AN ACT Relating to state agency purchasing;
amending RCW 43.19.190 and 43.19.1905; and creating new sections.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1.
The legislature recognizes the need for state agencies to maximize the buying
power of increasingly scarce resources for the purchase of goods and services.
The legislature seeks to provide state agencies with the ability to purchase
goods and services at the lowest cost.
Sec. 2.
RCW 43.19.190 and 1991 c 238 s 135 are each amended to read as follows:
The director of general administration, through
the state purchasing and material control director, shall:
(1) Establish and staff such administrative
organizational units within the division of purchasing as may be necessary for
effective administration of the provisions of RCW 43.19.190 through 43.19.1939;
(2) Purchase all material, supplies, services,
and equipment needed for the support, maintenance, and use of all state
institutions, colleges, community colleges, technical colleges, college
districts, and universities, the offices of the elective state officers, the
supreme court, the court of appeals, the administrative and other departments
of state government, and the offices of all appointive officers of the state:
PROVIDED, That the provisions of RCW 43.19.190 through 43.19.1937 do not apply
in any manner to the operation of the state legislature except as requested by
((said)) the legislature: PROVIDED, That any agency may
purchase material, supplies, services, and equipment for which the agency has
notified the purchasing and material control director that it is more
cost-effective for the agency to make the purchase directly from the vendor:
PROVIDED, That primary authority for the purchase of specialized equipment,
instructional, and research material for their own use shall rest with the
colleges, community colleges, and universities: PROVIDED FURTHER, That
universities operating hospitals and the state purchasing and material control
director, as the agent for state hospitals as defined in RCW 72.23.010, and for
health care programs provided in state correctional institutions as defined in
RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and
72.36.070, may make purchases for hospital operation by participating in
contracts for materials, supplies, and equipment entered into by cooperative
hospital service organizations as defined in section 501(e) of the Internal Revenue
Code, or its successor: PROVIDED FURTHER, That primary authority for the
purchase of materials, supplies, and equipment for resale to other than public
agencies shall rest with the state agency concerned: PROVIDED FURTHER, That
authority to purchase services as included herein does not apply to personal
services as defined in chapter 39.29 RCW, unless such organization specifically
requests assistance from the division of purchasing in obtaining personal
services and resources are available within the division to provide such
assistance: PROVIDED FURTHER, That the authority for the purchase of insurance
and bonds shall rest with the risk manager under RCW 43.19.1935 as now or
hereafter amended;
(3) Provide the required staff assistance for
the state supply management advisory board through the division of purchasing;
(4) Have authority to delegate to state
agencies authorization to purchase or sell, which authorization shall specify
restrictions as to dollar amount or to specific types of material, equipment,
services, and supplies: PROVIDED, That acceptance of the purchasing
authorization by a state agency does not relieve such agency from conformance
with other sections of RCW 43.19.190 through 43.19.1939, as now or hereafter
amended, or from policies established by the director after consultation with
the state supply management advisory board: PROVIDED FURTHER, That delegation
of such authorization to a state agency, including an educational institution,
to purchase or sell material, equipment, services, and supplies shall not be
granted, or otherwise continued under a previous authorization, if such agency
is not in substantial compliance with overall state purchasing and material
control policies as established herein;
(5) Contract for the testing of material,
supplies, and equipment with public and private agencies as necessary and
advisable to protect the interests of the state;
(6) Prescribe the manner of inspecting all
deliveries of supplies, materials, and equipment purchased through the division;
(7) Prescribe the manner in which supplies,
materials, and equipment purchased through the division shall be delivered,
stored, and distributed;
(8) Provide for the maintenance of a catalogue
library, manufacturers' and wholesalers' lists, and current market information;
(9) Provide for a commodity classification
system and may, in addition, provide for the adoption of standard
specifications after receiving the recommendation of the supply management
advisory board;
(10) Provide for the maintenance of inventory
records of supplies, materials, and other property;
(11) Prepare rules and regulations governing
the relationship and procedures between the division of purchasing and state
agencies and vendors;
(12) Publish procedures and guidelines for
compliance by all state agencies, including educational institutions, which
implement overall state purchasing and material control policies;
(13) Conduct periodic visits to state agencies,
including educational institutions, to determine if statutory provisions and
supporting purchasing and material control policies are being fully
implemented, and based upon such visits, take corrective action to achieve
compliance with established purchasing and material control policies under
existing statutes when required.
