AB 86 — Revises provisions relating to governmental purchasing. (BDR 27-182)
Last action — Approved by the Governor. Chapter 140.
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6Enacted
This bill has been enacted into law. Introduced November 21, 2018. Enacted.
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Summary
AN ACT relating to governmental purchasing; making provisions relating to purchasing by local governments applicable to a metropolitan police department; exempting certain purchases by local governments from requirements of competitive bidding; increasing the monetary thresholds at which local governmental purchasing contracts must be advertised; authorizing a local government to dispose of personal property by donating it to another governmental entity or nonprofit organization; authorizing the Administrator of the Purchasing Division of the Department of Administration to enter into a contract pursuant to a solicitation by certain governmental entities; revising provisions governing certain preferences for businesses owned and operated by a veteran with a service-connected disability; making various other changes relating to governmental purchasing; and providing other matters properly relating thereto.
Bill Text
What changed in the latest version
1386 added · 1432 removed1386 line(s) added, 1432 removed.
(ReprintedAssembly withBill amendmentsNo. adopted on April 23, 2019) SECOND REPRINT A.B.
8686–Committee ASSEMBLYon BILLGovernment NOAffairs .CHAPTER..........
86–COMMITTEE ON GOVERNMENT AFFAIRS (ON B EHALF OF THE PURCHASING D IVISION OF THE DEPARTMENT OF A DMINISTRATION ) PREFILED N OVEMBER 21, 2018 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to governmental purchasing.
(BDR 27-182) 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.
LegTheLegislative LocalCounsel’s GovernmentDigest: Purchasing Act governs the purchasing of services, supplies, materials and equipment by local governments.
(ChapterThe 332Local ofGovernment NRS)Purchasing This bill changes the terms “bid” to “response” and “request for bids” to “solicitation” throughout the Act togoverns encompass the differentpurchasing methods of procurementservices, whichsupplies, maymaterials beand usedequipment by a local governmentgovernments. to award a contract.
-(Chapter *AB86_R2*332 –of 2NRS) –“solicitation” Sectionthroughout 6the ofAct thisto billencompass makes the Actdifferent applicablemethods toofto procurement which may be used by a metropolitanlocal policegovernment department.to award a contract.
(NRSSection 332.015)6 Existing law requires a local government to maintain a record of allthis requestsbill formakes bids and all bids received for a contract for which the estimatedAct annualapplicable amount required to performa themetropolitan contractpolice isdepartment. more than $25,000 but not more than $50,000 for at least 7 years after the execution of the contract.
(NRS 332.039)332.015) SectionsExisting 2law andrequires 46a oflocal thisgovernment billto makemaintain thisa requirementrecord applicableof toall requests for bids and all contracts,bids regardlessreceived offor prescribesa contract for which the requirementsestimated annual amount for aat solicitationleast by7 ayears localafter government.the execution of the contract.
Section(NRS 5332.039) ofllSections 2 and 46 of this bill nonsubstantivelymake reenactsthis provisionsrequirement inapplicable existingto lawall forcontracts, purposesregardless of reorganization.the estimated annual amount required to perform the contract.
(NRS 332.065) Section 53 of this bill requiresprescribes athe localrequirements governmentfor to award a contractsolicitation onby thea basislocal ofgovernment. price if the estimated cost to perform the contract is more than $50,000 but not more than $100,000.
UnderSection existing5 law,of athis localbill governmentnonsubstantively isreenacts prohibitedprovisions fromin usingexisting on-linelaw biddingfor aspurposes the exclusive means of receivingreorganization. bids for a request for bids.
(NRS 332.065) Section 5 of this bill requires a local government to more than $50,000 but not more than $100,000.
estimated cost to perform the contract is Under existing law, a local government is prohibited from using on-line bidding as the exclusive means of receiving bids for a request for bids.
ifExisting thelaw: estimated cost to perform the contract exceeds $50,000;
and(1) (2)requires specifiesa thelocal government to advertise a purchasing contract requirements for such an advertisement.
(NRS 332.039, 332.045) Section 11 of thisthisthe bill:
(1) increases that minimum monetary threshold for advertising such a contract to when the estimated annual amount to perform the contract is more than - 80th Session (2019) – 2 – $100,000;
Sections 11 and 46 also provide for the inclusion of the qualifications of a bidder with the requirements for awarding such a contract.
Section 8 of this bill revises requirements regarding an advertisementadveExisting forlaw imposes restrictions on the assignment of a purchasing contract.
(NRS 332.115) Section 20 of this bill expressly authorizes a local government to dispose of personal property by donating it to another governmental entity or nonprofit orgExistingorganization. law authorizes a local government to join or use the contracts of the State of Nevada, another state or a local government with the authorization of the contracting vendor.
(NRS 332.185) Existing law authorizes a local government to join or use the contracts of the State of Nevada, another state or a local government with the authorization of the contracting vendor.
The State Purchasing Act governs the purchasing of services, supplies, materials and equipment by agencies of the Executive Department of the State Government, with certain exceptions.
(Chapter 333 of NRS) Section 25 of this bill authorizes the Administrator of the Purchasing Division of the Department of Administration to enter into a contract pursuant to a solicitation for a bid or proposal by certain governmental entities.
(NRS 333.160) Section 28 of this bill - *AB86_R2* – 3 – specifies a request for qualifications and a request for information as methods of obtaining a state purchasing contract.
(1) requires the inclusion of a person designated by the Chief Information Officer of the State on a committee that evaluates proposals for the procurement of technology for which the estimated cost is more than $100,000 that are required to be considered by such a committee besides those factorsisting law disclosed in thecertain requestcircumstances; for proposals.
(NRS 333.335) Under existing law, a bid or proposal for a state purchasing contract for which the estimated cost is more than $50,000 but not more than $250,000 that is submitted by a local business owned by a veteran with a service-connected disability of at least zero percent and who(2) iseliminates acertain responsivefactors andspecified responsiblein bidderexisting islaw deemeddisclosed toin be 5 percent lower than the bidrequest orfor proposalproposals. actually submitted.
