Public purchasing; increase threshold for bidding and revise certain provisions related to exemptions and reverse auctions.

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To: Accountability,
Efficiency, Transparency
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Ford (54th), Remak, Hale

HOUSE BILL NO. 1314
(As Passed the House)

AN ACT TO AMEND SECTION 31-7-13, MISSISSIPPI CODE OF 1972, TO 1
REVISE THE PUBLIC PURCHASING LAW TO PROVIDE THAT PURCHASES THAT DO 2
NOT INVOLVE AN EXPENDITURE OF MORE THAN $15,000.00 MAY BE MADE 3
WITHOUT ADVERTISING OR OTHERWISE REQUESTING COMPETITIVE BIDS; TO 4
REVISE THE REVERSE AUCTION METHOD FOR RECEIVING BIDS TO 5
DIFFERENTIATE BETWEEN AGENCIES AND GOVERNING AUTHORITIES; TO 6
PROVIDE THAT IF AN AGENCY DETERMINES THAT A REVERSE AUCTION IS NOT 7
IN THE BEST INTEREST OF THE AGENCY, THEN THAT DETERMINATION MUST 8
BE APPROVED BY THE PUBLIC PROCUREMENT REVIEW BOARD; TO PROVIDE 9
THAT IF A GOVERNING AUTHORITY DETERMINES THAT A REVERSE AUCTION IS 10
NOT IN THE BEST INTEREST OF THE GOVERNING AUTHORITY, THEN THAT 11
DETERMINATION MUST BE APPROVED BY THE GOVERNING BOARD OF THE 12
GOVERNING AUTHORITY; TO PROVIDE THAT THE AGENCY AND GOVERNING 13
AUTHORITY MUST SUBMIT AN EXPLANATION AS TO WHY A REVERSE AUCTION 14
IS NOT IN THE BEST INTEREST OF THE AGENCY OR GOVERNING AUTHORITY; 15
TO PROVIDE AN EXCEPTION FROM COMPLYING WITH CERTAIN FEDERAL 16
PROCUREMENT GUIDELINES WHEN FEDERAL LAW PROVIDES FOR SUCH AN 17
EXEMPTION; TO EXEMPT THE PURCHASE OF VEHICLES FOR THE MISSISSIPPI 18
HIGHWAY SAFETY PATROL PURCHASES MADE THROUGH COUNTY GROUP PURCHASE 19
CONTRACTS, AND VEHICLES PURCHASED FROM OTHER STATE'S PURCHASING 20
SCHEDULES AS APPROVED BY THE FEDERAL TRANSIT ADMINISTRATION FROM 21
BIDDING REQUIREMENTS; TO REQUIRE THE MISSISSIPPI EMERGENCY 22
MANAGEMENT AGENCY TO IMPLEMENT A PROCESS TO CREATE A PREFERRED 23
VENDER LIST FOR DISASTER CLEAN UP; TO AMEND SECTIONS 31-3-1, 24
31-5-37 AND 31-5-51, MISSISSIPPI CODE OF 1972, TO CONFORM; TO 25
CREATE NEW SECTION 31-7-40, MISSISSIPPI CODE OF 1972, TO AUTHORIZE 26
COUNTIES TO PARTICIPATE IN A GROUP PURCHASING PROGRAM FOR CERTAIN 27
PURCHASES; TO AMEND SECTION 31-7-103, MISSISSIPPI CODE OF 1972, TO 28
INCREASE THE COMPETITIVE PURCHASING THRESHOLD FOR CERTAIN COUNTY 29
PURCHASES; TO BRING FORWARD SECTION 31-7-119, MISSISSIPPI CODE OF 30
1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED 31
PURPOSES. 32
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 33
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SECTION 1. Section 31-7-13, Mississippi Code of 1972, is 34
amended as follows: 35
31-7-13. All agencies and governing authorities shall 36
purchase their commodities and printing; contract for garbage 37
collection or disposal; contract for solid waste collection or 38
disposal; contract for sewage collection or disposal; contract for 39
public construction; and contract for rentals as herein provided. 40
(a) Bidding procedure for purchases not over * * * 41
$15,000.00. Purchases which do not involve an expenditure of more 42
than * * * Fifteen Thousand Dollars ($15,000.00), exclusive of 43
freight or shipping charges, may be made without advertising or 44
otherwise requesting competitive bids. However, nothing contained 45
in this paragraph (a) shall be construed to prohibit any agency or 46
governing authority from establishing procedures which require 47
competitive bids on purchases of * * * Fifteen Thousand Dollars 48
($15,000.00) or less. 49
(b) Bidding procedure for purchases over * * * 50
$15,000.00 but not over * * * $100,000.00. Purchases which 51
involve an expenditure of more than * * * Fifteen Thousand Dollars 52
($15,000.00) but not more than * * * One Hundred Thousand Dollars 53
($100,000.00), exclusive of freight and shipping charges, may be 54
made from the lowest and best bidder without publishing or posting 55
advertisement for bids, provided at least two (2) competitive 56
written bids have been obtained. Any state agency or community or 57
junior college purchasing commodities or procuring construction 58
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pursuant to this paragraph (b) may authorize its purchasing agent, 59
or his designee, to accept the lowest competitive written bid 60
under * * * One Hundred Thousand Dollars ($100,000.00). Any 61
governing authority purchasing commodities pursuant to this 62
paragraph (b) may authorize its purchasing agent, or his designee, 63
with regard to governing authorities other than counties, or its 64
purchase clerk, or his designee, with regard to counties, to 65
accept the lowest and best competitive written bid. Such 66
authorization shall be made in writing by the governing authority 67
and shall be maintained on file in the primary office of the 68
agency and recorded in the official minutes of the governing 69
authority, as appropriate. The purchasing agent or the purchase 70
clerk, or his designee, as the case may be, and not the governing 71
authority, shall be liable for any penalties and/or damages as may 72
be imposed by law for any act or omission of the purchasing agent 73
or purchase clerk, or his designee, constituting a violation of 74
law in accepting any bid without approval by the governing 75
authority. The term "competitive written bid" shall mean a bid 76
submitted on a bid form furnished by the buying agency or 77
governing authority and signed by authorized personnel 78
representing the vendor, or a bid submitted on a vendor's 79
letterhead or identifiable bid form and signed by authorized 80
personnel representing the vendor. "Competitive" shall mean that 81
the bids are developed based upon comparable identification of the 82
needs and are developed independently and without knowledge of 83
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other bids or prospective bids. Any bid item for construction in 84
excess of * * * Fifteen Thousand Dollars ($15,000.00) shall be 85
broken down by components to provide detail of component 86
description and pricing. These details shall be submitted with 87
the written bids and become part of the bid evaluation criteria. 88
Bids may be submitted by facsimile, electronic mail or other 89
generally accepted method of information distribution. Bids 90
submitted by electronic transmission shall not require the 91
signature of the vendor's representative unless required by 92
agencies or governing authorities. 93
(c) Bidding procedure for purchases over * * * 94
$100,000.00. 95
(i) Publication requirement. 96
1. Purchases which involve an expenditure of 97
more than * * * One Hundred Thousand Dollars ($100,000.00), 98
exclusive of freight and shipping charges, may be made from the 99
lowest and best bidder after advertising for competitive bids 100
either: 101
a. once each week for two (2) 102
consecutive weeks in a regular newspaper published in the county 103
or municipality in which such agency or governing authority is 104
located * * *; or 105
b. By publication on a publicly 106
accessible website for a continuous period of not less than two 107
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(2) consecutive weeks in accordance with item 2. of this 108
subparagraph (i). 109
However, all American Recovery and Reinvestment Act projects 110
in excess of Twenty-five Thousand Dollars ($25,000.00) shall be 111
bid. All references to American Recovery and Reinvestment Act 112
projects in this section shall not apply to programs identified in 113
Division B of the American Recovery and Reinvestment Act. 114
2. For purposes of this subparagraph (i), the 115
term "publicly accessible website" means the official website of 116
the agency or governing authority, or another Internet website 117
designated by the agency or governing authority for publishing 118
advertisements for competitive bids, that is available to the 119
general public through the Internet with no charge for access to 120
the advertisements. Any advertisement for competitive bids 121
published on a publicly accessible website under this subparagraph 122
(i) shall be in a text-searchable format and shall display the 123
date on which the advertisement is first posted on the website. 124
An agency or governing authority may not use a publicly accessible 125
website to satisfy the publication requirement of this 126
subparagraph (i) in any calendar year unless, before first posting 127
any advertisement for competitive bids on a publicly accessible 128
website in that calendar year, the agency or governing authority 129
has caused to be published at least once in a newspaper having a 130
general circulation in the county or municipality in which the 131
agency or governing authority is located a notice that: 132
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a. States that advertisements for 133
competitive bids of the agency or governing authority may, from 134
time to time, be published on a publicly accessible website 135
instead of in a newspaper; and 136
b. Identifies the Internet address 137
(uniform resource locator) of the publicly accessible website or 138
websites designated by the agency or governing authority for the 139
publication of such advertisements. 140
* * *3. Reverse auctions shall be the 141
primary method for receiving bids during the bidding process. 142
If * * * an agency or governing authority determines that a 143
reverse auction is not in the best interest of the * * * agency or 144
governing authority, then with respect to the agency, that 145
determination must be approved by the Public Procurement Review 146
Board, and with respect to the governing authority, that 147
determination must be approved by the governing body of the 148
governing authority. * * * An agency shall submit a detailed 149
explanation of why a reverse auction would not be in the best 150
interest of the * * * agency and present an alternative process to 151
be approved by the Public Procurement Review Board. A governing 152
authority shall make findings in its minutes of why a reverse 153
auction would not be in the best interest of the governing 154
authority. If the Public Procurement Review Board authorizes 155
the * * * agency to solicit bids with a method other than reverse 156
auction, or if the governing board of the governing authority 157
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authorizes the governing authority to solicit bids with a method 158
other than reverse auction, then the purchasing entity may 159
designate the other methods by which the bids will be received, 160
including, but not limited to, bids sealed in an envelope, bids 161
received electronically in a secure system, or bids received by 162
any other method that promotes open competition and has been 163
approved by the Office of Purchasing and Travel. However, reverse 164
auction shall not be used for any public contract for design, 165
construction, improvement, repair or remodeling of any public 166
facilities, including the purchase of materials, supplies, 167
