0001| HOUSE BILL 781 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| LARRY A. LARRANAGA | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PROCUREMENT; AMENDING, REPEALING AND ENACTING | 0012| SECTIONS OF THE PROCUREMENT CODE; MAKING AN APPROPRIATION. | 0013| | 0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0015| Section 1. Section 13-1-38 NMSA 1978 (being Laws 1984, | 0016| Chapter 65, Section 11) is amended to read: | 0017| "13-1-38. DEFINITION--CHANGE ORDER.--"Change order" means | 0018| a written order signed and issued by a procurement officer | 0019| after execution of the contract directing the contractor to | 0020| make [changes which] a change within the general scope of | 0021| the contract, consisting of additions, deletions or other | 0022| revisions that the changes clause of the contract authorizes | 0023| the procurement officer to order with or without the consent of | 0024| the contractor." | 0025| Section 2. Section 13-1-40 NMSA 1978 (being Laws 1984, | 0001| Chapter 65, Section 13) is amended to read: | 0002| "13-1-40. DEFINITION--CONSTRUCTION.-- | 0003| A. "Construction" means building, altering, | 0004| repairing, installing or demolishing in the ordinary course of | 0005| business any: | 0006| (1) road, highway, bridge, parking area or | 0007| related project; | 0008| (2) building, stadium, parking or other | 0009| structure; | 0010| (3) airport, subway or similar facility; | 0011| (4) park, trail, athletic field, golf course | 0012| or similar facility; | 0013| (5) dam, reservoir, canal, ditch or similar | 0014| facility; | 0015| (6) sewage or water treatment facility, power | 0016| generating plant, pump station, natural gas compressing station | 0017| or similar facility; | 0018| (7) sewage, water, gas or other pipeline; | 0019| (8) transmission line; | 0020| (9) radio, television or other tower; | 0021| (10) water, oil or other storage tank; | 0022| (11) shaft, tunnel or other mining | 0023| appurtenance; | 0024| (12) electrical wiring, plumbing or plumbing | 0025| fixture, gas piping, gas appliances or water conditioners; | 0001| (13) air conditioning conduit, heating or | 0002| other similar mechanical work; or | 0003| (14) similar work, structures or | 0004| installations. | 0005| B. "Construction" shall also include: | 0006| (1) leveling or clearing land; | 0007| (2) excavating earth; | 0008| (3) drilling wells of any type, including | 0009| seismographic shot holes or core drilling; and | 0010| (4) similar work, structures or | 0011| installations." Section 3. Section 13-1-41 NMSA 1978 (being | 0012| Laws 1984, Chapter 65, Section 14) is amended to read: | 0013| "13-1-41. DEFINITION--CONTRACT.--"Contract" means [any] | 0014| a written agreement for the procurement of items of tangible | 0015| personal property, services or construction." | 0016| Section 4. A new section of the Procurement Code, Section | 0017| 13-1-42.1 NMSA 1978, is enacted to read: | 0018| "13-1-42.1. [NEW MATERIAL] DEFINITION--CONTRACT | 0019| ORDER.--"Contract order" means the document issued by a using | 0020| agency that directs a contractor to deliver items of tangible | 0021| personal property, services or construction pursuant to an | 0022| existing price agreement." | 0023| Section 5. Section 13-1-43 NMSA 1978 (being Laws 1984, | 0024| Chapter 65, Section 16) is amended to read: | 0025| "13-1-43. DEFINITION--CONTRACTOR.--"Contractor" means any | 0001| business having a contract with a state agency or a local | 0002| public body. For construction purposes, "contractor" means a | 0003| person licensed as a contractor by the construction industries | 0004| division of the regulation and licensing department." | 0005| Section 6. Section 13-1-55 NMSA 1978 (being Laws 1989, | 0006| Chapter 69, Section 1) is amended to read: | 0007| "13-1-55. DEFINITION--ENGINEERING SERVICES.--"Engineering | 0008| services" means any service or creative work [the adequate | 0009| performance of which] that requires engineering education, | 0010| training and experience in the application of special knowledge | 0011| of the mathematical, physical and engineering sciences to such | 0012| services or creative work as consultation, investigation, | 0013| forensic investigation, evaluation, planning and design of | 0014| engineering works and systems, expert technical testimony, | 0015| engineering studies and the review of construction for the | 0016| purpose of assuring substantial compliance with drawings and | 0017| specifications; any of which embrace such services or work, | 0018| either public or private, in connection with any utilities, | 0019| structures, buildings, machines, equipment, processes, work | 0020| systems, projects and industrial or consumer products or | 0021| equipment of a mechanical, electrical, hydraulic, chemical, | 0022| pneumatic, environmental or thermal nature, insofar as they | 0023| involve safeguarding life, health or property, and including | 0024| such other professional services as may be necessary to the | 0025| planning, progress and completion of any engineering services. | 0001| Such practice includes the performance of architectural work | 0002| incidental to the practice of engineering and the provision of | 0003| general administration of construction contracts. | 0004| "Engineering services" does not include responsibility for the | 0005| superintendence of construction, site conditions, operations, | 0006| equipment, personnel or the maintenance of safety in the work | 0007| place." | 0008| Section 7. Section 13-1-67 NMSA 1978 (being Laws 1984, | 0009| Chapter 65, Section 40) is amended to read: | 0010| "13-1-67. DEFINITION--LOCAL PUBLIC BODY.--"Local public | 0011| body" means every political subdivision of the state and the | 0012| agencies, instrumentalities and institutions thereof and two- | 0013| year post-secondary educational institutions not identified in | 0014| Article 12, Section 11 of the constitution of New Mexico." | 0015| Section 8. Section 13-1-71 NMSA 1978 (being Laws 1984, | 0016| Chapter 65, Section 44) is amended to read: | 0017| "13-1-71. DEFINITION--PRICE AGREEMENT.--"Price agreement" | 0018| means a definite quantity contract or indefinite quantity | 0019| contract [which] that requires the contractor to furnish | 0020| items of tangible personal property, services or construction | 0021| to a state agency or a local public body [which] that | 0022| issues a [purchase] contract order, if the [purchase] | 0023| contract order is within the quantity limitations of the | 0024| contract, if any." | 0025| Section 9. Section 13-1-76 NMSA 1978 (being Laws 1984, | 0001| Chapter 65, Section 49, as amended) is amended to read: | 0002| "13-1-76. DEFINITION--PROFESSIONAL SERVICES.-- | 0003| "Professional services" means the services of architects, | 0004| archeologists, engineers, surveyors, landscape architects, | 0005| medical arts practitioners, scientists, management and systems | 0006| analysts, certified public accountants, registered public | 0007| accountants, lawyers, psychologists, planners, researchers and | 0008| persons or businesses providing similar services that may be | 0009| identified by a determination issued by the purchasing division | 0010| or a central purchasing office." | 0011| Section 10. Section 13-1-77 NMSA 1978 (being Laws 1984, | 0012| Chapter 65, Section 50) is amended to read: | 0013| "13-1-77. DEFINITION--PURCHASE ORDER.--"Purchase order" | 0014| means the document issued by the state purchasing agent or a | 0015| central purchasing office [which directs] to formalize a | 0016| purchase transaction with a contractor to deliver items of | 0017| tangible personal property, services or construction pursuant | 0018| to an existing contract. The purchase order shall contain | 0019| statements as to the quantity, quality, description and price | 0020| of the goods, services or construction ordered; applicable | 0021| terms as to payment, discounts, date of performance and | 0022| transportation; and other factors of suitable references | 0023| pertinent to the purchase and its execution by the | 0024| contractor." Section 11. Section 13-1-82 NMSA 1978 (being | 0025| Laws 1984, Chapter 65, Section 55) is amended to read: | 0001| "13-1-82. DEFINITION--RESPONSIBLE BIDDER.--"Responsible | 0002| bidder" means a bidder who submits a responsive bid and who has | 0003| furnished, when required, information and data to prove that | 0004| [his] he has the appropriate license when required and | 0005| financial resources, production or service facilities, | 0006| personnel, service reputation and experience [are] adequate | 0007| to make satisfactory delivery of the services, construction or | 0008| items of tangible personal property described in the invitation | 0009| for bids." | 0010| Section 12. Section 13-1-83 NMSA 1978 (being Laws 1984, | 0011| Chapter 65, Section 56) is amended to read: | 0012| "13-1-83. DEFINITION--RESPONSIBLE OFFEROR.--"Responsible | 0013| offeror" means an offeror who submits a responsive proposal and | 0014| who has furnished, when required, information and data to prove | 0015| that his financial resources, production or service facilities, | 0016| personnel, service reputation and experience are adequate to | 0017| make satisfactory delivery of the services or items of tangible | 0018| personal property described in the request for proposal." | 0019| Section 13. Section 13-1-87 NMSA 1978 (being Laws 1984, | 0020| Chapter 65, Section 60) is amended to read: | 0021| "13-1-87. DEFINITION--SERVICES.