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2012 -- S 2713 | |
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LC01063 | |
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STATE OF RHODE ISLAND | |
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IN GENERAL ASSEMBLY | |
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JANUARY SESSION, A.D. 2012 | |
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A N A C T | |
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RELATING TO PUBLIC PROPERTY AND WORKS - STATE PURCHASES | |
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Introduced By: Senators Ciccone, Sheehan, and E O`Neill | |
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Date Introduced: March 06, 2012 | |
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Referred To: Senate Finance | |
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It is enacted by the General Assembly as follows: | |
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SECTION 1. Chapter 37-2 of the General Laws entitled "State Purchases" is hereby |
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amended by adding thereto the following section: |
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37-2-81. Duty to review contracts. – (a) With reference to section 37-2-39, the chief |
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purchasing officer shall monitor all state contracts with a value greater than five hundred |
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thousand dollars ($500,000) and with respect to said contracts: |
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If there is a proposed material change to the scope of the work or to one or more of the |
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terms of the contract, then the chief purchasing officer shall determine in writing whether it is in |
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the best interest of the state to proceed under the existing contract or, after awareness of the |
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material change, to authorize said modification. Such determination shall be made prior to |
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implementing the contract increase or material change and shall clearly enumerate the |
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circumstances of the contract increase and/or material change and the reasons supporting the |
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decision. Furthermore, such determination and the reasons supporting the decision shall not be |
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deemed to establish or be considered as evidence in the litigation, arbitration or mediation of a |
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claim seeking reimbursement and/or damages for delay, change in circumstances or unforeseen |
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conditions. The chief purchasing officer shall file copies of the written determination with the |
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senate fiscal advisor and the house fiscal advisor no later than three (3) business days after |
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executing the written determination. |
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(b) Notwithstanding any other provision to the contrary, including any provision |
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exempting any entity from the requirements of this chapter, all public corporations as defined in |
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subdivision 35-20-5(4) and quasi-public agencies shall monitor their respective contracts with a |
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value greater than five hundred thousand dollars ($500,000) and with respect to said contracts: |
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If there is a proposed material change to the scope of the work or to one or more of the |
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terms of the contract, then the chief executive officer shall determine in writing whether it is in |
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the best interest of the state to proceed under the existing contract or, after awareness of the |
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material change, to authorize said modification. Such determination shall be made prior to |
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implementing the contract increase or material change, shall comply with the requirements of |
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section 37-2-6 of this chapter, and shall clearly enumerate the circumstances of the contract |
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increase and/or material change and the reasons for the decision made. Furthermore, such |
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determination and the reasons supporting the decision shall not be deemed to establish or be |
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considered as evidence in the litigation, arbitration or mediation of a claim seeking |
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reimbursement and/or damages for delay, change in circumstances or unforeseen conditions. The |
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chief executive officer shall file copies of the written determination with the governor, the |
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president of the senate, the speaker of the house, the director of the department of administration, |
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the budget officer, the senate fiscal advisor, and the house fiscal advisor no later than three (3) |
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business days after executing the written determination. |
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(c) Definitions: For the purposes of this section, the term “material change” shall mean |
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any alteration to either the scope of work or to one or more terms or conditions of the contract |
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such that the economic benefits thereof to the contractor, or the cost thereof to the state, would |
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have influenced the public bidding process or the decision to award the contract. A ten percent |
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(10%) cumulative increase in the value of the contract shall, by itself, constitute a material |
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change. |
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SECTION 2. This act shall take effect upon passage and shall apply to all contracts |
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entered into after July 1, 2011. |
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LC01063 | |
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EXPLANATION | |
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BY THE LEGISLATIVE COUNCIL | |
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OF | |
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A N A C T | |
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RELATING TO PUBLIC PROPERTY AND WORKS - STATE PURCHASES | |
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This act would require the chief purchasing officer, as well as all public corporations and |
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quasi-public agencies, to monitor all state contracts with a value of greater than five hundred |
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thousand dollars ($500,000) for certain change; and to authorize any material change |
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modifications. |
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This act would take effect upon passage and would apply to all contracts entered into |
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after July 1, 2011. |
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LC01063 | |
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