PURCHASE LAW SUMMARY September, 2018
STATE OF MISSISSIPPI OFFICE OF THE STATE AUDITOR
SHAD WHITE AUDITOR
PURCHASE LAW SUMMARY July 1, 2022
Department of Technical Assistance
Post Office Box 956
Jackson, Ms. 39205
1-800-321-1275
Toll Free In-State
1-601-576-2750
FAX
osa.
Web Site
tech@osa.
E-mail
PURCHASE LAW OVERVIEW
The following overview begins with a "Table of Contents" to provide the location of specific purchase laws.
Headings have been assigned to untitled sub-sections of the legal text for identification purposes. Notations are provided for reference, emphases, and clarification. Underlines and bold print are for emphases.
The current "Purchase Law Update" may be found at the Mississippi State Auditor's website osa. by selecting "Resources" then "Purchase Law Summary" under the heading "Purchasing". Actual text of the Mississippi code may be found on the Secretary of State's website at sos. by selecting "Education and Publications", then "Mississippi Code Search", and then clicking the link for "Search the Mississippi Code at Michie's Legal Resources". Mississippi Attorney General's opinions may be found at ago.state.ms.us by selecting "Opinions Database" and entering search terms.
TABLE OF CONTENTS
DEFINITIONS:
(Entities, Items, Emergency, etc.)
1
MAIN PURCHASE LAW:
Scope of Law (Who, and what law applies to)
4
Purchase Procedure for Amounts:
$0
To $5,000
4
Above $5,000 To $75,000
4
Above $75,000
5
Lowest and Best Bids
10
Lease Purchase
11
Alternate Bid
13
Construction Contract Changes
13
Petroleum Purchase Alternatives
14
Emergency Purchase
15
Lease Purchase * Hospitals
16
Exceptions to Bidding Requirements
17
State Contracts
17
Equipment Repairs
17
Raw Gravel or Dirt
17
Government Equipment Auction
18
Intergovernmental Sales
18
Perishable Supplies or Food
18
Single Source Items
19
Waste Disposal * Construction
19
Group Purchase * Hospital
19
ITS Hardware/Software, etc. Contracts
20
Energy Efficiency Equipment
20
Municipal Electrical Utility Fuel
20
Library Books & Other Reference Materials
20
Unmarked Vehicles
20
Election Ballots
20
Educational Television Contracts
21
Prison Industry Products * MDOC, Regional & Private Prisons 21
Undercover Equipment * Law Enforcement
21
Junior College Books for Rent
21
School Purchases * County/City Contracts
21
Garbage, Solid Waste & Sewage Contracts
21
Water Tank Maintenance Contracts
22
Miss. Industry for the Blind Products
22
Purchases Of State Adopted Textbooks
22
TABLE OF CONTENTS CONTINUED
Major Economic Impact Act Purchases
22
Soil & Water Conservation Equipment
22
Hospital Equipment & Service Leases
22
Certified Purchasing Office Purchases
23
School Year Books
23
Design Build Method of Contracting
23
Toll Roads and Bridges
23
Certain purchases under ?57-1-221
23
Certain Transfers under ?57-105-1(7)
23
Certain Transactions with local EPAs * State Parks
23
Certain Purchases by an Academic Medical Center
24
Certain Purchases under the Alyce G. Clark Law
24
Certain Purchases by the Departments of Health or Revenue
24
Term Contracts
24
Purchase Law Violation Prohibition
25
Flexible Contracts * Utility Petroleum Equipment
25
Fuel Management Systems
26
Solid Waste Contracts
26
Minority Set Aside
27
Construction Punch List
28
IHL construction procurement
28
Insurability of Bidders for Public Construction
28
Expenditure Authority Limitation
28
SPECIAL LAWS:
State Contracts
*Use and Options
29
Motor Vehicle
*Alternate Local Purchase Procedure
30
Energy Performance or Shared Savings (Energy Efficiency) Contracts 31
Preference Law
*Home State Bidder Advantage
31
Construction by Water, Sewer, Garbage Disposal, and Fire Protection
Districts
32
Construction Contracts
*Bonds, Certificate, etc
32
Violation Penalties
33
DEFINITIONS
ENTITY DEFINITIONS
? 31-7-1. The following terms are defined for the purpose of this chapter to have the following meanings:
Purpose - To clarify the law
(a) "Agency" shall mean any state board, commission, committee, council, university, department, of unit thereof created by the Constitution or statutes if such board, commission, committee, council, university, department, unit, or the head thereof is authorized to appoint subordinate staff by the Constitution or statute, except a legislative or judicial board, commission, committee, council, department or unit thereof; except a charter school authorized by the Mississippi Charter School Authorizer Board; and except the Mississippi State Port Authority. An academic medical center or health sciences school, as defined in Section 1 of this ac,t is not an "agency" for those purchases of commodities as defined in this section that are used for clinical purposes and (i) intended for use in the diagnosis of disease or other conditions or in the cure, mitigation, treatment or prevention of disease, and (ii) medical devices, biological, drugs and radiation emitting devices as defined by the United States Food and Drug Administration.