Sec. 3.
RCW 43.19.1905 and 1987 c 504 s 16 are each amended to read as follows:
The director of general administration, after
consultation with the supply management advisory board shall establish overall
state policy for compliance by all state agencies, including educational
institutions, regarding the following purchasing and material control
functions:
(((a))) (1) Development of a
state commodity coding system, including common stock numbers for items
maintained in stores for reissue;
(((b))) (2) Determination where
consolidations, closures, or additions of stores operated by state agencies and
educational institutions should be initiated;
(((c))) (3) Institution of
standard criteria for determination of when and where an item in the state
supply system should be stocked;
(((d))) (4) Establishment of
stock levels to be maintained in state stores, and formulation of standards for
replenishment of stock;
(((e))) (5) Formulation of an
overall distribution and redistribution system for stock items which
establishes sources of supply support for all agencies, including interagency
supply support;
(((f))) (6) Determination of what
function data processing equipment, including remote terminals, shall perform
in state-wide purchasing and material control for improvement of service and
promotion of economy;
(((g))) (7) Standardization of
records and forms used state-wide for supply system activities involving
purchasing, receiving, inspecting, storing, requisitioning, and issuing
functions under the provisions of RCW 43.19.510, including a standard
notification form for state agencies to report cost-effective direct purchases,
which shall at least identify the price of the goods as available through the
division of purchasing, the price of the goods as available from the
alternative source, the total savings, and the signature of the notifying
agency's director or the director's designee;
(((h))) (8) Screening of
supplies, material, and equipment excess to the requirements of one agency for
overall state need before sale as surplus;
(((i))) (9) Establishment of
warehouse operation and storage standards to achieve uniform, effective, and
economical stores operations;
(((j))) (10) Establishment of
time limit standards for the issuing of material in store and for processing
requisitions requiring purchase;
(((k))) (11) Formulation of
criteria for determining when centralized rather than decentralized purchasing
shall be used to obtain maximum benefit of volume buying of identical or
similar items, including procurement from federal supply sources;
(((l))) (12) Development of
criteria for use of leased, rather than state owned, warehouse space based on
relative cost and accessibility;
(((m))) (13) Institution of
standard criteria for purchase and placement of state furnished materials,
carpeting, furniture, fixtures, and nonfixed equipment, in newly constructed or
renovated state buildings;
(((n))) (14) Determination of how
transportation costs incurred by the state for materials, supplies, services,
and equipment can be reduced by improved freight and traffic coordination and
control;
(((o))) (15) Establishment of a
formal certification program for state employees who are authorized to perform
purchasing functions as agents for the state under the provisions of chapter
43.19 RCW;
(((p))) (16) Development of
performance measures for the reduction of total overall expense for material,
supplies, equipment, and services used each biennium by the state;
(((q))) (17) Establishment of a
standard system for all state organizations to record and report dollar savings
and cost avoidance which are attributable to the establishment and
implementation of improved purchasing and material control procedures;
(((r))) (18) Development of
procedures for mutual and voluntary cooperation between state agencies,
including educational institutions, and political subdivisions for exchange of
purchasing and material control services;
(((s))) (19) Resolution of all
other purchasing and material matters referred to him by a member of the
advisory board which require the establishment of overall state-wide policy for
effective and economical supply management;
(((t))) (20) Development of
guidelines and criteria for the purchase of vehicles, alternate vehicle fuels
and systems, equipment, and materials that reduce overall energy-related costs
and energy use by the state, including the requirement that new passenger
vehicles purchased by the state meet the minimum standards for passenger
automobile fuel economy established by the United States secretary of
transportation pursuant to the energy policy and conservation act (15 U.S.C.
Sec. 2002).
NEW SECTION. Sec. 4.
The department of general administration shall forward copies of notification
forms required under RCW 43.19.1905(7) to the office of financial management.
By September 1, 1994, the department of general administration shall report to
the house of representatives fiscal committees and senate ways and means
committee on the volume and type of purchases made and the aggregate savings
identified by state agencies making purchases as authorized by this act for
fiscal year 1994.
