Assembly Bill No. 116–Committee on
Government Affairs

 

(On Behalf of the Purchasing Division)

 

February 13, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions relating to state purchasing. (BDR 27‑485)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state purchasing; requiring the Chief of the Purchasing Division of the Department of Administration to contract for the lease-purchase of equipment under certain circumstances; providing for the use of price agreements; providing specifically that the Chief may determine to design a contract to be awarded to more than one responsible bidder; revising provisions relating to advertisements for bids or proposals; revising provisions relating to the security of bids; revising the penalties that the Chief may impose against a person who breaches a contract; revising provisions relating to the purchase of products containing recycled material; providing specifically that the Chief may purchase or acquire services on behalf of governmental entities in this state; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 333.150 is hereby amended to read as follows:

1-2  333.150  The Chief shall:

1-3  1.  Purchase or contract for all supplies, materials and

1-4  equipment; and

2-1  2.  Contract for the rental , [or] lease or lease-purchase of

2-2  equipment,

2-3  needed by any using agency, unless otherwise provided by law.

2-4  Sec. 2.  NRS 333.160 is hereby amended to read as follows:

2-5  333.160  1.  The Chief may decide whether and to what extent

2-6  the needs of any using agency may be supplied:

2-7  [1.](a) From stores of commodities on hand;

2-8  [2.](b) By transfer of surplus items or stocks from other using

2-9  agencies;

2-10      [3.] (c) By deliveries under contracts;

2-11      [4.] (d) By open market purchases through the Chief; [or

2-12      5.] (e) Directly by the using agencies; or

2-13      (f) Through price agreements,

2-14  but he shall have thorough discussions on such matters with

2-15  authorized representatives of each using agency.

2-16      2.  As used in this section, “price agreement” means a definite

2-17  quantity contract or indefinite quantity contract which requires

2-18  the contractor to furnish goods or services to the using agency

2-19  pursuant to an authorization for the purchase of goods or services

2-20  within the quantity limitations of the contract, if any.

2-21      Sec. 3.  NRS 333.162 is hereby amended to read as follows:

2-22      333.162  1.  The Chief may designate the method of obtaining

2-23  a contract, including:

2-24      (a) An invitation to bid;

2-25      (b) A request for proposals;

2-26      (c) A request for a quotation; or

2-27      (d) Any other accepted method of purchasing that complies with

2-28  the provisions of this chapter.

2-29      2.  If the Chief determines that it would be in the best interests

2-30  of this state to design a contract to be awarded to more than one

2-31  responsible bidder, the Chief shall specify, or shall ensure the

2-32  method of obtaining the contract specifies, that the contract may

2-33  be awarded to more than one responsible bidder.

2-34      3.  The Chief shall adopt regulations governing the methods of

2-35  obtaining a contract.

2-36      Sec. 4.  NRS 333.280 is hereby amended to read as follows:

2-37      333.280  1.  Except as otherwise provided in this subsection,

2-38  the Chief may enter into a contract using a standard form of

2-39  contract, by advertising in accordance with the provisions of NRS

2-40  333.310, for the furnishing of supplies, materials and equipment for

2-41  not more than [2] 4 years. If an extended contractual period is

2-42  necessary to promote the use of a manufacturing process which

2-43  emphasizes the efficient use of energy or to promote the

2-44  manufacture of products which use recycled materials, the Chief

2-45  may enter into such a contract for not more than [3] 5 years.

3-1  2.  The original terms of a contract may be extended annually

3-2  thereafter if the conditions for extension are specified in the original

3-3  solicitation, and the Chief determines that an extension is in the best

3-4  interest of the State.

3-5  Sec. 5.  NRS 333.300 is hereby amended to read as follows:

3-6  333.300  1.  Except as otherwise provided in NRS 333.375,

3-7  the Chief shall give reasonable notice, by advertising and by written

3-8  notice provided to persons in a position to furnish the classes of

3-9  commodities involved, as shown by its records, of all proposed

3-10  purchases of supplies, materials and equipment to be purchased in

3-11  accordance with a schedule prepared in conformity with the

3-12  provisions of NRS 333.250.

