BILL REQ. #: S-1425.1
State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/18/11.
AN ACT Relating to public contracting authority; amending RCW 28B.10.029, 39.29.011, 39.29.018, and 43.19.1906; and reenacting and amending RCW 39.29.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 28B.10.029 and 2010 c 61 s 1 are each amended to read
as follows:
(1)(a) An institution of higher education may exercise
independently those powers otherwise granted to the director of general
administration in chapter 43.19 RCW in connection with the purchase and
disposition of all material, supplies, services, and equipment needed
for the support, maintenance, and use of the respective institution of
higher education.
(b) Property disposition policies followed by institutions of
higher education shall be consistent with policies followed by the
department of general administration.
(c) Purchasing policies and procedures followed by institutions of
higher education shall be in compliance with chapters 39.19, 39.29, and
43.03 RCW, and RCW 43.19.1901, 43.19.1906, 43.19.1911, 43.19.1917,
43.19.1937, ((43.19.534,)) 43.19.685, 43.19.700 through 43.19.704, and
43.19.560 through 43.19.637.
(d) Purchases under chapter 39.29, 43.19, or 43.105 RCW by
institutions of higher education may be made by using contracts for
materials, supplies, services, or equipment negotiated or entered into
by, for, or through group purchasing organizations.
(e) The community and technical colleges shall comply with RCW
43.19.450.
(f) Except for the University of Washington, institutions of higher
education shall comply with RCW 43.41.310, 43.41.290, and 43.41.350.
(g) If an institution of higher education can satisfactorily
demonstrate to the director of the office of financial management that
the cost of compliance is greater than the value of benefits from any
of the following statutes, then it shall be exempt from them: RCW
43.19.685((, 43.19.534,)) and 43.19.637.
(h) Any institution of higher education that chooses to exercise
independent purchasing authority for a commodity or group of
commodities shall notify the director of general administration.
Thereafter the director of general administration shall not be required
to provide those services for that institution for the duration of the
general administration contract term for that commodity or group of
commodities.
(2) The council of presidents and the state board for community and
technical colleges shall convene its correctional industries business
development advisory committee, and work collaboratively with
correctional industries, to:
(a) Reaffirm purchasing criteria and ensure that quality, service,
and timely delivery result in the best value for expenditure of state
dollars;
(b) Update the approved list of correctional industries products
from which higher education shall purchase; and
(c) Develop recommendations on ways to continue to build
correctional industries' business with institutions of higher
education.
(3) Higher education and correctional industries shall develop a
plan to build higher education business with correctional industries to
increase higher education purchases of correctional industries
products, based upon the criteria established in subsection (2) of this
section. The plan shall include the correctional industries'
production and sales goals for higher education and an approved list of
products from which higher education institutions shall purchase, based
on the criteria established in subsection (2) of this section. Higher
education and correctional industries shall report to the legislature
regarding the plan and its implementation no later than January 30,
2005.
(4) Institutions of higher education shall set as a target to
contract, beginning not later than June 30, 2006, to purchase one
percent of the total goods and services required by the institutions
each year produced or provided in whole or in part from class II inmate
work programs operated by the department of corrections. Institutions
of higher education shall set as a target to contract, beginning not
later than June 30, 2008, to purchase two percent of the total goods
and services required by the institutions each year produced or
provided in whole or in part from class II inmate work programs
operated by the department of corrections.
(5) An institution of higher education may exercise independently
those powers otherwise granted to the public printer in chapter 43.78
RCW in connection with the production or purchase of any printing and
binding needed by the respective institution of higher education.
Purchasing policies and procedures followed by institutions of higher
education shall be in compliance with chapter 39.19 RCW. Any
institution of higher education that chooses to exercise independent
printing production or purchasing authority shall notify the public
printer. Thereafter the public printer shall not be required to
provide those services for that institution.