--"Services" means the | 0022| furnishing of labor, time or effort by a contractor not | 0023| involving the delivery of a specific end product other than | 0024| reports and other materials [which] that are merely | 0025| incidental to the required performance. "Services" includes | 0001| [the furnishing of insurance] trade or technical services of | 0002| a janitor, security guard, travel agent, plumber, electrician, | 0003| food service operator, mechanic or repair person, but does not | 0004| include construction as defined in Section 13-1-40 NMSA 1978 | 0005| or the services of employees of a state agency or a local | 0006| public body." | 0007| Section 14. Section 13-1-91 NMSA 1978 (being Laws 1984, | 0008| Chapter 65, Section 64, as amended) is amended to read: | 0009| "13-1-91. DEFINITION--STATE OR LOCAL PUBLIC WORKS | 0010| PROJECT.--"State public works project" or "local public works | 0011| project" means a project of a state agency, not including | 0012| projects of the state educational institutions, the supreme | 0013| court building commission or the legislature or a local | 0014| public [bodies, which] body that uses architectural or | 0015| engineering services requiring professional design or related | 0016| services costing twenty-five thousand dollars ($25,000) or | 0017| more, [or] landscape architectural services requiring | 0018| professional design or related services costing fifteen | 0019| thousand dollars ($15,000) or more or surveying services | 0020| requiring professional services costing five thousand dollars | 0021| ($5,000) or more, excluding applicable state and local gross | 0022| receipts taxes." | 0023| Section 15. Section 13-1-95 NMSA 1978 (being Laws 1984, | 0024| Chapter 65, Section 68) is amended to read: | 0025| "13-1-95. PURCHASING DIVISION--CREATION--DIRECTOR IS | 0001| STATE PURCHASING AGENT--APPOINTMENT--DUTIES.-- | 0002| A. The "purchasing division" is created within the | 0003| general services department. | 0004| B. Subject to the authority of the secretary, the | 0005| state purchasing agent shall be the administrator and chief | 0006| executive of the purchasing division. The state purchasing | 0007| agent shall be appointed by the secretary with the approval of | 0008| the governor. | 0009| C. The purchasing division and state purchasing | 0010| agent shall be the executive procurement officers, | 0011| responsible for the procurement of services, construction and | 0012| items of tangible personal property for all state agencies | 0013| except as otherwise provided in the Procurement Code and shall | 0014| administer the Procurement Code for those state agencies not | 0015| excluded from the requirement of procurement through the state | 0016| purchasing agent. | 0017| D. The state purchasing agent shall have the | 0018| following additional authority and responsibility to: | 0019| (1) recommend procurement regulations to the | 0020| secretary; | 0021| (2) establish, [and] maintain and conduct | 0022| training programs for state agencies and local public bodies | 0023| for the development and use of procurement specifications, | 0024| [and] for the inspection, testing and acceptance of services, | 0025| construction and items of tangible personal property and for | 0001| other matters pertaining to public procurement and contracting | 0002| consistent with the Procurement Code and applicable rules and | 0003| procedures of the purchasing division; | 0004| (3) cooperate with the [state budget division | 0005| of the] department of finance and administration in the | 0006| preparation of statistical data concerning the acquisition and | 0007| usage of all services, construction and items of tangible | 0008| personal property by state agencies and other matters as | 0009| requested; | 0010| (4) require state agencies to furnish reports | 0011| concerning usage, needs and stocks on hand of items of tangible | 0012| personal property and usage and needs for services or | 0013| construction; | 0014| (5) prescribe, with consent of the secretary, | 0015| forms to be used by state agencies to requisition and report | 0016| the procurement of items of tangible personal property, | 0017| services and construction; | 0018| (6) provide information to state agencies and | 0019| local public bodies concerning the development of | 0020| specifications, quality control methods and other procurement | 0021| information; and | 0022| (7) collect information concerning procurement | 0023| matters, quality and quality control of commonly used services, | 0024| construction and items of tangible personal property. | 0025| E. The state purchasing agent shall, upon the request | 0001| of the central purchasing office of a local public body, | 0002| procure a price agreement for the requested services, | 0003| construction or items of tangible personal property. | 0004| F. The "procurement review bureau" is created in the | 0005| purchasing division. Duties of the bureau as set by the state | 0006| purchasing agent and approved by the secretary shall include | 0007| site assessment of agency-level purchasing activity, and other | 0008| central purchasing offices on request, to determine compliance | 0009| with state laws and regulations; recommendations on policies | 0010| and procedures that need to be adjusted or are being | 0011| misinterpreted; and acting as the state's coordinator in | 0012| recycled product procurement. The bureau shall perform other | 0013| duties assigned by the secretary or the state purchasing | 0014| agent." | 0015| Section 16. Section 13-1-98 NMSA 1978 (being Laws 1984, | 0016| Chapter 65, Section 71, as amended) is amended to read: | 0017| "13-1-98. EXEMPTIONS FROM THE PROCUREMENT CODE.--The | 0018| provisions of the Procurement Code shall not apply to: | 0019| A. procurement of items of tangible personal property | 0020| or services by a state agency or a local public body from a | 0021| state agency, a local public body or external procurement unit | 0022| except as otherwise provided in Sections 13-1-135 through | 0023| 13-1-137 NMSA 1978; | 0024| B. procurement of tangible personal property or | 0025| services for the governor's mansion and grounds; | 0001| C. printing and duplicating contracts involving | 0002| materials which are required to be filed in connection with | 0003| proceedings before administrative agencies or state or federal | 0004| courts; | 0005| D. purchases of publicly provided or publicly | 0006| regulated gas, electricity, water, sewer and refuse collection | 0007| and similar services; | 0008| E. purchases of books, [and] periodicals, off-the- | 0009| shelf software and videos from the publishers, [or] | 0010| copyright holders or licensed owners thereof when the | 0011| materials are not available from distributors who will | 0012| participate in competitive bidding; | 0013| F. travel or shipping by common carrier or by private | 0014| conveyance or to meals and lodging; | 0015| G. purchase of livestock at auction rings or to the | 0016| procurement of animals to be used for research and | 0017| experimentation or exhibit; | 0018| H. contracts with businesses for public school | 0019| transportation services; | 0020| I. procurement of tangible personal property or | 0021| services, as defined by Sections 13-l-87 and 13-l-93 NMSA 1978, | 0022| by the corrections industries division of the corrections | 0023| department pursuant to regulations adopted by the corrections | 0024| [industries] commission, which shall be reviewed by the | 0025| purchasing division of the general services department prior to | 0001| adoption; | 0002| J. minor purchases consisting of magazine | 0003| subscriptions, conference registration fees, membership dues | 0004| in professional organizations and other similar purchases | 0005| where prepayments are required; | 0006| K. municipalities having adopted home rule charters | 0007| and having enacted their own purchasing ordinances; | 0008| L. the issuance, sale and delivery of public | 0009| securities pursuant to the applicable authorizing statute, with | 0010| the exception of bond attorneys and general financial | 0011| consultants; | 0012| M. contracts entered into by a local public body with | 0013| a private independent contractor for the operation, or | 0014| provision and operation, of a jail pursuant to Sections 33-3-26 | 0015| and | 0016| 33-3-27 NMSA 1978; | 0017| N. contracts for maintenance of grounds and | 0018| facilities at highway rest stops and other contracts for | 0019| employment opportunities, excluding those intended for the | 0020| direct care and support of persons with handicaps, entered into | 0021| by state agencies with private, nonprofit, independent | 0022| contractors who provide services to persons with handicaps; | 0023| O. contracts and expenditures for services to be paid | 0024| or compensated by money or other property transferred to New | 0025| Mexico law enforcement agencies by the United States department | 0001| of justice drug enforcement administration; | 0002| P. contracts for retirement and other benefits | 0003| pursuant to Sections 22-11-47 through 22-11-52 NMSA 1978; | 0004| [and] | 0005| Q. contracts with professional entertainers; | 0006| R. placement costs for media advertisements that | 0007| promote New Mexico and that are not part of an ongoing | 0008| advertising campaign and legal notices or advertisements as | 0009| required by law or the order of a court of record in this | 0010| state; | 0011| S. fees paid for expert witness testimony in | 0012| connection with proceedings before administrative agencies or | 0013| state or federal courts; and | 0014| T. procurement of items of tangible personal property | 0015| in their final form, whose purpose is strictly for resale | 0016| through an enterprise agency wherein the activity is in | 0017| accordance with the organizational unit's stated mission." | 0018| Section 17. Section 13-1-99 NMSA 1978 (being Laws 1984, | 0019| Chapter 65, Section 72, as amended) is amended to read: | 0020| "13-1-99. EXCLUDED FROM CENTRAL PURCHASING THROUGH THE | 0021| STATE PURCHASING AGENT.