3-13      2.  All such materials, supplies and equipment, except as

3-14  otherwise provided in this section, if the estimated cost thereof

3-15  exceeds $25,000, must be purchased by formal contract from the

3-16  lowest responsible bidder after notice inviting the submission of

3-17  sealed proposals to the Chief of the Purchasing Division at the date,

3-18  hour and location set forth in the proposal, and at that date, hour and

3-19  location the proposals must be publicly opened. The Purchasing

3-20  Division may reject any or all proposals, or may accept the proposal

3-21  determined best for the interest of the State. The notice must be

3-22  published as prescribed in NRS 333.310.

3-23      3.  In case of emergencies caused by acts of God or the national

3-24  defense or other unforeseeable circumstances, the provisions for

3-25  advertisements on competitive bids may be waived by the Chief, but

3-26  every effort must be made to secure the maximum competitive

3-27  bidding under the circumstances. In no case may contracts be

3-28  awarded until every possible effort has been made to secure at least

3-29  three bona fide competitive bids.

3-30      4.  In awarding contracts for the purchase of supplies, materials

3-31  and equipment[,] where the invitation to bid or other method of

3-32  obtaining the contract does not specify that the contract may be

3-33  awarded to more than one responsible bidder, if two or more

3-34  lowest bids are identical, the Chief shall:

3-35      (a) If the lowest bids are by bidders resident in the State of

3-36  Nevada, accept the proposal which, in his discretion, is in the best

3-37  interests of this state.

3-38      (b) If the lowest bids are by bidders resident outside the State of

3-39  Nevada:

3-40          (1) Accept the proposal of the bidder who will furnish goods

3-41  or commodities produced or manufactured in this state; or

3-42          (2) Accept the proposal of the bidder who will furnish goods

3-43  or commodities supplied by a dealer resident in the State of Nevada.

 

 

4-1  Sec. 6.  NRS 333.310 is hereby amended to read as follows:

4-2  333.310  1.  An advertisement must contain a general

4-3  description of the classes of commodities or services for which a bid

4-4  or proposal is wanted and must state:

4-5  (a) The type of bid or proposal that is wanted;

4-6  (b) Whether the bid or proposal is for commodities or services

4-7  to be used by:

4-8       (1) A specific department, agency, local government,

4-9  district or institution; or

4-10          (2) All such entities;

4-11      (c) If applicable, the name and location of the department,

4-12  agency, local government, district or institution for which the

4-13  purchase is to be made[.

4-14      (b)] ;

4-15      (d) Where and how specifications and quotation forms may be

4-16  obtained[.

4-17      (c)] ;

4-18      (e) If the advertisement is for bids, whether the Chief is

4-19  authorized by the using agency to be supplied to consider a bid for

4-20  an article that is an alternative to the article listed in the original

4-21  request for bids if:

4-22          (1) The specifications of the alternative article meet or

4-23  exceed the specifications of the article listed in the original request

4-24  for bids;

4-25          (2) The purchase of the alternative article results in a lower

4-26  price; and

4-27          (3) The Chief deems the purchase of the alternative article to

4-28  be in the best interests of the State of Nevada[.

4-29      (d)] ;

4-30      (f) The date and time not later than which responses must be

4-31  received by the Purchasing Division[.

4-32      (e)] ; and

4-33      (g) The date and time when responses will be opened.

4-34  The Chief or his designated agent shall approve the copy for the

4-35  advertisement.

4-36      2.  Each advertisement must be published in at least one

4-37  newspaper of general circulation in the State. The selection of the

4-38  newspaper to carry the advertisement must be made in the manner

4-39  provided by this chapter for other purchases, on the basis of the

4-40  lowest price to be secured in relation to the paid circulation.

4-41      Sec. 7.  NRS 333.330 is hereby amended to read as follows:

4-42      333.330  1.  All bids on more than one item on which bids are

4-43  called for by the same notice must be itemized and give a price for

4-44  each item.

4-45      2.  All bids must:

5-1  (a) Except as otherwise provided in NRS 333.313, be in writing

5-2  and signed.