equipment or goods for same and including buildings, roads and 168
bridges. The Public Procurement Review Board must approve any 169
contract of an agency entered into by alternative process. The 170
provisions of this item * * * 3 shall not apply to the individual 171
state institutions of higher learning. The provisions of this 172
item * * * 3 requiring reverse auction as the primary method of 173
receiving bids shall not apply to term contract purchases as 174
provided in paragraph (n) of this section; however, a purchasing 175
entity may, in its discretion, utilize reverse auction for such 176
purchases. The provisions of this item * * * 3 shall not apply to 177
individual public schools, including public charter schools and 178
public school districts, only when purchasing copyrighted 179
educational supplemental materials and software as a service 180
product. For such purchases, a local school board may authorize a 181
purchasing entity in its jurisdiction to use a Request for 182
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Qualifications which promotes open competition and meets the 183
requirements of the Office of Purchasing and Travel. 184
* * *4. The date as published for the bid 185
opening shall not be less than seven (7) working days after the 186
last published notice by newspaper, or not less than fourteen (14) 187
calendar days after the advertisement is first posted if made on a 188
publicly available website; however, if the purchase involves a 189
construction project in which the estimated cost is in excess 190
of * * * One Hundred Thousand Dollars ($100,000.00), for 191
publications made by newspaper such bids shall not be opened in 192
less than fifteen (15) working days after the last notice is 193
published by newspaper and the notice for the purchase of such 194
construction shall be published once each week for two (2) 195
consecutive weeks in a newspaper, or, for advertisements made on a 196
publicly accessible website, such bids shall not be opened in less 197
than twenty-one (21) calendar days after the first advertisement 198
is posted and the notice for the purchase of such construction 199
shall remain continuously posted for a period of not less than two 200
(2) consecutive weeks before the bid opening date. The notice of 201
intention to let contracts or purchase equipment shall state the 202
time and place at which bids shall be received, list the contracts 203
to be made or types of equipment or supplies to be purchased, and, 204
if all plans and/or specifications are not published, refer to the 205
plans and/or specifications on file. If there is no newspaper 206
published in the county or municipality and notice by newspaper is 207
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required under this subparagraph (i), then such notice shall be 208
given by posting same at the courthouse, or for municipalities at 209
the city hall, and at two (2) other public places in the county or 210
municipality, and also by publication once each week for two (2) 211
consecutive weeks in some newspaper having a general circulation 212
in the county or municipality in the above-provided manner. On 213
the same date that the notice is submitted to the newspaper for 214
publication or posted on a publicly available website, the agency 215
or governing authority involved shall mail written notice to, or 216
provide electronic notification to the main office of the 217
Mississippi Procurement Technical Assistance Program under the 218
Mississippi Development Authority that contains the same 219
information as that in the published notice. Within one (1) 220
working day of the contract award, the agency or governing 221
authority shall post to the designated web page maintained by the 222
Department of Finance and Administration, notice of the award, 223
including the award recipient, the contract amount, and a brief 224
summary of the contract in accordance with rules promulgated by 225
the department. Within one (1) working day of the contract 226
execution, the agency or governing authority shall post to the 227
designated web page maintained by the Department of Finance and 228
Administration a summary of the executed contract and make a copy 229
of the appropriately redacted contract documents available for 230
linking to the designated web page in accordance with the rules 231
promulgated by the department. The information provided by the 232
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agency or governing authority shall be posted to the web page 233
until the project is completed. 234
* * *5. Agencies and governing authorities 235
using federal funds for the procurement of any good or service, 236
including exempt personal and professional services, must comply 237
with the Uniform Administrative Requirements, Cost Principles, and 238
Audit Requirements for Federal Awards - Subpart D - Post Federal 239
Award Requirements Procurement Standards, in accordance with 2 CFR 240
200.317 through 2 CFR 200.327, except where an agency or governing 241
authority is exempt from such compliance under applicable federal 242
law, regulation or program guidelines. 243
(ii) Bidding process amendment procedure. If all 244
plans and/or specifications are published in the notification, 245
then the plans and/or specifications may not be amended. If all 246
plans and/or specifications are not published in the notification, 247
then amendments to the plans/specifications, bid opening date, bid 248
opening time and place may be made, provided that the agency or 249
governing authority maintains a list of all prospective bidders 250
who are known to have received a copy of the bid documents and all 251
such prospective bidders are sent copies of all amendments. This 252
notification of amendments may be made via mail, facsimile, 253
electronic mail or other generally accepted method of information 254
distribution. No addendum to bid specifications may be issued 255
within two (2) working days of the time established for the 256
receipt of bids unless such addendum also amends the bid opening 257
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to a date not less than five (5) working days after the date of 258
the addendum. 259
(iii) Filing requirement. In all cases involving 260
governing authorities, before the notice shall be published or 261
posted, the plans or specifications for the construction or 262
equipment being sought shall be filed with the clerk of the board 263
of the governing authority. In addition to these requirements, a 264
bid file shall be established which shall indicate those vendors 265
to whom such solicitations and specifications were issued, and 266
such file shall also contain such information as is pertinent to 267
the bid. 268
(iv) Specification restrictions. 269
1. Specifications pertinent to such bidding 270
shall be written so as not to exclude comparable equipment of 271
domestic manufacture. However, if valid justification is 272
presented, the Department of Finance and Administration or the 273
board of a governing authority may approve a request for specific 274
equipment necessary to perform a specific job. Further, such 275
justification, when placed on the minutes of the board of a 276
governing authority, may serve as authority for that governing 277
authority to write specifications to require a specific item of 278
equipment needed to perform a specific job. In addition to these 279
requirements, from and after July 1, 1990, vendors of relocatable 280
classrooms and the specifications for the purchase of such 281
relocatable classrooms published by local school boards shall meet 282
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all pertinent regulations of the State Board of Education, 283
including prior approval of such bid by the State Department of 284
Education. 285
2. Specifications for construction projects 286
may include an allowance for commodities, equipment, furniture, 287
construction materials or systems in which prospective bidders are 288
instructed to include in their bids specified amounts for such 289
items so long as the allowance items are acquired by the vendor in 290
a commercially reasonable manner and approved by the 291
agency/governing authority. Such acquisitions shall not be made 292
to circumvent the public purchasing laws. 293
(v) Electronic bids. Agencies and governing 294
authorities shall provide a secure electronic interactive system 295
for the submittal of bids requiring competitive bidding that shall 296
be an additional bidding option for those bidders who choose to 297
submit their bids electronically. The Department of Finance and 298
Administration shall provide, by regulation, the standards that 299
agencies must follow when receiving electronic bids. Agencies and 300
governing authorities shall make the appropriate provisions 301
necessary to accept electronic bids from those bidders who choose 302
to submit their bids electronically for all purchases requiring 303
competitive bidding under this section. Any special condition or 304
requirement for the electronic bid submission shall be specified 305
in the advertisement for bids required by this section. Agencies 306
or governing authorities that are currently without available high 307
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speed Internet access shall be exempt from the requirement of this 308
subparagraph (v) until such time that high speed Internet access 309
becomes available. Any county having a population of less than 310
twenty thousand (20,000) shall be exempt from the provisions of 311
this subparagraph (v). Any municipality having a population of 312
less than ten thousand (10,000) shall be exempt from the 313
provisions of this subparagraph (v). The provisions of this 314
subparagraph (v) shall not require any bidder to submit bids 315
electronically; however, an agency or governing authority may, in 316
its sole discretion, require bids to be submitted electronically 317
for any competitive bidding required by this section. When 318
construction bids are submitted electronically, the requirement 319
for including a certificate of responsibility, or a statement that 320
the bid enclosed does not exceed Fifty Thousand Dollars 321
($50,000.00), on the exterior of the bid envelope as indicated in 322
Section 31-3-21(1) and (2) shall be deemed in compliance with by 323
including same as an attachment with the electronic bid submittal. 324
(d) Lowest and best bid decision procedure. 325
(i) Decision procedure. Purchases may be made 326
from the lowest and best bidder. In determining the lowest and 327
best bid, freight and shipping charges shall be included. 328
Life-cycle costing, total cost bids, warranties, guaranteed 329
buy-back provisions and other relevant provisions may be included 330
in the best bid calculation. All best bid procedures for state 331
agencies must be in compliance with regulations established by the 332