--Excluded from the requirement of | 0022| procurement through the state purchasing agent, but not from | 0023| the requirements of the Procurement Code and regulations | 0024| promulgated pursuant to Section 13-1-125 NMSA 1978, are the | 0025| following: | 0001| A. procurement of professional services except for | 0002| professional services related to information and communication | 0003| services, resources and systems; | 0004| B. small purchases having a value not exceeding [two | 0005| hundred fifty dollars ($250)] one thousand dollars ($1,000); | 0006| C. emergency procurement; | 0007| D. procurement of highway construction or | 0008| reconstruction by the state highway and transportation | 0009| department; | 0010| E. procurement by the judicial branch of state | 0011| government; | 0012| F. procurement by the legislative branch of state | 0013| government; | 0014| G. procurement by the boards of regents of state | 0015| educational institutions named in Article 12, Section 11 of the | 0016| constitution of New Mexico; | 0017| [H. procurement of information processing resources | 0018| procured through the commission on information and | 0019| communication management; | 0020| I.] H. procurement by the state fair commission of | 0021| tangible personal property, services and construction under | 0022| five thousand dollars ($5,000); | 0023| [J.] I. purchases from the instructional material | 0024| fund; | 0025| [K.] J. procurement by all local public bodies; | 0001| [L.] K. procurement by regional education | 0002| cooperatives; and | 0003| [M.] L. procurement by each state health care | 0004| institution that provides direct patient care and that is, or a | 0005| part of which is, medicaid certified and participating in the | 0006| New Mexico medicaid program." | 0007| Section 18. Section 13-1-104 NMSA 1978 (being Laws 1984, | 0008| Chapter 65, Section 77, as amended) is amended to read: | 0009| "13-1-104. COMPETITIVE SEALED BIDS--PUBLIC NOTICE.-- | 0010| A. [The] An invitation for bids or a notice | 0011| thereof shall be published not less than ten calendar days | 0012| prior to the date set forth for the opening of bids. In the | 0013| case of purchases made by the state purchasing agent, the | 0014| invitation or notice shall be published at least once in at | 0015| least three newspapers of general circulation in this state. | 0016| In the case of purchases made by other central purchasing | 0017| offices, the invitation or notice shall be published at least | 0018| once in a newspaper of general circulation in the area in which | 0019| the central purchasing office is located. These requirements | 0020| of publication are in addition to any other procedures which | 0021| may be adopted by central purchasing offices to notify | 0022| prospective bidders that bids will be received, including but | 0023| not limited to publication in a trade journal, if available. | 0024| If there is no newspaper of general circulation in the area in | 0025| which the central purchasing office is located, such other | 0001| notice may be given as is commercially reasonable. | 0002| B. The state purchasing agent and all central | 0003| purchasing offices shall send copies of the notice or | 0004| invitation for bids involving the expenditure of more than | 0005| [five thousand dollars ($5,000)] ten thousand dollars | 0006| ($10,000) to those businesses [which] that have signified | 0007| in writing an interest in submitting bids for particular | 0008| categories of items of tangible personal property, construction | 0009| and services and which have paid any required fees. The state | 0010| purchasing agent or a central purchasing office may set | 0011| different registration fees for different categories of | 0012| services, construction or items of tangible personal property, | 0013| but such fees shall be related to the actual, direct cost of | 0014| furnishing copies of the notice or invitation for bids to the | 0015| prospective bidders. The fees shall be used exclusively for | 0016| the purpose of furnishing copies of the notice or invitation | 0017| for bids of proposed procurements to prospective bidders. | 0018| C. As used in this subsection, "prospective bidders" | 0019| includes [persons] a person considering submission of a bid | 0020| as a licensed general contractor for the proposed | 0021| construction contract and persons who may submit bids to a | 0022| licensed general contractor for work to be subcontracted | 0023| pursuant to the proposed construction contract. The state | 0024| purchasing agent and all central purchasing offices shall make | 0025| copies of invitations for bids for construction contracts | 0001| available to prospective bidders. The state purchasing agent | 0002| or a central purchasing office may require prospective bidders | 0003| who have requested bid documents [for bid] on a proposed | 0004| construction contract to pay a deposit for a copy of the bid | 0005| documents [for bid]. The deposit shall equal the full cost | 0006| of reproduction and delivery of the bid documents [for | 0007| bid]. The deposit, less delivery charges, shall be refunded | 0008| if the bid documents [for bid] are returned in usable | 0009| condition within the time limits specified in the documents for | 0010| bid, which time limits shall be no less than ten calendar days | 0011| from the date of the bid opening. All forfeited deposits shall | 0012| be credited to the funds of the state purchasing agent or | 0013| central purchasing office, whichever is applicable." | 0014| Section 19. Section 13-1-105 NMSA 1978 (being Laws 1984, | 0015| Chapter 65, Section 78, as amended) is amended to read: | 0016| "13-1-105. COMPETITIVE SEALED BIDS--RECEIPT AND | 0017| ACCEPTANCE OF BIDS.--Bids shall be unconditionally accepted for | 0018| consideration for award without alteration or correction, | 0019| except as authorized in the Procurement Code. Bids shall be | 0020| evaluated based on the requirements set forth in the invitation | 0021| for bids, which requirements may include criteria to determine | 0022| acceptability such as inspection, testing, quality, | 0023| workmanship, delivery and suitability for a particular purpose. | 0024| Those criteria such as discounts, transportation costs and | 0025| total or life-cycle costs that will affect the bid price shall | 0001| be objectively measurable, which shall be defined by | 0002| regulation. The invitation for bids shall set forth the | 0003| evaluation criteria to be used. No criteria may be used in bid | 0004| evaluation that are not set forth in the invitation for bids. | 0005| [If the lowest responsible bid has otherwise qualified and if | 0006| there is no change in the original terms and conditions, the | 0007| lowest bidder may negotiate with the purchaser for a lower | 0008| total bid in order to avoid rejection of all bids for the | 0009| reason that the lowest bid was up to ten percent higher than | 0010| budgeted project funds. Such negotiation shall not be allowed | 0011| if the lowest bid was more than ten percent over budgeted | 0012| project funds.] In the event all bids for a construction | 0013| project exceed available funds as certified by the appropriate | 0014| fiscal officer, and the lowest responsive bid, determined by a | 0015| combination of base bid plus or minus any alternates, does not | 0016| exceed the funds by more than ten percent, the state purchasing | 0017| agent or a central purchasing officer may, in situations where | 0018| time or economic considerations preclude resolicitation of work | 0019| of a reduced scope, negotiate an adjustment of the bid price, | 0020| including changes in the scope, plans and technical | 0021| specifications, with the lowest responsible bidder in order to | 0022| bring the bid within the amount of available funds. The state | 0023| purchasing agent or central purchasing officer may not change | 0024| the terms and conditions of the procurement action, which are | 0025| separate and distinct from the specifications and refer to | 0001| various documents such as the invitation to bid; the | 0002| instruction to bidders; the bid form; bonds, certificates and | 0003| notices; and the general and supplementary conditions to the | 0004| contract." | 0005| Section 20. Section 13-1-106 NMSA 1978 (being Laws 1984, | 0006| Chapter 65, Section 79) is amended to read: | 0007| "13-1-106. COMPETITIVE SEALED BIDS--CORRECTION OR | 0008| WITHDRAWAL OF BIDS.-- | 0009| A. A bid [containing a mistake discovered before bid | 0010| opening] may be modified or withdrawn by a bidder prior to the | 0011| time set for bid opening in person or by delivering written | 0012| [or telegraphic] notice to the location designated in the | 0013| invitation for bids as the place where bids are to be received. | 0014| To safeguard the integrity of the bidding process, a | 0015| modification in bid price shall be submitted in a sealed | 0016| envelope, accompanied by a cover letter or written notice of | 0017| explanation signed by the bidder. | 0018| B. After bid opening, no modifications in bid | 0019| prices or other provisions of bids shall be permitted. A low | 0020| bidder alleging a material mistake of fact [which makes his] | 0021| in the bid [nonresponsive] submitted may be permitted to | 0022| withdraw [its] that bid if: | 0023| (1) the mistake is clearly evident [on the face | 0024| of] in the bid document; or | 0025| (2) the bidder submits evidence [which] that | 0001| clearly and convincingly demonstrates that a mistake was made. | 0002| [B.] C. Any decision by a procurement officer to | 0003| permit or deny the withdrawal of a bid on the basis of a | 0004| mistake contained [therein] in the bid shall be supported | 0005| by a determination setting forth the grounds for the decision." | 0006| Section 21. Section 13-1-107 NMSA 1978 (being Laws 1984, | 0007| Chapter 65, Section 80) is amended to read: | 0008| "13-1-107. COMPETITIVE SEALED BIDS--BID OPENING.