59, 37-2-61, 37-2-63, 37-2-66, 37-2-69, 37-2-70, and 37-2-72 of the General Laws in Chapter 37-2 entitled "State Purchases" are hereby amended to read as follows:
37-2-4. Applicability. -- This chapter shall apply
to every expenditure of public funds {ADD by any state governmental
entity ADD} except as otherwise provided by law, by this state,
or a public agency under any contract or like business agreement,
excepting only those contracts or like business agreements {DEL between DEL}
{ADD where ADD} the state {ADD purchases goods or services ADD} {DEL and DEL}
{ADD from ADD} its political subdivisions or other {DEL governments DEL}
{ADD governmental entities ADD}. It shall also apply to the disposal
of state supplies. Nothing in this chapter or in the regulations
promulgated hereunder shall prevent any {ADD state ADD} governmental
{DEL body, department, or division DEL} {ADD entity ADD} from
complying with the terms and conditions of any grant, gift, bequest,
or cooperative agreement {ADD except where such terms and conditions
may conflict with requirements of law, including, but not limited
to, the provisions of this chapter regarding competitive procurement ADD}.
37-2-7. Definitions. -- The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning or a different definition is prescribed for a particular section, group of sections or provision.
(1) "Business" shall mean any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted.
(2) "Change order" shall mean a written order signed by the purchasing agent or contractor directing or allowing the contractor to make changes which the changes clause of the contract authorizes the purchasing agent or contractor to order without the consent of the contractor or purchasing agent.
(3) "Chief purchasing officer {ADD for a state agency ADD}" shall mean the director of administration, who shall be responsible for all purchases by the state and for a public agency. "Chief purchasing officer" shall mean the executive director or the chief operational officer of the agency.
(4) "Construction" shall mean the process of building,
altering, repairing, improving, or demolishing any public structures
or building, or other public improvements of any kind to any public
real property. It does not include the routine maintenance or
repair of existing structures, buildings, or real property performed
by salaried employees of the state of Rhode Island in the usual
course of their {DEL job DEL} {ADD jobs ADD}.
(5) "Contract" shall mean all types of agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It shall include awards; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; and construction management contracts. It also includes supplemental agreements with respect to any of the foregoing. "Contract" does not include labor contracts with employees of state agencies.
(6) "Contract {DEL modification DEL} {ADD amendment ADD}"
shall mean any written alteration in the specifications, delivery
point, rate of delivery, contract period, price, quantity, or
other contract provisions of any existing contract, whether accomplished
by unilateral action in accordance with a contract provision,
or by mutual action of the parties to the contract. It shall include
bilateral actions, such as supplemental agreements, and unilateral
actions, such as change orders, administrative changes, notices
of termination, and notices of the exercise of a contract option.
(7) "Contractor" shall mean any person having a contract with a governmental body.
(8) "Data" shall mean recorded information, regardless of form or characteristic.
(9) "Designee" shall mean a duly authorized representative of a person holding a superior position.
(10) "Employee" shall mean an individual drawing a salary
from a {ADD state ADD} governmental {ADD entity ADD} {DEL body or
public agency, whether elected or not, and any nonsalaried individual
performing personal services for any governmental body or public
agency DEL}.
(11) {DEL "Governmental body" shall mean any department,
commission, council, board, bureau, committee, institution, legislative
body, agency, government corporation, including, without limitation,
the board of governors for higher education except for purchases
which are funded by restricted, sponsored or auxiliary monies
for the period through July 1, 1999, as provided for in subdivision
(16) of this section, and board of regents -- elementary and secondary
education or other establishment of the executive, legislative
or judicial branch of the state. DEL} {ADD "State governmental
entity" shall mean any entity created as a legislative body
or a public or state agency by the general assembly or constitution
of this state, except for municipal, regional or county governmental
entities. ADD}
(12) "May" shall mean permissive.
(13) "Negotiation" shall mean contracting by either the method set forth in section 37-2-19, 37-2-20, or 37-2-21 of this chapter.
(14) "Person" shall mean any business, individual, organization, or group of individuals.
(15) "Procurement" shall mean the purchasing, buying, renting, leasing, or otherwise obtaining of any supplies, services, or construction. It shall also include all functions that pertain to the obtaining of any supply, service, or construction item, including a description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.
(16) "Public agency" shall mean the Rhode Island industrial
recreational building authority, the Rhode Island economic development
corporation, the Rhode Island industrial facilities corporation,
the Rhode Island refunding bond authority, the Rhode Island housing
and mortgage finance corporation, the Rhode Island resource recovery
corporation, the Rhode Island public transit authority, the Rhode
Island student loan authority, the Howard development corporation,
the water resources board corporate, the Rhode Island health and
education building corporation, the Rhode Island higher education
assistance authority, the Rhode Island turnpike and bridge authority,
the Blackstone Valley district commission, the Narragansett Bay
water quality management district commission, Rhode Island telecommunications
authority, the convention center authority, Channel 36 foundation,
{DEL the board of governors for higher education for all DEL}
{ADD the Rhode Island lottery commission ADD} {DELpurchases which are
funded by restricted, sponsored or auxiliary moniesDEL}, their successors
and assigns, and any other body corporate and politic which has
been or will be created or established within this state excepting
cities and towns. The board of governors for higher education
for all purchases which are funded by restricted, sponsored or
auxiliary monies shall be included in the definition of "public
agency" only through July 1, {DEL 1999 DEL} {ADD 2000 ADD}.
(17) "Purchase request" or "purchase requisition" shall mean that document whereby a using agency requests that a contract be entered into to obtain goods and/or services for a specified need, and may include, but is not limited to, the technical description of the requested item, delivery requirements, transportation mode request, criteria for evaluation of proposals, and/or preparation of suggested sources of supply, and information supplied for the making of any written determination and finding required by section 37-2-6.
(18) "Purchasing agency" shall mean any {ADD state ADD}
governmental {DEL body DEL} {ADD entity ADD} which is authorized
by this chapter, its implementing regulations, or by way of delegation
from the chief purchasing officer to contract on its own behalf
rather than through the central contracting authority of the chief
purchasing officer.
