AN ACT relating to public contracts.

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AN ACT relating to public contracts. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section unless the context requires otherwise: 5
(a) "Foundation construction" means any necessary building and construction 6
materials: 7
1. Manufactured in the United States; and 8
2. Permanently incorporated as improvement to real property; 9
(b) "Governmental body" has the same meaning as in KRS 45A.030 and 10
includes a governmental body of a city, county, special district, or school 11
district; 12
(c) "Manufactured in the United States" means any iron, steel, or aluminum 13
product for which all manufactur ing has taken place in the United States, 14
except metallurgical processes involving the refinement of steel additives, 15
regardless of the origin of a the subcomponents of foundational 16
construction materials; 17
(d) "Public works" has the same meaning as in KRS 45A.487; and 18
(e) "United States" means the United States of America and includes all 19
territory, continental or insular, subject to the jurisdiction of the United 20
States. 21
(2) Notwithstanding any other provision of law to the contrary, each contract for the 22
foundation construction or maintenance of foundation construction for a public 23
building or public works made by a governmental body after August 1, 2026, 24
shall contain a provision that the iron, steel, or aluminum used or supplied as a 25
primary component in the performance of the contract and any subcontract shall 26
be manufactured in the United States, subject to the provisions of this section. 27
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(3) Subsection (2) of this section shall not apply if the purchasing agent of the 1
governmental body issues a waiver of the requirements of that subsection in 2
accordance with the following: 3
(a) A request for a waiver shall be filed with the purchasing agent of the 4
governmental body at least thirty (30) days before the bid or proposal 5
opening; 6
(b) The governmental body sh all provide notice and an opportunity for public 7
comment on the request at least twenty (20) days before the bids or 8
proposals for the contract are opened. The notice shall: 9
1. Include all information available to the purchasing agent of the 10
governmental body; 11
2. Identify which provision of paragraph (c) of this subsection the waiver 12
request asserts; and 13
3. Be provided to parties interested in the contract by electronic means, 14
including on the official website of the governmental body; 15
(c) In determining wh ether to issue a waiver, the purchasing agent of the 16
governmental body shall consider whether: 17
1. The application of subsection (2) of this section would be inconsistent 18
with the public interest; 19
2. The iron, steel, or aluminum to be used or supplied in th e 20
performance of the contract are not manufactured in the United States 21
in sufficient and reasonably available quantities or of a satisfactory 22
quality; or 23
3. The inclusion of iron, steel, or aluminum to be used or supplied in the 24
performance of the contrac t will increase the cost of the overall 25
contract by more than ten percent (10%); and 26
(d) The purchasing agent of the governmental body shall issue a decision on 27
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the waiver request no later than seven (7) days before the date set for 1
opening of the bids or proposal. The notification of this decision shall: 2
1. Immediately be sent to the person requesting the waiver, all persons 3
who submitted comments, and all persons who indicated interest in 4
bidding or submitting requests for proposals on the subject contrac t; 5
and 6
2. Immediately be published on the official website of the governmental 7
body and, if issued, a detailed justification for the waiver that 8
addresses the public comments received under paragraph (b) of this 9
subsection. 10
(4) A person shall be debarred u nder KRS 45A.035(2)(b) or 45A.360(1)(b) from 11
receiving any contract or subcontract with a governmental body if the person has 12
been found by a court or federal or state agency to have intentionally: 13
(a) Affixed a label bearing a "Made in America" inscription, or any inscription 14
with the same meaning, to any iron, steel, or aluminum used in projects to 15
which this section applies, that was sold in or shipped to the United States 16
and not manufactured in the United States; or 17
(b) Represented that any iron, steel, or aluminum used in projects to which this 18
section applies was manufactured in the United States when it was not 19
manufactured in the United States. 20
SECTION 2. A NEW SECTION OF KRS CHAPTER 56 IS CREATED TO 21
READ AS FOLLOWS: 22
All contracts made after August 1, 2026, by a state agency for the foundation 23
construction or maintenance of foundation construction for a state property or 24
building, building project, or industrial development project, shall comply with the 25
provisions set forth in Section 1 of this Act. 26
SECTION 3. A NEW SECTION OF KRS CHAPTER 65 IS CREATED TO 27
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READ AS FOLLOWS: 1
All contracts made after August 1, 2026, by a city, county, special district, or local 2
school district for th e foundation construction or maintenance of foundation 3