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Department of Finance and Administration. If any governing 333
authority accepts a bid other than the lowest bid actually 334
submitted, it shall place on its minutes detailed calculations and 335
narrative summary showing that the accepted bid was determined to 336
be the lowest and best bid, including the dollar amount of the 337
accepted bid and the dollar amount of the lowest bid. No agency 338
or governing authority shall accept a bid based on items not 339
included in the specifications. 340
(ii) Decision procedure for Certified Purchasing 341
Offices. In addition to the decision procedure set forth in 342
subparagraph (i) of this paragraph (d), Certified Purchasing 343
Offices may also use the following procedure: Purchases may be 344
made from the bidder offering the best value. In determining the 345
best value bid, freight and shipping charges shall be included. 346
Life-cycle costing, total cost bids, warranties, guaranteed 347
buy-back provisions, documented previous experience, training 348
costs and other relevant provisions, including, but not limited 349
to, a bidder having a local office and inventory located within 350
the jurisdiction of the governing authority, may be included in 351
the best value calculation. This provision shall authorize 352
Certified Purchasing Offices to utilize a Request For Proposals 353
(RFP) process when purchasing commodities. All best value 354
procedures for state agencies must be in compliance with 355
regulations established by the Department of Finance and 356
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Administration. No agency or governing authority shall accept a 357
bid based on items or criteria not included in the specifications. 358
(iii) Decision procedure for Prequalified 359
Construction. In addition to the decision procedure set forth in 360
subparagraph (i) of this paragraph (d), where purchase involves 361
renovation, restoration, or both, of the State Capitol Building or 362
any other historical building designated for at least five (5) 363
years as a Mississippi Landmark by the Board of Trustees of the 364
Department of Archives and History under the authority of Sections 365
39-7-7 and 39-7-11, or for any other construction procurement with 366
a minimum construction cost of Ten Million Dollars 367
($10,000,000.00) where the agency or governing authority has 368
determined that prequalification of bidders is in the best 369
interest of the state, the agency or governing authority may use 370
the following procedure: Purchases may be made from the lowest 371
and best prequalified bidder. Solicitation of the 372
prequalification of bidders shall be in accordance with paragraph 373
(c) of this section and shall be determined not less than fifteen 374
(15) working days before the prequalified bidders are invited to 375
submit bids. Prequalification criteria shall be limited to 376
bidder's and proposed sub-contractor's knowledge and experience on 377
projects of similar size and scope, past performance, project 378
management team and financial stability. All best bid and 379
prequalification procedures for state agencies must be in 380
compliance with regulations established by the Department of 381
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Finance and Administration. If any governing authority accepts a 382
bid other than the lowest bid actually submitted, it shall place 383
on its minutes detailed calculations and narrative summary showing 384
that the accepted bid was determined to be the lowest and best 385
bid, including the dollar amount of the accepted bid and the 386
dollar amount of the lowest bid. No agency or governing authority 387
shall accept a bid based on items not included in the 388
specifications. 389
(iv) Construction project negotiations authority. 390
If the lowest and best bid is not more than ten percent (10%) 391
above the amount of funds allocated for a public construction or 392
renovation project, then the agency or governing authority shall 393
be permitted to negotiate with the lowest bidder in order to enter 394
into a contract for an amount not to exceed the funds allocated. 395
(e) Lease-purchase authorization. For the purposes of 396
this section, the term "equipment" shall mean equipment, furniture 397
and, if applicable, associated software and other applicable 398
direct costs associated with the acquisition. Any lease-purchase 399
of equipment which an agency is not required to lease-purchase 400
under the master lease-purchase program pursuant to Section 401
31-7-10 and any lease-purchase of equipment which a governing 402
authority elects to lease-purchase may be acquired by a 403
lease-purchase agreement under this paragraph (e). Lease-purchase 404
financing may also be obtained from the vendor or from a 405
third-party source after having solicited and obtained at least 406
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two (2) written competitive bids, as defined in paragraph (b) of 407
this section, for such financing without advertising for such 408
bids. Solicitation for the bids for financing may occur before or 409
after acceptance of bids for the purchase of such equipment or, 410
where no such bids for purchase are required, at any time before 411
the purchase thereof. No such lease-purchase agreement shall be 412
for an annual rate of interest which is greater than the overall 413
maximum interest rate to maturity on general obligation 414
indebtedness permitted under Section 75-17-101, and the term of 415
such lease-purchase agreement shall not exceed the useful life of 416
equipment covered thereby as determined according to the upper 417
limit of the asset depreciation range (ADR) guidelines for the 418
Class Life Asset Depreciation Range System established by the 419
Internal Revenue Service pursuant to the United States Internal 420
Revenue Code and regulations thereunder as in effect on December 421
31, 1980, or comparable depreciation guidelines with respect to 422
any equipment not covered by ADR guidelines. Any lease-purchase 423
agreement entered into pursuant to this paragraph (e) may contain 424
any of the terms and conditions which a master lease-purchase 425
agreement may contain under the provisions of Section 31-7-10(5), 426
and shall contain an annual allocation dependency clause 427
substantially similar to that set forth in Section 31-7-10(8). 428
Each agency or governing authority entering into a lease-purchase 429
transaction pursuant to this paragraph (e) shall maintain with 430
respect to each such lease-purchase transaction the same 431
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information as required to be maintained by the Department of 432
Finance and Administration pursuant to Section 31-7-10(13). 433
However, nothing contained in this section shall be construed to 434
permit agencies to acquire items of equipment with a total 435
acquisition cost in the aggregate of less than Ten Thousand 436
Dollars ($10,000.00) by a single lease-purchase transaction. All 437
equipment, and the purchase thereof by any lessor, acquired by 438
lease-purchase under this paragraph and all lease-purchase 439
payments with respect thereto shall be exempt from all Mississippi 440
sales, use and ad valorem taxes. Interest paid on any 441
lease-purchase agreement under this section shall be exempt from 442
State of Mississippi income taxation. 443
(f) Alternate bid authorization. When necessary to 444
ensure ready availability of commodities for public works and the 445
timely completion of public projects, no more than two (2) 446
alternate bids may be accepted by a governing authority for 447
commodities. No purchases may be made through use of such 448
alternate bids procedure unless the lowest and best bidder cannot 449
deliver the commodities contained in his bid. In that event, 450
purchases of such commodities may be made from one (1) of the 451
bidders whose bid was accepted as an alternate. 452
(g) Construction contract change authorization. In the 453
event a determination is made by an agency or governing authority 454
after a construction contract is let that changes or modifications 455
to the original contract are necessary or would better serve the 456
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purpose of the agency or the governing authority, such agency or 457
governing authority may, in its discretion, order such changes 458
pertaining to the construction that are necessary under the 459
circumstances without the necessity of further public bids; 460
provided that such change shall be made in a commercially 461
reasonable manner and shall not be made to circumvent the public 462
purchasing statutes. In addition to any other authorized person, 463
the architect or engineer hired by an agency or governing 464
authority with respect to any public construction contract shall 465
have the authority, when granted by an agency or governing 466
authority, to authorize changes or modifications to the original 467
contract without the necessity of prior approval of the agency or 468
governing authority when any such change or modification is less 469
than one percent (1%) of the total contract amount. The agency or 470
governing authority may limit the number, manner or frequency of 471
such emergency changes or modifications. 472
(h) Petroleum purchase alternative. In addition to 473
other methods of purchasing authorized in this chapter, when any 474
agency or governing authority shall have a need for gas, diesel 475
fuel, oils and/or other petroleum products in excess of the amount 476
set forth in paragraph (a) of this section, such agency or 477
governing authority may purchase the commodity after having 478
solicited and obtained at least two (2) competitive written bids, 479
as defined in paragraph (b) of this section. If two (2) 480
competitive written bids are not obtained, the entity shall comply 481
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with the procedures set forth in paragraph (c) of this section. 482
In the event any agency or governing authority shall have 483
advertised for bids for the purchase of gas, diesel fuel, oils and 484
other petroleum products and coal and no acceptable bids can be 485
obtained, such agency or governing authority is authorized and 486
directed to enter into any negotiations necessary to secure the 487
lowest and best contract available for the purchase of such 488
commodities. 489
(i) Road construction petroleum products price 490
adjustment clause authorization. Any agency or governing 491
authority authorized to enter into contracts for the construction, 492
maintenance, surfacing or repair of highways, roads or streets, 493
may include in its bid proposal and contract documents a price 494
adjustment clause with relation to the cost to the contractor, 495
including taxes, based upon an industry-wide cost index, of 496
petroleum products including asphalt used in the performance or 497
execution of the contract or in the production or manufacture of 498