(19) "Purchasing agent" shall mean any person authorized
by a governmental {DEL body DEL} {ADD entity ADD} in accordance
with procedures prescribed by regulations, to enter into and administer
contracts and make written determinations and findings with respect
thereto. The term shall also include an authorized representative
acting within the limits of authority. "Purchasing agent"
shall also mean the person appointed in accordance with section
37-2-1.
(20) "Services" shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product, other than reports which are merely incidental to the required performance of services. "Services" does not include labor contracts with employees of state agencies.
(21) "Shall" shall mean imperative.
(22) "State" shall mean the state of Rhode Island and any of its departments or agencies and public agencies.
(23) "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties.
(24) "Supplies" shall mean all property, including, but not limited to, leases of real property, printing, and insurance, except land or permanent interest in land.
(25) "Using agency" shall mean any {ADD state ADD} governmental
{DEL body DEL} {ADD entity ADD} {DEL or public agency of
the state DEL} which utilizes any supplies, services or construction
purchased under this chapter.
(26) As used in section 37-2-59 of this chapter, "architect" or "engineer" services shall mean those professional services within the scope of practice of architecture, professional engineering, or registered land surveying, pertaining to construction, as defined by the laws of this state. "Consultant" means any person with whom the state and/or a public agency has a contract which contract provides for the person to give direction or information as regards a particular area of knowledge in which the person is a specialist and/or has expertise.
(27) For purposes of sections 37-2-62 -- 37-2-70, "directors" shall mean those members of a public agency appointed pursuant to a statute, who comprise the governing authority of the board, commission, authority, and/or corporation.
{ADD (28) "State agency" shall mean any department, commission, council, board, bureau, committee, institution, or other governmental entity of the executive or judicial branch of this state not otherwise established as a body corporate and politic, and shall include, without limitation, the board of governors for higher education except for purchases which are funded by restricted sponsored or auxillary moneys for the period through July 1, 2000, as provided for in subdivision (16) of this section, and the board of regents for elementary and secondary education. ADD}
{ADD (29) "Governmental entity" shall mean any department, commission, council, board, bureau, committee, institution, legislative body, agency, or government corporation of the executive, legislative or judicial branches of state, federal and/or local governments. ADD}
37-2-12. Centralization of the procurement authority. --
{DEL (a) DEL} All rights, powers, duties, and authority
relating to the procurement of supplies, services, and construction,
and the management, control, warehousing, sale, and disposal of
supplies, services, and construction now vested in or exercised
by any state agency under the several statutes relating thereto
are hereby transferred to the chief purchasing {DEL agent DEL}
{ADD officer ADD} as provided in this chapter, subject to the provisions
of {DEL subsection (b) of this section DEL} {ADD section
37-2-54 ADD}. A public agency does not have to utilize the centralized
purchasing of the state but the public agency, through its existing
internal purchasing function, shall adhere to the general principles,
policies and practices set forth in this chapter.
{DEL (b) Unless otherwise ordered by the chief purchasing officer,
the acquisition of the following shall not be required through
the purchasing agent: DEL}
{DEL (1) Works of art for museum and public display; DEL}
{DEL (2) Published books, maps, periodicals, and technical
pamphlets; and DEL}
{DEL (3) Services of visiting speakers, professors, and performing
artists. DEL}
37-2-15. Source selection and contract formation -- Statutory
provisions. -- As used in {DEL sections 37-2-17 --
37-2-35 DEL} {ADD chapter 37-2 ADD} unless the context in which
they are used clearly requires a different meaning:
(1) "Cost-reimbursement contract" shall mean a contract under which the state reimburses the contractor for those contract costs, within a stated ceiling, which are allowable and allocable in accordance with cost principles (as provided in section 37-2-43), and a fixed fee, if any.
(2) "Established catalogue price" shall mean the price included in the most current catalogue, price list, schedule, or other form that:
(i) Is regularly maintained by the manufacturer or vendor of an item;
(ii) Is either published or otherwise available for inspection by customers;
(iii) States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for that item; and
(iv) States prices which are obtained from the most recent industry wide publications and informational journals if any.
(3) "Evaluated bid price" shall mean the dollar amount of a bid, after bid price adjustments are made pursuant to objective measurable criteria, set forth in the invitation for bids, which affect the economy and effectiveness in the operation or use of the product, such as reliability, maintainability, useful life, and residual value.
(4) "Invitation for bids" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in section 37-2-18.
(5) "Request for proposals" shall mean all documents,
whether attached or incorporated by reference, utilized for soliciting
proposals in accordance with the procedures set forth in {DEL section
37-2-13, 37-2-21, 37-2-22, or 37-2-23 DEL} {ADD chapter 37-2 ADD}.
(6) "Responsible bidder or offeror" shall mean a qualified bidder {ADD or offeror ADD} who has the capability in all respects {ADD , ADD} including financial responsibility {ADD , ADD} to perform fully the contract requirements, and the integrity and reliability which will assure good faith performance.
(7) "Responsive bidder {ADD or offeror ADD}" shall mean
a person who has submitted a bid {DEL under section 37-2-20 DEL}
{ADD or offer ADD} which conforms in all material respects to the
invitation for bids {ADD or proposals ADD}, so that all bidders {ADD or
offerors ADD} may stand on equal footing with respect to the method
and timeliness of submission and as to the substance of any resulting
contract.
{ADD (8) "Request for qualifications" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting qualifications of offerors prior to or during the solicitation of bids or proposals. ADD}
37-2-17. Method of source selection. -- {DEL All DEL}
{ADD Except for purchases solicited pursuant to the provisions for
small purchases set forth in section 37-2-22, all ADD} state contracts
and purchases shall be solicited through utilization of the Rhode
Island Vendor Information Program (RIVIP) as set forth in section
37-2-17.1. Except as otherwise authorized by law, all state contracts
shall be awarded by:
(1) Competitive sealed {DEL bidding DEL} {ADD offers ADD},
pursuant to section 37-2-18;
(2) Competitive negotiation, pursuant to sections 37-2-19 and 37-2-20;
(3) Noncompetitive negotiation, pursuant to section 37-2-21; or
(4) Small purchase procedures, pursuant to section 37-2-22.
