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TENNESSEE STATUTES AND CODES
7-56-211 - Contract procedure Applicability.
7-56-211. Contract procedure Applicability.
(a) All contracts of the authority shall be entered into and executed in such manner as may be prescribed by statutes, regulations and procedures governing contracting by county governments; but no contract or acquisition by purchase of equipment, apparatus, materials or supplies involving more than five hundred dollars ($500), or for construction, installation, repair or improvement of the property or facilities involving more than five hundred dollars ($500), shall be made except after such contract has been advertised for bids; provided, that advertisement shall not be required when an emergency arises and requires immediate delivery of the supplies or performance of the service.
(b) Notwithstanding any provision of the law to the contrary, all contracts of the authority to perform maintenance or improvements on railroads that are funded, in whole or in part, with funds administered by the Tennessee department of transportation shall be awarded pursuant to competitive bidding requirements as approved by the department.
(c) In the alternative to subsection (b), the authority may negotiate the non-bridge labor portion of rehabilitation contracts with the railroad company that provides rail service on the facilities to be improved by the authority. Such negotiated labor costs shall reflect the average unit costs to perform typical functions associated with rail rehabilitation work and shall be subject to audit by the comptroller of the treasury. It is the intent of the general assembly that labor and associated costs shall be reimbursable pursuant to this provision. All other costs of rehabilitation contracts, including, but not limited to, materials and equipment, shall be subject to competitive bidding requirements as approved by the department to ensure that the contracts are performed on a break-even basis and that the state does not reimburse the profits to the railroad company.
[Acts 1983, ch. 221, § 11; 1991, ch. 56, § 1; 1999, ch. 450, § 1.]