Sec. 2 RCW 39.29.011 and 2009 c 486 s 7 are each amended to read
as follows:
All personal service contracts shall be entered into pursuant to
competitive solicitation, except for:
(1) Emergency contracts;
(2) Sole source contracts;
(3) Contract amendments;
(4) Contracts between a consultant and an agency of less than
twenty thousand dollars. ((However, contracts of five thousand dollars
or greater but less than twenty thousand dollars shall have documented
evidence of competition, which must include agency posting of the
contract opportunity on the state's common vendor registration and bid
notification system.)) For institutions of higher education, this
limit shall be one hundred thousand dollars, however, for contracts of
ten thousand dollars or greater but less than one hundred thousand
dollars, the institutions of higher education shall have documented
evidence of competition. Agencies shall not structure contracts to
evade these requirements; and
(5) Other specific contracts or classes or groups of contracts
exempted from the competitive solicitation process by the director of
the office of financial management when it has been determined that a
competitive solicitation process is not appropriate or cost-effective.
Sec. 3 RCW 39.29.018 and 2009 c 486 s 8 are each amended to read
as follows:
(1) Sole source contracts shall be filed with the office of
financial management and made available for public inspection at least
ten working days prior to the proposed starting date of the contract.
Documented justification for sole source contracts shall be provided to
the office of financial management when the contract is filed, and for
contracts over twenty thousand dollars must include evidence that the
agency posted the contract opportunity on the state's common vendor
registration and bid notification system. For sole source contracts of
twenty thousand dollars or more, documented justification shall also
include evidence that the agency attempted to identify potential
consultants by advertising through statewide or regional newspapers.
(2) The office of financial management shall approve sole source
contracts of twenty thousand dollars or more before any such contract
becomes binding and before any services may be performed under the
contract. These requirements shall also apply to sole source contracts
of less than twenty thousand dollars if the total amount of such
contracts between an agency and the same consultant is twenty thousand
dollars or more within a fiscal year. Agencies shall ensure that the
costs, fees, or rates negotiated in filed sole source contracts of
twenty thousand dollars or more are reasonable.
Sec. 4 RCW 39.29.040 and 2002 c 260 s 11 and 2002 c 200 s 2 are
each reenacted and amended to read as follows:
This chapter does not apply to:
(1) Contracts specifying a fee of less than ((five)) twenty
thousand dollars if the total of the contracts from that agency with
the contractor within a fiscal year does not exceed ((five)) twenty
thousand dollars, however, for institutions of higher education, the
limit shall be a fee less than one hundred thousand dollars;
(2) Contracts awarded to companies that furnish a service where the
tariff is established by the utilities and transportation commission or
other public entity;
(3) Intergovernmental agreements awarded to any governmental
entity, whether federal, state, or local and any department, division,
or subdivision thereof;
(4) Contracts awarded for services to be performed for a standard
fee, when the standard fee is established by the contracting agency or
any other governmental entity and a like contract is available to all
qualified applicants;
(5) Contracts for services that are necessary to the conduct of
collaborative research if prior approval is granted by the funding
source;
(6) Contracts for client services except as otherwise indicated in
this chapter;
(7) Contracts for architectural and engineering services as defined
in RCW 39.80.020, which shall be entered into under chapter 39.80 RCW;
(8) Contracts for the employment of expert witnesses for the
purposes of litigation;
(9) Contracts for bank supervision authorized under RCW 30.38.040;
and
(10) Contracts for interpreter services and interpreter brokerage
services on behalf of limited-English speaking or sensory-impaired
applicants and recipients of public assistance.