5-3  (b) Be [sealed or, if] secured:

5-4       (1) By sealing the bid;

5-5       (2) If the bid is submitted by facsimile, in a manner

5-6  approved by the Chief; or

5-7       (3) If the bid is submitted electronically, [secured] by an

5-8  electronic equivalent of a seal, as approved by the Purchasing

5-9  Division.

5-10      (c) Be opened and read publicly by the Chief or his designated

5-11  agent as they are opened.

5-12      Sec. 8.  NRS 333.365 is hereby amended to read as follows:

5-13      333.365  1.  A person who has entered into a contract with the

5-14  Purchasing Division or another agency of this state and who does

5-15  not perform according to the terms of the contract is liable for, in

5-16  addition to any other applicable damages for breach of contract, a

5-17  penalty of not more than 5 percent of the total value of the bid[.] or

5-18  contract. The penalty must be recovered in a civil action upon the

5-19  complaint of the Chief in any court of competent jurisdiction. In

5-20  addition to recovering the penalty and any other applicable

5-21  damages, the Chief may [remove the name of the person from the

5-22  list of bidders and] refuse to accept a bid from [him] the person or

5-23  refuse to award a contract to the person, or both, for not more than

5-24  2 years.

5-25      2.  If the Chief does not bring an action to recover the penalty

5-26  prescribed by subsection 1, he may:

5-27      (a) [Remove the name of the person from the list of bidders and

5-28  refuse] Refuse to accept a bid from [him] the person or refuse to

5-29  award a contract to the person, or both, for not more than 2 years;

5-30  and

5-31      (b) Impose an administrative penalty, in an amount not to

5-32  exceed 5 percent of the total value of the bid[.] or contract. Such a

5-33  penalty may be recovered only after notice is given to the person by

5-34  mail.

5-35      3.  [If the Chief has removed the name of a person from the list

5-36  of bidders, that person must apply to the Chief to have his name

5-37  reinstated on the list of bidders.

5-38      4.]A penalty imposed pursuant to subsection 1 or 2 may be

5-39  deducted from any payment due the person or, if a bond has been

5-40  issued or a check received, a claim may be made against the bond or

5-41  check. If no payment is due and no bond was issued or check

5-42  received, the Chief may issue a claim for payment of the penalty.

5-43  The claim must be paid within 30 days.

 

 

6-1  Sec. 9.  NRS 333.4603 is hereby amended to read as follows:

6-2  333.4603  As used in this section and NRS 333.4606 and

6-3  333.4609, unless the context otherwise requires:

6-4  1.  “Postconsumer waste” means a finished material which

6-5  would normally be disposed of as a solid waste having completed its

6-6  life cycle as a consumer item.

6-7  2.  “Recycled paper product” means all paper and wood-pulp

6-8  products [containing in some combination at least 50 percent of its

6-9  total weight:

6-10      (a) Postconsumer waste; and

6-11      (b) Secondary waste,

6-12  but] that contain postconsumer waste and secondary waste in a

6-13  combination that meets prevailing industry standards for the

6-14  designation of paper products as being recycled. The term does not

6-15  include fibrous waste generated during the manufacturing process

6-16  such as fibers recovered from wastewater or trimmings of paper

6-17  machine rolls, wood slabs, chips, sawdust or other wood residue

6-18  from a manufacturing process.

6-19      3.  “Secondary waste” means fragments of products or finished

6-20  products of a manufacturing process, which has converted a virgin

6-21  resource into a commodity of real economic value.

6-22      Sec. 10.  NRS 333.4606 is hereby amended to read as follows:

6-23      333.4606  1.  The Chief shall review and revise the

6-24  specifications for procuring goods and products for the using

6-25  agencies to eliminate discrimination against the procurement or

6-26  purchase of recycled products whenever the quality of a recycled

6-27  product is reasonably equal to the same product manufactured with

6-28  virgin resources. Except for specifications which have been

6-29  established to preserve the public health and safety, all

6-30  specifications for procurement must be established in a manner

6-31  which results in the maximum procurement and purchase of

6-32  recycled products.

