164A.575 Purchasing -- Inventories -- Lease renewals -- Sales of surplus property --
1,265 words·~6 min read·
/ky/164a-575A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Bidding procedures -- Kentucky-grown agricultural products -- Reports --
Capital construction projects and equipment not listed in budget bill --
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 fair market
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.
(a)Notwithstanding KRS 56.806, the governing board may renegotiate the cost
of a lease after the expiration of the lease term and any renewal terms
provided in the lease prior to any renewal not provided for in the terms of the
lease.
(b)Except when a lease incorporates a lease-purchase under KRS 56.806, the
governing board shall reserve the right to cancel a lease upon at least thirty
(30)days' written notice.
(c)Notwithstanding KRS 56.823(2) and (3), any lease renewals, except automatic
renewals permitted under KRS 56.803, 56.805(2), and 56.806(1), for which
the annual rental cost will exceed two hundred thousand dollars ($200,000)
shall be reported to the Capital Projects and Bond Oversight Committee in the
same format as set out in KRS 56.823(2).
(d)Notwithstanding KRS 56.813, a public college or university may pay for
improvements to leased property costing in excess of ten thousand dollars
($10,000) but less than one million dollars ($1,000,000) in a lump sum upon
approval of its board using non-general fund appropriations and without
incurring debt.
(8)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
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 fair market value
thereof as determined by the Finance and Administration Cabinet or the
Transportation Cabinet for such requirements of that department.
(9)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.
(a)As used in this section, "construction manager-agency," "construction
management-at-risk," "design-bid-build," "design-build," and "construction
manager-general contractor" 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, construction manager-general contractor
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,
construction manager-general contractor basis, or construction management-
at-risk basis shall be procured in accordance with KRS 45A.180, KRS
45A.183, and the regulations promulgated in accordance with KRS 45A.180.
Nothing in this section shall prohibit the procurement of construction
manager-agency services.
(c)Notwithstanding KRS 45A.185, for all capital construction projects, bidder
security for competitive sealed bidding for construction contracts shall only be
required when the price is estimated to exceed one million dollars
($1,000,000).
(11)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.
(12)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.
(13)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 vice president responsible for business affairs and such explanation must be
approved by the institution 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.
(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