materials for use in such performance. Such industry-wide index 499
shall be established and published monthly by the Mississippi 500
Department of Transportation with a copy thereof to be mailed, 501
upon request, to the clerks of the governing authority of each 502
municipality and the clerks of each board of supervisors 503
throughout the state. The price adjustment clause shall be based 504
on the cost of such petroleum products only and shall not include 505
any additional profit or overhead as part of the adjustment. The 506
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bid proposals or document contract shall contain the basis and 507
methods of adjusting unit prices for the change in the cost of 508
such petroleum products. 509
(j) State agency emergency purchase procedure. If the 510
governing board or the executive head, or his designees, of any 511
agency of the state shall determine that an emergency exists in 512
regard to the purchase of any commodities or repair contracts, so 513
that the delay incident to giving opportunity for competitive 514
bidding would be detrimental to the interests of the state, then 515
the head of such agency, or his designees, shall file with the 516
Department of Finance and Administration (i) a statement 517
explaining the conditions and circumstances of the emergency, 518
which shall include a detailed description of the events leading 519
up to the situation and the negative impact to the entity if the 520
purchase is made following the statutory requirements set forth in 521
paragraph (a), (b) or (c) of this section, and (ii) a certified 522
copy of the appropriate minutes of the board of such agency 523
requesting the emergency purchase, if applicable. Upon receipt of 524
the statement and applicable board certification, the State Fiscal 525
Officer, or his designees, may, in writing, authorize the purchase 526
or repair without having to comply with competitive bidding 527
requirements. 528
If the governing board or the executive head, or his 529
designees, of any agency determines that an emergency exists in 530
regard to the purchase of any commodities or repair contracts, so 531
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that the delay incident to giving opportunity for competitive 532
bidding would threaten the health or safety of any person, or the 533
preservation or protection of property, then the provisions in 534
this section for competitive bidding shall not apply, and any 535
officer or agent of the agency having general or specific 536
authority for making the purchase or repair contract shall approve 537
the bill presented for payment, and he shall certify in writing 538
from whom the purchase was made, or with whom the repair contract 539
was made. 540
Total purchases made under this paragraph (j) shall only be 541
for the purpose of meeting needs created by the emergency 542
situation. Following the emergency purchase, documentation of the 543
purchase, including a description of the commodity purchased, the 544
purchase price thereof and the nature of the emergency shall be 545
filed with the Department of Finance and Administration. Any 546
contract awarded pursuant to this paragraph (j) shall not exceed a 547
term of one (1) year. 548
Purchases under the grant program established under Section 549
37-68-7 in response to COVID-19 and the directive that school 550
districts create a distance learning plan and fulfill technology 551
needs expeditiously shall be deemed an emergency purchase for 552
purposes of this paragraph (j). 553
(k) Governing authority emergency purchase procedure. 554
If the governing authority, or the governing authority acting 555
through its designee, shall determine that an emergency exists in 556
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regard to the purchase of any commodities or repair contracts, so 557
that the delay incident to giving opportunity for competitive 558
bidding would be detrimental to the interest of the governing 559
authority, then the provisions herein for competitive bidding 560
shall not apply and any officer or agent of such governing 561
authority having general or special authority therefor in making 562
such purchase or repair shall approve the bill presented therefor, 563
and he shall certify in writing thereon from whom such purchase 564
was made, or with whom such a repair contract was made. At the 565
board meeting next following the emergency purchase or repair 566
contract, documentation of the purchase or repair contract, 567
including a description of the commodity purchased, the price 568
thereof and the nature of the emergency shall be presented to the 569
board and shall be placed on the minutes of the board of such 570
governing authority. Purchases under the grant program 571
established under Section 37-68-7 in response to COVID-19 and the 572
directive that school districts create a distance learning plan 573
and fulfill technology needs expeditiously shall be deemed an 574
emergency purchase for purposes of this paragraph (k). 575
(l) Hospital purchase, lease-purchase and lease 576
authorization. 577
(i) The commissioners or board of trustees of any 578
public hospital may contract with such lowest and best bidder for 579
the purchase or lease-purchase of any commodity under a contract 580
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of purchase or lease-purchase agreement whose obligatory payment 581
terms do not exceed five (5) years. 582
(ii) In addition to the authority granted in 583
subparagraph (i) of this paragraph (l), the commissioners or board 584
of trustees is authorized to enter into contracts for the lease of 585
equipment or services, or both, which it considers necessary for 586
the proper care of patients if, in its opinion, it is not 587
financially feasible to purchase the necessary equipment or 588
services. Any such contract for the lease of equipment or 589
services executed by the commissioners or board shall not exceed a 590
maximum of five (5) years' duration and shall include a 591
cancellation clause based on unavailability of funds. If such 592
cancellation clause is exercised, there shall be no further 593
liability on the part of the lessee. Any such contract for the 594
lease of equipment or services executed on behalf of the 595
commissioners or board that complies with the provisions of this 596
subparagraph (ii) shall be excepted from the bid requirements set 597
forth in this section. 598
(m) Exceptions from bidding requirements. Excepted 599
from bid requirements are: 600
(i) Purchasing agreements approved by department. 601
Purchasing agreements, contracts and maximum price regulations 602
executed or approved by the Department of Finance and 603
Administration. 604
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(ii) Outside equipment repairs. Repairs to 605
equipment, when such repairs are made by repair facilities in the 606
private sector; however, engines, transmissions, rear axles and/or 607
other such components shall not be included in this exemption when 608
replaced as a complete unit instead of being repaired and the need 609
for such total component replacement is known before disassembly 610
of the component; however, invoices identifying the equipment, 611
specific repairs made, parts identified by number and name, 612
supplies used in such repairs, and the number of hours of labor 613
and costs therefor shall be required for the payment for such 614
repairs. 615
(iii) In-house equipment repairs. Purchases of 616
parts for repairs to equipment, when such repairs are made by 617
personnel of the agency or governing authority; however, entire 618
assemblies, such as engines or transmissions, shall not be 619
included in this exemption when the entire assembly is being 620
replaced instead of being repaired. 621
(iv) Raw gravel or dirt. Raw unprocessed deposits 622
of gravel or fill dirt which are to be removed and transported by 623
the purchaser. 624
(v) Governmental equipment auctions. Motor 625
vehicles or other equipment purchased from a federal agency or 626
authority, another governing authority or state agency of the 627
State of Mississippi, or any governing authority or state agency 628
of another state at a public auction held for the purpose of 629
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disposing of such vehicles or other equipment. Any purchase by a 630
governing authority under the exemption authorized by this 631
subparagraph (v) shall require advance authorization spread upon 632
the minutes of the governing authority to include the listing of 633
the item or items authorized to be purchased and the maximum bid 634
authorized to be paid for each item or items. 635
(vi) Intergovernmental sales and transfers. 636
Purchases, sales, transfers or trades by governing authorities or 637
state agencies when such purchases, sales, transfers or trades are 638
made by a private treaty agreement or through means of 639
negotiation, from any federal agency or authority, another 640
governing authority or state agency of the State of Mississippi, 641
or any state agency or governing authority of another state. 642
Nothing in this section shall permit such purchases through public 643
auction except as provided for in subparagraph (v) of this 644
paragraph (m). It is the intent of this section to allow 645
governmental entities to dispose of and/or purchase commodities 646
from other governmental entities at a price that is agreed to by 647
both parties. This shall allow for purchases and/or sales at 648
prices which may be determined to be below the market value if the 649
selling entity determines that the sale at below market value is 650
in the best interest of the taxpayers of the state. Governing 651
authorities shall place the terms of the agreement and any 652
justification on the minutes, and state agencies shall obtain 653
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approval from the Department of Finance and Administration, prior 654
to releasing or taking possession of the commodities. 655
(vii) Perishable supplies or food. Perishable 656
supplies or food purchased for use in connection with hospitals, 657
the school lunch programs, homemaking programs and for the feeding 658
of county or municipal prisoners. 659
(viii) Single-source items. Noncompetitive items 660
available from one (1) source only. In connection with the 661
purchase of noncompetitive items only available from one (1) 662
source, a certification of the conditions and circumstances 663
requiring the purchase shall be filed by the agency with the 664
Department of Finance and Administration and by the governing 665
authority with the board of the governing authority. Upon receipt 666
of that certification the Department of Finance and Administration 667
or the board of the governing authority, as the case may be, may, 668
in writing, authorize the purchase, which authority shall be noted 669