37-2-18. Competitive sealed bidding. -- (a) Contracts exceeding the amount provided by section 37-2-22 shall be awarded by competitive sealed bidding unless it is determined in writing that this method is not practicable. Factors to be considered in determining whether competitive sealed bidding is practicable shall include whether:
(1) Specifications can be prepared that permit award on the basis of either the lowest bid price or the lowest evaluated bid price; and
(2) The available sources, the time and place of performance, and other relevant circumstances as are appropriate for the use of competitive sealed bidding.
(b) The invitation for bids shall state whether the award shall be made on the basis of the lowest bid price or the lowest evaluated or responsive bid price. If the latter basis is used, the objective measurable criteria to be utilized shall be set forth in the invitation for bids, if available.
(c) Unless the invitations for bid are accessible under the provisions
as provided in section 37-2-17.1, public notice of the invitation
for bids shall be given a sufficient time prior to the date set
forth therein for the opening of bids. Public notice may include
publication in a newspaper of general circulation in the state
as determined by the {DEL chief purchasing officer DEL}
{ADD purchasing agent ADD} not less than seven (7) days nor more
than {DEL twenty-one (21) DEL} {ADD twenty eight (28) ADD}
days before the date set for the opening of the bids. The {DEL chief
purchasing officer DEL} {ADD purchasing agent ADD} may make a
written determination that the {DEL twenty-one (21) DEL}
{ADD twenty eight (28) ADD} day limitation needs to be waived. The
written determination shall state the reason why the twenty-one
(21) day limitation is being waived and shall state the number
of days, giving a minimum and maximum, before the date set for
the opening of bids when public notice is to be given.
(d) Bids shall be opened publicly at the time and place designated in the invitation for bids. Each bid, together with the name of the bidder, shall be recorded and an abstract made available for public inspection. Subsequent to the awarding of the bid, all documents pertinent to the awarding of the bid shall be made available and open to public inspection and retained in the bid file.
(e) The contract shall be awarded with reasonable promptness by written notice to the responsive and responsible bidder whose bid is either the lowest bid price, lowest evaluated, or responsive bid price.
(f) Correction or withdrawal of bids may be allowed only to the extent permitted by regulations issued by the chief purchasing officer.
37-2-19. Competitive negotiation. -- (a) When, under regulations issued by the chief purchasing officer, the purchasing agent determines in writing that the use of competitive sealed bidding is not practicable, and except as provided in sections 37-2-21 and 37-2-22, a contract may be awarded by competitive negotiation.
(b) Adequate public notice of the request for proposals {ADD to be negotiated ADD} shall be given in the same manner as provided in section 37-2-18(c).
{DEL (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; DEL}
{DEL (1) Each competitive bidder has been notified of the intention
to negotiate and is given reasonable opportunity to negotiate; DEL}
{DEL (2) The negotiated price is lower than the lowest rejected
bid by any competitive bidder; and DEL}
{DEL (3) The negotiated price is the lowest negotiated price
offered by a competitive offeror. DEL}
{DEL (d) DEL} {ADD (c) ADD} The request for proposals shall
indicate the relative importance of price and other evaluation
factors.
{DEL (e) Award shall be made to the responsible offeror whose
proposal is determined in writing to be the most advantageous
to the state taking into consideration price and the evaluation
factors set forth in the request for proposals. DEL}
{DEL (f) DEL} {ADD (d) ADD} Written or oral discussions {DEL shall DEL}
{ADD may ADD} 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. {ADD Award
shall be made to the responsible offeror whose proposal is determined
in writing to be the most advantageous to the state, taking into
consideration price and the evaluation factors set forth in the
request for proposals. ADD} Discussions need not be conducted:
(1) With respect to prices, where the prices are fixed by law or regulation, except that consideration shall be given to competitive terms and conditions;
(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 an award may be made on the basis of the initial offers.
37-2-20. Negotiations after unsuccessful competitive sealed bidding. -- (a) In the event that all bids submitted pursuant to competitive sealed bidding under section 37-2-18 result in bid prices in excess of the funds available for the purchase and the chief purchasing officer determines in writing:
(1) That there are no additional funds available from any source so as to permit an award to the lowest responsive and responsible bidder, and
(2) The best interest of the state will not permit the delay attendant
to a resolicitation under revised specifications, or for revised
quantities, under competitive sealed bidding as provided in section
37-2-18, then a negotiated award may be made as set forth in subsection {ADD s ADD}
(b) or {DEL (c) DEL} {ADD (d) ADD} of this section.
(b) Where there is more than one bidder, competitive negotiations, pursuant to section 37-2-19, shall be conducted with the three (3) ( {ADD or ADD} two (2) if there are only two (2)) bidders determined in writing to be the lowest responsive and responsible bidders to the competitive sealed bid invitation. Competitive negotiations shall be conducted under the following restrictions:
(1) If discussions pertaining to the revision of the specifications or quantities are held with any potential offeror, all other potential offerors shall be afforded an opportunity to take part in such discussions; and
(2) A request for proposals, based upon revised specifications or quantities, shall be issued as promptly as possible, shall provide for an expeditious response to the revised requirements, and shall be awarded upon the basis of the lowest bid price, or lowest evaluated bid price submitted by any responsive and responsible offeror.
{ADD (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 were not independently reached in open competition, and for which: ADD}
{ADD (1) each competitive bidder has been notified of the intention to negotiate and is given reasonable opportunity to negotiate; and ADD}
{ADD (2) the negotiated price is lower than the lowest rejected bid by any competitive bidder; and ADD}
{ADD (3) the negotiated price is the lowest negotiated price offered by a competitive offeror. ADD}
{DEL (c) DEL} {ADD (d) ADD} When {ADD , ADD} after competitive
sealed bidding, it is determined in writing that there is only
one responsive and responsible bidder, a {DEL noncompetitive DEL}
negotiated award may be made with the bidder {DEL in accordance
with section 37-2-21 DEL} {ADD subject to the provisions of
section 37-2-28 ADD}.