For(NRS 333.335)e besides those factors Under existing law, a bid or proposal for a state purchasing contractscontract for which the estimated cost is more than $250,000$50,000 but lessnot more than $500,000,$250,000 onlythat is submitted by a local business owned and operated by a veteran with a service-connected disability of 50at least zero percent orand morewho is eligiblea underresponsive existingand lawresponsible forbidder billis revisesdeemed the qualifications for a local business to be eligible5 forpercent suchlower athan preferencethe tobid requireor that:proposal actually submitted.
For state purchasing contracts for which the estimated cost is more than $250,000 but less than $500,000, only a local business owned and operated by a veteran with a service-connected disability of 50 percent or more is eligible under existing law for the 5-percent preference.
(NRS 333.3362, 333.3365, 333.3366) Section 31 of this bill revises the qualifications for a local business to be eligible for such a preference to require that:
and (2) the - 80th Session (2019) – 3 – majority of the goods provided for in a state purchasing contract are produced in this State.
(NRS 333.3366) Sections 33 andInand In addition to the duties prescribed by existing law for a person who is authorized to enter into a contract for state purchasing, section 35 of this bill requires such a person to ensure that the contract:
and (3) removes a requirement in bids.existing law that a cancellation of an award of a contract requires readvertising for bidsUnder existing law, with certain exceptions, the Administrator is authorized to allow using agencies to make certain purchases locally up to certain monetary limitations.
(NRS 333.370) cancellation of an award of a contract requires readvertising for Under existing law, with certain exceptions, the Administrator is authorized to allow using agencies to make certain purchases locally up to certain monetary limitations.
Show all 295 changed lines (255 more)
(NRS 333.480) Section 40 of this bill - *AB86_R2* – 4 – removes authorization for the Administrator to enter into such an agreement with a vendor who has entered into an agreement with a non-federal agency as a result of the authority provided to the Administrator in section 25.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
- 80th Session (2019) – 4 – Sec.
and 4.awarding of a contract pursuant to NRS 332.068 may beegarding the submitted, if applicable.
The period during which a notice of protest regarding the awarding of a contract pursuant to NRS 332.068 may be submitted, if applicable.
and (3)the Thecomparable productsnonrecycled doproducts.ore not cost more than 5 percent more than (c) May purchase recycled paper products if the comparablespecific nonrecycledrecycled products.paper product is:
- *AB86_R2* – 5 – (c) May purchase recycled paper products if the specific recycled paper product is:
- 80th Session (2019) – 5 – (b) “Recycled paper product” means any paper or wood-pulp product containing in some combination comprising at least 50 percent of its total weight:
and (2) Secondary waste, but the term does not include fibrous waste generated during the manufacturing process such as fibers recovered from wastewater or trimmings of paper machine rolls, wood slabs, chips, sawdust or other wood residue from a manufacturing process.pro(c) “Secondary waste” means fragments of products or finished products of a manufacturing process which has converted a virgin resource into a commodity of real economic value.
(c) “Secondary waste” means fragments of products or a virgin resource into a commodity of real economic value.verted Sec.
Except as otherwise provided by specific statute, if the estimated annual amount required to perform a contract is more than $50,000 but not more than $100,000, the governingctgoverning is body or its authorized representative:
(a) Every political subdivision or other entity which has the right to levy or receive money from ad valorem taxes or other taxes or right from any mandatory assessments, including counties, cities, towns, - *AB86_R2* – 6 – school districts and other districts organized pursuant to chapters 244, 318, 318A, 379, 450, 474, 539, 541, 543 and 555 of NRS.
- 80th Session (2019) – 6 – 2.
“Authorized representative” means a person designated by the governing body to be responsible for the development, award and proper administration of all purchases and contracts for a local government or a department, division, agency, board or unit of a localloc2. government made pursuant to this chapter.
2.go[“Best value” means the greatest possible economy consistent with grades or qualities of supplies, materials, equipment and services that are adapted to the purposes to be served.
[“Best3.] value”“Chief means the greatest possible economy consistent with grades or qualities of supplies, materials, equipment and3.]rv“Chief administrative officer” means the person directly responsible to the governing body for the administration of that par3.cul“Evaluator”particular meansentity. an authorized representative, officer, employee, representative, agent, consultant or member of a governing body who has participated in:
3.
“Evaluator” means an authorized representative, officer, employee, representative, agent, consultant or member of a governing body who has participated in:
“Local school precinct” has the meaning ascribed to it in NRSNRS6.88G“On-line 388G.535.solicitation” means a process by which a responding offeror submits a response to a solicitation on a secure website on the Internet or its successor, if any, which is established and maintained for that purpose.
6.7.
“On-line solicitation” means a process by which a responding offeror submits a response to a solicitation on a secure website on the Internet or its successor, if any, which is established and maintained for that purpose.
- *AB86_R2* – 7 – 7.
- 80th Session (2019) – 7 – As used in this subsection, “confidential business information” means any information relating to the amount or source of any income, profits, losses or expenditures of a person, including data relating to cost, price, or the customers of a [bidder] responding offeror which is submitted in support of a [bid.] response.
“Responding offeror” means a person who responds to a solicitation made by a governing body or its authorized representative.rep9.sen“Solicitation” means a written statement which sets forth the requirements and specifications of a contract to be awarded by:
9.
“Solicitation” means a written statement which sets forth the requirements and specifications of a contract to be awarded by:
(c) A request for a statement of qualifications;
orqualifications;or (e) Any other accepted method of purchasing that complies with the provisions of this chapter.
(e)10. Any other accepted method of purchasing that complies wit10.