--Bids | 0009| shall be opened publicly in the presence of one or more | 0010| witnesses at the time and place designated in the invitation | 0011| for bids. The amount of each bid and each bid item, if | 0012| appropriate, and such other relevant information as may be | 0013| specified by the state purchasing agent or a central purchasing | 0014| office, together with the name of each bidder, shall be | 0015| recorded, and the record and each bid shall be open to public | 0016| inspection at the opening and later by appointment with the | 0017| applicable procurement officer." | 0018| Section 22. Section 13-1-109 NMSA 1978 (being Laws 1984, | 0019| Chapter 65, Section 82) is amended to read: | 0020| "13-1-109. COMPETITIVE SEALED BIDS--MULTI-STEP SEALED | 0021| BIDDING. Multi-step bidding is a variant of the competitive | 0022| sealed bidding method that may be used when the state | 0023| purchasing agent or a central purchasing office makes a | 0024| written determination that [it is impractical to initially | 0025| prepare specifications to support an award based on price, an | 0001| invitation for bids may be issued requesting the submission of | 0002| unpriced offers to be followed by an invitation for bids] | 0003| available specifications are inadequate or are too general to | 0004| permit full and free competition without technical evaluation | 0005| and discussion. Multi-step bidding shall be a phased process | 0006| that combines elements of both the competitive sealed proposal | 0007| method, seeking necessary information or unpriced technical | 0008| offers in the initial phase; and regular competitive sealed | 0009| bidding, inviting bidders who submitted technically acceptable | 0010| offers in the initial phase to submit competitive sealed price | 0011| bids on their technical offers in the final phase. The | 0012| contract shall be awarded in accordance with Section 13-1-108 | 0013| NMSA 1978." | 0014| Section 23. Section 13-1-110 NMSA 1978 (being Laws 1984, | 0015| Chapter 65, Section 83) is amended to read: | 0016| "13-1-110. COMPETITIVE SEALED BIDS--IDENTICAL BIDS.--When | 0017| competitive sealed bids are used and two or more of the bids | 0018| submitted are identical in price and are the [low] lowest | 0019| responsible bid, the state purchasing agent or a central | 0020| purchasing office may: | 0021| A. award pursuant to the multiple source award | 0022| provisions of Sections [126 and 127 of the Procurement Code] | 0023| 13-1-153 and 13-1-154 NMSA 1978; | 0024| B. award to a resident business if the identical low | 0025| bids are submitted by a resident business and a nonresident | 0001| business; | 0002| C. award to a resident manufacturer if the identical | 0003| low bids are submitted by a resident manufacturer and a | 0004| resident business; | 0005| D. award by lottery to one of the identical low | 0006| bidders; or | 0007| E. reject all bids and resolicit bids [or | 0008| proposals] for the required services, construction or items of | 0009| tangible personal property." | 0010| Section 24. Section 13-1-111 NMSA 1978 (being Laws 1984, | 0011| Chapter 65, Section 84, as amended) is amended to read: | 0012| "13-1-111. COMPETITIVE SEALED PROPOSALS--CONDITIONS FOR | 0013| USE.--When a state agency or a local public body is procuring | 0014| professional services or when the state purchasing agent, a | 0015| central purchasing office or a designee of either officer makes | 0016| a written determination that the use of competitive sealed | 0017| bidding for items of tangible personal property or services | 0018| is either not practicable or not advantageous to the state | 0019| agency or a local public body, a procurement shall be effected | 0020| by competitive sealed proposals. Competitive qualifications- | 0021| based proposals shall be used for procurement of professional | 0022| services of architects, engineers, landscape architects and | 0023| surveyors who submit proposals pursuant to Sections 13-1-120 | 0024| through 13-1-124 NMSA 1978." | 0025| Section 25. Section 13-1-116 NMSA 1978 (being Laws 1984, | 0001| Chapter 65, Section 89) is amended to read: | 0002| "13-1-116. COMPETITIVE SEALED PROPOSALS--DISCLOSURE-- | 0003| RECORD.--The contents of any proposal shall not be disclosed so | 0004| as to be available to competing offerors during the negotiation | 0005| process and prior to award." | 0006| Section 26. Section 13-1-119 NMSA 1978 (being Laws 1984, | 0007| Chapter 65, Section 92, as amended) is amended to read: | 0008| "13-1-119. COMPETITIVE SEALED QUALIFICATIONS-BASED | 0009| PROPOSALS--ARCHITECTS--ENGINEERS--LANDSCAPE ARCHITECTS-- | 0010| SURVEYORS--ADDITIONAL REQUIREMENTS.--In addition to compliance | 0011| with the requirements of Sections 13-1-112 through 13-1-114 and | 0012| 13-1-116 through 13-1-118 NMSA 1978, a state agency or local | 0013| public body, when procuring the professional services of | 0014| architects, landscape architects, engineers or surveyors for | 0015| state public works projects or local public works projects, | 0016| shall comply with Sections 13-1-120 through 13-1-124 NMSA | 0017| 1978." | 0018| Section 27. Section 13-1-120 NMSA 1978 (being Laws 1984, | 0019| Chapter 65, Section 93, as amended) is amended to read: | 0020| "13-1-120. COMPETITIVE SEALED QUALIFICATIONS-BASED | 0021| PROPOSALS--ARCHITECTS--ENGINEERS--LANDSCAPE ARCHITECTS-- | 0022| SURVEYORS--SELECTION PROCESS.-- | 0023| A. For each proposed state public works project or | 0024| local public works project, the architect, engineer, landscape | 0025| architect and surveyor selection committee, state highway and | 0001| transportation department selection committee or local | 0002| selection committee, as appropriate, shall evaluate statements | 0003| of qualifications and performance data submitted by [at least | 0004| three] all businesses in regard to the particular project | 0005| and may conduct interviews with and may require public | 0006| presentation by all businesses applying for selection regarding | 0007| their qualifications, their approach to the project and their | 0008| ability to furnish the required services. | 0009| B. The appropriate selection committee shall | 0010| select, ranked in the order of their qualifications, no less | 0011| than three businesses deemed to be the most highly qualified to | 0012| perform the required services, after considering the following | 0013| criteria together with any criteria, except price, established | 0014| by the using agency authorizing the project: | 0015| (1) specialized design and technical competence | 0016| of the business, including a joint venture or association, | 0017| regarding the type of services required; | 0018| (2) capacity and capability of the business to | 0019| perform the work, including any specialized services, within | 0020| the time limitations, including any subconsultants and their | 0021| representatives, qualifications and locations; | 0022| (3) past record of performance on contracts with | 0023| government agencies or private industry with respect to such | 0024| factors as control of costs, quality of work and ability to | 0025| meet schedules; | 0001| (4) proximity to or familiarity with the area in | 0002| which the project is located; | 0003| (5) the amount of design work that will be | 0004| produced by a New Mexico business within this state; and | 0005| (6) the volume of work previously done for the | 0006| entity requesting proposals which is not seventy-five percent | 0007| complete with respect to basic professional design services, | 0008| with the objective of effecting an equitable distribution of | 0009| contracts among qualified businesses and of assuring that the | 0010| interest of the public in having available a substantial number | 0011| of qualified businesses is protected; provided, however, that | 0012| the principle of selection of the most highly qualified | 0013| businesses is not violated. | 0014| C. Notwithstanding the requirements of Subsections A | 0015| and B of this section, if fewer than three businesses have | 0016| submitted a statement of qualifications for a particular | 0017| project, the committee may: | 0018| (1) rank in order of qualifications and submit | 0019| to the secretary or governing authority of the local public | 0020| body for award those businesses which have submitted a | 0021| statement of qualifications; or | 0022| (2) recommend termination of the selection | 0023| process pursuant to Section 13-1-131 NMSA 1978 and sending | 0024| out of new notices of the resolicitation of the proposed | 0025| procurement pursuant to Section 13-1-104 NMSA 1978. Any | 0001| proposal received in response to the terminated solicitation is | 0002| not public information and shall not be made available to | 0003| competing offerors. | 0004| D. The names of all businesses submitting proposals | 0005| and the names of all businesses, if any, selected for interview | 0006| shall be public information. After an award has been made, | 0007| the appropriate selection committee's final ranking and | 0008| evaluation scores for all proposals shall become public | 0009| information. Businesses [which] that have not been | 0010| selected for a contract award shall be so notified in writing | 0011| within [twenty-one] fifteen days after an award is made." | 0012| Section 28. Section 13-1-121 NMSA 1978 (being Laws 1984, | 0013| Chapter 65, Section 94, as amended) is amended to read: | 0014| "13-1-121. COMPETITIVE SEALED QUALIFICATIONS-BASED | 0015| PROPOSALS--ARCHITECTS--ENGINEERS--LANDSCAPE ARCHITECTS-- | 0016| SURVEYORS--SELECTION COMMITTEE--STATE PUBLIC WORKS PROJECTS.