construction for a public building or public works shall comply with the provisions set 4
forth in Section 1 of this Act. 5
Section 4. KRS 45A.343 is amended to read as follows: 6
(1) Any local public agency may adopt the provisions of KRS 45A.345 to 45A.460. No 7
other statutes governing purchasing shall apply to a local public agency upon 8
adoption of these provisions. 9
(2) After July 15, 1994, any contract entered into by a local public agency, whether 10
under KRS 45A.345 to 45A.460 or any other authority, shall require the contractor 11
and all subcontractors performing work under the contract to: 12
(a) Reveal any final determination of a viola tion by the contractor or 13
subcontractor within the previous five (5) year period pursuant to KRS 14
Chapters 136, 139, 141, 337, 338, 341, and 342 that apply to the contractor or 15
subcontractor; and 16
(b) Be in continuous compliance with the provisions of KRS Ch apters 136, 139, 17
141, 337, 338, 341, and 342 that apply to the contractor or subcontractor for 18
the duration of the contract. 19
(3) A contractor's failure to reveal a final determination of a violation by the contractor 20
of KRS Chapters 136, 139, 141, 337, 338 , 341, and 342 or to comply with these 21
statutes for the duration of the contract shall be grounds for the local public 22
agency's: 23
(a) Cancellation of the contract; and 24
(b) Disqualification of the contractor from eligibility for future contracts awarded 25
by the local public agency for a period of two (2) years. 26
(4) A subcontractor's failure to reveal a final determination of a violation by the 27
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subcontractor of KRS Chapters 136, 139, 141, 337, 338, 341, and 342 or to comply 1
with these statutes for the duration of the contract shall be grounds for the local 2
public agency's disqualification of the subcontractor from eligibility for future 3
contracts for a period of two (2) years. 4
(5) A local public agency shall follow the requirements of Sections 1 and 3 of this Act 5
regarding a contract for foundation construction or maintenance of foundation 6
construction for a public building or public works. 7
Section 5. KRS 45A.352 is amended to read as follows: 8
(1) A local public agency may ente r into a guaranteed energy savings contract for 9
innovative solutions for energy conservation measures. The local public agency 10
shall submit a request for proposals. The request for proposals for competitive 11
procurement of guaranteed energy savings contracts shall include the following: 12
(a) The name and address of the governmental unit; 13
(b) The name, address, title, and phone number of a contact person; 14
(c) Notice indicating that the local public agency is requesting qualified providers 15
to propose energy conservation measures through a guaranteed energy savings 16
contract; 17
(d) The following evaluation criteria for assessing the proposals: 18
1. Construction management capabilities; 19
2. Technical approach to facilities included; 20
3. Financial attributes, as defined b y total cost of contract and guaranteed 21
savings and provider's financial strength demonstrating ability to fulfill 22
the guarantee term; and 23
4. Provider's capability, personnel, track record, and demonstrated ability 24
to accomplish the contract; 25
(e) The date, time, and place where proposals must be received; 26
(f) Any other stipulations and clarifications the local public agency may require; 27
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and 1
(g) An overview prepared by the local public agency stating goals or objectives 2
specific to facility needs to be consi dered by the qualified providers who are 3
responding to the request. Detailed scope of construction is not required. 4
(2) Respondents to the request for proposal shall provide the following: 5
(a) A detailed list of the proposed energy conservation measures an d the 6
guaranteed savings which shall be supported with calculations. Any 7
guaranteed energy and operational savings shall be determined by using one 8
of the measurement and verification methodologies listed in the United States 9
Department of Energy's "Measurement and Verification Guideline for Federal 10
Energy Projects" or in the "North American Energy Measurement and 11
Verification Protocol." If due to existing data limitations or the 12
nonconformance of specific project characteristics, none of the methods listed 13
in either the United States Department of Energy's "Measurement and 14
Verification Guideline for Federal Energy Projects" or in the "North 15
American Energy Measurement and Verification Protocol" is sufficient for 16
measuring guaranteed savings, the qualified p rovider shall develop an 17
alternate method that is compatible with one (1) of the two (2); 18
(b) The estimated cost of the proposed energy conservation measures including 19
engineering, construction, commissioning, measurement and verification, 20
annual reconciliation statements, and required on-going services; and 21
(c) Proposed method and costs of financing. 22
(3) The value for total cost of the contract minus the calculated savings from the energy 23
conservation measures listed in the qualified provider's proposal, shall be within 24
fifteen percent (15%) of the value for the total cost of the contract minus the 25
calculated savings after the final contract has been negotiated. If the difference 26