{DEL 37-2-21. Sole source procurement and emergency procurements. DEL} {ADD
37-2-21. Noncompetitive procurements. -- ADD} (a) {ADD Sole source. ADD}
A contract may be awarded for a supply, service, or construction
item without competition when, under published regulations, the
chief purchasing officer or {DEL member of the executive department,
above the level of DEL} purchasing {DEL officer DEL}
{ADD agent ADD}, determines, in writing, that there is only one source
for the required supply, service, or construction item.
(b) {ADD Emergency. ADD} Notwithstanding any other provision of this chapter, the purchasing agent may make or authorize others to make emergency procurements when there exists a threat to public health, welfare, or safety under emergency conditions as defined in the regulations; provided, that the emergency procurements shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency, and for the selection of the particular contractor, shall be included in the contract file.
{ADD (c) Noncompetitive negotiation after competitive solicitation. Contracts issued under procedures set forth in sections 37-2-19, 37-2-20 and sections 37-2-59 through 37-2-72 may be negotiated with the successful vendor(s) subject to the provisions of section 37-2-28. A written determination of the basis for the negotiated contract and supporting the negotiated price, shall be included in the contract file. ADD}
37-2-22. Small purchases. -- Procurements, not to
exceed an aggregate amount of {DEL five thousand dollars ($5,000) DEL}
{ADD ten thousand dollars ($10,000) ADD} for construction and {DEL two
thousand five hundred dollars ($2,500) DEL} {ADD five thousand
dollars ($5,000) ADD} for all other purchases may be made in accordance
with small purchase regulations promulgated by the chief purchasing
officer. Procurement requirements shall not be artificially divided
so as to constitute a small purchase under this section.
37-2-31. Use of other types of contracts. -- Subject
to the limitations of sections {DEL 37-2-27 and 37-2-28 DEL}
{ADD 37-2-29 and 37-2-30 ADD}, any type of contract which will promote
the best interests of the state may be used.
37-2-33. Multi-year contracts. -- (a) Unless otherwise
provided in the statute making appropriations therefor, multi-year
contracts for supplies and services may be entered into for periods
{DEL not DEL} extending beyond the end of the {DEL biennium DEL}
{ADD fiscal year ADD} in which the contract was made, if funds for
the first fiscal year of the contemplated contract are available
at the time of contracting {ADD and the contract states that payment ADD} {DEL .
Payment DEL} and performance obligations for succeeding fiscal
years shall be subject to the availability of funds therefor.
(b) Prior to the utilization of a contract as described in subsection (a) of this section, it shall be determined, in writing, by the chief purchasing officer:
(1) That estimated requirements cover the period of the contract, are reasonably firm, and continuing; and
(2) That the contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economics in state procurement.
(c) When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent year of a contract as described in subsection (a) of this section, the contract for the subsequent year may be canceled and the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies or services delivered under the contract. The cost of cancellation may be paid from:
(1) Appropriations currently available for performance of the contract;
(2) Appropriations currently available for procurement of similar supplies or services and not otherwise obligated; or
(3) Appropriations made specifically for the payment of cancellation costs.
37-2-40. Bid security. -- (a) Bidder security shall
be required for all competitive sealed bidding for construction
contracts when the price is estimated by the state to exceed {DEL twenty
five-thousand dollars ($25,000) DEL} {ADD fifty thousand dollars
($50,000) ADD}. Bidder's security shall be a bond provided by a
surety company authorized to do business in this state, or the
equivalent in cash, in a form satisfactory to the state. Nothing
herein prevents the requirement of bonds on construction contracts
under {DEL twenty five-thousand dollars ($25,000) DEL}
{ADD fifty thousand dollars ($50,000) ADD} when the circumstances
warrant.
(b) Bidder's security shall be in an amount equal to at least five percent (5%) of the amount of the bid.
(c) When the invitation for bids requires that bidder security be provided, noncompliance requires that the bid be rejected; provided, however, that the chief purchasing officer may set forth by regulations exceptions to this requirement in the event of substantial compliance.
(d) After the bids are opened, they shall be irrevocable for the period specified in the invitation for bids; provided, that, if a bidder is permitted to withdraw his or her bid before award because of a mistake in the bid as allowed by law or regulation, no action shall be had against the bidder or the bidder's surety.
37-2-41. Contractors' bonds. -- The provisions of chapter 12 {ADD and 13 ADD} of this title {ADD requiring contractors to furnish performance bonds and labor and material payment bonds ADD} shall apply to all construction contracts awarded under this chapter.
37-2-45. Supply disposition process. -- The chief
purchasing officer shall sell or otherwise dispose of all property
{DEL (including any interest in real property) DEL} of
the state which is not needed, or has become unsuitable for public
use, or would be more suitably consistent with the public interest
for some other use, as determined by the chief purchasing officer {ADD .
The disposal of real property shall be ADD} subject to the approval
of the state properties committee and pursuant to the provisions
of chapter 7 of this title. The determination of the chief purchasing
officer shall be set forth in an order and shall be reached only
after review of a written request by the agency desiring to dispose
of the property. The request shall describe the property and state
the reasons why the agency believes disposal should be effected.
All instruments, required by law to be recorded, which convey
any interest in any of the real property so disposed of shall
be executed and signed by the acquiring authority pursuant to
the provisions of chapter 7 of this title.