The advertisement required by [paragraph (a) of] subsection 1 of NRS [332.039] 332.065 or authorized by subsection 1 of section 5 of this act must be [by notice to bid and must be] published:
(a) In a newspaper qualified pursuant to chapter 238 of NRS that has a general circulation within the county wherein the local government, or a major portion thereof, is situated at least once and not(b) [On the] Every day for not less than 7 days before thetheses. opening of [bids;
and]opening responses.of responses on:
(b) [On the] Every day for not less than 7 days before the opening of responses on:
or - *AB86_R2* – 8 – (2) A secure website on the Internet or its successor, if any, which is established and maintained for the purpose of an on-line solicitation.
- 80th Session (2019) – 8 – (c) The time and [place where bids] date on which responses will be [received and] opened.
A governing body or its authorized representative may use an on-line [bidding] solicitation to receive [bids submitted ingoverning response]body responsesor toits aauthorized [requestrepresentative shall not use an on- line [bidding] solicitation as the exclusive means of [receiving bids for the request for bids.] solicitation.a solicitation if there is any cost to a responding offeror to submit a response.
The governing body or its authorized representative shall not use an on- line [bidding] solicitation as the exclusive means of [receiving bids for the request for bids.] a solicitation if there is any cost to a responding offeror to submit a response.
[A request for bids for which bids may be submitted pursuant to subsection 1] An on-line solicitation must designate a date and time at which [bids] responses may be submitted and may designate a date and time after which [bids] responses will noayno longer be received.
require3. [bidders] a responding offeror to:
representativeA maygoverning (a)body Registeror forits anauthorized on-linerepresentative solicitationmay beforerequire the[bidders] datea andresponding timeofferor atto: which [bids] responses may be submitted;
(a) Register for an on-line solicitation before the date and time at which [bids] responses may be submitted;
[5.by which bidders submit bids for a contract on a secure website ons the Internet or its successor, if any, which is established and maintained for that purpose.] Sec.
As used in this section, “on-line bidding” means a process by which bidders submit bids for a contract on a secure website on the Internet or its successor, if any, which is established and maintained for that purpose.] Sec.
- *AB86_R2* – 9 – (a) The disclosure is made for the purpose of a civil, administrative or criminal investigation or proceeding;
- 80th Session (2019) – 9 – 2.
(a) Shall advertise the contract in the manner prescribed in NRS 332.045;
andandertise the contract in the manner prescribed in (b) May issue a solicitation for the contract.
If [a governing body or its authorized representative has advertised for or requested bids in letting] the estimated annual amount to perform a contract [,] is more than $100,000 and the method for obtaining the contract designated in the solicitation is an invitation to bid, the governing body or its authorized representative must, except as otherwise provided [in subsection 3,] by specific statute, award the contract to the lowest responsive and responsible bidder.
The lowest responsive and responsible bidder and may be judged on the basis of:
(a) Price;
and (4)(d) TheAdequacy ability of the bidderequipment toof perform the contract;bidder;
(d) Adequacy of the equipmentcontract; of the bidder;
- *AB86_R2* – 10 – (i) The best interests of the public;
and - 80th Session (2019) – 10 – [(h)] (j) Such other criteria as may be set forth by the governing body or its authorized representative in the advertisement or [request for bids,] solicitation, as applicable, that pertains to the contract.
[3.(a) Shall give preference to recycled products if:ative:
The governing body or its authorized representative:
(a) Shall give preference to recycled products if:
recycled(c) paperMay productpurchase is:edrecycled paper products if the specific (1)recycled Availablepaper atproduct ais: price which is not more than 10 percent higher(2) Of adequate quality;
and(1) Available at a price which is not more than 10 percent higher than that of paper products made from virgin material;
(3)(2) AvailableOf toadequate thequality; purchaser within a reasonable period.] 4.
If after the lowest responsive and responsible(3) bidderAvailable has been awarded the contract, during the term of the contract he or she does not [supply goods or services] perform in accordance with the bid specifications, or if he or she repudiates the contract, the governing body or its authorized representative may reaward the contract to the nextpurchaser lowestwithin responsivea andreasonable responsibleperiod.] bidder4. without requiring that new bids be submitted.
If after the lowest responsive and responsible bidder has does not [supply goods or services] perform in accordance withor she the bid specifications, or if he or she repudiates the contract, the governing body or its authorized representative may reaward the contract to the next lowest responsive and responsible bidder without requiring that new bids be submitted.
Except as otherwise provided by specific statute, if the estimated annual amount to perform a contract is more than $100,000 and the method for obtaining the contract designated in the solicitation is a method other than an invitation to bid, the governing body or its authorized representative shall award such a contract taking into account the minimum requirements for a - 80th Session (2019) – 11 – responding offeror prescribed in the solicitation pursuant to - *AB86_R2* – 11 – section 3 of this act and the method prescribed in that solicitation for awarding the contract.
(1) Means, except as otherwise provided in subparagraph (2), refusing to deal or conduct business with, abstaining from dealing or conducting business with, terminating business or business activities with or performing any other action that is intended to limit commercialcommercial(I) relationsIsrael; with:
(I)orh: Israel;
or (II) A person or entity doing business in Israel or in territories controlled by Israel, if such an action is taken in a manner that discriminates on the basis of nationality, national origin or religion.
(b) “Company” means any domestic or foreign sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited-liability partnership,p,partnership, limited-liability company, or other domestic or foreign entity or business association, including, without limitation, any wholly owned subsidiary, majority owned subsidiary, parent company ory affiliate of such an entity or business association, that exists for the purpose of making a profit.
or business association, that exists for the (c) [“Postconsumer waste” means a finished material which would normally be disposed of as a solid waste having completed its life cycle as a consumer item.
- 80th Session (2019) – 12 – (e) “Secondary waste” means fragments of products or finished products of a manufacturing process which has converted a virgin - *AB86_R2* – 12 – resource into a commodity of real economic value.] “Total cost of ownership” includes, without limitation:
and (5)trade Theon valuea ofsubsequent thepurchase.ds goods as used goods when given in tradeSec. on a subsequent purchase.