-- | 0017| A. The secretary shall create an "architect, | 0018| engineer, landscape architect and surveyor selection committee" | 0019| [is created. The committee, which shall serve] that serves | 0020| as the selection committee for state public works projects | 0021| [except for highway projects of the state highway and | 0022| transportation department, is]. A committee shall be | 0023| composed of four members as follows: | 0024| (1) one member of the agency for which the | 0025| project is being designed; | 0001| (2) the director of the property control | 0002| division of the general services department, who shall be | 0003| chairman; | 0004| (3) one member designated by the architect- | 0005| engineer-landscape architect joint practice committee; and | 0006| (4) one member designated by the secretary. | 0007| B. The staff architect or his designee of the | 0008| property control division shall serve as staff to the | 0009| architect, engineer, landscape architect and surveyor selection | 0010| committee. | 0011| C. The members of the architect, engineer, landscape | 0012| architect and surveyor selection committee shall be reimbursed | 0013| by the property control division for per diem and mileage in | 0014| accordance with the provisions of the Per Diem and Mileage Act. | 0015| D. The state highway and transportation department | 0016| shall create a selection committee by rule, after notice and | 0017| hearing, [which] that shall serve as the selection | 0018| committee for highway projects of the department. | 0019| E. Each board of regents of state educational | 0020| institutions named in Article 12, Section 11 of the | 0021| constitution of New Mexico shall create a selection committee | 0022| by rule, after notice and hearing. The institution's director | 0023| of central purchasing or his designee shall serve as chairman | 0024| of the selection committee for public works projects of that | 0025| state educational institution. | 0001| F. The governing body of each local public body shall | 0002| create a selection committee by rule or ordinance, after notice | 0003| and hearing, that shall serve as the selection committee for | 0004| public works projects of that local public body." | 0005| Section 29. Section 13-1-122 NMSA 1978 (being Laws 1984, | 0006| Chapter 65, Section 95, as amended) is amended to read: | 0007| "13-1-122. COMPETITIVE SEALED QUALIFICATIONS-BASED | 0008| PROPOSALS--AWARD OF ARCHITECT, ENGINEERING, LANDSCAPE ARCHITECT | 0009| AND SURVEYING CONTRACTS.-- | 0010| A. The secretary or his designee, [or] the | 0011| secretary of [the] highway and transportation [department] | 0012| or his designee, a designee of the board of regents of a state | 0013| educational institution or a designee of a local public body | 0014| shall negotiate a contract with the highest qualified business | 0015| for the architectural, landscape architectural, engineering or | 0016| surveying services at compensation determined in writing to be | 0017| fair and reasonable. In making this decision, the [secretary | 0018| or his designee or the designee of a local public body] | 0019| applicable negotiating party shall take into account the | 0020| estimated value of the services to be rendered and the scope, | 0021| complexity and professional nature of the services. Should the | 0022| [secretary or his designee or the designee of a local public | 0023| body] applicable negotiating party be unable to negotiate a | 0024| satisfactory contract with the business considered to be the | 0025| most qualified [at a price determined to be fair and | 0001| reasonable], negotiations with that business shall be formally | 0002| terminated [The secretary or his designee or the designee of a | 0003| local public body shall then undertake negotiations with the | 0004| second most qualified business. Failing accord with the second | 0005| most qualified business, the secretary or his designee or a | 0006| designee of a local public body shall formally terminate | 0007| negotiations with that business. The secretary or his designee | 0008| or the designee of the local public body shall then undertake | 0009| negotiations with the third most qualified business. Should | 0010| the secretary or his designee or a designee of a local public | 0011| body be unable to negotiate a contract with any of the | 0012| businesses selected by the committee, additional businesses | 0013| shall be ranked in order of their qualifications and the | 0014| secretary or his designee or the designee of a local public | 0015| body shall continue negotiations in accordance with this | 0016| section until a contract is signed with a qualified business or | 0017| the procurement process is terminated and a new request for | 0018| proposals is initiated] and the applicable negotiating party | 0019| shall undertake negotiations with the next most qualified | 0020| business, continuing with the process until a contract is | 0021| agreed to and signed with a qualified business or the | 0022| procurement process is terminated and a new request for | 0023| qualifications-based proposals is solicited. | 0024| B. The [secretary or the representative of a | 0025| local] applicable public body shall publicly announce the | 0001| business selected for award. | 0002| C. Subconsultants listed according to Paragraph (2) | 0003| of Subsection B of Section 13-1-120 NMSA 1978 shall not be | 0004| replaced without the written consent of the using agency." | 0005| Section 30. Section 13-1-123 NMSA 1978 (being Laws 1984, | 0006| Chapter 65, Section 96, as amended) is amended to read: | 0007| "13-1-123. ARCHITECTURAL, ENGINEERING, LANDSCAPE | 0008| ARCHITECTURAL AND SURVEYING CONTRACTS.-- | 0009| A. All architectural, engineering, landscape | 0010| architectural and surveying contracts [between a state agency | 0011| and an architect for the construction of new buildings or for | 0012| the remodeling or renovation of existing buildings] entered | 0013| into by a state agency or local public body shall contain the | 0014| provision that all designs, drawings, specifications, notes and | 0015| other work developed in the performance of the contract are the | 0016| sole property of [this state] the using agency initiating | 0017| the contract. | 0018| B. All documents, including drawings and | 0019| specifications, prepared by the architect, engineer, landscape | 0020| architect or surveyor are instruments of professional service. | 0021| If the plans and specifications developed in the performance of | 0022| the contract shall become the property of the [contracting] | 0023| using agency upon completion of the work, the [contracting] | 0024| using agency agrees to hold harmless, indemnify and defend | 0025| the architect, engineer, landscape architect or surveyor | 0001| against all damages, claims and losses, including defense | 0002| costs, arising out of any reuse of the plans and specifications | 0003| without the written authorization of the architect, engineer, | 0004| landscape architect or surveyor. | 0005| C. A copy of all designs, drawings and other | 0006| materials which are the property of [this state] the using | 0007| agency shall be transmitted to the [contracting] using | 0008| agency. The [contracting] using agency shall index these | 0009| materials, and a copy of the index shall be provided to the | 0010| appropriate records center." | 0011| Section 31. Section 13-1-124 NMSA 1978 (being Laws 1984, | 0012| Chapter 65, Section 97) is amended to read: | 0013| "13-1-124. STAFF ARCHITECT AND ENGINEER RATE | 0014| [SCHEDULE] SCHEDULES.--The secretary shall adopt by | 0015| regulation [an] architect and engineer rate [schedule | 0016| which shall set the highest permissible] schedules to be used | 0017| as a basis for negotiating for architect and engineer services, | 0018| recommending the range of rates for each [building-type] | 0019| project-type group [which shall be] defined in the | 0020| regulations. The rate [schedule] schedules shall be in | 0021| effect upon the approval of the state board of finance and | 0022| compliance with the State Rules Act and shall apply to all | 0023| contracts between a state agency and an architect [which] or | 0024| engineer that are executed after the effective date of the | 0025| architect and engineer rate [schedule] schedules. The | 0001| schedules shall be subject to biennial review with public | 0002| hearings as required, and may be adopted by local public | 0003| bodies." | 0004| Section 32. Section 13-1-125 NMSA 1978 (being Laws 1984, | 0005| Chapter 65, Section 98, as amended) is amended to read: | 0006| "13-1-125. SMALL PURCHASES.