between the proposed and the final contract is not within fifteen percent (15%) and 27
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the local public agency and the qualified provider are unable to renegotiate the final 1
contract to reconcile the difference between the proposed and final contract values, 2
then the local public agency may: 3
(a) Stop negotiations with the current qualified provider; and 4
(b) Select an alternate provider. 5
(4) The local public agency may, as a component of the request for proposal, solicit and 6
negotiate additional maintenance services for the affected proposed energy 7
conservation measures. Additional services shall be subject to budget 8
appropriations on an annual basis and may be discontinued at any time o ver the 9
guarantee period with no negative impact to the guaranteed savings contract. 10
(5) The local public agency shall utilize the request for proposal process to enter into a 11
guaranteed energy savings contract. The local public agency may, at its discreti on, 12
utilize a request for qualifications, provided that the local public agency solicits 13
qualification statements from multiple potentially qualified providers. The local 14
public agency shall use the qualification statements to select no fewer than two (2) 15
providers and each provider shall then be subject to the request -for-proposal 16
requirement provided in subsections (1) to (4) of this section. 17
(6) The local public agency shall select the provider best qualified to meet its needs. 18
The local public agency sh all provide public notice of the meeting at which it 19
proposes to award a guaranteed energy savings contract, the name of the parties to 20
the proposed contract, and the purpose of the contract. The public notice shall be 21
made at least ten (10) days prior to the meeting. After reviewing the proposals, a 22
local public agency may enter into a guaranteed energy savings contract with a 23
qualified provider if it finds that the amount it would spend on the energy 24
conservation measures recommended in the proposal would not exceed the amount 25
to be saved in either energy or operational costs plus capital cost avoidance within 26
the term of the contract from the date of installation, if the recommendations in the 27
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proposal are followed. 1
(7) The guaranteed energy savings contr act shall include a written guarantee of the 2
qualified provider that either the energy or operational costs savings plus capital 3
cost avoidance will meet or exceed the costs of the energy conservation measures 4
within the term of the contract. The qualified provider shall, on an annual basis, 5
reimburse the local public agency for any shortfall in guaranteed energy savings 6
projected in the contract. A qualified provider shall provide a sufficient bond to the 7
local public agency for the installation and the fa ithful performance of all the 8
measures included in the contract. The guaranteed energy savings contract may 9
provide for payments over a period of time, not to exceed the term of the contract. 10
(8) The qualified provider shall provide the local public agency with an annual 11
reconciliation statement. The statement shall disclose any shortfalls or surplus 12
between guaranteed energy and operational savings specified in the guaranteed 13
energy savings contract and actual energy and operational savings incurred during a 14
given guarantee year. The guarantee year shall consist of a twelve (12) month term 15
commencing from the time that the energy conservation measures became fully 16
operational. The qualified provider shall pay the local public agency any short fall 17
in the guaranteed energy and operation savings within thirty (30) days after the total 18
year savings have been determined. If there is a surplus in the actual guaranteed 19
energy and operational savings in a given year, that surplus savings may be carried 20
forward and applied against any possible savings shortfall in the following 21
guarantee year, except that the surplus carried forward is limited to a period not to 22
exceed one (1) year. If the qualified provider pays the local public agency for a 23
short fall in energy or operational savings incurred during a given guarantee year 24
and there is a surplus in energy or operational savings in future guarantee years, the 25
qualified provider shall bill the local public agency for an amount not to exceed the 26
amount of the short fall in the given guarantee year. 27
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(9) The use of capital cost avoidance shall be subject to the following restrictions: 1
(a) The amount expended shall not exceed fifty percent (50%) of the project cost; 2
and 3
(b) Capital cost avoidance shall be restricted to payment for permanent equipment 4
replacement as follows: 5
1. Storm windows or doors, multiglazed windows or doors, additional 6
glazing, and reduction in glass area; 7
2. Replacement of heating, ventilating, or air conditioning major 8
components or systems; 9
3. New li ghting fixtures where required to achieve Illuminating 10
Engineering Society of North America (IES) standards, provided the 11
existing light fixtures shall have been determined to be obsolete and 12
incapable of achieving IES standards; and 13