Sec.
A person filing a notice of protest may be required by the governing body or its authorized representative, at the time the notice of protest is filed, to post a bond with a good and solvent surety authorized to do business in this State or submit other representative,security, toin a form approved by the governing body or its authorized representative who shall hold the bond or other security until a determination isistive made on the protest.
A person who submits an unsuccessful [bid] response may not seek any type of judicial intervention until the governing body - 80th Session (2019) – 13 – or its authorized representative has made a determination on the protest and awarded the contract.
A governing body or its authorized representative is not liable for any costs, expenses, attorney’s fees, loss of income or other damages sustained by a person who submits a [bid,] response, - *AB86_R2* – 13 – whether or not the person files a notice of protest pursuant to this section.
If the protest is upheld, the bond posted or other security submitted with the notice of protest must be returned to the person whorejected, posteda claim may be made against the bond or submittedother security by the security.governing body or its authorized representative in an amount equal to the expenses incurred by the governing body or its authorized representative because of the unsuccessful protest.
If the protest is rejected, a claim may be made against the bond or other security by the governing body or its authorized representative in an amount equal to the expenses incurred by the governing body or its authorized representative because of the unsuccessful protest.
subsection332.095 2:1.
[No] Except as otherwise provided in (a)sub(a) No contract awarded may be assigned to any other person representative.sentwithout of the governingconsent bodyof or its authorized [2.] (b) No contract awarded or any portion thereof may be assigned to any person who was declared by the governing body or its authorized representativerepresentative. not to be a responsible person to perform the particular contract.
[2.] (b) No contract awarded or any portion thereof may be assigned to any person who was declared by the governing body or its authorized representative not to be a responsible person to perform the particular contract.
- 80th Session (2019) – 14 – Sec.
Any such bonds may be to insure proper performance of the contract and save, indemnify and keep harmless the local government against all loss, damages, claims, liabilities, judgments, - *AB86_R2* – 14 – costs and expenses which may accrue against the local government in consequence of the awarding of the contract.
local government 3.
(g) Hardware and associated peripheral equipment and devices for(h) Software for computers;
(h) Software for computers;
(1) Hardware and associated peripheral equipment and devices for computers;
andociated peripheral equipment and (2) Software for computers;
(k)(j) Books,Equipment instructionalcontaining materials,hardware libraryor materialssoftware andrs;for computers;
(k) Books, instructional materials, library materials and subscriptions;
[(k)] (m) Motor vehicle fuel for use in a vehicle operated by a local law enforcement agency or local fire department if such fuel is - 80th Session (2019) – 15 – not available within the vehicle’s assigned service area from a fueling station owned by the State of Nevada or a local government;
[(m)] (o) Supplies, materials , [or] equipment or services that are available pursuant to an agreement with a vendor that has entered into an agreement with the General Services Administration or another federal governmental agency located within or outside this State;Sta[(n)] (p) Items for resale through a retail outlet operated in this State by a local government or the State of Nevada;
[(n)][(o)] (p)(q) ItemsCommercial foradvertising resalewithin through a retailrecreational outletfacility operated in this State by a localcounty governmentfair orand therecreation Stateboard; of Nevada;
- *AB86_R2* – 15 – [(o)] (q) Commercial advertising within a recreational facility operated by a county fair and recreation board;
(a) The equipment is an electronic or mechanical device which by design is intended to monitor and document in a clandestine manner suspected criminal activity;
[or][or]ument in a clandestine (b) Purchasing the equipment pursuant to such requirements would limit or compromise the use of such equipment by an agency authorized to conduct such investigations [.] ;
(2)(1) RequiredUsed toin complyanalysis within specificsuch forensicinvestigations; standards or quality standards.
response agency or any(2) otherRequired local governmental agency is not subject to thecomply requirementswith ofspecific thisforensic chapterstandards for a competitive [bidding,] solicitation, as determined by the governing body or itsquality authorizedstandards. representative, if:
(a)3. The personal safety equipment will be used by personnel of the response agency or other local governmental agency in preventing, responding to or providing services of recovery or relief in connection with emergencies, acts of terrorism or other natural or man-made disasters in which the health, safety or welfare of those personnel may be compromised, impaired or otherwise threatened;
and (b) The costpurchase of the personal safety equipment for use by a response agency or any other local governmental agency is comparablenot subject to the costrequirements of similarthis personalchapter safetyfor equipmenta thatcompetitive is[bidding,] availablesolicitation, foras purchasedetermined by the public.governing body or its authorized representative, if:
4.- 80th Session (2019) – 16 – (a) The personal safety equipment will be used by personnel of the response agency or other local governmental agency in preventing, responding to or providing services of recovery or relief in connection with emergencies, acts of terrorism or other natural or man-made disasters in which the health, safety or welfare of those personnel may be compromised, impaired or otherwise threatened;
The purchase of goods commonly used by a hospital, including, without limitation, medical equipment, implantable devices and pharmaceuticals,(b) byThe thecost governing body of a hospital [required to comply with the provisionspersonal ofsafety thisequipment chapter,] or its - *AB86_R2* – 16 – authorized representative [, may purchase goods commonly used by the hospital, under a contract awarded pursuant to NRS 332.065, without additional] is notcomparable subject to the requirementscost of thissimilar chapterpersonal forsafety aequipment competitivethat [biddingis evenavailable iffor atpur4. the time the contract was awarded:
The purchase of goods commonly used by a hospital, including, without limitation, medical equipment, implantable devices and pharmaceuticals, by the governing body of a hospital [required to comply with the provisions of this chapter,] or its authorized representative [, may purchase goods commonly used by the hospital, under a contract awarded pursuant to NRS 332.065, without additional] is not subject to the requirements of this chapter for a competitive [bidding even if at the time the contract was awarded:
This section does not prohibit a governing body or its authorized representative from advertising for or requesting [bids.] responses.res6.nseAs used in this section:
6.