on the minutes of the body at the next regular meeting thereafter. 670
In those situations, a governing authority is not required to 671
obtain the approval of the Department of Finance and 672
Administration. Following the purchase, the executive head of the 673
state agency, or his designees, shall file with the Department of 674
Finance and Administration, documentation of the purchase, 675
including a description of the commodity purchased, the purchase 676
price thereof and the source from whom it was purchased. 677
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(ix) Waste disposal facility construction 678
contracts. Construction of incinerators and other facilities for 679
disposal of solid wastes in which products either generated 680
therein, such as steam, or recovered therefrom, such as materials 681
for recycling, are to be sold or otherwise disposed of; however, 682
in constructing such facilities, a governing authority or agency 683
shall publicly issue requests for proposals, advertised for in the 684
same manner as provided herein for seeking bids for public 685
construction projects, concerning the design, construction, 686
ownership, operation and/or maintenance of such facilities, 687
wherein such requests for proposals when issued shall contain 688
terms and conditions relating to price, financial responsibility, 689
technology, environmental compatibility, legal responsibilities 690
and such other matters as are determined by the governing 691
authority or agency to be appropriate for inclusion; and after 692
responses to the request for proposals have been duly received, 693
the governing authority or agency may select the most qualified 694
proposal or proposals on the basis of price, technology and other 695
relevant factors and from such proposals, but not limited to the 696
terms thereof, negotiate and enter contracts with one or more of 697
the persons or firms submitting proposals. 698
(x) Hospital group purchase contracts. Supplies, 699
commodities and equipment purchased by hospitals through group 700
purchase programs pursuant to Section 31-7-38. 701
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(xi) Information technology products. Purchases 702
of information technology products made by governing authorities 703
under the provisions of purchase schedules, or contracts executed 704
or approved by the Mississippi Department of Information 705
Technology Services and designated for use by governing 706
authorities. 707
(xii) Energy efficiency services and equipment. 708
Energy efficiency services and equipment acquired by school 709
districts, community and junior colleges, institutions of higher 710
learning and state agencies or other applicable governmental 711
entities on a shared-savings, lease or lease-purchase basis 712
pursuant to Section 31-7-14. 713
(xiii) Municipal electrical utility system fuel. 714
Purchases of coal and/or natural gas by municipally owned electric 715
power generating systems that have the capacity to use both coal 716
and natural gas for the generation of electric power. 717
(xiv) Library books and other reference materials. 718
Purchases by libraries or for libraries of books and periodicals; 719
processed film, videocassette tapes, filmstrips and slides; 720
recorded audiotapes, cassettes and diskettes; and any such items 721
as would be used for teaching, research or other information 722
distribution; however, equipment such as projectors, recorders, 723
audio or video equipment, and monitor televisions are not exempt 724
under this subparagraph. 725
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(xv) Unmarked vehicles. Purchases of unmarked 726
vehicles when such purchases are made in accordance with 727
purchasing regulations adopted by the Department of Finance and 728
Administration pursuant to Section 31-7-9(2). 729
(xvi) Election ballots. Purchases of ballots 730
printed pursuant to Section 23-15-351. 731
(xvii) Multichannel interactive video systems. 732
From and after July 1, 1990, contracts by Mississippi Authority 733
for Educational Television with any private educational 734
institution or private nonprofit organization whose purposes are 735
educational in regard to the construction, purchase, lease or 736
lease-purchase of facilities and equipment and the employment of 737
personnel for providing multichannel interactive video systems 738
(ITSF) in the school districts of this state. 739
(xviii) Purchases of prison industry products by 740
the Department of Corrections, regional correctional facilities or 741
privately owned prisons. Purchases made by the Mississippi 742
Department of Corrections, regional correctional facilities or 743
privately owned prisons involving any item that is manufactured, 744
processed, grown or produced from the state's prison industries. 745
(xix) Undercover operations equipment. Purchases 746
of surveillance equipment or any other high-tech equipment to be 747
used by law enforcement agents in undercover operations, provided 748
that any such purchase shall be in compliance with regulations 749
established by the Department of Finance and Administration. 750
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(xx) Junior college books for rent. Purchases by 751
community or junior colleges of textbooks which are obtained for 752
the purpose of renting such books to students as part of a book 753
service system. 754
(xxi) Certain school district purchases. 755
Purchases of commodities made by school districts from vendors 756
with which any levying authority of the school district, as 757
defined in Section 37-57-1, has contracted through competitive 758
bidding procedures for purchases of the same commodities. 759
(xxii) Garbage, solid waste and sewage contracts. 760
Contracts for garbage collection or disposal, contracts for solid 761
waste collection or disposal and contracts for sewage collection 762
or disposal. 763
(xxiii) Municipal water tank maintenance 764
contracts. Professional maintenance program contracts for the 765
repair or maintenance of municipal water tanks, which provide 766
professional services needed to maintain municipal water storage 767
tanks for a fixed annual fee for a duration of two (2) or more 768
years. 769
(xxiv) Purchases of Mississippi Industries for the 770
Blind products or services. Purchases made by state agencies or 771
governing authorities involving any item that is manufactured, 772
processed or produced by, or any services provided by, the 773
Mississippi Industries for the Blind. 774
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(xxv) Purchases of state-adopted textbooks. 775
Purchases of state-adopted textbooks by public school districts. 776
(xxvi) Certain purchases under the Mississippi 777
Major Economic Impact Act. Contracts entered into pursuant to the 778
provisions of Section 57-75-9(2), (3) and (4). 779
(xxvii) Used heavy or specialized machinery or 780
equipment for installation of soil and water conservation 781
practices purchased at auction. Used heavy or specialized 782
machinery or equipment used for the installation and 783
implementation of soil and water conservation practices or 784
measures purchased subject to the restrictions provided in 785
Sections 69-27-331 through 69-27-341. Any purchase by the State 786
Soil and Water Conservation Commission under the exemption 787
authorized by this subparagraph shall require advance 788
authorization spread upon the minutes of the commission to include 789
the listing of the item or items authorized to be purchased and 790
the maximum bid authorized to be paid for each item or items. 791
(xxviii) Hospital lease of equipment or services. 792
Leases by hospitals of equipment or services if the leases are in 793
compliance with paragraph (l)(ii). 794
(xxix) Purchases made pursuant to qualified 795
cooperative purchasing agreements. Purchases made by certified 796
purchasing offices of state agencies or governing authorities 797
under cooperative purchasing agreements previously approved by the 798
Office of Purchasing and Travel and established by or for any 799
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municipality, county, parish or state government or the federal 800
government, provided that the notification to potential 801
contractors includes a clause that sets forth the availability of 802
the cooperative purchasing agreement to other governmental 803
entities. Such purchases shall only be made if the use of the 804
cooperative purchasing agreements is determined to be in the best 805
interest of the governmental entity. 806
(xxx) School yearbooks. Purchases of school 807
yearbooks by state agencies or governing authorities; however, 808
state agencies and governing authorities shall use for these 809
purchases the RFP process as set forth in the Mississippi 810
Procurement Manual adopted by the Office of Purchasing and Travel. 811
(xxxi) Design-build method of contracting and 812
certain other contracts. Contracts entered into under the 813
provisions of Section 31-7-13.1, 37-101-44 or 65-1-85. 814
(xxxii) Toll roads and bridge construction 815
projects. Contracts entered into under the provisions of Section 816
65-43-1 or 65-43-3. 817
(xxxiii) Certain purchases under Section 57-1-221. 818
Contracts entered into pursuant to the provisions of Section 819
57-1-221. 820
(xxxiv) Certain transfers made pursuant to the 821
provisions of Section 57-105-1(7). Transfers of public property 822
or facilities under Section 57-105-1(7) and construction related 823
to such public property or facilities. 824
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(xxxv) Certain purchases or transfers entered into 825
with local electrical power associations. Contracts or agreements 826
entered into under the provisions of Section 55-3-33. 827
(xxxvi) Certain purchases by an academic medical 828
center or health sciences school. Purchases by an academic 829
medical center or health sciences school, as defined in Section 830
37-115-50, of commodities that are used for clinical purposes and 831
1. intended for use in the diagnosis of disease or other 832
conditions or in the cure, mitigation, treatment or prevention of 833
disease, and 2. medical devices, biological, drugs and 834
radiation-emitting devices as defined by the United States Food 835
and Drug Administration. 836
(xxxvii) Certain purchases made under the Alyce G. 837
Clarke Mississippi Lottery Law. Contracts made by the Mississippi 838
Lottery Corporation pursuant to the Alyce G. Clarke Mississippi 839
Lottery Law. 840
(xxxviii) Certain purchases made by the Department 841
of Health and the Department of Revenue. Purchases made by the 842
Department of Health and the Department of Revenue solely for the 843
purpose of fulfilling their respective responsibilities under the 844
Mississippi Medical Cannabis Act. This subparagraph shall stand 845
repealed on June 30, 2026. 846
(xxxix) Purchases made by state agencies related 847