-- | 0007| A. The state purchasing agent or central purchasing | 0008| office shall procure services, construction or items of | 0009| tangible personal property having a value not exceeding [five | 0010| thousand dollars ($5,000)] ten thousand dollars ($10,000) in | 0011| accordance with the applicable small purchase regulations | 0012| [adopted] promulgated by the secretary, a local public body | 0013| or a central purchasing office that has the authority to issue | 0014| regulations. | 0015| B. Notwithstanding the requirements of Subsection A | 0016| of this section, a central purchasing office may procure | 0017| professional services having a value not exceeding twenty | 0018| thousand dollars ($20,000), excluding applicable state and | 0019| local gross receipts taxes, except for the services of | 0020| architects, landscape architects, engineers or surveyors for | 0021| state public works projects or local public works projects, | 0022| which limits for such services are set forth in Section 13-1- | 0023| 91 NMSA 1978. Procurement of professional services pursuant to | 0024| this subsection shall be in accordance with professional ser- | 0025| | 0001| vices procurement regulations promulgated by the department of | 0002| finance and administration, the general services department or | 0003| a central purchasing office with the authority to issue regula- | 0004| | 0005| tions. | 0006| [C. Notwithstanding the requirements of Subsection A | 0007| of this section, a central purchasing office for a state | 0008| educational institution named in Article 12, Section 11 of the | 0009| constitution of New Mexico, for a state two-year post-secondary | 0010| institution or for a school district as defined in the Public | 0011| School Code may procure services, construction or items of | 0012| tangible personal property having a value not exceeding ten | 0013| thousand dollars ($10,000) in accordance with regulations | 0014| promulgated by a central purchasing office with the authority | 0015| to issue regulations. | 0016| D.] C. Notwithstanding the requirements of | 0017| Subsection A of this section, and in accordance with | 0018| regulations promulgated by the secretary or a central | 0019| purchasing office, a state agency or a local public body may | 0020| procure services, construction or items of tangible personal | 0021| property having a value not exceeding [five hundred dollars | 0022| ($500)] one thousand dollars ($1,000) by issuing a direct | 0023| purchase order to a contractor based upon the best obtainable | 0024| price. | 0025| [E.] D. Procurement requirements shall not be | 0001| artificially divided so as to constitute either a small | 0002| purchase under this section or to circumvent the requirements | 0003| for competitive sealed bidding or competitive sealed proposal. | 0004| E. Notwithstanding the requirements of Subsection A | 0005| of this section, the state purchasing agent or a central | 0006| purchasing office shall direct procurement of bulk fuel, | 0007| gasoline or diesel in accordance with regulations promulgated | 0008| by the secretary or a central purchasing office with the | 0009| authority to issue regulations." | 0010| Section 33. Section 13-1-129 NMSA 1978 (being Laws 1984, | 0011| Chapter 65, Section 102, as amended) is amended to read: | 0012| "13-1-129. PROCUREMENT UNDER EXISTING CONTRACTS.-- | 0013| A. Notwithstanding the requirements of Sections | 0014| 13-1-102 through 13-1-118 NMSA 1978, the state purchasing agent | 0015| or a central purchasing office may contract for services, | 0016| construction or items of tangible personal property without the | 0017| use of competitive sealed bids or competitive sealed proposals | 0018| as follows: | 0019| (1) at a price equal to or less than the | 0020| contractor's current federal supply contract price [(GSA), | 0021| providing] if the contractor has indicated in writing a | 0022| willingness to extend [such contractor] the contract's | 0023| pricing, terms and conditions to the state agency or local | 0024| public body and the purchase order adequately identifies the | 0025| contract relied upon and if the terms and conditions are | 0001| reviewed and amended, if necessary, to comply with the laws of | 0002| New Mexico; or | 0003| (2) with a business which has a current | 0004| exclusive or nonexclusive price agreement with the state | 0005| purchasing agent or a central purchasing office or an external | 0006| procurement unit for the item of tangible personal property, | 0007| services or construction meeting the same standards and | 0008| specifications as the items to be procured if the following | 0009| conditions are met: | 0010| (a) the contractor has indicated in writing | 0011| a willingness to extend the contract's pricing, terms and | 0012| conditions to the interested central purchasing office; | 0013| [(a)] (b) the total quantity purchased | 0014| does not exceed the quantity which may be purchased under the | 0015| applicable price agreement relied on; and | 0016| [(b)] (c) the purchase order adequately | 0017| identifies the price agreement relied upon. | 0018| B. The central purchasing office shall retain for | 0019| public inspection and for the use of auditors a copy of each | 0020| federal supply [contractor] contract or state purchasing | 0021| agent or central purchasing office or external purchasing | 0022| unit price agreement relied upon to make purchases without | 0023| seeking competitive bids or proposals." | 0024| Section 34. Section 13-1-131 NMSA 1978 (being Laws 1984, | 0025| Chapter 65, Section 104, as amended) is amended to read: | 0001| "13-1-131. REJECTION OR CANCELLATION OF BIDS OR REQUESTS | 0002| FOR PROPOSALS--NEGOTIATIONS.-- | 0003| A. An invitation for bids, a request for proposals | 0004| or any other solicitation may be canceled or any or all bids or | 0005| proposals may be rejected in whole or in part when it is in the | 0006| best interest of the state agency or a local public body. A | 0007| determination containing the [reasons] justification for | 0008| cancellation or rejection shall be issued and shall be made | 0009| part of the procurement file. | 0010| B. If no bids or proposals are received or if all | 0011| bids or proposals received are unacceptable to the state | 0012| purchasing agent or central purchasing office and, therefore, | 0013| are rejected [and if the invitation for bid was for any | 0014| tangible personal property, construction or service], then | 0015| the state purchasing agent or a central purchasing office may | 0016| cancel the solicitation or issue a new [invitations] | 0017| invitation for bids [shall be requested] or request for | 0018| proposals or rebid. Prior to issuing a new invitation for bids | 0019| or request for proposals or rebid, the state purchasing office | 0020| shall review the: | 0021| (1) list of prospective contractors to ensure | 0022| the correct group was solicited and, if possible, seek to | 0023| identify additional prospective bidders or offerors to which | 0024| the new invitation for bids or request for proposals or rebid | 0025| or notice thereof shall be sent; and | 0001| (2) requirements or specifications as specified | 0002| in the solicitation to ensure they are reasonable, current and | 0003| accurate, and make changes where appropriate. | 0004| C. If upon rebidding the item of tangible | 0005| personal property, construction or services, using the same | 0006| bid requirements as used in the first solicitation, the bids | 0007| received are unacceptable, or if no bids are [secured] | 0008| received, the state purchasing agent or central purchasing | 0009| office may purchase the tangible personal property, | 0010| construction or services in the open market at the best obtain- | 0011| | 0012| able price. | 0013| D. Open market negotiations shall not be authorized | 0014| unless the state purchasing agent or central purchasing office | 0015| has made a concerted effort on the rebid to address and correct | 0016| the reason that made the bids received on the first | 0017| solicitation unacceptable or made an attempt to solicit from | 0018| additional bidders or offerors. | 0019| E. Substantive changes in the requirements of the | 0020| first invitation for bids or request for proposals that may | 0021| include quality, quantity, scope of work and delivery require | 0022| that a new invitation for bids or request for proposals be | 0023| initiated." | 0024| Section 35. Section 13-1-137 NMSA 1978 (being Laws 1984, | 0025| Chapter 65, Section 110) is amended to read: | 0001| "13-1-137. SALE, ACQUISITION OR USE OF PROPERTY BY A | 0002| STATE AGENCY OR A LOCAL PUBLIC BODY. Subject to the provisions | 0003| of Sections 13-6-1 and 13-6-2 NMSA 1978, any state agency or | 0004| local public body may sell or donate property to, acquire or | 0005| receive property from or cooperatively use any items of | 0006| tangible personal property or services belonging to another | 0007| state agency or a local public body or external procurement | 0008| unit: | 0009| A. in accordance with an agreement entered into with | 0010| the approval of the state board of finance or the [data | 0011| processing and data communications planning council] chief | 0012| information officer of the office on information and | 0013| communication management, if appropriate; or | 0014| B. subject to the provisions of Sections 3-46-1 | 0015| through 3-46-45; 3-54-1 through 3-54-3; 3-60-1 through 3-60-37 | 0016| and 3-60A-1 through 3-60A-48 NMSA 1978." | 0017| Section 36. Section 13-1-150 NMSA 1978 (being Laws 1984, | 0018| Chapter 65, Section 123, as amended by Laws 1993, Chapter 225, | 0019| Section 1 and also by Laws 1993, Chapter 231, Section 13) is | 0020| repealed and a new Section 13-1-150 NMSA 1978 is enacted to | 0021| read: | 0022| "13-1-150. [NEW MATERIAL] MULTI-TERM CONTRACTS-- | 0023| SPECIFIED PERIOD.