As used in this section:
(1) Use in the course of preventing, responding to or providing services of recovery or relief in connection with emergencies, acts of terrorism or other natural or man-made disasters;
oracts of terrorism or other natural or man-made (2) Wear or otherwise carry on a regular basis.
The term includes, without limitation, firearms, boots, bulletproof vests or other types of body armor, protective garments, protectiveofprotective eyewear, gloves, helmets, and any specialized apparatus, equipment - 80th Session (2019) – 17 – or materials approved or recommended by the United States Department of Homeland Security.
In accordance with the Program to Encourage and Facilitate Purchases by Agencies of Commodities and Services From Organizations established pursuant to NRS 334.025, a governing body [of a local government] or its authorized representative may award, without complying with the requirements for a competitive [bidding] solicitation set forth in this chapter, a contract for services or for the purchase of supplies, materials, equipment or labor to a nonprofit organization or agency whose primary purpose is the training and employment of persons with a mental or physical disability, including, without limitation, a - *AB86_R2* – 17 – provider of jobs and day training services certified pursuant to NRS 435.130 to 435.310, inclusive.
3.means an organization or agency that is recognized as exemptagency” pursuant to the provisions of 26 U.S.C.
As used in this section, “nonprofit organization or agency” means an organization or agency that is recognized as exempt pursuant to the provisions of 26 U.S.C.
Except as otherwise provided by law, if the governing body or its authorized representative determines that the supplies, materials or equipment can be purchased at any public auction, closeout sale, bankruptcy sale, sale of merchandise left after an exhibition, or other similar sale at a reasonable savings over the cost of like merchandise and below the market cost in the community, a contract or contracts may be let or the purchase made without complying with the requirements of this chapter for a made competitive [bidding.] solicitation.
summarized- for80th theSession next(2019) regularly– scheduled18 meeting– of2. thest be governing body, together with written justification showing the savings involved.
The documentation for the purchase or acquisition must be summarized for the next regularly scheduled meeting of the governing body, together with written justification showing the savings involved.
Except as otherwise provided in subsection 2, when a governing body or its authorized representative has advertised for or requested [bids] responses in letting a contract and no responsible [bids] responses are received, the governing body or its authorized representative may let the contract without a competitive [bidding] solicitation not less than 7 days after it publishes a notice stating that no [bids] responses were received on the contract and that the contract may be let without a further [bidding.] solicitation.
- *AB86_R2* – 18 – Sec.
(a)body Sellingor suchits authorized representative determines that the property atis no longer required for public auctionuse .and deems such action desirable and in the best interests of the local government.] (b) Donating such property to another governmental entity or nonprofit organization.
[, if the governing body or its authorized representative determines that the property is no longer required for public use and deems such action desirable and in the best interests of the local government.] (b) Donating such property to another governmental entity or nonprofit organization.
or (b)(1)(b) TheAny postingstatute, ofregulation, noticeordinance or publicresolution advertising.n that requires:
(2)(1) The invitingposting or receiving of competitivenotice [bids.] respon(3) The selling or leasing of personal property by contract or at a public auction.advertising.
- 80th Session (2019) – 19 – (2) The inviting or receiving of competitive [bids.] responses.
(3) The selling or leasing of personal property by contract or at a public auction.
(a) A] , a governing body or its authorized representative [and the State of Nevada] may [join or use the contracts of local governments] enter into a contract pursuant to a solicitation by:
The State of - *AB86_R2* – 19 – Nevada or other state is not liable for the obligations of the local government which [joins or uses] enters into a contract in response to the [contract.] solicitation in accordance with this paragraph.
A governing body or its authorized representative [or the State of Nevada] shall not [join or use] enter into a contract pursuant to this section if a contractor’s license issued pursuant to chapter 624 of NRS is required for any portion of the work to bebent to performed under the contract.
- 80th Session (2019) – 20 – (a) The number of local emerging small businesses that the governing body or its authorized representative solicited to submit a [bid or proposal] response to the governing body or its authorizedtauthorized a representative for a local purchasing contract;
(b) The number of local emerging small businesses that submitted a [bid or proposal] response to the governing body or its authorized representative for a local purchasing contract;
(c) The number of local purchasing contracts that were awarded by the governing body or its authorized representative to local eme(d) The total number of dollars’ worth of local purchasing contracts that were awarded by the governing body or its authorized representative to local emerging small businesses;
(d) The total number of dollars’ worth of local purchasing contracts that were awarded by the governing body or its authorized representative to local emerging small businesses;
(b) “Local purchasing contract” means a contract awarded pursuant to the provisions of this chapter for which the estimated - *AB86_R2* – 20 – cost is [$50,000 or less.] not more than $100,000.
(d) “Procurement card” means a charge card issued to a governing body or its authorized representative for the purpose of purchasing goods and services pursuant to the provisions of this chapter.chaSec.
Sec.
- 80th Session (2019) – 21 – (1) Any proprietary information regarding the contract;
or (2) Any information regarding a [bid on the contract] response to a solicitation submitted by another person, unless such inf2.matAinformation personis whoavailable violatesto any of the provisionsgeneral ofpublic. subsection 1 is guilty of a gross misdemeanor and shall be punished by fine of not less than $2,000 nor more than $50,000, or by both fine and imprisonment.
Sec.
24.
NRS 332.820 is hereby amended to read as follows:
332.820 1.
Any agreement or collusion among [bidders] responding offerors or prospective [bidders] responding offerors in restraint of freedom of competition by agreement to [bid] respond with a fixed price, or otherwise, shall render the [bids] responses of such [bidders] responding offerors void.
A person who violates any of the provisions of subsection 1 is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not more than 364 days, or by a fine of not less than $2,000 nor more than $50,000, or by both fine and imprisonment.
