June 29, 2005, Introduced by Senator SANBORN and referred to the Committee on Economic Development, Small Business and Regulatory Reform.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 261 (MCL 18.1261), as amended by 1993 PA 46.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 261. (1) The department shall provide for the purchase
of, the contracting for, and the providing of supplies, materials,
services, insurance, utilities, third party financing, equipment,
printing, and all other items as needed by state agencies for which
the legislature has not otherwise expressly provided. In all
purchases made by the department, all other things being equal,
preference shall be given to products manufactured or services
offered by Michigan-based firms, if consistent with federal
statutes. The department shall solicit competitive bids from the
private sector whenever practicable to efficiently and effectively
meet the state's needs. The department shall first determine that
competitive solicitation of bids in the private sector is not
appropriate before it shall use any other procurement method for an
acquisition.
(2) The department shall make all discretionary decisions
concerning the solicitation, award, amendment, cancellation, and
appeal of state contracts.
(3) The department shall utilize competitive bidding for all
purchases
authorized pursuant to subsection (1) unless the
department
has determined that another procurement method is in the
state's
best interests. under this
act unless 1 or more of the
following apply:
(a) Procurement of goods or services is necessary for the
imminent protection of public health or safety or to mitigate an
imminent threat to public health or safety, as determined by the
director or his or her designated representative.
(b) Procurement of goods or services is for emergency repair
or construction caused by unforeseen circumstances when the repair
or construction is necessary to protect life or property.
(c) Procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) Procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) Procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
10.89.
(f) Procurement of goods or services is within a state
agency's purchasing authority delegated under subsection (4), the
value of the procurement is less than $25,000.00, and the
department has established policies or procedures approved by the
department to ensure that goods or services with a value of less
than $25,000.00 are purchased by the state agency at fair and
reasonable prices.
(4) The department may delegate its procurement authority to
other state agencies within dollar limitations and for designated
types of procurements. The department may withdraw delegated
authority upon a finding that a state agency did not comply with
departmental procurement directives.
(5) The department may enter into lease purchases or
installment purchases for periods not exceeding the anticipated
useful life of the items purchased unless otherwise prohibited by
law.
(6) The department shall issue directives for the procurement,
receipt, inspection, and storage of supplies, materials, and
equipment, and for printing and services needed by state agencies.
The department shall provide standard specifications and standards
of performance applicable to purchases.
(7) The department may enter into a cooperative purchasing
agreement with 1 or more other states or public entities for the
purchase of goods, including, but not limited to, recycled goods,
and services necessary for state programs.