-- | 0024| A. A multi-term contract for construction, services, | 0025| items of tangible personal property and professional services | 0001| may be entered into for any period of time deemed to be in the | 0002| best interest of the state agency or a local public body, | 0003| subject to the following conditions and requirements: | 0004| (1) the term of the contract and conditions for | 0005| extension or renewal, if any, shall be included in the | 0006| specifications of the invitation for bids or request for | 0007| proposals; | 0008| (2) funds shall be available for the first | 0009| fiscal period at the time of contracting, and payment and | 0010| performance obligations for succeeding fiscal periods shall be | 0011| subject to the availability and appropriation of funds; | 0012| (3) if the estimated annual amount of the | 0013| contract is under twenty-five thousand dollars ($25,000), and | 0014| for professional services in any amount, the term of the | 0015| contract shall not exceed four years, including all extensions | 0016| and renewals; | 0017| (4) if the estimated annual amount of the | 0018| contract is twenty-five thousand dollars ($25,000) or more, the | 0019| term shall not exceed eight years, including all extensions and | 0020| renewals; | 0021| (5) a contract entered into pursuant to the | 0022| Public Building Energy Efficiency Act shall not exceed ten | 0023| years, including all extensions and renewals; | 0024| (6) services required to support or operate | 0025| federally certified medicaid, financial assistance and child | 0001| support enforcement management information or payment systems | 0002| may be for a term not to exceed eight years, including all | 0003| extensions and renewals; and | 0004| (7) a multi-term contract for the services of | 0005| trustees, escrow agents, registrars, paying agents, letter of | 0006| credit issuers and other forms of credit enhancement, and other | 0007| similar services, excluding bond attorneys, underwriters and | 0008| financial advisors with regard to the issuance, sale and | 0009| delivery of public securities, may be for the life of the | 0010| securities or as long as the securities remain outstanding. | 0011| B. Notwithstanding the provisions of Subsection A of | 0012| this section, in order to remain a valid contract, provisions | 0013| that allow for extension or renewal of a multi-term contract | 0014| must be exercised, and any required action taken, while the | 0015| contract is in full force. | 0016| C. Notwithstanding the provisions of Subsection A of | 0017| this section, professional services contracts, which may expire | 0018| during the time the scope of work contracted for is in | 0019| progress, may be extended for the length of time required to | 0020| bring the project to completion. No new or additional work on | 0021| the project may be assigned to the contractor during the | 0022| extension period. The state purchasing agent or central | 0023| purchasing office shall issue a written determination setting | 0024| forth the circumstances for authorizing the extension that | 0025| shall be made a part of the procurement file." | 0001| Section 37. Section 13-1-152 NMSA 1978 (being Laws 1984, | 0002| Chapter 65, Section 125) is amended to read: | 0003| "13-1-152. MULTI-TERM CONTRACTS--CANCELLATION DUE TO | 0004| UNAVAILABILITY OF FUNDS.--When funds are not appropriated or | 0005| otherwise made available to support continuation of performance | 0006| of a multi-term contract in a subsequent fiscal period, the | 0007| contract shall be [cancelled] canceled without penalty to | 0008| the state or local public body." | 0009| Section 38. Section 13-1-153 NMSA 1978 (being Laws 1984, | 0010| Chapter 65, Section 126) is amended to read: | 0011| "13-1-153. MULTIPLE SOURCE AWARD--LIMITATIONS ON USE.--A | 0012| multiple source award may be made pursuant to Section [83 of | 0013| the Procurement Code] 13-1-110 NMSA 1978 when awards to two | 0014| or more bidders or offerors are necessary for adequate delivery | 0015| or service. If a multiple source award is anticipated, the | 0016| state purchasing agent or a central purchasing office shall | 0017| follow the requirements of Section 13-1-154 NMSA 1978, setting | 0018| forth the justification for a multiple source award and the | 0019| criteria for award shall be stated in the solicitation. | 0020| Multiple source awards shall not be made when a single award | 0021| will meet the needs of the state agency or a local public body | 0022| without sacrifice of economy or service. [Awards shall be | 0023| limited to the least number of suppliers in one geographical | 0024| area necessary to meet the requirements of the state agency or | 0025| a local public body. A multiple source award shall be based | 0001| upon the lowest responsible bid or proposal received in each | 0002| geographical area.]" | 0003| Section 39. Section 13-1-155 NMSA 1978 (being Laws 1984, | 0004| Chapter 65, Section 128, as amended) is amended to read: | 0005| "13-1-155. PROCUREMENT OF USED ITEMS--APPRAISAL | 0006| REQUIRED--COUNTY ROAD EQUIPMENT EXCEPTION FOR AUCTIONS.-- | 0007| A. A central purchasing office, when procuring used | 0008| items of tangible personal property [the estimated cost of | 0009| which exceeds five thousand dollars ($5,000)], shall [request | 0010| bids] follow the same procurement process as though the | 0011| items were new, adding specifications that permit used items | 0012| under conditions to be outlined in the bid [specifications] | 0013| document, including [but not limited to] requiring a | 0014| written warranty [for at least ninety days after date of | 0015| delivery] if available and an independent "certificate of | 0016| working order" by a qualified mechanic, [or] appraiser or | 0017| technician. | 0018| B. Notwithstanding the provisions of Subsection A of | 0019| this section, the central purchasing office for a county | 0020| government may purchase, at public or private auctions | 0021| conducted by established, recognized commercial auction | 0022| companies, used items of heavy equipment [having an | 0023| estimated cost that exceeds five thousand dollars ($5,000)] | 0024| for use in construction and maintenance of county streets, | 0025| roads and highways, subject to the following provisions: | 0001| [(1) the commercial auction company shall have | 0002| been in business for at least three years preceding the date of | 0003| purchase and shall conduct at least five auctions annually; | 0004| (2) the value of] | 0005| (1) each piece of equipment shall be appraised | 0006| prior to the auction by a qualified disinterested appraiser | 0007| retained and paid by the county, who shall make a written | 0008| appraisal report stating the basis for the appraisal, including | 0009| the age, condition, range of value or target value and | 0010| comparable sales [and stating that] of like equipment. The | 0011| appraiser has exercised his independent judgment without prior | 0012| understanding or agreement with any person as to a target value | 0013| or range of value; | 0014| [(3)] (2) an independent "certificate of | 0015| working condition" shall be obtained prior to the auction from | 0016| a qualified mechanic who shall have made a detailed inspection | 0017| of each major working or major functional part and certified | 0018| the working condition of each; and | 0019| [(4)] (3) the maximum price [paid] that | 0020| shall be bid by the county, including all auction fees and | 0021| buyer's surcharges, shall not exceed the appraised value." | 0022| Section 40. Section 13-1-157 NMSA 1978 (being Laws 1984, | 0023| Chapter 65, Section 130) is amended to read: | 0024| "13-1-157. RECEIPT--INSPECTION--ACCEPTANCE OR REJECTION | 0025| OF DELIVERIES.-- | 0001| A. The using agency is responsible for inspecting | 0002| and accepting or rejecting deliveries. The using agency shall | 0003| determine whether the quantity is as specified in the purchase | 0004| order or contract and whether the quality conforms to the | 0005| specifications referred to or included in the purchase order or | 0006| contract. If inspection reveals that the delivery does not | 0007| conform to the quantity or quality specified in the purchase | 0008| order or contract, the using agency shall immediately notify | 0009| the central purchasing office. The central purchasing office | 0010| shall notify the vendor that the delivery has been rejected and | 0011| shall order the vendor to promptly make a satisfactory | 0012| replacement or supplementary delivery. In case the vendor | 0013| fails to comply, the central purchasing office shall have no | 0014| obligation to pay for the nonconforming items of tangible per- | 0015| | 0016| sonal property. If the delivery does conform to the quantity | 0017| and quality specified in the purchase order or contract, the | 0018| using agency shall certify to the central purchasing office | 0019| that delivery has been completed and is satisfactory. | 0020| B. Notwithstanding the requirements of Subsection A | 0021| of this section, if, after delivery and acceptance of items of | 0022| tangible personal property, the items or a portion thereof are | 0023| later found to be nonconforming to the specifications referred | 0024| to or included in the purchase order or contract, such prior | 0025| acceptance does not waive any other rights or remedies that are | 0001| otherwise granted the buyer in accordance with other relevant | 0002| sections of laws of New Mexico." | 0003| Section 41. Section 13-1-158 NMSA 1978 (being Laws 1984, | 0004| Chapter 65, Section 131, as amended) is amended to read: | 0005| "13-1-158. PAYMENTS FOR PURCHASES.-- | 0006| A. No warrant, check or other negotiable instrument | 0007| shall be issued in payment for any purchase of services, | 0008| construction or items of tangible personal property unless the | 0009| central purchasing office or the using agency certifies that | 0010| the services, construction or items of tangible personal | 0011| property have been received and meet specifications or unless | 0012| prepayment is permitted under Section 13-1-98 NMSA 1978 by | 0013| exclusion of the purchase from the Procurement Code. | 0014| B. Unless otherwise agreed upon by the parties or | 0015| unless otherwise specified in the invitation for bids, request | 0016| for proposals or other solicitation, within fifteen days from | 0017| the date the [state] central purchasing office or [state] | 0018| using agency receives written notice from the contractor that | 0019| payment is requested for services or construction completed or | 0020| items of tangible personal property delivered on site and | 0021| received by the [state] using agency, the [state] central | 0022| purchasing office or [state] using agency shall issue a | 0023| written certification of complete or partial acceptance or | 0024| rejection of the services, construction or items of tangible | 0025| personal property. | 0001| C. Upon certification by the [state] central | 0002| purchasing office or the [state] using agency that the | 0003| services, construction or items of tangible personal property | 0004| have been received and accepted, payment shall be tendered to | 0005| the contractor within sixty days of the date of certification. | 0006| After the sixtieth day from the date that written certification | 0007| of acceptance is issued, late payment charges shall be paid on | 0008| the unpaid balance due on the contract to the contractor at the | 0009| rate of one and one-half percent per month. | 0010| D. Late payment charges that differ from the | 0011| provisions of Subsection C of this section may be assessed if | 0012| specifically provided for by contract or pursuant to tariffs | 0013| approved by the New Mexico public utility commission or the | 0014| state corporation commission." | 0015| Section 42. Section 13-1-171 NMSA 1978 (being Laws 1984, | 0016| Chapter 65, Section 144, as amended) is amended to read: | 0017| "13-1-171. PRICE ADJUSTMENTS.