NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 587

SENATE BILL 475

 

 

AN ACT TO REWRITE ARTICLE 3 OF CHAPTER 143 OF THE GENERAL STATUTES RELATING TO PURCHASES AND CONTRACTS BY THE STATE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Article 3 of Chapter 143 of the General Statutes is hereby amended and rewritten to read as follows:

"Article 3

"Purchases and Contracts

"§ 143-48.  Purpose and Implementation. — The purpose of this article is to provide for the effective and economical acquisition, management and disposition of goods and services by and through the Purchase and Contract Division of the Department of Administration.

"§ 143-49.  Powers and duties of Director. — The Director of Administration shall have power and authority, and it shall be his duty, subject to the provisions of this article:

(1)        To canvass sources of supply, and to purchase or to contract for the purchase, lease and lease-purchase of all supplies, materials, equipment and other tangible personal property required by the State government, or any of its departments, institutions or agencies under competitive bidding or otherwise as hereinafter provided.

(2)        To establish and enforce specifications which shall apply to all supplies, materials and equipment to be purchased or leased for the use of the State government or any of its departments, institutions or agencies.

(3)        To purchase or to contract for, by sealed, competitive bidding or other suitable means, all contractual services and needs of the State government, or any of its departments, institutions, or agencies; or to authorize any department, institution or agency to purchase or contract for such services.

(4)        To have general supervision of all storerooms and stores operated by the State government, or any of its departments, institutions or agencies; to provide for transfer or exchange to or between all State departments, institutions and agencies, or to sell all supplies, materials and equipment which are surplus, obsolete or unused; and to have supervision of inventories of all tangible personal property belonging to the State government, or any of its departments, institutions or agencies; the duties imposed by this subdivision shall not relieve any department, institution or agency of the State government from accountability for equipment, materials, supplies and tangible personal property under its control.

(5)        To make provision for or to contract for all State printing, including all printing, binding, paper stock and supplies or materials in connection with the same.

(6)        To make available to nonprofit corporations operating charitable hospitals, and to counties, cities, towns, governmental entities and other subdivisions of the State and public agencies thereof in the expenditure of public funds, the services of the Department of Administration in the purchase of materials, supplies and equipment under such rules, regulations and procedures as the Advisory Budget Commission may adopt. In adopting rules and regulations any or all provisions of this article may be made applicable to such purchases and contracts made through the Department of Administration, and in addition the rules and regulations shall contain a requirement that payment for all such purchases be made in accordance with the terms of the contract.

"§ 143-50.  Certain contractual powers exercised by other departments transferred to Director. — All rights, powers, duties and authority relating to State printing, or to the acquisition of supplies, materials, equipment, and contractual services, now imposed upon or exercised by any State department, institution or agency under the several statutes relating thereto, are hereby transferred to the Director of Administration and all said rights, powers, duty and authority are hereby imposed upon and shall hereafter be exercised by the Director of Administration under the provisions of this article.

"§ 143-51.  Reports to Director required of all agencies as to needs. — It shall be the duty of all departments, institutions, or agencies of the State government to furnish to the Director of Administration when requested, and on forms to be prescribed by him, estimates of all supplies, materials and equipment needed and required by such department, institution or agency for such periods in advance as may be designated by the Director of Administration.

"§ 143-52.  Competitive bidding procedure; consolidation of estimates by Director; bids; awarding of contracts. — As feasible, the Director of Administration will compile and consolidate all such estimates of supplies, materials and equipment needed and required by State departments, institutions and agencies to determine the total requirements for any given commodity. Where such total requirements will involve an expenditure in excess of $2,500 and where the competitive bidding procedure is employed as hereinafter provided, sealed bids shall be solicited by advertisement in a newspaper of State-wide circulation at least once and at least ten days prior to the date designated for opening of the bids and awarding of the contract: Provided, other methods of advertisement may be adopted by the Director of Administration, with the approval of the Advisory Budget Commission, when such other method is deemed more advantageous for certain items or commodities. Regardless of the amount of the expenditure, under the competitive bidding procedure it shall be the duty of the Director of Administration to solicit bids direct by mail from qualified sources of supply. Except as otherwise provided under this article, contracts for the purchase of supplies, materials or equipment shall be based on competitive bids and acceptance made of the lowest and best bid(s) most advantageous to the State as determined upon consideration of the following criteria: prices offered; the quality of the articles offered; the general reputation and performance capabilities of the bidders; the substantial conformity with the specifications and other conditions set forth in the request for bids; the suitability of the articles for the intended use; the personal or related services needed; the transportation charges; the date or dates of delivery and performance; and such other factor(s) deemed pertinent or peculiar to the purchase in question, which if controlling shall be made a matter of record. Competitive bids on such contracts shall be received in accordance with rules and regulations to be adopted by the Director of Administration with the approval of the Advisory Budget Commission, which rules and regulations shall prescribe for the manner, time and place for proper advertisement for such bids, the time and place when bids will be received, the articles for which such bids are to be submitted and the specifications prescribed for such articles, the number of the articles desired or the duration of the proposed contract, and the amount, if any, of bonds or certified checks to accompany the bids. Bids shall be publicly opened. Any and all bids received may be rejected. Each and every bid conforming to the terms of the invitation, together with the name of the bidder, shall be tabulated or otherwise entered as a matter of record, and all such records with the name of the successful bidder indicated thereon shall, after the award of the contract, be open to public inspection. Provided, that trade secrets, test data and similar proprietary information may remain confidential. A bond for the faithful performance of any contract may be required of the successful bidder at bidder's expense and in the discretion of the Director of Administration. After contracts have been awarded, the Director of Administration shall certify to the departments, institutions and agencies of the State government the sources of supply and the contract price of the supplies, materials and equipment so contracted for.