37-2-54. Chief purchasing officer -- Purchases. -- (a) The chief purchasing officer, except as otherwise provided by law, shall purchase, or delegate and control the purchase of, the combined requirements of all spending agencies of the state including, but not limited to, interests in real property, contractual services, rentals of all types, supplies, materials, equipment, and services, except that competitive bids may not be required:
(1) For contractual services where no competition exists such
as {DEL telephone service, electrical energy DEL} {ADD sewage
treatment, water ADD}, and other public utility services;
(2) When, in the judgment of the department of administration, food, clothing, equipment, supplies, or other materials to be used in laboratory and experimental studies can be purchased otherwise to the best advantage of the state;
(3) When instructional materials are available from only one source;
(4) Where rates are fixed by law or ordinance;
(5) For library books;
(6) For commercial items that are purchased for resale;
(7) For professional, technical, or artistic services {DEL (contracts
exempted by this provision shall be referred to the governor for
review and approval) DEL};
(8) For all other commodities, equipment, and services which,
in the reasonable discretion of the chief purchasing officer,
are available from only one source; {DEL and DEL}
(9) {DEL Interests DEL} {ADD For interests ADD} in real property.
{ADD (10) For works of art for museum and pubic display; ADD}
{ADD (11) For published books, maps, periodicals, newspaper or journal subscriptions, and technical pamphlets; ADD}
{ADD (12) For licenses for use of proprietary or patented systems; and ADD}
{ADD (13) For services of visiting speakers, professors, performing artists, and expert witnesses. ADD}
(b) Nothing in this section shall deprive the chief purchasing officer from negotiating with vendors who maintain a general service administration price agreement with the United States of America or any agency thereof {ADD or other governmental entities ADD}, provided, however, that no contract executed under this provision shall authorize a price higher than is contained in the contract between the general service administration and the vendor affected.
(c) The department of administration shall have supervision over all purchases by the various spending agencies, except as otherwise provided by law, and shall prescribe rules and regulations to govern purchasing by or for all spending agencies, subject to the approval of the chief purchasing officer; and shall publish a manual of procedures to be distributed to agencies and to be revised upon issuance of amendments to the procedures. No purchase or contract shall be binding on the state or any agency thereof unless approved by the department or made under general regulations which the chief purchasing officer may prescribe.
(d) The chief purchasing officer shall adopt regulations to require agencies to take and maintain inventories of plant and equipment. The department of administration shall conduct periodic physical audits of inventories.
(e) The department of administration shall require all agencies to furnish an estimate of specific needs for supplies, materials, and equipment to be purchased by competitive bidding for the purpose of permitting scheduling of purchasing in large volume. It shall establish and enforce schedules for purchasing supplies, materials, and equipment. In addition, all agencies shall submit to the department of administration, prior to the beginning of each fiscal year, an estimate of all needs for supplies, materials, and equipment during that year which will have to be acquired through competitive bidding.
(f) The {ADD director of the ADD} department of administration shall
have the power {DEL , with the approval of the state properties
committee, DEL} to: transfer between departments; {ADD to ADD}
salvage; {ADD to ADD} exchange; and to condemn supplies, {ADD and ADD}
equipment {DEL , and real property DEL}.
(g) {DEL The department of administration shall sell or otherwise
dispose of all property (including any interest in real property)
of the state which is not needed or has become unsuitable for
public use, or would be more suitable consistent with the public
interest for some other use, as determined by the state properties
committee. The determination of the state properties committee
shall be set forth in an order and shall be reached only after
review of a written request by the agency desiring to dispose
of the property. The request shall describe the property and state
the reasons why the agency believes disposal should be effected.
All instruments required by law to be recorded which convey any
interest in any real property so disposed of shall be executed
and signed by chief purchasing officer and approved by the governor. DEL}
Unless the chief purchasing officer deems it is in the best interest
of the state to proceed otherwise, all {DEL such DEL} property
(including any interest in real property) shall be sold either
by invitation of sealed bids or by public auction; provided, however,
that the selling price of any interest in real property shall
not be less than the appraised value thereof as determined by
the department of administration or the department of transportation
for the requirements of that department.
(h) Subject to the provisions of this chapter, the chief purchasing officer shall purchase, or otherwise acquire, all real property determined to be needed for state use, upon the approval of the state properties committee as to the determination of need and as to the action of purchase or other acquisition, provided that the amount paid shall not exceed the appraised value as determined by the department of transportation (for such requirements of that department) or value set by eminent domain procedure.
(i) The department of administration shall maintain records of all purchases and sales made under its authority and shall make periodic summary reports of all transactions to the chief purchasing officer, the governor, and the general assembly. The chief purchasing officer shall also report trends in costs and prices, including savings realized through improved practices, to the governor and general assembly.
(j) The chief purchasing officer shall attempt in every practicable way to insure that the state is supplying its real needs at the lowest possible cost. {ADD Further, to assure that the lowest possible cost is achieved, the chief purchasing officer may enter into cooperative purchasing agreements with other governmental entities. ADD}
37-2-56. Purchasing for municipalities and regional school
districts. -- {DEL The chief purchasing officer shall
permit, subject to such terms and conditions as he or she may
prescribe, any DEL} {ADD Any ADD} municipality {DEL , municipalities, DEL}
{ADD or ADD} regional school district of the state {DEL , to DEL}
{ADD may ADD} participate in {ADD state master price agreement ADD}
contracts for the purchase of materials, supplies and equipment
entered into by the purchasing agent {DEL . Any municipality
or regional school district desiring to participate in purchase
contracts shall file with the chief purchasing officer a certified
copy of a resolution of its council or regional school committee
requesting that it be authorized to participate in purchase contracts
of the purchasing agent, and agreeing that it will be bound by
such terms and conditions as the purchasing agent may prescribe,
and that it will be responsible for payment directly to the vendor
under each purchase contract. DEL} {ADD , provided, however,
that the contractor is willing, when requested by the municipality
or school district, to extend the terms and conditions of the
contract and that the municipality or school district will be
responsible for payment directly to the vendor under each purchase
contract. Unless a state contract is the result of an intergovernmental
cooperative purchase contract to which a municipality or school
district is a party, the purchasing agent shall not compel a successful
bidder to extend the same terms and conditions to a municipality
or school district. However, the purchasing agent may, in the
interest of obtaining better pricing on behalf of the state and
local entities, solicit offers based upon anticipated master price
agreement utilization by municipalities and school districts. ADD}
37-2-59. Professional services -- Architectural, engineering, and consultant services -- Committee. -- (a) It shall be the policy of this state to publicly announce requirements for architectural, engineering, and consultants services, which are reasonably estimated to exceed twenty thousand dollars ($20,000), and to negotiate contracts for such professional services on the basis of demonstrated competence and qualifications and at fair and reasonable prices.