to museum exhibits. Purchases made by an agency related to the 848
fabrication, construction, installation or refurbishing of museum 849
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exhibits. An agency making a purchase under this exemption in 850
excess of the bid threshold set forth in paragraph (c) of this 851
section shall publicly advertise a Request for Qualifications or 852
Request for Proposals in which price as an evaluation factor is at 853
least twenty percent (20%) out of the one hundred percent (100%) 854
total weight, but shall be otherwise exempt. Any contract arising 855
from a purchase using this exemption must be approved by the 856
Public Procurement Review Board prior to execution by the agency. 857
The agency shall submit a written report on December 1 of each 858
year to the Chairs of the Senate and House Appropriations 859
Committees, the Chairs of the Senate and House Accountability, 860
Efficiency and Transparency Committees and the Chair of the Public 861
Procurement Review Board, identifying all purchases made by the 862
agency using this exemption in which the cost of the option 863
selected by the agency was more than twenty-five percent (25%) 864
higher than the lowest cost option available. 865
(xl) County group purchase contracts. Supplies, 866
commodities, and equipment purchased by counties through group 867
purchase programs pursuant to Section 31-7-40. 868
(xli) Vehicles for Mississippi Highway Safety 869
Patrol. Purchases of vehicles to be used by officers of the 870
Mississippi Highway Safety Patrol. 871
(xliii) Interstate contract purchases as allowed 872
by the Federal Transit Administration. Vehicles funded through 873
the Mississippi Department of Transportation via the Federal 874
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Transit Administration, which may be purchased by transit agencies 875
in the state from other states' purchasing schedules that have 876
been approved by the Federal Transit Administration. 877
(n) Term contract authorization. All contracts for the 878
purchase of: 879
(i) All contracts for the purchase of commodities, 880
equipment and public construction (including, but not limited to, 881
repair and maintenance), may be let for periods of not more than 882
sixty (60) months in advance, subject to applicable statutory 883
provisions prohibiting the letting of contracts during specified 884
periods near the end of terms of office. Term contracts for a 885
period exceeding twenty-four (24) months shall also be subject to 886
ratification or cancellation by governing authority boards taking 887
office subsequent to the governing authority board entering the 888
contract. 889
(ii) Bid proposals and contracts may include price 890
adjustment clauses with relation to the cost to the contractor 891
based upon a nationally published industry-wide or nationally 892
published and recognized cost index. The cost index used in a 893
price adjustment clause shall be determined by the Department of 894
Finance and Administration for the state agencies and by the 895
governing board for governing authorities. The bid proposal and 896
contract documents utilizing a price adjustment clause shall 897
contain the basis and method of adjusting unit prices for the 898
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change in the cost of such commodities, equipment and public 899
construction. 900
(o) Purchase law violation prohibition and vendor 901
penalty. No contract or purchase as herein authorized shall be 902
made for the purpose of circumventing the provisions of this 903
section requiring competitive bids, nor shall it be lawful for any 904
person or concern to submit individual invoices for amounts within 905
those authorized for a contract or purchase where the actual value 906
of the contract or commodity purchased exceeds the authorized 907
amount and the invoices therefor are split so as to appear to be 908
authorized as purchases for which competitive bids are not 909
required. Submission of such invoices shall constitute a 910
misdemeanor punishable by a fine of not less than Five Hundred 911
Dollars ($500.00) nor more than One Thousand Dollars ($1,000.00), 912
or by imprisonment for thirty (30) days in the county jail, or 913
both such fine and imprisonment. In addition, the claim or claims 914
submitted shall be forfeited. 915
(p) Electrical utility petroleum-based equipment 916
purchase procedure. When in response to a proper advertisement 917
therefor, no bid firm as to price is submitted to an electric 918
utility for power transformers, distribution transformers, power 919
breakers, reclosers or other articles containing a petroleum 920
product, the electric utility may accept the lowest and best bid 921
therefor although the price is not firm. 922
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(q) Fuel management system bidding procedure. Any 923
governing authority or agency of the state shall, before 924
contracting for the services and products of a fuel management or 925
fuel access system, enter into negotiations with not fewer than 926
two (2) sellers of fuel management or fuel access systems for 927
competitive written bids to provide the services and products for 928
the systems. In the event that the governing authority or agency 929
cannot locate two (2) sellers of such systems or cannot obtain 930
bids from two (2) sellers of such systems, it shall show proof 931
that it made a diligent, good-faith effort to locate and negotiate 932
with two (2) sellers of such systems. Such proof shall include, 933
but not be limited to, publications of a request for proposals and 934
letters soliciting negotiations and bids. For purposes of this 935
paragraph (q), a fuel management or fuel access system is an 936
automated system of acquiring fuel for vehicles as well as 937
management reports detailing fuel use by vehicles and drivers, and 938
the term "competitive written bid" shall have the meaning as 939
defined in paragraph (b) of this section. Governing authorities 940
and agencies shall be exempt from this process when contracting 941
for the services and products of fuel management or fuel access 942
systems under the terms of a state contract established by the 943
Office of Purchasing and Travel. 944
(r) Solid waste contract proposal procedure. Before 945
entering into any contract for garbage collection or disposal, 946
contract for solid waste collection or disposal or contract for 947
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sewage collection or disposal, which involves an expenditure of 948
more than Seventy-five Thousand Dollars ($75,000.00), a governing 949
authority or agency shall issue publicly a request for proposals 950
concerning the specifications for such services which shall be 951
advertised for in the same manner as provided in this section for 952
seeking bids for purchases which involve an expenditure of more 953
than the amount provided in paragraph (c) of this section. Any 954
request for proposals when issued shall contain terms and 955
conditions relating to price, financial responsibility, 956
technology, legal responsibilities and other relevant factors as 957
are determined by the governing authority or agency to be 958
appropriate for inclusion; all factors determined relevant by the 959
governing authority or agency or required by this paragraph (r) 960
shall be duly included in the advertisement to elicit proposals. 961
After responses to the request for proposals have been duly 962
received, the governing authority or agency shall select the most 963
qualified proposal or proposals on the basis of price, technology 964
and other relevant factors and from such proposals, but not 965
limited to the terms thereof, negotiate and enter into contracts 966
with one or more of the persons or firms submitting proposals. If 967
the governing authority or agency deems none of the proposals to 968
be qualified or otherwise acceptable, the request for proposals 969
process may be reinitiated. Notwithstanding any other provisions 970
of this paragraph, where a county with at least thirty-five 971
thousand (35,000) nor more than forty thousand (40,000) 972
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population, according to the 1990 federal decennial census, owns 973
or operates a solid waste landfill, the governing authorities of 974
any other county or municipality may contract with the governing 975
authorities of the county owning or operating the landfill, 976
pursuant to a resolution duly adopted and spread upon the minutes 977
of each governing authority involved, for garbage or solid waste 978
collection or disposal services through contract negotiations. 979
(s) Minority set-aside authorization. Notwithstanding 980
any provision of this section to the contrary, any agency or 981
governing authority, by order placed on its minutes, may, in its 982
discretion, set aside not more than twenty percent (20%) of its 983
anticipated annual expenditures for the purchase of commodities 984
from minority businesses; however, all such set-aside purchases 985
shall comply with all purchasing regulations promulgated by the 986
Department of Finance and Administration and shall be subject to 987
bid requirements under this section. Set-aside purchases for 988
which competitive bids are required shall be made from the lowest 989
and best minority business bidder. For the purposes of this 990
paragraph, the term "minority business" means a business which is 991
owned by a majority of persons who are United States citizens or 992
permanent resident aliens (as defined by the Immigration and 993
Naturalization Service) of the United States, and who are Asian, 994
Black, Hispanic or Native American, according to the following 995
definitions: 996
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(i) "Asian" means persons having origins in any of 997
the original people of the Far East, Southeast Asia, the Indian 998
subcontinent, or the Pacific Islands. 999
(ii) "Black" means persons having origins in any 1000
black racial group of Africa. 1001
(iii) "Hispanic" means persons of Spanish or 1002
Portuguese culture with origins in Mexico, South or Central 1003
America, or the Caribbean Islands, regardless of race. 1004
(iv) "Native American" means persons having 1005
origins in any of the original people of North America, including 1006
American Indians, Eskimos and Aleuts. 1007
(t) Construction punch list restriction. The 1008
architect, engineer or other representative designated by the 1009
agency or governing authority that is contracting for public 1010
construction or renovation may prepare and submit to the 1011
contractor only one (1) preliminary punch list of items that do 1012
not meet the contract requirements at the time of substantial 1013
completion and one (1) final list immediately before final 1014
completion and final payment. 1015
(u) Procurement of construction services by state 1016
institutions of higher learning. Contracts for privately financed 1017