332.820 1.RS 33Any agreement or collusion among [bidders]:
responding offerors or prospective [bidders] responding offerors in restraint of freedom of competition by agreement to [bid] respond with a fixed price, or otherwise, shall render the [bids] responses of such [bidders] responding offerors void.
2.
- *AB86_R2* – 21 – Sec.
or (b) A governmental entity located outside of this State if the entity uses an open and competitive method of awarding the if the contract that is substantially similar to the method prescribed by state law.
- 80th Session (2019) – 22 – 2.
“Invitation to bid” means a written statement which sets byforth competitivethe selection.drequirements and specifications of a contract to be awarded 5.by competitive selection.
5.
- *AB86_R2* – 22 – 8.
9.NRS 600A.030.e secret” has the meaning ascribed to it in 10.
“Trade secret” has the meaning ascribed to it in NRS 600A.030.
10.
- 80th Session (2019) – 23 – 11.
“Volunteer fire department” means a volunteer fire department which pays premiums for industrial insurance pursuant to the provisions of chapters 616A to 616D, inclusive, or chapter 617 of NRS.
2.]1. By transfer of surplus items or stocks from other using agencies;
[From stores of commodities on hand;
2.] By transfer of surplus items or stocks from other using age[3.] 2.
By deliveries under contracts;
- *AB86_R2* – 23 – Sec.
333.330called 1.for by the same notice must be itemized and give a price for each item.
All bids on more than one item on which bids are called for by the same notice must be itemized and give a price for each item.
- 80th Session (2019) – 24 – (a) The chief of the using agency, or a committee appointed by the chief of the using agency in accordance with the regulations adopted pursuant to NRS 333.135, if the proposal is for a using agency;
The committeeof may include persons who are not state officers or employees and possess expert knowledge or special expertise that the chief of the using agency or the Administrator of the Purchasing Division of the determines is necessary to evaluate a proposal.
In making an award, the chief of the using agency, the Administrator of the Purchasing Division or [each member of] the committee, if a committee is established, shall consider and assign a - *AB86_R2* – 24 – score for each [of the following factors for determining whether thethea proposal is in the best interests of the State of Nevada:
- 80th Session (2019) – 25 – [5.] 6.
333.3363that:3.3363 “Local business” means a business which certifies tha1.1.
[and] or than2. 2 years.] The majority of the goods provided for in a statefewer purchasing contract are produced in this State.
[Has employed at least one person in this State for not fewer than 2 years.] The majority of the goods provided for in a state purchasing contract are produced in this State.
[(b) A local business owned and operated by a veteran with a service-connected disability which is determined to be 50 percent or more by the United States Department of Veterans Affairs submits a bid or proposal for a contract for which the estimated cost is more than $250,000 but less than $500,000 and is a responsive and - *AB86_R2* – 25 – responsible bidder, the bid or proposal shall be deemed to be 5 percent lower than the bid or proposal actually submitted.] 2.
- 80th Session (2019) – 26 – (a) Applying for or receiving the preference described in NRS 333.3366;
Sec.
34.
NRS 333.3369 is hereby amended to read as follows:
The regulations may1.may include, without limitation, provisions setting forth:
1.
documentation2. or other proof that a business must submit to the demonstrate that it qualifies for [a] the preference described in NRS 333.3366;
Subject to the provisions of NRS 417.0187, the documentation or other proof that a business must submit to demonstrate that it qualifies for [a] the preference described in NRS 333.3366;
333.337 Each person who is authorized pursuant to the provisionsstate ofshall thisensure chapterthat tothe entercontract into[is] any:y contract on behalf of this state1. shall ensure that the contract [is] :
1.
and - *AB86_R2* – 26 – 4.
and - 80th Session (2019) – 27 – (b) The notice of award has been posted in at least three public buildings, including the location of the using agency.
A person filing a notice of appeal must post a bond with good and solvent surety authorized to do business in this state or submit other security, in a form approved by the Administrator by regulation, to the Purchasing Division, who shall hold the bond or otherwise provided in subsection 3, a bond posted or other securitysecurityas untilsubmitted with a determinationnotice isof madeappeal onmust be in an amount equal to 25 percent of the appeal.total value of the successful bid submitted.
Except as otherwise provided in subsection 3, a bond posted or other security submitted with a notice of appeal must be in an amount equal to 25 percent of the total value of the successful bid submitted.
If the total value of the successful bid cannot be determined because the total requirements for the contract are estimated as of the date of award, a bond posted or other security submitted with a notice of appeal must be in an amount equal to 25 percent of thehthe a estimated total value of the contract.
Upon request, the Adm(a)Administrator Theshall estimatedprovide: total value of the contract;
(a) The estimated total value of the contract;
The successful bidder must be given notice of the hearing in the same manner as the person who filed the notice of appeal.
The successful bidder may the participate in the hearing.
A cancellation of the - *AB86_R2* – 27 – award requires [readvertising for bids and] a new award in accordance with the provisions of this chapter.
- 80th Session (2019) – 28 – 7.
9.department, division, employee or officer of the State is liable for any costs, expenses, attorney’s fees, loss of income or other damages sustained by a person who makes an unsuccessful bid or proposal, whether or not the person files a notice of appeal pursuant to this section.
Neither the State of Nevada, nor any agency, contractor, department, division, employee or officer of the State is liable for any costs, expenses, attorney’s fees, loss of income or other damages sustained by a person who makes an unsuccessful bid or proposal, whether or not the person files a notice of appeal pursuant to this section.
If the appeal is upheld and the award is cancelled, the bond posted or other security submitted with the notice of appeal must be returned to the person who posted the bond or submitted the maysecurity. be made against the bond or other security by the Purchasinglaim Division and the using agency to the Hearings Division of the incurred and other monetary losses suffered by the Purchasinges Division and the using agency because of the unsuccessful appeal.
