Senate Bill 51 Becomes Law July 1, 2010 and What ALL Contractors Need to Know!

Some of the coming changes include:

Creates Independent Chief Procurement Officers (CPO)

-          There are currently 4 Chief Procurement Officers.  The new legislation requires the Executive Ethics Commission (EEC), with advice and consent of the Senate, to appoint 4 CPOs.  They will be required to exercise all procurement authority created by the code.  They are responsible to the EEC and each of them will be located at their respective agencies (CDB, DOT, CMS, IBHE-Higher Ed)

 

Creates Independent State purchasing officers (SPO)

-          The State currently employs purchasing officers who are primarily responsible for overseeing the procurement process at their respective agencies.  Under the new legislation, the respective CPOs will appoint SPOs, which will be housed in their designated agencies.  Within 18 months of their appointment they will be required to become a Certified Professional Public Buyer and shall serve for 5 year terms.

 

Creates Procurement Compliance Monitors. 

-          Will be several appointed to each agency for a term of 5 years.

 

Creates role of Executive Procurement Officer (EPO)

-          Appointed by the Governor

-          Duties include recommending policies and procedures to ensure consistency between CPOs, provides guidance to CPOs, and assists CPOs in execution of their duties.

 

Adds requirements for Sole Source and Emergency Procurements

-          Sole Source – May not be awarded unless approved by CPO after a Public Hearing.  Notice for their hearing must be posted 14 days prior to the hearing.

-          Emergency – Limited to 90 days and unless a hearing is held and then it may be extended an additional 90 days.

 

Adds restrictions on the start of vendor payments

-          Vendors shall not be paid for any goods/services prior to contract execution.  Waivers must be approved by Treasurer and Comptroller.

 

Substantially increases sub-contractor reporting requirements

-          Disclosure of subcontracting within 20 days of contract and notification of changes through the duration of the contract.

 

Changes the registration requirements

-          Any changes must be reported within 5 days of the change or no later than 1 day before the contract is awarded, whichever is sooner.

 

Adds additional language that prohibits bidders and subcontractors on procurements

-          Prohibits bids from persons or businesses, including subcontractors, that assisted in developing the RFP.

 

Adds additional Financial Disclosure and Conflicts of Interest language that applies to subs.

 

Enacts lobbying restrictions

 

Adds additional procurement communications requirements

-          Any material oral or written communication received by a State employee regarding an application, a contract, or a project must be reported to the Procurement Policy Board.  If the communication is from a Lobbyist, all parties involved are required to submit a report.

 

Adds restrictive language on the agency’s ability to issue bonds

We will keep you informed as we receive information on how these changes are supposed to be implemented.

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