construction of auxiliary facilities on the campus of a state 1018
institution of higher learning may be awarded by the Board of 1019
Trustees of State Institutions of Higher Learning to the lowest 1020
and best bidder, where sealed bids are solicited, or to the 1021
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offeror whose proposal is determined to represent the best value 1022
to the citizens of the State of Mississippi, where requests for 1023
proposals are solicited. 1024
(v) Insurability of bidders for public construction or 1025
other public contracts. In any solicitation for bids to perform 1026
public construction or other public contracts to which this 1027
section applies, including, but not limited to, contracts for 1028
repair and maintenance, for which the contract will require 1029
insurance coverage in an amount of not less than One Million 1030
Dollars ($1,000,000.00), bidders shall be permitted to either 1031
submit proof of current insurance coverage in the specified amount 1032
or demonstrate ability to obtain the required coverage amount of 1033
insurance if the contract is awarded to the bidder. Proof of 1034
insurance coverage shall be submitted within five (5) business 1035
days from bid acceptance. 1036
(w) Purchase authorization clarification. Nothing in 1037
this section shall be construed as authorizing any purchase not 1038
authorized by law. 1039
(x) Mississippi Regional Pre-Need Disaster Clean Up 1040
Act. (i) The * * * Mississippi Emergency Management Agency 1041
shall develop and implement a process that creates a preferred 1042
vendor list for both disaster debris removal and monitoring. 1043
(ii) Any board of supervisors of any county or any 1044
governing authority of any municipality may opt in to the benefits 1045
and services provided under the appropriate and relevant contract 1046
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established in subparagraph (i) of this paragraph at the time of a 1047
disaster event in that county or municipality. At the time of opt 1048
in, the county or municipality shall assume responsibility for 1049
payment in full to the contractor for the disaster-related solid 1050
waste collection, disposal or monitoring services provided. 1051
Nothing in this subparagraph (ii) shall be construed as requiring 1052
a county or municipality to opt in to any such contract 1053
established in subparagraph (i) of this paragraph. 1054
SECTION 2. Section 31-3-1, Mississippi Code of 1972, is 1055
amended as follows: 1056
31-3-1. The following words, as used in this chapter, shall 1057
have the meanings specified below: 1058
"Board": The State Board of Contractors created under this 1059
chapter. 1060
"Contractor": Any person contracting or undertaking as prime 1061
contractor, subcontractor or sub-subcontractor of any tier to do 1062
any erection, building, construction, reconstruction, demolition, 1063
repair, maintenance or related work on any public or private 1064
project; however, "contractor" shall not include any owner of a 1065
dwelling or other structure to be constructed, altered, repaired 1066
or improved and not for sale, lease, public use or assembly, or 1067
any person duly permitted by the Mississippi State Oil and Gas 1068
Board, pursuant to Section 53-3-11, Mississippi Code of 1972, to 1069
conduct operations within the state, and acting pursuant to said 1070
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permit. It is further provided that nothing herein shall apply 1071
to: 1072
(a) Any contract or undertaking on a public or private 1073
project by a prime contractor, subcontractor or sub-subcontractor 1074
of any tier involving erection, building, construction, 1075
reconstruction, repair, maintenance or related work where such 1076
contract, subcontract or undertaking is less than Fifty Thousand 1077
Dollars ($50,000.00); 1078
(b) Highway construction, highway bridges, overpasses 1079
and any other project incidental to the construction of highways 1080
which are designated as federal aid projects and in which federal 1081
funds are involved; 1082
(c) A residential project to be occupied by fifty (50) 1083
or fewer families and not more than three (3) stories in height; 1084
(d) A residential subdivision where the contractor is 1085
developing either single-family or multifamily lots; 1086
(e) A new commercial construction project not exceeding 1087
seventy-five hundred (7500) square feet and not more than two (2) 1088
stories in height undertaken by an individual or entity licensed 1089
under the provisions of Section 73-59-1 et seq.; 1090
(f) Erection of a microwave tower built for the purpose 1091
of telecommunication transmissions; 1092
(g) Any contract or undertaking on a public project by 1093
a prime contractor, subcontractor or sub-subcontractor of any tier 1094
involving the construction, reconstruction, repair or maintenance 1095
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of fire protection systems where such contract, subcontract or 1096
undertaking is less than * * * Fifteen Thousand Dollars 1097
($15,000.00); 1098
(h) Any contract or undertaking on a private project by 1099
a prime contractor, subcontractor or sub-subcontractor of any tier 1100
involving the construction, reconstruction, repair or maintenance 1101
of fire protection systems where such contract, subcontract or 1102
undertaking is less than * * * Twenty Thousand Dollars 1103
($20,000.00); 1104
(i) Any contract or undertaking on a private or public 1105
project by a prime contractor, subcontractor or sub-subcontractor 1106
of any tier involving the construction, reconstruction, repair or 1107
maintenance of technically specialized installations if performed 1108
by a Mississippi contractor who has been in the business of 1109
installing fire protection sprinkler systems on or before July 1, 1110
2000; or 1111
(j) Any contractor undertaking to build, construct, 1112
reconstruct, repair, demolish, perform maintenance on, or other 1113
related work, whether on the surface or subsurface, on oil or gas 1114
wells, pipelines, processing plants, or treatment facilities or 1115
other structures of facilities. Nothing herein shall be construed 1116
to limit the application or effect of Section 31-5-41. 1117
"Certificate of responsibility": A certificate numbered and 1118
held by a contractor issued by the board under the provisions of 1119
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this chapter after payment of the special privilege license tax 1120
therefor levied under this chapter. 1121
"Person": Any person, firm, corporation, joint venture or 1122
partnership, association or other type of business entity. 1123
"Private project": Any project for erection, building, 1124
construction, reconstruction, repair, maintenance or related work 1125
which is not funded in whole or in part with public funds. 1126
"Public agency": Any board, commission, council or agency of 1127
the State of Mississippi or any district, county or municipality 1128
thereof, including school, hospital, airport and all other types 1129
of governing agencies created by or operating under the laws of 1130
this state. 1131
"Public funds": Monies of public agencies, whether obtained 1132
from taxation, donation or otherwise; or monies being expended by 1133
public agencies for the purposes for which such public agencies 1134
exist. 1135
"Public project": Any project for erection, building, 1136
construction, reconstruction, repair, maintenance or related work 1137
which is funded in whole or in part with public funds. 1138
SECTION 3. Section 31-5-37, Mississippi Code of 1972, is 1139
amended as follows: 1140
31-5-37. (1) All public works projects utilizing funds 1141
received by state or local governmental entities resulting from a 1142
federally declared disaster or a spill of national significance, 1143
including damages, penalties, fines or supplemental projects paid 1144
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or financed by responsible parties pursuant to a court order, 1145
negotiated settlement, or other instrument, including under any 1146
law distributing such fines and penalties including the federal 1147
Resources and Ecosystems Sustainability, Tourist Opportunities and 1148
Revived Economy of the Gulf Coast Act of 2011 (R.E.S.T.O.R.E.), 1149
the Oil Pollution Act of 1990 or the Federal Water Pollution 1150
Control Act or similar legislation, shall be subject to the hiring 1151
policies established by this section. 1152
(2) Contractors submitting bids for public works projects 1153
that involve an expenditure of * * * Fifteen Thousand Dollars 1154
($15,000.00) or more and that are financed, in whole or in part, 1155
through the use of funds described in subsection (1) of this 1156
section shall submit with their bid a certification that they will 1157
comply with the provisions of this section if they are awarded a 1158
contract. The contractor shall submit to the agency or governing 1159
authority that solicited the bid and the Mississippi Department of 1160
Employment Security an employment plan within seven (7) days after 1161
the award of the contract which shall include the following: 1162
(a) The types of jobs involved in the public works 1163
project; 1164
(b) The skill level of the jobs involved in the 1165
project; 1166
(c) Wage information on the jobs involved in the 1167
project; 1168
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(d) The number of vacant positions that the contractor 1169
and any subcontractor needs to fill; 1170
(e) How the contractor and any subcontractor will 1171
recruit, low-wage and unemployed individuals for job vacancies; 1172
(f) Such other information as may be required by the 1173
Mississippi Department of Employment Security; and 1174
(g) Proof of registration with the Mississippi 1175
Department of Employment Security for taxation in accordance with 1176
the provisions of Title 71. 1177
(3) From the date written notice of the contract award is 1178
received and until ten (10) business days after the receipt of the 1179
employment plan by the Mississippi Department of Employment 1180
Security, the contractor and any subcontractor shall not hire any 1181
personnel to fill vacant positions necessary for the public works 1182
project except residents of the State of Mississippi who are to be 1183
verified by the Mississippi Department of Employment Security 1184
and/or those qualified individuals who are submitted by the 1185
Mississippi Department of Employment Security. For purposes of 1186
this subsection, the contractor or subcontractor is authorized to 1187
employ Mississippi residents to begin work immediately, and such 1188
persons are to be verified by the Mississippi Department of 1189
Employment Security after employment by the contractor or 1190
subcontractor. During the ten-day period, the Mississippi 1191
Department of Employment Security shall submit qualified 1192
individuals to the contractor to consider for the vacant 1193