4. Life safety system replacements or upgrades which shall have been 14
determined to be necessary to conform with existing state and local 15
codes and standards. 16
(10) The commissioner of education shall review, and approve or disapprove projects 17
from local school districts relating to energy conservation measures under a 18
guaranteed energy savings contract, on the basis of the following guidelines: 19
(a) The project design's compliance with technical, health, and safety standards as 20
required by administrative regulation; 21
(b) The availa bility of general funds, capital outlay allotments under KRS 22
157.420 or local and state funds from the Facilities Support Program of 23
Kentucky as provided by KRS 157.440, for projects that will use capital cost 24
avoidance; 25
(c) The appropriate use of capital outlay allotments under KRS 157.420, local 26
and state funds from the Facilities Support Program of Kentucky as provided 27
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by KRS 157.440, for projects using capital cost avoidance, based on the 1
project's compliance with the district's approved facility plan; 2
(d) The funding capability of the school district; and 3
(e) The financing mechanism and proper financing documentation. 4
(11) The request for proposal as provided in subsections (1) to (4) of this section shall be 5
deemed to satisfy the requirements set out i n subsection (1) of Section 7 of this 6
Act[KRS 162.070], and shall not be subject to an award determination based on the 7
lowest competitive bid or a separate bidding process for each energy conservation 8
measure listed in the proposal. 9
(12) A guaranteed ener gy savings contract that does not involve construction or the 10
installation of physical improvements shall not require the approval of the 11
commissioner of education and shall not be subject to other requirements of this 12
section. 13
Section 6. KRS 65.027 is amended to read as follows: 14
(1) As used in this section, "local government" means city, county, urban -county, 15
consolidated local government, charter county, unified local government, or special 16
district. 17
(2) For all contracts awarded by a local government, the local government shall apply 18
the reciprocal preference for resident bidders described in KRS 45A.494. 19
(3) Sections 1 and 3 of this Act shall apply to all contracts awarded by a local 20
government for found ation construction or maintenance of foundation 21
construction for a public building or public works. 22
Section 7. KRS 162.070 is amended to read as follows: 23
(1) The contracts for the erection of new school buildings, additi ons and repairs to old 24
buildings, except additions or repairs not exceeding seven thousand five hundred 25
dollars ($7,500), shall be made by the board of education with the lowest and best 26
responsible bidder complying with the terms of the letting, after adv ertisement for 27
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competitive bids pursuant to KRS Chapter 424, but the board may reject any or all 1
bids. All necessary specifications and drawings shall be prepared for all such work. 2
The board shall advertise for bids on all supplies and equipment that it d esires to 3
purchase, except where the amount of the purchase does not exceed seven thousand 4
five hundred dollars ($7,500), and shall accept the bid of the lowest and best bidder 5
taking into consideration the price and the reciprocal preference for resident bidders 6
under KRS 45A.494, but the board may reject any and all bids. 7
(2) Sections 1, 2, and 3 of this Act shall apply to all contracts for foundation 8
construction or foundation construction maintenance for a school building or 9
other public works. 10
Section 8. KRS 164A.575 is amended to read as follows: 11
(1) The governing boards of each institution may elect to purchase interest in real 12
property, contractual services, rentals of all types, supplies, materials, equipment, 13
printing, and services, except that competitive bids may not be required for: 14
(a) Contractual services where no competition exists; 15
(b) Food, clothing, equipment, supplies, or other materials to be used in 16
laboratory and experimental studies; 17
(c) Instructional materials available from only one (1) source; 18
(d) Where rates are fixed by law or ordinance; 19
(e) Library books; 20
(f) Commercial items that are purchased for resale; 21
(g) Professional, technical, scientific, or artistic services, but contracts shall be 22
submitted in accordance with KRS 45A.690 to 45A.725; 23
(h) All other commodities, equipment, and services which, in the reasonable 24
discretion of the board, are available from only one (1) source; and 25
(i) Interests in real property. 26
(2) Nothing in this section sh all deprive the boards from negotiating with vendors who 27
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maintain a General Services Administration price agreement with the United States 1
of America or any agency thereof, provided, however, that no contract executed 2
under this provision shall authorize a price higher than is contained in the contract 3
between General Services Administration and the vendor affected. 4
(3) The governing board shall require the institution to take and maintain inventories of 5
plant and equipment. 6
(4) The governing board shall es tablish procedures to identify items of common 7
