164A.575 Purchasing -- Inventories -- Sales of surplus property -- Bidding procedures -- Kentucky-grown agricultural products -- Reports -- Reciprocal preference for resident bidders -- Reverse auctio - Kentucky Statutes

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Page 1 of 3 164A.575 Purchasing -- Inventories -- Sales of surplus property -- Bidding procedures -- Kentucky-grown agricultural products -- Reports -- Reciprocal
preference for resident bidders -- Reverse auctions. (1) The governing boards of each institution may elect to purchase interest in real property, contractual services, rentals of all types, supplies, materials, equipment,
printing, and services, except that competitive bids may not be required for:
(a) Contractual services where no competition exists;
(b) Food, clothing, equipment, supplies, or other materials to be used in laboratory and experimental studies; (c) Instructional materials available from only one (1) source;
(d) Where rates are fixed by law or ordinance;
(e) Library books;
(f) Commercial items that are purchased for resale;
(g) Professional, technical, scientific, or artistic services, but contracts shall be submitted in accordance with KRS 45A.690 to 45A.725; (h) All other commodities, equipment, and services which, in the reasonable discretion of the board, are available from only one (1) source; and (i) Interests in real property. (2) Nothing in this section shall deprive the boards from negotiating with vendors who maintain a General Services Administration price agreement with the United States
of America or any agency thereof, provided, however, that no contract executed
under this provision shall authorize a price higher than is contained in the contract
between General Services Administration and the vendor affected. (3) The governing board shall require the institution to take and maintain inventories of plant and equipment. (4) The governing board shall establish procedures to identify items of common general usage among all departments to foster volume purchasing. It shall establish and
enforce schedules for purchasing supplies, materials, and equipment. (5) The governing board shall have power to salvage, to exchange, and to condemn supplies, equipment, and real property. (6) Upon the approval of the secretary of the Finance and Administration Cabinet, the governing board may purchase or otherwise acquire all real property determined to
be needed for the institution's use. The amount paid shall not exceed the appraised
value as determined by a qualified appraiser or the value set by the eminent domain
procedure. Any real property acquired under this section shall be in name of the
Commonwealth for the use and benefit of the institution. (7) The governing board shall sell or otherwise dispose of all real or personal property of the institution which is not needed or has become unsuitable for public use, or
would be more suitable consistent with the public interest for some other use, as
determined by the board. The determination of the board shall be set forth in an
order, and shall be reached only after review of a written request by the institution
desiring to dispose of the property. Such request shall describe the property and Page 2 of 3 state the reasons why the institution believes disposal should be effected. All
instruments required by law to be recorded which convey any interest in any such
real property so disposed of shall be executed and signed by the appropriate officer
of the board. Unless the board deems it in the best interest of the institution to
proceed otherwise, all such real or personal property shall be sold either by
invitation of sealed bids or by public auction; provided, however, that the selling
price of any interest in real property shall not be less than the appraised value
thereof as determined by the Finance and Administration Cabinet or the
Transportation Cabinet for such requirements of that department. (8) Real property or any interest therein may, subject to the provisions of KRS Chapter 45A, be purchased, leased, or otherwise acquired from any officer or employee of
any board of the institution, based upon a written application by the grantor or
lessor approved by the board, that the employee has not either himself or through
any other person influenced or attempted to influence either the board requesting the
purchase of the property. In any case in which such an acquisition is consummated,
the said request and finding shall be recorded and kept by the Secretary of State
along with the other documents recorded pursuant to the provisions of KRS Chapter
56. (9) (a) As used in this section, "construction manager-agency," "construction management-at-risk," "design-bid-build," and "design-build" shall have the
same meaning as in KRS 45A.030. (b) For capital construction projects, the procurement may be on a total design-bid-build basis, a design-build basis, or construction management-at-risk
basis, whichever in the judgment of the board offers the best value to the
taxpayer. Best value shall be determined in accordance with KRS 45A.070.
Proposals shall be reviewed by the institution's engineering staff to assure
quality and value, and compliance with procurement procedures. All
specifications shall be written to promote competition. Services for projects
delivered on the design-build basis or construction management-at-risk basis
shall be procured in accordance with KRS 45A.180 and the regulations
promulgated in accordance with KRS 45A.180. Nothing in this section shall
prohibit the procurement of construction manager-agency services. (10) The governing board shall attempt in every practicable way to insure the institution's supplying its real needs at the lowest possible cost. To accomplish this
the board may enter into cooperative agreements with other public or private
institutions of education or health care. (11) The governing board shall have control and supervision over all purchases of energy consuming equipment, supplies, and related equipment purchased or acquired by
the institution, and shall designate by regulation the manner in which an energy
consuming item will be purchased so as to promote energy conservation and
acquisition of energy efficient products. (12) The governing board may negotiate directly for the purchase of contractual services, supplies, materials, or equipment in bona fide emergencies regardless of estimated
costs. The existence of the emergency must be fully explained, in writing, by the Page 3 of 3 vice president responsible for business affairs and such explanation must be
approved by the university president. The letter and approval shall be filed with the
record of all such purchases. Where practical, standard specifications shall be
followed in making emergency purchases. A good faith effort shall be made to
effect a competitively established price for emergency purchases. (13) (a) All governing boards that purchase agricultural products, as defined by KRS 45A.630, shall, on or before January 1 of each year, provide a report to the
Legislative Research Commission and to the Department of Agriculture
describing the types, quantities, and costs of each product purchased. The
report shall be completed on a form provided by the department. (b) If purchasing agricultural products, a governing board shall encourage the purchase of Kentucky-grown agricultural products in accordance with KRS
45A.645. If a governing board purchases agricultural products through a
contract with a vendor or food service provider, the contract shall require that
if Kentucky-grown agricultural products are purchased, the products shall be
purchased in accordance with KRS 45A.645. Only contracts entered into or
renewed after July 15, 2008, shall be required to comply with the provisions
of this subsection. (c) All governing boards that purchase Kentucky-grown agricultural products shall, on or before January 1 of each year, provide a report to the Legislative
Research Commission and to the Department of Agriculture describing the
types, quantities, and costs of each product purchased. The report shall be
completed on a form provided by the department. (14) Governing boards shall apply the reciprocal resident bidder preference described in KRS 45A.494 prior to the award of any contract. (15) Governing boards may authorize the use of reverse auctions as defined in KRS 45A.070 for the procurement of goods and leases. Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 63, sec. 12, effective July 15, 2010; and ch. 162, sec. 21, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 37, sec. 2, effective
June 25, 2009. -- Amended 2008 Ky. Acts ch. 37, sec. 1, effective July 15, 2008. --
Amended 2005 Ky. Acts ch. 29, sec. 7, effective June 20, 2005. -- Amended 2003
Ky. Acts ch. 56, sec. 1, effective June 24, 2003; and ch. 98, sec. 16, effective June
24, 2003. -- Amended 1997 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 140, effective May
30, 1997. -- Amended 1990 Ky. Acts ch. 496, sec. 50, effective July 13, 1990. --
Created 1982 Ky. Acts ch. 391, sec. 6, effective July 15, 1982. Legislative Research Commission Note (7/15/2010). This section was amended by 2010 Ky. Acts chs. 63 and 162, which do not appear to be in conflict and have been
codified together.