{ADD (b) Except for architectural, engineering and consultant services
which can be solicited and awarded in accordance with the requirements
for competitive sealed offers set forth in section 37-2-18- through
37-2-19 of this chapter, a - ADD} {DEL (b) A DEL} selection
committee shall select persons or firms to render such professional
services. For state {ADD agency ADD} contracts, the committee shall
consist of the following individuals: the {DEL chief purchasing
officer DEL} {ADD purchasing agent ADD}, or his or her designee,
as chairman; a representative of the user agency; and a public
member, appointed by the governor who shall represent the interests
of the general public. The term of the public member shall be
concurrent with that of the governor. {DEL The public member
shall be paid twenty-five dollars ($25.00) for each meeting of
the committee attended, not to exceed one thousand two hundred
dollars ($1,200) annually. DEL}Three (3) members, one being
the {DEL chief purchasing officer DEL} {ADD purchasing agent ADD}
or his or her designee, shall constitute a quorum. A quorum must
be present to conduct business.
(c) The procurement of auditing and accounting services shall continue to be subject to the provisions of sections 22-13-6 and 35-7-13.
37-2-61. Solicitation. -- (a) A solicitation shall be prepared which describes the state's and/or public agency's requirements and sets forth the evaluation criteria. It shall be distributed to interested persons.
(b) For services reasonably estimated to exceed twenty thousand
dollars ($20,000), {ADD the committee may require an informational ADD}
{DEL a bidder's DEL} conference {DEL shall DEL}
be held which describes the criteria to be used in evaluating
the statement of qualification, performance data, and selection
of firms. Criteria shall include, but are not limited to:
(1) Competence to perform the services as reflected by technical training and education; general experience; experience in providing the required services; and the qualifications and competence of persons who would be assigned to perform the services;
(2) Ability to perform the services as reflected by workload and
the availability of adequate personnel, equipment, and facilities
to perform the services expeditiously; {DEL and DEL}
(3) Past performance as reflected by the evaluation of private
persons and officials of other governmental entities that have
retained the services of the firm with respect to such factors
as control of costs, quality of work, and an ability to meet deadlines {DEL . DEL} {ADD ;
and ADD}
{ADD (4) The proposed approach to the project, where applicable. ADD}
(c) The scope of work shall be discussed and further defined at the bidder's conference, including on-site visits, if appropriate.
37-2-63. Selection of firms for discussion with chief purchasing
officer -- Final selection. -- (a) The committee shall
select no more than three (3) firms (or two (2) firms, if only
two (2) apply) evaluated as being professionally and technically
qualified. The firms selected, if still interested in providing
the services, {DEL shall DEL} {ADD may be required to ADD}
make a representative available to the chief purchasing officer
{ADD or his or her designee ADD} at such time and place as he or
she shall determine, to provide such further information as he
or she may require.
(b) The chief purchasing officer or his or her designee shall
negotiate with the highest qualified firm for a contract for architectural,
engineering, or consultant services for state departments and
agencies at compensation which the chief purchasing officer determines
to be fair and reasonable to the state. In making the determination,
the chief purchasing officer shall take into account the professional
competence of the offerors, the technical merits of the offerors,
and the price for which the services are to be rendered. The chief
purchasing officer shall be responsible for the final selection
of the providers of architectural {ADD , ADD} {DEL and DEL}
engineering {ADD or consultant ADD} services and shall so inform
the {DEL user department or agency, the division of purchasing,
and the division of budget DEL} {ADD purchasing agent ADD}.
37-2-66. Solicitation -- Public agency. -- (a) A solicitation shall be prepared which describes the public agency's requirements and sets forth the evaluation criteria. It shall be distributed to interested persons.
(b) For services reasonably estimated to exceed twenty thousand
dollars ($20,000), {ADD the committee may require an informational ADD}
{DEL a bidder's DEL} conference {DEL shall DEL}
be held which describes the criteria to be used in evaluating
the statement of qualification, performance data, and selection
of firms. Criteria shall include, but is not limited to:
(1) Competence to perform the services as reflected by technical training and education; general experience; experience in providing the required services; and the qualifications and competence of persons who would be assigned to perform the services;
(2) Ability to perform the services as reflected by workload and
the availability of adequate personnel, equipment, and facilities
to perform the services expeditiously; {DEL and DEL}
(3) Past performance as reflected by the evaluation of private
persons and officials of other governmental entities that have
retained the services of the firm with respect to such factors
as control of costs, quality of work, and an ability to meet deadlines {DEL . DEL} {ADD ;
and ADD}
{ADD (4) The proposed approach to the project, where applicable. ADD}
(c) The scope of work shall be discussed and further defined at the bidder's conference, including on-site visits, if appropriate.
37-2-69. Provision of architectural, engineering, or consultant
services not exceeding twenty thousand dollars. -- (a)
{ADD State agencies. (1) ADD} For every state project requiring architectural,
{ADD or ADD} engineering {DEL , or consultant DEL} services,
the fees for which are not reasonably expected to exceed twenty
thousand dollars ($20,000), the {DEL department DEL} {ADD state
agency ADD} shall forward to the chief purchasing officer a request
for those services through the state {DEL control DEL}
purchasing office.
{ADD (2) For every state agency project requiring consultant services, the fees for which are not reasonably expected to exceed twenty thousand dollars ($20,000), the state agency shall forward to the chief purchasing officer a request for such services through the state purchasing office with a proposed scope of work and, if possible, the names of three recommended qualified contractors, along with a written evaluation of the qualifications of each potential contractor. ADD}
{ADD (3) The purchasing agent shall request offers from potential contractors in writing and shall notify potential contractors that any contract resulting from such solicitation shall not exceed a total value of twenty thousand dollars ($20,000), including change orders. ADD}
{DEL (b) DEL} {ADD (4) ADD} The chief purchasing officer shall
be responsible for the final selection of a qualified architectural,
engineering, or consultant firm for the project and shall so inform
the {DEL user department, the division of purchases, and the
division of the budget DEL} {ADD purchasing agent ADD}. The chief
purchasing officer shall use the criteria set forth in section
{DEL 37-2-60 DEL} {ADD 37-2-61 ADD} in making that determination.