general usage among all departments to foster volume purchasing. It shall establish 8
and enforce schedules for purchasing supplies, materials, and equipment. 9
(5) The governing board shall have power to salvage, to exchange, and to condemn 10
supplies, equipment, and real property. 11
(6) Upon the approval of the secretary of the Finance and Administration Cabinet, the 12
governing board may purchase or otherwise acquire all real property determined to 13
be needed for the institution's use. The amount paid shall not exceed the fair market 14
value as determined by a qualified appraiser or the value set by the eminent domain 15
procedure. Any real property acquired under this section shall be in name of the 16
Commonwealth for the use and benefit of the institution. 17
(7) (a) Notwithstanding KRS 56.806, the governing board may renegotiate the cost 18
of a lease after the expiration of the lease term and any renewal terms 19
provided in the lease prior to any renewal not provided for in the ter ms of the 20
lease. 21
(b) Except when a lease incorporates a lease -purchase under KRS 56.806, the 22
governing board shall reserve the right to cancel a lease upon at least thirty 23
(30) days' written notice. 24
(c) Notwithstanding KRS 56.823(2) and (3), any lease renewals, except automatic 25
renewals permitted under KRS 56.803, 56.805(2), and 56.806(1), for which 26
the annual rental cost will exceed two hundred thousand dollars ($200,000) 27
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shall be reported to the Capital Projects and Bond Oversight Committee in the 1
same format as set out in KRS 56.823(2). 2
(d) Notwithstanding KRS 56.813, a public college or university may pay for 3
improvements to leased property costing in excess of ten thousand dollars 4
($10,000) but less than one million dollars ($1,000,000) in a lump sum up on 5
approval of its board using non -general fund appropriations and without 6
incurring debt. 7
(8) The governing board shall sell or otherwise dispose of all real or personal property 8
of the institution which is not needed or has become unsuitable for public u se, or 9
would be more suitable consistent with the public interest for some other use, as 10
determined by the board. The determination of the board shall be set forth in an 11
order, and shall be reached only after review of a written request by the institution 12
desiring to dispose of the property. Such request shall describe the property and 13
state the reasons why the institution believes disposal should be effected. All 14
instruments required by law to be recorded which convey any interest in any such 15
real property so disposed of shall be executed and signed by the appropriate officer 16
of the board. Unless the board deems it in the best interest of the institution to 17
proceed otherwise, all such real or personal property shall be sold either by 18
invitation of sealed bi ds or by public auction; provided, however, that the selling 19
price of any interest in real property shall not be less than the fair market value 20
thereof as determined by the Finance and Administration Cabinet or the 21
Transportation Cabinet for such requirements of that department. 22
(9) Real property or any interest therein may, subject to the provisions of KRS Chapter 23
45A, be purchased, leased, or otherwise acquired from any officer or employee of 24
any board of the institution, based upon a written application by the grantor or 25
lessor approved by the board, that the employee has not either himself or herself, or 26
through any other person , influenced or attempted to influence either the board 27
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requesting the purchase of the property. In any case in which such an acquisition is 1
consummated, th e said request and finding shall be recorded and kept by the 2
Secretary of State along with the other documents recorded pursuant to the 3
provisions of KRS Chapter 56. 4
(10) (a) As used in this section, "construction manager -agency," "construction 5
management-at-risk," "design -bid-build," "design -build," and "construction 6
manager-general contractor" shall have the same meaning as in KRS 7
45A.030. 8
(b) For capital construction projects, the procurement may be on a total design -9
bid-build basis, a design -build basis, construction manager-general contractor 10
basis, or construction management-at-risk basis, whichever in the judgment of 11
the board offers the best value to the taxpayer. Best value shall be determined 12
in accordance with KRS 45A.070. Proposals shall be revie wed by the 13
institution's engineering staff to assure quality and value, and compliance with 14
procurement procedures. All specifications shall be written to promote 15
competition. Services for projects delivered on the design -build basis, 16
construction manager -general contractor basis, or construction management -17
at-risk basis shall be procured in accordance with KRS 45A.180, KRS 18
45A.183, and the regulations promulgated in accordance with KRS 45A.180. 19
Nothing in this section shall prohibit the procurement of cons truction 20
manager-agency services. 21
(c) Notwithstanding KRS 45A.185, for all capital construction projects, bidder 22
security for competitive sealed bidding for construction contracts shall only be 23