Sec. 5 RCW 43.19.1906 and 2008 c 215 s 5 are each amended to read
as follows:
Insofar as practicable, all purchases and sales shall be based on
competitive bids, and a formal sealed, electronic, or web-based bid
procedure, subject to RCW 43.19.1911, shall be used as standard
procedure for all purchases and contracts for purchases and sales
executed by the state purchasing and material control director and
under the powers granted by RCW 43.19.190 through 43.19.1939. This
requirement also applies to purchases and contracts for purchases and
sales executed by agencies, including educational institutions, under
delegated authority granted in accordance with provisions of RCW
43.19.190 or under RCW 28B.10.029. However, formal sealed, electronic,
or web-based competitive bidding is not necessary for:
(1) Emergency purchases made pursuant to RCW 43.19.200 if the
sealed bidding procedure would prevent or hinder the emergency from
being met appropriately;
(2) Purchases not exceeding thirty-five thousand dollars, or
subsequent limits as calculated by the office of financial management:
PROVIDED, That the state director of general administration shall
establish procedures to assure that purchases made by or on behalf of
the various state agencies shall not be made so as to avoid the thirty-five thousand dollar bid limitation, or subsequent bid limitations as
calculated by the office of financial management: PROVIDED FURTHER,
That the state purchasing and material control director is authorized
to reduce the formal sealed bid limits of thirty-five thousand dollars,
or subsequent limits as calculated by the office of financial
management, to a lower dollar amount for purchases by individual state
agencies if considered necessary to maintain full disclosure of
competitive procurement or otherwise to achieve overall state
efficiency and economy in purchasing and material control. Quotations
from three thousand dollars to thirty-five thousand dollars, or
subsequent limits as calculated by the office of financial management,
shall be secured from at least three vendors to assure establishment of
a competitive price and may be obtained by telephone or written
quotations, or both. The agency shall invite at least one quotation
each from a certified minority and a certified women-owned vendor who
shall otherwise qualify to perform such work. Immediately after the
award is made, the bid quotations obtained shall be recorded and open
to public inspection and shall be available by telephone inquiry. A
record of competition for all such purchases from three thousand
dollars to thirty-five thousand dollars, or subsequent limits as
calculated by the office of financial management, shall be documented
for audit purposes. Purchases up to three thousand dollars may be made
without competitive bids based on buyer experience and knowledge of the
market in achieving maximum quality at minimum cost;
(3) Purchases which are clearly and legitimately limited to a
single source of supply and purchases involving special facilities,
services, or market conditions, in which instances the purchase price
may be best established by direct negotiation;
(4) Purchases of insurance and bonds by the risk management
division under RCW 43.41.310;
(5) Purchases and contracts for vocational rehabilitation clients
of the department of social and health services: PROVIDED, That this
exemption is effective only when the state purchasing and material
control director, after consultation with the director of the division
of vocational rehabilitation and appropriate department of social and
health services procurement personnel, declares that such purchases may
be best executed through direct negotiation with one or more suppliers
in order to expeditiously meet the special needs of the state's
vocational rehabilitation clients;
(6) Purchases by universities for hospital operation or biomedical
teaching or research purposes and by 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, made by participating in
contracts for materials, supplies, and equipment entered into by
nonprofit cooperative hospital group purchasing organizations;
(7) Purchases for resale by institutions of higher education to
other than public agencies when such purchases are for the express
purpose of supporting instructional programs and may best be executed
through direct negotiation with one or more suppliers in order to meet
the special needs of the institution;
(8) Purchases by institutions of higher education not exceeding
((thirty-five)) one hundred thousand dollars: PROVIDED, That for
purchases between ((three)) ten thousand dollars and ((thirty-five))
one hundred thousand dollars quotations shall be secured from at least
three vendors to assure establishment of a competitive price and may be
obtained by telephone or written quotations, or both. For purchases
between ((three)) ten thousand dollars and ((thirty-five)) one hundred
thousand dollars, each institution of higher education shall invite at
least one quotation each from a certified minority and a certified
women-owned vendor who shall otherwise qualify to perform such work.
A record of competition for all such purchases made from ((three)) ten
thousand to ((thirty-five)) one hundred thousand dollars shall be
documented for audit purposes;
(9) Off-contract purchases of Washington grown food when such food
is not available from Washington sources through an existing contract.
However, Washington grown food purchased under this subsection must be
of an equivalent or better quality than similar food available through
the contract and be able to be paid from the agency's existing budget.
This requirement also applies to purchases and contracts for purchases
executed by state agencies, including institutions of higher education,
under delegated authority granted in accordance with RCW 43.19.190 or
under RCW 28B.10.029; and
(10) Negotiation of a contract by the department of transportation,
valid until June 30, 2001, with registered tow truck operators to
provide roving service patrols in one or more Washington state patrol
tow zones whereby those registered tow truck operators wishing to
participate would cooperatively, with the department of transportation,
develop a demonstration project upon terms and conditions negotiated by
the parties.
((Beginning on July 1, 1995, and on July 1st of each succeeding
odd-numbered year, the dollar limits specified in this section shall be
adjusted as follows: The office of financial management shall
calculate such limits by adjusting the previous biennium's limits by
the appropriate federal inflationary index reflecting the rate of
inflation for the previous biennium. Such amounts shall be rounded to
the nearest one hundred dollars. However,)) The three thousand dollar
figure in subsections (2) and (8) of this section may not be adjusted
to exceed five thousand dollars.
As used in this section, "Washington grown" has the definition in
RCW 15.64.060.