"§ 143-53.  Rules and regulations. — The Advisory Budget Commission shall have the necessary authority to adopt rules and regulations governing the following:

(1)        Designating personnel and prescribing the routine and procedures to be followed in canvassing bids and awarding contracts, and for reviewing decisions made pursuant thereto, and the decision of the reviewing body shall be the final administrative review.

(2)        Prescribing routine for securing bids on items that do not exceed $2,500 in value.

(3)        Defining contractual services for the purposes of G.S. 143-49(3).

(4)        Prescribing items and quantities, and conditions and procedures, governing the acquisition of goods and services which may be delegated to departments, institutions and agencies, notwithstanding any other provisions of this article.

(5)        Prescribing conditions under which purchases and contracts for the purchase, rental or lease of equipment, materials, supplies or services may be entered into by means other than competitive bidding.

(6)        Prescribing conditions under which partial, progressive and multiple awards may be made.

(7)        Prescribing conditions and procedures governing the purchase of used equipment, materials and supplies.

(8)        Providing conditions under which bids may be rejected in whole or in part.

(9)        Prescribing conditions under which information submitted by bidders or suppliers may be considered proprietary or confidential.

(10)      Prescribing procedures for making purchases under programs involving participation by two or more levels or agencies of government, or otherwise with funds other than state appropriated.

(11)      Prescribing procedures to encourage the purchase of North Carolina farm products, and products of North Carolina manufacturing enterprises.

(12)      Adopting any other rules and regulations to carry out the duties and purpose of this article.

The purpose of rules and regulations promulgated hereunder shall be to promote sound purchasing management; and prior to adoption, they shall be submitted to the Attorney General for opinion as to the legal effect thereof. Such rules and regulations shall become effective upon filing with the Secretary of State.

"§ 143-54.  Certification that bids were submitted without collusion. — The Director of Administration shall require bidders to certify that each bid is submitted competitively and without collusion. False certification shall be punishable as in cases of perjury.

"§ 143-55.  Requisitioning for supplies by agencies; must purchase through sources certified. — After sources of supply have been established by contract and certified by the Director of Administration to the said departments, institutions and agencies as herein provided for, it shall be the duty of all departments, institutions and agencies to make requisition or issue orders on forms to be prescribed by the Director of Administration, for all supplies, materials and equipment required by them upon the sources of supply so certified, and, except as herein otherwise provided for, it shall be unlawful for them, or any of them, to purchase any supplies, materials or equipment from other sources than those certified by the Director of Administration. One copy of such requisition or order shall be furnished to and when requested by the Director of Administration.

"§ 143-56.  Certain purchases excepted from provisions of article. — Except as may otherwise be ordered by the Director of Administration, with the approval of the Advisory Budget Commission, the purchase of supplies, materials and equipment through the Director of Administration shall not be mandatory in the following cases:

(1)        Published books, manuscripts, maps, pamphlets and periodicals.

(2)        Perishable articles such as fresh vegetables, fresh fish, fresh meat, eggs, and others as may be classified by the Director of Administration with the approval of the Advisory Budget Commission.

All purchases of the above articles made directly by the departments, institutions and agencies of the State government shall, wherever possible, be based on competitive bids. Whenever an order is placed or contract awarded for such articles by any of the departments, institutions and agencies of the State government, a copy of such order or contract shall be forwarded to the Director of Administration and a record of the competitive bids upon which it was based shall be retained for inspection and review.

"§ 143-57.  Purchases of articles in certain emergencies. — In case of any emergency or pressing need arising from unforeseen causes including but not limited to delay by contractors, delay in transportation, breakdown in machinery, or unanticipated volume of work, the Director of Administration shall have power to obtain or authorize obtaining in the open market any necessary supplies, materials, equipment, printing or services for immediate delivery to any department, institution or agency of the State government. A report on the circumstances of such emergency or need and the transactions thereunder shall be made a matter of record promptly thereafter.

"§ 143-58.  Contracts contrary to provisions of article made void. — If any department, institution or agency of the State government, required by this article and the rules and regulations adopted pursuant thereto applying to the purchase or lease of supplies, materials, equipment, printing or services through the Director of Administration, or any non-state institution, agency or instrumentality duly authorized or required to make purchases through the Department of Administration, shall contract for the purchase or lease of such supplies, materials, or equipment contrary to the provisions of this article or the rules and regulations made hereunder, such contract shall be void and of no effect. If any such State or non-state department, institution, agency or instrumentality purchases any supplies, materials, or equipment contrary to the provisions of this article or the rules and regulations made hereunder, the executive officer of such department, institution, agency or instrumentality shall be personally liable for the costs thereof.