required when the price is estimated to exceed one million dol lars 24
($1,000,000). 25
(11) The governing board shall attempt in every practicable way to insure the 26
institution's supplying its real needs at the lowest possible cost. To accomplish this 27
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the board may enter into cooperative agreements with other public or pri vate 1
institutions of education or health care. 2
(12) The governing board shall have control and supervision over all purchases of 3
energy consuming equipment, supplies, and related equipment purchased or 4
acquired by the institution, and shall designate by re gulation the manner in which 5
an energy consuming item will be purchased so as to promote energy conservation 6
and acquisition of energy efficient products. 7
(13) The governing board may negotiate directly for the purchase of contractual 8
services, supplies, m aterials, or equipment in bona fide emergencies regardless of 9
estimated costs. The existence of the emergency must be fully explained, in writing, 10
by the vice president responsible for business affairs and such explanation must be 11
approved by the institution president. The letter and approval shall be filed with the 12
record of all such purchases. Where practical, standard specifications shall be 13
followed in making emergency purchases. A good faith effort shall be made to 14
effect a competitively established price for emergency purchases. 15
(14) (a) All governing boards that purchase agricultural products, as defined by KRS 16
45A.630, shall, on or before January 1 of each year, provide a report to the 17
Legislative Research Commission and to the Department of Agricult ure 18
describing the types, quantities, and costs of each product purchased. The 19
report shall be completed on a form provided by the department. 20
(b) If purchasing agricultural products, a governing board shall encourage the 21
purchase of Kentucky -grown agricul tural products in accordance with KRS 22
45A.645. If a governing board purchases agricultural products through a 23
contract with a vendor or food service provider, the contract shall require that 24
if Kentucky-grown agricultural products are purchased, the produc ts shall be 25
purchased in accordance with KRS 45A.645. Only contracts entered into or 26
renewed after July 15, 2008, shall be required to comply with the provisions 27
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of this subsection. 1
(c) All governing boards that purchase Kentucky -grown agricultural product s 2
shall, on or before January 1 of each year, provide a report to the Legislative 3
Research Commission and to the Department of Agriculture describing the 4
types, quantities, and costs of each product purchased. The report shall be 5
completed on a form provided by the department. 6
(15) Notwithstanding KRS 45.760, the governing board may authorize a capital 7
construction project or a major item of equipment even though it is not specifically 8
listed in any branch budget bill, subject to the following conditions and procedures: 9
(a) The full cost shall be funded solely by non-general fund appropriations; 10
(b) Moneys specifically budgeted and appropriated by the General Assembly for 11
another purpose shall not be allotted or reallotted for expenditure on the 12
project or m ajor item of equipment. Moneys utilized shall not jeopardize any 13
existing program and shall not require the use of any current general funds 14
specifically dedicated to existing programs; and 15
(c) The institution's president, or designee, shall submit the pro ject or major item 16
of equipment to the Capital Projects and Bond Oversight Committee for 17
review as provided by KRS 45.800. 18
(16) Governing boards shall apply the reciprocal resident bidder preference described in 19
KRS 45A.494 prior to the award of any contract. 20
(17) Governing boards may authorize the use of reverse auctions as defined in KRS 21
45A.070 for the procurement of goods and leases. 22
(18) Sections 1 and 3 of this Act shall apply to all contracts issued by a governing 23
board for foundation construction and maintenance of foundation construction 24
for a public building or other public works. 25
Section 9. KRS 176.070 is amended to read as follows: 26
(1) Sections 1, 2, and 3 of this Act shall apply to all contracts issued by the 27
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department. 1
(2) After surveys, plans, specifications and estimates have been completed for any road 2
or section thereof, and the type and cha racter of the road has been determined, and 3
the right -of-way obtained, the bureau shall advertise by publication pursuant to 4
KRS Chapter 424, for bids on the work, and may contract for the purchase of all 5
materials necessary for the construction and maintenance of roads. 6
(3)[(2)] Before advertising for bids for the construction or reconstruction of any 7
highway, the department may determine the type of improvement desired, and may 8
advertise and receive bids for only the types determined. The advertisement sh all 9
make it generally known that the work is to be done, and shall state the place where 10
the bidders may examine the plans and specifications. 11
Section 10. KRS 176.080 is amended to read as follows: 12
(1) Sections 1, 2, and 3 of this Act shall apply to all contracts issued by the 13
department. 14