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positions. The contractor shall review the individuals submitted 1194
by the department before hiring individuals who are not submitted 1195
by the department. The contract award shall be vacated if the 1196
contractor fails to comply with the provisions of this subsection. 1197
SECTION 4. Section 31-5-51, Mississippi Code of 1972, is 1198
amended as follows: 1199
31-5-51. (1) Any person entering into a formal contract 1200
with the state or any county, city or political subdivision 1201
thereof, or other public authority for the construction, 1202
alteration or repair of any public building or public work, before 1203
entering into such contract, shall furnish to such public body, 1204
except as provided in subsection (5) of this section, bonds with 1205
good and sufficient surety as follows: 1206
(a) A performance bond payable to, in favor of or for 1207
the protection of such public body, as owner, for the work to be 1208
done in an amount not less than the amount of the contract, 1209
conditioned for the full and faithful performance of the contract; 1210
(b) A payment bond payable to such public body but 1211
conditioned for the prompt payment of all persons supplying labor 1212
or material used in the prosecution of the work under said 1213
contract, for the use of each such person, in an amount not less 1214
than the amount of the contract; and 1215
(c) The bonds herein provided for may be made by any 1216
surety company which is authorized to do business in the State of 1217
Mississippi and listed on the United States Treasury Department's 1218
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list of acceptable sureties, or such bonds may be guaranteed by a 1219
personal surety as provided for herein. The personal surety shall 1220
deposit with the State Treasurer cash or certificates of deposit 1221
in an amount not less than the amount of the contract, and the 1222
State Treasurer shall hold same in trust and on deposit for the 1223
benefit of the public body that is a party to the contract 1224
providing for the construction, alteration or repair of the public 1225
building or for the public work. 1226
(2) Every person who has furnished labor or material used in 1227
the prosecution of the work provided for in such contract, in 1228
respect of which a payment bond is furnished and who has not been 1229
paid in full therefor before the expiration of a period of ninety 1230
(90) days after the date on which the last of the labor was 1231
performed by him or the last of the materials was furnished by him 1232
and for which such claim is made, provided the same has been 1233
approved, where required, by the public authority or its architect 1234
or engineers, or such approval is being withheld as a result of 1235
unreasonable acts of the contractor, shall have the right to sue 1236
on such payment bond for the amount, or the balance thereof that 1237
is due and payable, but unpaid at the time of institution of such 1238
suit and to prosecute said action to final execution and judgment. 1239
Notwithstanding anything to the contrary contained herein, if the 1240
amount claimed in such action is subject to contractual provisions 1241
or conditions, between the parties involved in such action, the 1242
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action shall be abated pending the performance of such provisions 1243
and the fulfillment of such conditions. 1244
(3) Any person having direct contractual relationship with a 1245
subcontractor but no contractual relationship express or implied 1246
with the contractor furnishing said payment bond shall have a 1247
right of action upon the said payment bond upon giving written 1248
notice to said contractor within ninety (90) days from the date on 1249
which such person did or performed the last of the labor or 1250
furnished or supplied the last of the material for which such 1251
claim is made, stating with substantial accuracy the amount 1252
claimed and the name of the party to whom the material was 1253
furnished or supplied or for whom the labor was done or performed. 1254
Such notice shall be given in writing by the claimant to the 1255
contractor or surety at any place where the contractor or surety 1256
maintains an office or conducts business. Such notice may be 1257
personally delivered by the claimant to the contractor or surety, 1258
or it may be mailed by certified mail, return receipt requested, 1259
postage prepaid, to the contractor or surety. No such action may 1260
be maintained by any person not having a direct contractual 1261
relationship with the contractor-principal, unless the notice 1262
required by this section shall have been given. 1263
(4) The only persons protected by such payment bond, subject 1264
to the notice provisions of this section are: 1265
(a) Subcontractors and material suppliers of the 1266
contractor; 1267
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(b) Sub-subcontractors and material suppliers of those 1268
subcontractors named in subsection (4)(a) of this section; and 1269
(c) Laborers who have performed work on the project 1270
site. 1271
(5) Whenever a contract is less than * * * Seventy-five 1272
Thousand Dollars ($75,000.00) the owners may elect to make a lump 1273
sum payment at the completion of the job. Lump sum payments will 1274
not be made until completion and acceptance by the governing 1275
agency. In such a case a performance bond or payment bond will not 1276
be required. 1277
(6) Except as otherwise provided in subsection (1)(c) for a 1278
personal surety, no surety or surety company shall be allowed to 1279
guarantee or write bonds for the benefit of the public body that 1280
is a party to a contract providing for the construction, 1281
alteration or repair of a public building or for public work, 1282
unless that surety is listed on the United States Treasury 1283
Department's list of acceptable sureties. If the surety is not 1284
listed on the United States Treasury Department's list of 1285
acceptable sureties, the public body for which the public work is 1286
being performed shall be liable to the extent that the surety 1287
would be liable. 1288
(7) Any person entering into a formal contract with the 1289
state which exceeds * * * Fifteen Thousand Dollars ($15,000.00), 1290
or with a county, city or other public authority which 1291
exceeds * * * Seventy-five Thousand Dollars ($75,000.00), for the 1292
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construction, alteration or repair of any public building or 1293
public work, before entering into such contract, shall furnish to 1294
the public body proof of general liability insurance coverage in 1295
an amount not less than One Million Dollars ($1,000,000.00) for 1296
bodily injury and property damage. For any such contract, if a 1297
subcontractor of the general contractor for the contract does not 1298
have general liability insurance coverage in the minimum amount 1299
required by this subsection, then the general contractor shall be 1300
liable for any amount under such minimum amount of coverage for 1301
which the subcontractor is underinsured or not insured. Exempted 1302
from the provisions of this subsection are any persons who enter 1303
into a contract with the Mississippi Department of Rehabilitation 1304
Services for the construction, alteration or repair of the home of 1305
a disabled individual who has been determined eligible for 1306
services by the Mississippi Department of Rehabilitation Services. 1307
SECTION 5. The following shall be codified as Section 1308
31-7-40, Mississippi Code of 1972: 1309
31-7-40. The board of supervisors of any county may 1310
authorize by resolution the participation in a group purchasing 1311
program operated by the Mississippi Association of Supervisors 1312
(MAS) for the purchase of supplies, commodities and equipment when 1313
it appears to the board of supervisors that such a group 1314
purchasing program could or would affect economy or efficiency in 1315
its operations. 1316
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SECTION 6. Section 31-7-103, Mississippi Code of 1972, is 1317
amended as follows: 1318
31-7-103. The purchase clerk shall be responsible as 1319
hereinafter provided for the purchase and acquisition of all 1320
equipment, heavy equipment, machinery, supplies, commodities, 1321
materials and services to be acquired for the county from 1322
successful bidders or other vendors, as authorized by law. The 1323
central purchase system shall comply with the requirements 1324
prescribed by the State Department of Audit under the authority of 1325
Section 7-7-211 and in accordance with Section 31-7-113, and the 1326
purchase clerk shall be responsible for the maintenance of such 1327
system. No requisition to purchase, purchase order or receiving 1328
report shall be required for the purchase of any item or services 1329
with an acquisition cost of not more than * * * Five Thousand 1330
Dollars ($5,000.00) in the aggregate; however, the invoice for 1331
every such purchase shall be signed by the department head or his 1332
or her designee, or a receipt signed by the person making the 1333
purchase shall be attached to the invoice and forwarded to the 1334
purchase clerk. No claim based on any such purchase shall be 1335
approved except after compliance with the provisions of this 1336
section. 1337
SECTION 7. Section 31-7-119, Mississippi Code of 1972, is 1338
brought forward as follows: 1339
31-7-119. (1) Except as provided in subsection (2) of this 1340
section, neither the board of supervisors nor any member thereof 1341
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ST: Public purchasing; increase threshold for
bidding and revise certain provisions related to
exemptions and reverse auctions.
shall individually purchase, order or receive any equipment, heavy 1342
equipment, machinery, supplies, commodities, materials or services 1343
for the use or benefit of the county. 1344
(2) In any county in which the board of supervisors is not 1345
required to operate on a countywide system of road administration, 1346
the prohibition as provided in subsection (1) of this section 1347
shall not apply (a) to purchases of not more than Two Thousand 1348
Dollars ($2,000.00) in the aggregate; or (b) to the purchase of 1349
parts or repair services in emergency situations, which purchases 1350
are exempt from bid requirements pursuant to Section 1351
31-7-13(m)(ii) and (iii). Any supervisor who purchases any item 1352
or services in accordance with this subsection (2) shall sign the 1353
invoice or receipt and forward it to the purchase clerk in the 1354
manner provided by Section 31-7-103. No claim based on any such 1355
purchase shall be approved unless the purchase was made in 1356
compliance with the provisions of this subsection. 1357
SECTION 8. This act shall take effect and be in force from 1358
and after July 1, 2026. 1359