§ 18C-151. Contracts. - North Carolina Statutes

§ 18C‑151.  Contracts.

(a)        Except as otherwisespecifically provided in this subsection for contracts for the purchase ofservices, apparatus, supplies, materials, or equipment, Article 8 of Chapter143 of the General Statutes, including the provisions relating to minorityparticipation goals, shall apply to contracts entered into by the Commission.If this subsection and Article 8 of Chapter 143 are in conflict, the provisionsof this subsection shall control. In recognition of the particularly sensitivenature of the Lottery and the competence, quality of product, experience, andtimeliness, fairness, and integrity in the operation and administration of theLottery and maximization of the objective of raising revenues, a contract forthe purchase of services, apparatus, supplies, materials, or equipmentrequiring an estimated aggregate expenditure of ninety thousand dollars($90,000) or more may be awarded by the Commission only after the followinghave occurred:

(1)        The Commission hasinvited proposals to be submitted by advertisement by electronic means oradvertisement in a newspaper having general circulation in the State of NorthCarolina and containing the following information:

a.         The time and placewhere a complete description of the services, apparatus, supplies, materials,or equipment may be had.

b.         The time and placefor opening of the proposals.

c.         A statementreserving to the Commission the right to reject any or all proposals.

(2)        Proposals may berejected for any reason determined by the Commission to be in the best interestof the Lottery.

(3)        All proposals shallbe accompanied by a bond or letter of credit in an amount equal to not lessthan five percent (5%) of the proposal and the fee to cover the cost of thecriminal record check conducted under G.S. 114‑19.6.

(4)        The Commission hascomplied with the minority participation goals of G.S. 143‑128.2 and G.S.143‑128.3.

(5)        The Commission maynot award a contract to a lottery potential contractor who has been convictedof a felony or any gambling offense in any state or federal court of the UnitedStates within 10 years of entering into the contract, or employs officers anddirectors who have been convicted of a felony or any gambling offense in anystate or federal court of the United States within 10 years of entering intothe contract.

(6)        The Commission shallinvestigate and compare the overall business practices, ethical reputation,criminal record, civil litigation, competence, integrity, background, andregulatory compliance record of lottery potential contractors.

(7)        The Commission mayengage an independent firm experienced in evaluating government procurementproposals to aid in evaluating proposals for a major procurement.

(8)        The Commission shallaward the contract to the responsible lottery potential contractor or lotterysupplier who submits the best proposal that maximizes the benefits to theState.

(b)        Upon the completionof the bidding process, a contract may be awarded to a lottery contractor orlottery supplier with whom the Commission has previously contracted for thesame purposes.

(c)        Before a contractis awarded, the Director shall conduct a thorough background investigation ofall of the following:

(1)        The potentialcontractor to whom the contract is to be awarded.

(2)        Any parent orsubsidiary corporation of the potential contractor to whom the contract is tobe awarded.

(3)        All shareholderswith a five percent (5%) or more interest in the potential contractor or parentor subsidiary corporation of the potential contractor to whom the contract isto be awarded.

(4)        All officers anddirectors of the potential contractor or parent or subsidiary corporation ofthe potential contractor to whom the contract is to be awarded.

(d)        The Commission mayterminate the contract, without penalty, of a lottery contractor that fails tocomply with the Commission's instruction to implement the recommendations ofthe State Auditor or an independent auditor in an audit conducted of Lotterysecurity or operations.

(e)        After entering intoa contract with a lottery contractor, the Commission shall require the lotterycontractor to periodically update the information required to be disclosedunder G.S. 18C‑152(c). Any contract with a lottery contractor who doesnot periodically update the required disclosures may be terminated by theCommission.

(f)         No lotterycontractor, potential contractor, or lottery supplier may pay, give, or makeany economic opportunity, gift, loan, gratuity, special discount, favor,hospitality, or service, excluding food and beverages having an aggregate valuenot exceeding one hundred dollars ($100.00) in any calendar year, to theDirector, any member or employee of the corporation, or a member of theimmediate family residing in the same household as any of these individuals.  (2005‑344, s. 1; 2005‑276,s. 31.1(p); 2006‑259, s. 8(d); 2009‑357, s. 3; 2009‑570, s.32(d).)