The determination shall be justified in writing.
{DEL (c) DEL} {ADD (b) Public agencies. ADD} For every public
agency project requiring architectural, engineering, or consultant
services, the fees for which are not reasonably expected to exceed
twenty thousand dollars ($20,000), the public agency chief operating
officer shall be responsible for the final selection of a qualified
architectural, engineering, or consultant firm for the project.
The public agency chief operating officer shall notify the {DEL chief
purchasing officer, the division of purchases, and the division
of the budget DEL} {ADD board of directors of the public agency ADD}
of that selection.
{DEL (d) DEL} The public agency chief operating officer
shall use the criteria set forth in section {DEL 37-2-60 DEL}
{ADD 37-2-66 ADD} in making the determination. That determination
shall be justified in writing.
37-2-70. {DEL Professional services --
Legal -- State. -- DEL}{ADD Professional services
-- Legal. -- ADD}(a) Before a state {DEL department DEL}
{ADD governmental entity ADD} procures the services of an attorney,
{DEL it DEL} {ADD a state agency ADD} shall demonstrate to
the satisfaction of the chief purchasing officer {ADD or a public
agency shall demonstrate to the satisfaction of the directors
of the public agency ADD} the following:
(1) The need for the services {DEL required DEL} {ADD , ADD}
including the scope of the services to be performed;
(2) That no legal personnel employed by the state on a full-time basis is available to perform those services;
(3) That funding is available, indicating from which sources the funding is to be provided;
(4) That attorneys to be engaged meet the following minimum requirements:
(i) Appropriate professional licensing;
(ii) Competence to perform those services as reflected by formal training and education, general experience, experience in providing the required services, and the qualifications and competence of persons who would be assigned to perform the services; and
(iii) Ability to perform the services as reflected by workload and availability of adequate personnel, equipment, and facilities to perform the services expeditiously.
(b) The attorney shall enter into a letter of engagement with the state. The letter of engagement shall state the rate of compensation, the scope of the services to be performed for the compensation, and provision for the payment of expenses incurred in connection with legal services. The letter of engagement shall certify that the rate of compensation does not exceed the rate of compensation charged by counsel to his or her preferred public or private clients. A letter of engagement shall not be for more than one year.
{ADD (c) Nothing herein shall prevent the issuance of a public solicitation of requests for qualifications or the conduct of pricing negotiations prior to contract award. All requests for qualifications shall be solicited through utilization of the Rhode Island vendor information program (RIVIP) as set forth in section 37-2-17.1. ADD}
{DEL 37-2-72. Professional services -- Medical and dental
services. DEL} {ADD 37-2-72. Professional services
-- Medical and dental consultant services. -- ADD} (a) Before
a state {DEL department, board, commission, or public agency DEL}
{ADD governmental entity ADD} procures the services of {DEL a DEL}
{ADD an individual consulting ADD} physician or dentist, it shall
demonstrate to the satisfaction of the chief purchasing officer
the following:
(1) {DEL For medical or dental consultant services: DEL}
{DEL (i) DEL} The need for the services {DEL required DEL},
including the scope of the services to be performed;
{DEL (ii) DEL} {ADD (2) ADD} That no medical or dental personnel
employed by the state on a full-time basis is available to perform
the services;
{DEL (iii) DEL} {ADD (3) ADD} That funding is available, indicating
from which sources the funding is to be provided; and
{DEL (iv) DEL} {ADD (4) ADD} That medical or dental consultants
to be engaged meet the following minimum requirements:
{DEL (A) DEL} {ADD (i) ADD} Appropriate professional license
or certification; and
{DEL (B) DEL} {ADD (ii) ADD} Competence to perform the services
as reflected by formal training and education, general experience,
and experience in providing the required services.
{DEL (2) For medical or dental services where those services
are readily definitized and the required services are clearly
defined: DEL}
{DEL (i) The need for the services, including the detailed
scope of work to be performed; DEL}
{DEL (ii) That no full-time state employees are available to
perform those services; DEL}
{DEL (iii) That funding is available, indicating from which
sources such funding is to be provided; and DEL}
{DEL (iv) That such medical or dental service providers meet
the following minimum requirements: DEL}
{DEL (A) Possess appropriate professional Rhode Island licenses
and certifications; and DEL}
{DEL (B) Competence to perform such services as reflected by
formal training and education, general experience, and expertise
in providing the required services. DEL}
{DEL (b) For medical or dental services, or for temporary services,
generally definable over a definite period of time but on an as-needed
basis to provide coverage for full-time state employees (doctors,
dentists, nurses, etc.) during their absence. The procurements
for those services shall be obtained through the use of a blanket-type
contract arrangement. Requesting agencies shall provide to purchasing
division fully authorized, funded and described requirement via
a blanket-type purchase requisition. DEL}
{DEL (c) Requesting agencies shall provide to the satisfaction
of the chief purchasing officer or his or her designee the following: DEL}
{DEL (1) Rationale that the services are required; and DEL}
{DEL (2) Certification that medical or dental personnel to
be employed possess the appropriate state license or certification,
competence to perform those services as reflected by formal training,
education, and experience in providing the required service. DEL}
{DEL (d) Nothing in this law shall prohibit, nor shall anything
in this law be interpreted to prohibit, appropriate action by
the director or his or her designee to provide needed medical
services whether on a regular or emergency basis. DEL}
{ADD (b) Medical or dental services which are not provided by individual consulting physicians and dentists shall be obtained through competitive solicitation procedures where service providers shall demonstrate that they possess appropriate professional licenses or certifications and competence to perform the services -- as reflected by formal training and education, general experience and experience in providing the required services. ADD}
{ADD (c) Nothing herein shall prevent the issuance of a public solicitation of requests for qualifications or the conduct of pricing negotiations prior to contract award. All requests for qualifications shall be solicited through utilization of the Rhode Island vendor information program (RIVIP) as set forth in section 37-2-17.1. ADD}