"§ 143-59.  Preference given to North Carolina products and citizens, and articles manufactured by State agencies. — The Director of Administration and any State agency authorized to purchase foodstuff or other products, shall in the purchase of or in the contracting for foods, supplies, materials, equipment, printing or services give preference as far as may be practicable to such products or services manufactured or produced in North Carolina or furnished by or through citizens of North Carolina: Provided, however, that in giving such preference no sacrifice or loss in price or quality shall be permitted: and Provided further, that preference in all cases shall be given to surplus products or articles produced and manufactured by other State departments, institutions, or agencies which are available for distribution.

"§ 143-60.  Rules and regulations covering certain purposes. — The Director of Administration, with the approval of the Advisory Budget Commission, may adopt, modify, or abrogate rules and regulations covering the following purposes, in addition to those authorized elsewhere in this article:

(1)        Requiring reports by State departments, institutions, or agencies of stocks of supplies and materials and equipment on hand and prescribing the form of such reports.

(2)        Prescribing the manner in which supplies, materials and equipment shall be delivered, stored and distributed.

(3)        Prescribing the manner of inspecting deliveries of supplies, materials and equipment and making chemicals and/or physical tests of samples submitted with bids and samples of deliveries to determine whether deliveries have been made in compliance with specifications.

(4)        Prescribing the manner in which purchases shall be made in emergencies.

(5)        Providing for such other matters as may be necessary to give effect to the foregoing rules and provisions of this article.

Further, the Director of Administration, with the approval of the Advisory Budget Commission, may prescribe appropriate procedures necessary to enable the State, its institutions and agencies, to obtain materials surplus or otherwise available from federal, state or local governments or their disposal agencies.

"§ 143-61.  Standardization Committee. — It shall be the duty of the Governor to appoint a Standardization Committee to serve at the pleasure of the Governor and to consist of seven members as follows: The Director of Administration, who shall be chairman of said Committee; an engineer from the State Highway Commission to be appointed by the Governor upon the recommendation of the Chairman of the State Highway Commission; a representative of State or local educational agencies to be appointed by the Governor; a representative of the State departments to be appointed by the Governor; a representative of the State charitable and correctional institutions to be appointed by the Governor; and two members of the Advisory Budget Commission to be designated by the Governor. Four members of said Committee shall constitute a quorum for the transaction of business, or the performance of any duties imposed upon the Committee by this article. The Committee shall meet at such time, or times, as it shall by rule or regulation prescribe, but it may meet at other times at the call of the Chairman. The Committee shall keep official minutes and such minutes shall be open to public inspection. It shall be the duty of the Standardization Committee to review, adopt, establish and/or modify standard specifications wherever feasible applying to articles purchased or leased. In the adoption or modification of any specifications, the Standardization Committee shall seek the advice, assistance and cooperation of any State department, institution or agency to ascertain its precise requirements in any given commodity. Each specification adopted for any commodity shall insofar as practicable satisfy the requirements of the majority of the State departments, institutions or agencies which use the same in common. After its adoption, each standard specification shall, until revised or rescinded, apply alike in terms and effect to every State purchase of the commodity described in such specifications: Provided, however, that interim modifications may be made by the Director of Administration between formally adopted revisions. In the preparation of specifications the Standardization Committee shall have power to make use of any State laboratory with or without charge for tests in making determination of quality.

"§ 143-62.  Law applicable to printing Supreme Court Reports not affected. — Nothing in this article shall be construed as amending or repealing G.S. 7A-6(b), relating to the printing of the Supreme Court Reports, or in any way changing or interfering with the method of printing or contracting for the printing of the Supreme Court Reports as provided for in said section.

"§ 143-63.  Financial interest of officers in sources of supply; acceptance of bribes. — Neither the Director of Administration, nor any assistant of his, nor any member of the Advisory Budget Commission, nor of the Standardization Committee shall be financially interested, or have any personal beneficial interest, either directly or indirectly, in the purchase of, or contract for, any materials, equipment or supplies, nor in any firm, corporation, partnership or association furnishing any such supplies, materials or equipment to the State government, or any of its departments, institutions or agencies, nor shall such Director, assistant, or member of the Commission or Committee accept or receive, directly or indirectly, from any person, firm or corporation to whom any contract may be awarded, by rebate, gifts or otherwise, any money or anything of value whatsoever, or any promise, obligation or contract for future reward or compensation. Any violation of this section shall be deemed a felony and shall be punishable by fine or imprisonment, or both. Upon conviction thereof, any such Director, assistant or member of the Commission or Committee shall be removed from office."

Sec. 2.  This act shall become effective on and after July 1, 1971.

In the General Assembly read three times and ratified, this the 17th day of June, 1971.