2014 -- H 8002

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LC005289

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

     Introduced By: Representative Agostinho F.Silva

     Date Introduced: March 27, 2014

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 37-2-44 of the General Laws in Chapter 37-2 entitled "State

Purchases" is hereby amended to read as follows:

     37-2-44. Cost and pricing principles -- Regulations required. -- The chief purchasing

officer shall issue regulations setting forth cost principles which shall be used:

      (1) As guidelines in the negotiation of:

      (i) Estimated costs of fixed prices when the absence of open marker competition

precludes the use of competitive sealed bidding;

      (ii) Adjustments for state-directed changes or modifications in contract performances;

and

      (iii) Settlements of contracts which have been terminated.

      (2) To determine the allowability of incurred costs which shall include consequential

damages inclusive of project overhead arising from project acceleration, out of sequence

performance or project delay which may have resulted from the untimely processing and

acceptance of contract change orders for the purpose of reimbursing costs under contract

provisions which provide for the reimbursement of costs; and

      (3) As appropriate in any other situation where the determination of the estimated or the

incurred costs of performing contracts may be required.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC PROPERTY AND WORKS -- STATE PURCHASES

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     This act would amend the law on state purchases so that when the chief purchasing

officer determines an allowable cost it would include the cost of consequential damages which

may have resulted from the untimely processing and acceptance of contract change orders.

     This act would take effect upon passage.

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LC005289

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