If the appeal is rejected and the award is upheld, a claim may be made against the bond or other security by the Purchasing Division and the using agency to the Hearings Division of the Department of Administration in an amount equal to the expenses incurred and other monetary losses suffered by the Purchasing Division and the using agency because of the unsuccessful appeal.
333.390the 1.Administrator may authorize [local purchasing by] using35, agencies [,] to purchase items that are not available directly from an entity with which the Purchasing Division has entered into a contract if such a purchase is made in accordance with the [rules of procedure, of individual orders for items not scheduled for quantity purchasing, not to exceed $5,000 for each order, except for the repair, replacement and installation of parts for heavy equipment, not to exceed $15,000 for each order, at no higher prices than specified in the orders authorizing the local purchasing.
ExceptThe as otherwise provided in NRS 333.435, the Administrator may authorize [local purchasing by]at usinghigher agenciesprices [,]if toperishable purchasearticles items that are notinvolved availableand directlyto frommeet another entityemergency withrequirements.] whichState theAdministrative PurchasingManual Divisioncreated hasby enteredNRS into- a80th contractSession if(2019) such– a29 purchase– is232.004, madeprovisions in accordance with the [rules of procedure,this ofchapter individual orders for items not scheduled for quantity purchasing, not to exceed $5,000 for each order, except for the repair, replacement and installationany ofregulations partsadopted forpursuant heavythereto. equipment, not to exceed $15,000 for each order, at no higher prices than specified in the orders authorizing the local purchasing.
The Administrator may authorize purchasing at higher prices if - *AB86_R2* – 28 – perishable articles are involved and to meet other emergency requirements.] State Administrative Manual created by NRS 232.004, provisions of this chapter and any regulations adopted pursuant thereto.
(b) Specify the limit of spending for individual orders not to exceedparts $5,000,referred exceptto forin thesubsection repair,1.ir, replacement and installation of parts(c) referredSpecify tothe inarticles subsectionto 1.be purchased.
(c) Specify the articles to be purchased.
333.469 [1.] Any agency, bureau, commission or officer of the Legislative Department or the Judicial Department of the State Government or the Nevada Wing of the Civil Air Patrol or any squadron thereof may obtain supplies, materials and equipment on a voluntary basis through the facilities of the Purchasing Division.
From time to time the Administrator shall issue bulletins to all of such agencies, bureaus, commissions and officers indicating the supplies, materials and equipment available and the prices thereof.]theSec. Sec.
and (e) The Nevada System of Higher Education, - *AB86_R2*80th Session (2019) – 2930 – indicating the supplies, materials and equipment available and the prices thereof.
Except as otherwise provided in subsection 2, the Administrator may purchase or acquire on behalf of the State of Nevada, and all officers, departments, institutions, boards, of commissions, schools and other agencies in the Executive Department of the State Government, volunteer fire departments, local governments as defined in NRS 354.474, conservation districts or irrigation districts of the State of Nevada, any supplies, materials or equipment of any kind required or deemed advisable for the state officers, departments, institutions, boards, commissions, schools, volunteer fire departments and other agencies or local governments as defined in NRS 354.474, conservation districts or irrigation districts that may be available pursuant to an agreement with a vendor who has entered into an agreement with the General Services Administration or another [governmental] federal agency dealing in supplies, materials, equipment or donable surplus material if:
(a) The prices for the supplies, materials or equipment negotiated in the agreement that the Administrator enters into with the vendor are substantially similar to the prices for those supplies, materials or equipment that the vendor had negotiated with the General Services Administration or other [governmental] federal agency;
and (b) The Administrator determines that such an agreement would be in the best interests of the State.State.at such an agreement would 2.
2.The Administrator shall not enter into an agreement pursuant to subsection 1 if a contractor’s license issued pursuant to chapter of NRS is required for any portion of the agreement.
The Administrator shall not enter into an agreement pursuant to subsection 1 if a contractor’s license issued pursuant to chapter 624 of NRS is required for any portion of the agreement.
or (b) Cause to be contaminated, corrupted, consumed, damaged, destroyed, disrupted, modified, recorded or transmitted, - 80th Session (2019) – 31 – any other data, information, image, program, signal or sound contained in a computer, system or network without the knowledge or consent of the person who owns the other data, information, - *AB86_R2* – 30 – image, program, signal or sound or the computer, system or network.
or (c) Any other similar data, information, image, program, signal or sound that is designed or has the capability to prevent, impede, delay or disrupt the normal operation or use of any component, device, equipment, system or network.
computer(6) orSoftware itsthat systems;conductsconducts remote maintenance or repair of a (7)computer Software that is designed to manage or toits performsystems; mainte(8) Software for media players;
(7) Software that is designed to manage or to perform mainten(8) Software for media players;
Sec.Secs.
42.42 and 43.
43.
(Deleted by amendment.) Sec.
A member of any board, commission or similar body who is engaged in the profession, occupation or business regulated by such board, commission or body may, in the ordinary course of his or her business, bid on or enter into a contract with an agency, except the - 80th Session (2019) – 32 – board, commission or body on which he or she is a member, if the member has not taken part in developing the contract plans or specifications and the member will not be personally involved in opening, considering or accepting offers.
- *AB86_R2* – 31 – 3.
A full- or part-time faculty member or employee of the Nevada System of Higher Education may bid on or enter into a contract with an agency, or may benefit financially or otherwise from a contract between an agency and a private entity, if the contract complies with the policies established by the Board of RegentsReg4.ts ofExcept theas Universityotherwise ofprovided Nevadain pursuantsubsection to2, NRS3 396.255.or 5, a public officer or employee may bid on or enter into a contract with an agency if:
4.