(b) "Governing authority" shall mean boards of supervisors, governing boards of all school districts, all boards of directors of public water supply districts, boards of directors of master public water supply districts, municipal public utility commissions, governing authorities of all municipalities, port authorities, Mississippi State Port Authority, commissioners, and boards of trustees of any public hospitals, boards of trustees of public library systems, district attorneys, school attendance officers and any political subdivision of the state supported wholly or in part by public funds of the state or political subdivision thereof, including commissions, boards, and agencies created or operated under the authority of any county or municipality of this state. The term "governing authority" shall not include economic development authorities supported in part by private fund, or commissions appointed to hold title to and oversee the development and management of lands and buildings which are donated by private individuals to the public for the use and benefit of the community and which are supported in part by private funds. The term "governing authority" also shall not include the governing board of a charter school.
(c) "Purchasing agent" shall mean any administrator, superintendent, purchase clerk or other chief officer so designated having general or special authority to negotiate for and makea private contract for or purchase for any governing authority or agency.
(d) "Public funds" shall mean and include any appropriated funds, special funds, fees or any other emoluments received by an agency or governing authority.
1
(f) The term "Office of General Services" shall mean the Department of Finance and Administration. Provided that when purchases are made for the Legislature or functions under its jurisdiction, it shall mean the Legislative Budget Office.
ITEMS COVERED BY DEFINITIONS
Note Commodities Include Software A.G. 2/29/88, Jeremy J. Eskridge Commodities excludes "commodities for resale" "Certified Purchasing Office" regulated by Office of Purchasing and Travel, Sec. 31-7-9 (e) The word "commodities" shall mean and include the various commodities, goods, merchandise, furniture, equipment, automotive equipment of every kind, and other personal property purchased by the agencies of the state and governing authorities, but not commodities purchased for resale or raw materials converted into products for resale.
(i) The term "equipment" shall be construed to include: automobiles, trucks, tractors, office appliances and all other equipment of every kind and description.
(ii) The term "furniture" shall be construed to include: desk, chairs, tables, seats, filing cabinets, bookcases and all other items of a similar nature as well as dormitory furniture , appliances, carpets and all other items of personal property generally referred to as home, office, or school furniture.
(g) "Construction" shall mean the process of building, altering, improving, renovating or demolishing a public structure, public building, or other public real property. It does not include routine operation, routine repair or regularly scheduled maintenance of existing public structures, public building or other public real property.
(h) "Purchase" shall mean buying, renting, leasing or otherwise acquiring.
(i) "Certified Purchasing Office" shall mean any purchasing office in which fifty percent (50%) or more of the purchasing agents hold a certification from the University Public Purchasing Certification Council or other nationally recognized purchasing certification and in which, in the case of a state agency purchasing office, in addition to the national certification, one hundred percent (100%) of the purchasing officials hold a certification from the State of Mississippi's Basic or Advanced Purchasing Certification Program.