(2) Each bidder shall accompany his or her bid with a bond or certified check payable 15
to the State Treasurer for a reasonable sum, fixed by the department, guaranteeing 16
that he or she will enter into a contract with the department for doing the work if 17
the work is awarded to him or her. 18
(3)[(2)] Bids shall be opened publicly at the time and place designated in the 19
invitation for bids. At the time the bids are opened, the department shall announce 20
the department's engineer's estimate and make it a part of the department's records 21
pertaining to the letting of any highway construction project contract for which bids 22
were received. Each bid, together with the name of the bidder and the departm ent's 23
engineer's estimate, shall be recorded and open to public inspection. 24
(4)[(3)] The contract shall be awarded to the lowest and best bidder. The department 25
may require bonds from any contractor to secure the performance of any contract or 26
may require security by any other means it deems advisable. 27
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(5)[(4)] The department may reject any bid when it finds it for the best interest of the 1
state to do so. When all bids are rejected, the department shall advertise for new 2
bids as in the first place. 3
Section 11. KRS 424.260 is amended to read as follows: 4
(1) Except where a statute specifically fixes a larger sum as the minimum for a 5
requirement of advertisement for bids, no city, county, or district, or board or 6
commission of a city or county, or sheriff or county clerk, may make a contract, 7
lease, or other agreement for: 8
(a) Materials; 9
(b) Supplies, except perishable foods such as meat, poultry, fish, egg products, 10
fresh vegetables, and fresh fruits; 11
(c) Equipment; or 12
(d) Contractual services other than professional; 13
involving an expenditure of more than forty thousand dollars ($40,000) without first 14
making newspaper advertisement for bids. The advertisement for bids shall 15
include notice that Sections 1 and 3 of this Act apply to all contracts involving 16
foundation construction or maintenance of foundation construction for a public 17
building or other public works. This subsection shall not apply to the transfer of 18
property between governmental agencies as authorized in KRS 82.083(4)(a). 19
(2) If the fiscal court requires that the sheri ff or county clerk advertise for bids on 20
expenditures of less than forty thousand dollars ($40,000), the fiscal court 21
requirement shall prevail. 22
(3) (a) Nothing in this statute shall limit or restrict the ability of a local school district 23
to acquire suppl ies and equipment outside of the bidding procedure if those 24
supplies and equipment meet the specifications of the contracts awarded by 25
the Office of Material and Procurement Services in the Office of the 26
Controller within the Finance and Administration Cab inet or a federal, local, 27
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or cooperative agency and are available for purchase elsewhere at a lower 1
price. A board of education may purchase those supplies and equipment 2
without advertising for bids if, prior to making the purchases, the board of 3
education obtains certification from the district's finance or purchasing officer 4
that the items to be purchased meet the standards and specifications fixed by 5
state price contract, federal (GSA) price contract, or the bid of another school 6
district whose bid speci fications allow other districts to utilize their bids, and 7
that the sales price is lower than that established by the various price contract 8
agreements or available through the bid of another school district whose bid 9
specifications would allow the district to utilize their bid. 10
(b) The procedures set forth in paragraph (a) of this subsection shall not be 11
available to the district for any specific item once the bidding procedure has 12
been initiated by an invitation to bid and a publication of specifications for 13
that specific item has been published. In the event that all bids are rejected, 14
the district may again avail itself of the provisions of paragraph (a) of this 15
subsection. 16
(4) This requirement shall not apply in an emergency if the chief executive offic er of 17
the city, county, or district has duly certified that an emergency exists, and has filed 18
a copy of the certificate with the chief financial officer of the city, county, or 19
district, or if the sheriff or the county clerk has certified that an emergenc y exists, 20
and has filed a copy of the certificate with the clerk of the court where his or her 21
necessary office expenses are fixed pursuant to KRS 64.345 or 64.530, or if the 22
superintendent of the board of education has duly certified that an emergency 23
exists, and has filed a copy of the certificate with the chief state school officer. 24
(5) The provisions of subsection (1) of this section shall not apply for the purchase of 25
wholesale electric power for resale to the ultimate customers of a municipal utility 26
organized under KRS 96.550 to 96.900. 27
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(6) Subsection (1) of this section shall not apply to purchases for products or services 1
made pursuant to KRS 82.084. 2
Section 12. Sections 1 to 3 of this Act may be cited as the Kent ucky Buy 3
American Act. 4