Except as otherwise provided in subsection 2, 3 or 5, a public officer or employee may bid on or enter into a contract with an agency if:
If a public officer who is authorized to bid on or enter into a contract with an agency pursuant to this subsection is a member of the governing body of the agency, the public officer, pursuant to the requirements of NRS 281A.420, shall disclose the public officer’s interest in the contract and shall not vote on or advocate the app5.valAapproval member of a local legislative body shall not, either individually or through any business entity in which the membercontract. has agency governed by his or her local legislative body unless:the local (a) The member, or the business entity in which the member has a significant pecuniary interest, offers the sole source of supply of the goods or services within the territorial jurisdiction of the local agency governed by his or her local legislative body;
5.
A member of a local legislative body shall not, either a significant pecuniary interest, sell goods or services to the local agency governed by his or her local legislative body unless:
(a) The member, or the business entity in which the member has a significant pecuniary interest, offers the sole source of supply of the goods or services within the territorial jurisdiction of the local agency governed by his or her local legislative body;
- 80th Session (2019) – 33 – (c) At the meeting, the member discloses his or her significant pecuniary interest in the purchase of such goods or services and does not vote upon or advocate the approval of the matter pursuant to the requirements of NRS 281A.420;
- *AB86_R2* – 32 – 6.
(a) The public officer or employee files a request for an advisory opinion from the Commission pursuant to NRS 281A.675;
and an advisory (b) The Commission determines that such relief is not contrary to:
In making that determination,consider whether the Boardproposed orfees itsto authorizedbe representativepaid to theative shall Authority for the privileges granted are conducive to revenue generation and providing high quality service to the traveling pub2.c.Beforepublic. entering into any concession agreement providing estimated revenue to the Authority of more than $25,000, the Authority must:
2.
Before entering into any concession agreement providing estimated revenue to the Authority of more than $25,000, the Authority must:
The notice must - 80th Session (2019) – 34 – specify the date, time and place of a regular meeting of the Authority to be held after completion of the publication at which any interested person may appear.
The Board may authorize the Executive Director of the Authority to enter into any concession agreement on behalf of the Authority if the agreement provides estimated revenue to the Authority of $25,000 or less.
- *AB86_R2* – 33 – Sec.
TEXT~~~~~ OF19 REPEALED- SECTIONS80th 332.039Session Advertisements(2019) or requests for bid on contract.
1.
Except as otherwise provided by specific statute:
(a) A governing body or its authorized representative shall advertise all contracts for which the estimated annual amount required to perform the contract exceeds $50,000.
into a contract of any nature without advertising if the estimated annual amount required to perform the contract is $50,000 or less.
(c) If the estimated annual amount required to perform the contract is more than $25,000 but not more than $50,000, requests for bids must be submitted or caused to be submitted by the governing body or its authorized representative to two or more persons capable of performing the contract, if available.
The governing body or its authorized representative shall maintain a record of all requests for bids and all bids received for the contract for at least 7 years after the date of execution of the contract.
2.
This section does not prohibit a governing body or its authorized representative from advertising for or requesting bids regardless of the estimated annual amount required to perform the contract.
determining the responsibility of any bidder, the governing body orn its authorized representative:
1.
Shall consider the possession of and limit on any required license of the bidder;
and 2.
May consider the:
(a) Financial responsibility of the bidder;
(b) Experience of the bidder;
(c) Adequacy of the equipment of the bidder;
(d) Past performance of the bidder;
(e) Performance or delivery date;
and (f) Ability of the bidder to perform the contract.
H - *AB86_R2*
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View plain text versions (4)
- Enrolled As Enrolled Current pdf
- Reprint 2 View text pdf
- Reprint 1 View text pdf
- Introduced As Introduced pdf
Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Approved by the Governor. Chapter 140.
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Enrolled and delivered to Governor.
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In Assembly. To enrollment.
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Read third time. Passed. Title approved. (Yeas: 20, Nays: None, Excused: 1.) To Assembly.
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From committee: Do pass. Placed on Second Reading File. Read second time.
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From printer. To reengrossment. Reengrossed. Second reprint. To Senate. In Senate. Read first time. Referred to Committee on Government Affairs. To committee.
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From printer. To engrossment. Engrossed. First reprint. Taken from General File. Placed on Chief Clerk's desk. Taken from Chief Clerk's desk. Placed on General File. Read third time. Amended. (Amend. No. 644.) Dispensed with reprinting. Read third time. Passed, as amended. Title approved, as amended. (Yeas: 40, Nays: None, Excused: 2.) To printer.
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Taken from Chief Clerk's desk. Placed on General File. Read third time. Amended. (Amend. No. 620.) To printer.
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Read second time. Taken from General File. Placed on Chief Clerk's desk.
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From committee: Without recommendation, and rerefer to Committee on Ways and Means.
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Read first time. To committee.
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From printer.
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Prefiled. Referred to Committee on Government Affairs. To printer.
Sponsors
- Assembly Committee on Government Affairs · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 66 not signed on
Sponsors (1)
- Assembly Committee on Government Affairs
Co-sponsors (0)
None.
Not signed on (66)
66 members have not signed on to this bill.
Show all 66 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does AB 86 do?
- AN ACT relating to governmental purchasing; making provisions relating to purchasing by local governments applicable to a metropolitan police department; exempting certain purchases by local governments from requirements of competitive bidding; increasing the monetary thresholds at which local governmental purchasing contracts must be advertised; authorizing a local government to dispose of personal property by donating it to another governmental entity or nonprofit organization; authorizing the Administrator of the Purchasing Division of the Department of Administration to enter into a contract pursuant to a solicitation by certain governmental entities; revising provisions governing certain preferences for businesses owned and operated by a veteran with a service-connected disability; making various other changes relating to governmental purchasing; and providing other matters properly relating thereto.
- Who sponsors AB 86?
- AB 86 is sponsored by Assembly Committee on Government Affairs.
- What is the current status of AB 86?
- This bill has been enacted into law. Introduced November 21, 2018. Enacted.
- Where can I track AB 86?
- Track AB 86 free on One Click Politics — get push/email alerts when it moves.
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