6-33      2.  When purchasing goods and products for the using agencies,

6-34  the Chief shall give preference to recycled products if:

6-35      (a) The product meets the applicable standards;

6-36      (b) The product can be substituted for a comparable nonrecycled

6-37  product; and

6-38      (c) The product costs no more than a comparable nonrecycled

6-39  product.

6-40      3.  When purchasing goods and products for the using agencies,

6-41  the Chief may give preference to recycled products if:

6-42      (a) The product meets the applicable standards;

6-43      (b) The product can be substituted for a comparable nonrecycled

6-44  product; and

7-1  (c) The product costs no more than 5 percent more than a

7-2  comparable nonrecycled product.

7-3  4.  To encourage the use of postconsumer waste, a bidder who

7-4  manufactures a product in Nevada that contains postconsumer waste

7-5  shall be deemed to be the lowest bidder if:

7-6  (a) [At least 50 percent of the product, by weight, contains

7-7  postconsumer waste;

7-8  (b)] The product [complies with the applicable standards; and

7-9  (c)] contains postconsumer waste in an amount that meets

7-10  prevailing industry standards for the use of postconsumer waste;

7-11  and

7-12      (b) The amount of the bid is not more than 10 percent higher

7-13  than the bid of any other bidder.

7-14      5.  A bidder whose product contains postconsumer waste shall

7-15  certify in writing:

7-16      (a) That the product contains postconsumer waste; and

7-17      (b) The percentage of postconsumer waste, by weight, that is

7-18  contained in the product.

7-19      Sec. 11.  NRS 333.4609 is hereby amended to read as follows:

7-20      333.4609  1.  After consultation with the State Department of

7-21  Conservation and Natural Resources, the Chief shall [adopt

7-22  regulations governing the bidding procedure and specifications for

7-23  paper and paper products purchased by the Purchasing Division

7-24  that] encourage the maximum purchase of recycled paper products.

7-25  [The specifications must give preference to recycled paper products

7-26  manufactured with the highest percentage of recycled material.]

7-27      2.  When purchasing any paper or paper products for use by a

7-28  using agency, the Chief shall purchase recycled paper products if the

7-29  specific recycled paper product is:

7-30      (a) Available at a price not more than that of paper products

7-31  made from virgin material;

7-32      (b) Of adequate quality; and

7-33      (c) Available to the purchaser within a reasonable period.

7-34      3.  When purchasing any paper or paper products for use by a

7-35  using agency, the Chief may purchase recycled paper products if the

7-36  specific recycled paper product is:

7-37      (a) Available at a price not more than 10 percent higher than that

7-38  of paper products made from virgin material;

7-39      (b) Of adequate quality; and

7-40      (c) Available to the purchaser within a reasonable period.

7-41      Sec. 12.  NRS 333.480 is hereby amended to read as follows:

7-42      333.480  The Chief may purchase or acquire on behalf of the

7-43  State of Nevada, and all officers, departments, institutions, boards,

7-44  commissions, schools and other agencies in the Executive

7-45  Department of the State Government, volunteer fire departments,

8-1  local governments as defined in NRS 354.474, conservation districts

8-2  or irrigation districts of the State of Nevada, any services, supplies,

8-3  materials or equipment of any kind required or deemed advisable for

8-4  the state officers, departments, institutions, boards, commissions,

8-5  schools, volunteer fire departments and other agencies or local

8-6  governments as defined in NRS 354.474, conservation districts or

8-7  irrigation districts that may be available pursuant to an agreement

8-8  with a vendor who has entered into an agreement with the General

8-9  Services Administration or another governmental agency dealing in

8-10  services, supplies, materials, equipment or donable surplus material

8-11  if:

8-12      1.  The prices for the services, supplies, materials or equipment

8-13  negotiated in the agreement that the Chief enters into with the

8-14  vendor are substantially similar to the prices for those services,

8-15  supplies, materials or equipment that the vendor had negotiated with

8-16  the General Services Administration or other governmental agency;

8-17  and

8-18      2.  The Chief determines that such an agreement would be in

8-19  the best interests of the State.

8-20      Sec. 13.  This act becomes effective upon passage and

8-21  approval.

 

8-22  H