(j) "Certified Mississippi Purchasing Agent" means a state agency purchasing official who holds a certification from the Mississippi Basic Purchasing Certification Program as established by the Office of Purchasing, Travel and Fleet Management.
2
(k) "Certified Mississippi Procurement Manager" means a state agency purchasing official who holds a certification from the Mississippi Advanced Purchasing Certification Program as established by the Office of Purchasing, Travel and Fleet Management.
EMERGENCY PURCHASE DEFINITION
Note See Sec. 31-7-13 J & K for Procedure
(i) The term "emergency" shall mean any circumstances; caused by fire, flood, explosion, storm, earthquake, epidemic, riot, insurrection or caused by any inherent defeat due to defective construction, or when the immediate preservation of order or of public health is necessary by reason of unforeseen emergency, or when the immediate restoration of a condition of usefulness of any public building, equipment, road, or bridge appears advisable, or in the case of a public utility when there is a failure of any machine or other thing used and useful in the generation, production or distribution of electricity, water or natural gas, or in the transportation or treatment of sewage; or when the delay incident to obtaining competitive bids could cause adverse impact upon the governing authorities or agency, its employees or its citizens; or in the case of a public airport, when the delay incident to publishing an advertisement for competitive bids would endanger public safety in a specific (not general) manner, result in or perpetuate a specific breach of airport security, or prevent the airport from providing specific air transportation services.
OTHER DEFINITIONS
All definitions essential to purchase law understanding are not listed under the definition law, Section 31-7-1. The following "other" definitions may be found as referenced.
Competitive and Competitive Bid Lease Purchase Equipment Minority
-See Section 31-7-13 (b) -See Sections 31-7-13 (e) & 31-7-10 -See Section 31-7-13 (s)
3
MAIN PURCHASE LAW
SCOPE OF LAW
Purpose Notes
-Who and What the Law Applies To -Excludes Garbage, Sewer & Solid Waste Contracts- See Sec. 31-7-13 (m) (xxii) -Special Solid Waste Procedure- See Sec. 31-7-13 (r)
? 31-7-13. All agencies and governing authorities shall purchase their commodities and printing; contract for garbage collection or disposal; contract for solid waste collection or disposal: contract for sewage collection or disposal; contract for public construction; and contract for rentals as herein provided.
(a) BIDDING PROCEDURE FOR PURCHASES NOT OVER $5,000.00
Purpose
- Clarify No Bids Required
Purchases which do not involve an expenditure of more than Five Thousand Dollars ($5,000.00), exclusive of freight or shipping charges, may be made without advertising or otherwise requesting competitive bids. However, nothing contained in this paragraph (a) shall be construed to prohibit any agency or governing authority from establishing procedures which require competitive bids on purchases of Five Thousand Dollars ($5,000.00) or less.
(b) BIDDING PROCEDURE FOR PURCHASES OVER $5,000.00 BUT NOT OVER $75,000.00
Purpose Note
-Two Quote Bids Required - Must Document Best Bids ? See Sec. 31-7-13 (d)
Purchases which involve an expenditure of more than Five Thousand Dollars ($5,000.00) but not more than Seventy-five Thousand Dollars ($75,000.00), exclusive of freight and shipping charges may be made from the lowest and best bidder without publishing or posting advertisement for bids, provided at least two (2) competitive written bids have been obtained. Any state agency or community/junior college purchasing commodities or procuring construction pursuant to this paragraph (b) may authorize its purchasing agent, or his designee, to accept the lowest competitive written bid under Seventy-five Thousand Dollars ($75,000.00). Any governing authority purchasing commodities pursuant to this paragraph (b) may authorize its purchasing agent, or his designee, with regard to governing authorities other than counties, or its purchase clerk, or his designee, with regard to counties, to accept the lowest and best competitive written bid. Such authorization shall be made in writing by the governing authority and shall be maintained on file in the primary office of the agency and recorded in the official minutes of the governing authority, as appropriate. The purchasing agent or the purchase clerk, or his designee, as the case may be, and not the governing authority, shall be liable for any
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