--Adjustments in price shall | 0018| be computed in one or more of the following ways as specified | 0019| in the contract: | 0020| A. by agreement on a fixed-price adjustment before | 0021| commencement of performance of the contract or as soon | 0022| thereafter as practicable; | 0023| B. by unit prices specified in the contract or | 0024| subsequently agreed upon by the contracting parties; | 0025| C. by the costs attributable to the events or | 0001| conditions as specified in the contract or subsequently agreed | 0002| upon by the contracting parties; | 0003| D. by a provision for both upward and downward | 0004| revision of stated contract price upon the occurrence of | 0005| specified contingencies if the contract is for commercial items | 0006| sold in substantial quantities to the general public with | 0007| prices based upon established catalogue or list prices in a | 0008| form regularly maintained by the manufacturer or vendor and | 0009| published or otherwise available for customer inspection. In | 0010| the event of revision of the stated contract price, the | 0011| contract file shall be promptly documented by the state | 0012| purchasing agent or central purchasing office; | 0013| E. in such other manner as the contracting parties | 0014| may mutually agree; or | 0015| F. in the absence of agreement by the contracting | 0016| parties, by a unilateral determination reasonably computed by | 0017| the state [agency] purchasing agent or a [local public | 0018| body] central purchasing office of the costs attributable to | 0019| the events or conditions." | 0020| Section 43. Section 13-1-172 NMSA 1978 (being Laws 1984, | 0021| Chapter 65, Section 145, as amended) is amended to read: | 0022| "13-1-172. RIGHT TO PROTEST.--Any prospective bidder or | 0023| offeror who is aggrieved in connection with a solicitation, or | 0024| any actual bidder or offeror or who is aggrieved in connection | 0025| with award of a contract, may protest to the state purchasing | 0001| agent or a central purchasing office, whichever is responsible | 0002| for issuance and control of the procurement transaction in | 0003| question. The protest shall be submitted in writing within | 0004| fifteen calendar days after [knowledge] the aggrieved person | 0005| knows or should have known of the facts or occurrences giving | 0006| rise to the protest. The written protest shall include the | 0007| name and address of the protester; the solicitation or contract | 0008| number being protested; a statement of the grounds for the | 0009| protest; supporting exhibits, evidence or documents to | 0010| substantiate any claim unless not available within the filing | 0011| time in which case the expected availability date shall be | 0012| included; and specify the ruling requested of the appropriate | 0013| central purchasing office." | 0014| Section 44. Section 13-1-174 NMSA 1978 (being Laws 1984, | 0015| Chapter 65, Section 147, as amended) is amended to read: | 0016| "13-1-174. AUTHORITY TO RESOLVE PROTESTS.--The state | 0017| purchasing agent or a central purchasing office, whichever | 0018| is responsible for issuance and control of the procurement in | 0019| question, or a designee of either shall have the authority to | 0020| take any action reasonably necessary to resolve a protest of an | 0021| aggrieved bidder or offeror. This authority shall be exercised | 0022| in accordance with regulations promulgated by the secretary, a | 0023| local public body or a central purchasing office which has the | 0024| authority to issue regulations but shall not include the | 0025| authority to award money damages or [attorneys'] attorney | 0001| fees." | 0002| Section 45. Section 13-1-175 NMSA 1978 (being Laws 1984, | 0003| Chapter 65, Section 148) is amended to read: | 0004| "13-1-175. PROTEST--DETERMINATION.--The state purchasing | 0005| agent or a central purchasing office, whichever is | 0006| responsible for issuance and control of the procurement in | 0007| question, or a designee of either shall promptly issue a | 0008| determination relating to the protest. The determination | 0009| shall: | 0010| A. state the reasons for the action taken; and | 0011| B. inform the [protestant] protester of the right | 0012| to judicial review of the determination pursuant to Section | 0013| [156 of the Procurement Code] 13-1-183 NMSA 1978." | 0014| Section 46. Section 13-1-182 NMSA 1978 (being Laws 1984, | 0015| Chapter 65, Section 155) is amended to read: | 0016| "13-1-182. RATIFICATION OR TERMINATION AFTER AN AWARD.-- | 0017| If after an award the state purchasing agent or a central | 0018| purchasing office makes a determination that a solicitation or | 0019| award of a contract is in violation of law and if the business | 0020| awarded the contract has not acted fraudulently or in bad | 0021| faith: | 0022| A. the contract may be appropriately amended to | 0023| comply with law, ratified and affirmed [and revised to | 0024| comply with law] by the state purchasing agent or a central | 0025| purchasing office; provided that a determination is made that | 0001| doing so is in the best interests of a state agency or a local | 0002| public body; or | 0003| B. the contract may be terminated, and the | 0004| [business] contractor awarded the contract shall be | 0005| compensated for the actual documented expenses reasonably | 0006| incurred under the contract [plus a reasonable profit prior to | 0007| termination]." | 0008| Section 47. Section 13-1-183 NMSA 1978 (being Laws 1984, | 0009| Chapter 65, Section 156) is amended to read: | 0010| "13-1-183. JUDICIAL REVIEW--LIMITATION--VENUE.-- | 0011| A. All actions authorized by the Procurement Code for | 0012| judicial review of a determination shall be based upon the | 0013| records of the central purchasing office and all evidence | 0014| submitted by the [protestant] protestor and other | 0015| interested parties. All actions for judicial review [must] | 0016| shall be filed within thirty days of receipt of notice of the | 0017| determination as follows: | 0018| (1) in the first judicial district court in | 0019| Santa Fe county when the decision to be reviewed is made by a | 0020| state agency located in Santa Fe county; or | 0021| (2) in the district court in which a state | 0022| agency or a local public body is located when the decision to | 0023| be reviewed is made by a local public body or a state agency | 0024| not located in Santa Fe county. | 0025| B. All determinations under the Procurement Code made | 0001| by a state agency or a local public body shall be sustained | 0002| unless arbitrary, capricious, contrary to law, clearly | 0003| erroneous or not based upon substantial evidence. | 0004| C. Under no circumstances shall money damages, | 0005| attorney fees or court costs be awarded." | 0006| Section 48. APPROPRIATION.--Two hundred ninety-two | 0007| thousand dollars ($292,000) is appropriated from the general | 0008| fund to the purchasing division of the general services | 0009| department for expenditure in fiscal years 1998 through 2000 to | 0010| acquire a requisition processing system. Any unexpended or | 0011| unencumbered balance remaining at the end of fiscal year 2000 | 0012| shall revert to the general fund. | 0013| Section 49. REPEAL.--Sections 13-1-66.1 and 13-1-136 NMSA | 0014| 1978 (being Laws 1989, Chapter 69, Section 4 and Laws 1984, | 0015| Chapter 65, Section 109, as amended) are repealed. | 0016| Section 50. EFFECTIVE DATE.--The effective date of the | 0017| provisions of this act is July 1, 1997. | 0018| - 51 - State of New Mexico | 0019| House of Representatives | 0020| | 0021| FORTY-THIRD LEGISLATURE | 0022| FIRST SESSION, 1997 | 0023| | 0024| | 0025| February 24, 1997 | 0001| | 0002| | 0003| Mr. Speaker: | 0004| | 0005| Your JUDICIARY COMMITTEE, to whom has been referred | 0006| | 0007| HOUSE BILL 781 | 0008| | 0009| has had it under consideration and reports same with | 0010| recommendation that it DO PASS, amended as follows: | 0011| | 0012| 1. On page 18, strike all of lines 4 through 25 and on page | 0013| 19, strike all of lines 1 through 18. | 0014| | 0015| 2. Renumber succeeding sections accordingly. | 0016| | 0017| 3. On page 50, strike lines 17 and 18 and insert in lieu | 0018| thereof: | 0019| | 0020| "C. The court, in its discretion, may award attorney | 0021| fees and costs to a prevailing protestor in an action brought | 0022| pursuant to the provisions of this section."., | 0023| | 0024| and thence referred to the APPROPRIATIONS AND FINANCE | 0025| COMMITTEE. | 0001| | 0002| | 0003| Respectfully submitted, | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| Thomas P. Foy, Chairman | 0011| | 0012| | 0013| Adopted Not Adopted | 0014| (Chief Clerk) | 0015| (Chief Clerk) | 0016| | 0017| Date | 0018| | 0019| The roll call vote was 9 For 0 Against | 0020| Yes: 9 | 0021| Excused: Luna, Pederson, Rios, Sanchez | 0022| Absent: None | 0023| | 0024| | 0025| .117669.1 | 0001| .117659.1 | 0002| G:\BILLTEXT\BILLW_97\H0781 |