SECTION 2. Section 37-12-1 of the General Laws in Chapter 37-12 entitled "Contractors' Bonds" is hereby amended to read as follows:
37-12-1. Contractors required to give bond -- Terms and
conditions. -- Every person (which word for the purposes
of this chapter shall include a copartnership, a number of persons
engaged in a joint enterprise, or a corporation), before being
awarded a contract by the department of transportation or by the
department of administration, as the case may be, and every person
awarded such a contract as a general contractor or construction
or project manager for the construction, improvement, completion,
or repair of any public road or portion thereof or of any bridge
in which the contract price shall be in excess of {DEL five
hundred dollars ($500) DEL} {ADD fifty thousand dollars ($50,000) ADD},
or for a contract for the construction, improvement, completion,
or repair of any public building, or portion thereof, shall be
required to furnish to the respective department a bond of that
person to the state, with good and sufficient surety or sureties
(hereafter in this chapter referred to as surety), acceptable
to the respective department, in a sum not less than fifty percent
(50%) and not more than one hundred percent (100%) of the contract
price, conditioned that the contractor, principal in the bond,
the person's executors, administrators, or successors, shall in
all things, well and truly keep and perform the covenants, conditions,
and agreements in the contract, and in any alterations thereof
made as therein provided, on the person's part to be kept and
performed, at the time and in the manner therein specified, and
in all respects according to their true intent and meaning, and
shall indemnify and save harmless the state, the respective department,
and all of its officers, agents, and employees, as therein stipulated,
and shall also promptly pay for all such labor performed or furnished
and for all such materials and equipment furnished, (which as
to equipment shall mean payment of the reasonable rental value,
as determined by the respective department, of its use during
the period of its use), as shall be used in the carrying on of
the work covered by the contract, or shall see that they are promptly
paid for, whether or not the labor is directly performed for or
furnished to the contractor or is even directly performed upon
the work covered by the contract, and whether or not the materials
are furnished to the contractor or become component parts of the
work, and whether or not the equipment is furnished to the contractor
or even directly used upon the work. The bond shall contain the
provisions that it is subject to all such rights and powers of
the respective department and such other provisions as are set
forth in the contract and the plans, specifications, and proposal
incorporated by reference in the contract, and that no extension
of the time of performance of the contract or delay in the completion
of the work thereunder or any alterations thereof, made as therein
provided, shall invalidate the bond or release the liability of
the surety thereunder. {DEL Provided, however, that for good
cause shown, the director of the department of administration
may waive the requirements of this section for contracts not in
excess of fifty thousand dollars ($50,000). DEL}
SECTION 3. Section 37-13-14 of the General Laws in Chapter 37-13 entitled "Labor and Payment of Debts by Contractors" is hereby amended to read as follows:
37-13-14. Contractor's bond. -- {DEL (a) DEL}
The state or any city, town, agency, or committee therein awarding
contracts for public works shall require the contractor awarded
a contract with a contract price in excess of {DEL five thousand
dollars ($5,000) DEL} {ADD fifty thousand dollars ($50,000) ADD}
for public works to file with the proper authority good and sufficient
bond with surety furnished by any surety company authorized to
do business in the state, conditioned upon the faithful performance
of the contract and upon the payment for labor performed and material
furnished in connection therewith, a bond to contain the terms
and conditions set forth in chapter 12 of this title, and to be
subject to the provisions of that chapter.
{DEL (b) Provided, however, that for good cause shown in state
public works contracts, the director of the department of administration
may waive the requirements of this section in regards to materials
furnished only for contracts not in excess of fifty thousand dollars
($50,000). DEL}
SECTION 4. Sections 37-2-57 and 37-2-71 of the General Laws in Chapter 37-2 entitled "State Purchases" are hereby repealed in their entirety.
{DEL 37-2-57. Goods produced in the Republic of South
Africa. -- DEL} {DELIn conformity with the policy of divestment
established in section 35-10-12, the state of Rhode Island, including
all of its departments, agencies, authorities, and instrumentalities,
shall refrain from the purchase of any goods which are known to
be wholly produced in the Republic of South Africa. Such goods
are those which are in their final form for use or consumption
without additional processing, assembly, or manufacturing. Further,
the state will give preference in its purchasing to companies
not doing business in, or with, the Republic of South Africa.
The chief purchasing officer shall promulgate such rules and regulations
as are necessary and proper to carry out the purpose of this section. DEL}
{DEL 37-2-71. Professional services -- Legal -- Public
agency. -- DEL} {DEL (a) Before a public agency procures the services
of an attorney, it shall demonstrate to the satisfaction of the
directors of the public agency the following: DEL}
{DEL (1) The need for the services required including the scope
of the services to be performed; DEL}
{DEL (2) That no legal personnel employed by the state on a
full-time basis is available to perform those services; DEL}
{DEL (3) That funding is available, indicating from which sources
the funding is to be provided; DEL}
{DEL (4) That attorneys to be engaged meet the following minimum
requirements: DEL}
{DEL (i) Appropriate professional licensing; DEL}
{DEL (ii) Competence to perform those services as reflected
by formal training and education, general experience, experience
in providing the required services, and the qualifications and
competence of persons who would be assigned to perform the services;
and DEL}
{DEL (iii) Ability to perform the services as reflected by
workload and availability of adequate personnel, equipment, and
facilities to perform the services expeditiously. DEL}
{DEL (b) The attorney shall enter into a letter of engagement
with the agency. The letter of engagement shall state the rate
of compensation, the scope of the services to be performed for
the compensation, and provision for the payment of expenses incurred
in connection with legal services. The letter of engagement shall
certify that the rate of compensation does not exceed the rate
of compensation charged by counsel to his or her preferred public
or private clients. A letter of engagement shall not be for more
than one year. DEL}
SECTION 5. This act shall take effect upon passage.
