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HB2440 HFLR Page 1
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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2440 By: Pfeiffer of the House
and
Pederson of the Senate
COMMITTEE SUBSTITUTE
An Act relating to the environment and natural
resources; amending 61 O.S. 2021, Section 208, as
amended by Section 31, Chapter 238, O.S.L. 2022 (61
O.S. Supp. 2025, Section 208), which relates to
approval, negotiation, and award of contracts; making
certain exemption for the Oklahoma Water Resources
Board; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 208, as
amended by Section 31, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 208), is amended to read as follows:
Section 208. A. The Office of Management and Enterprise
Services shall select and award contracts to construction managers
and design consultants pursuant to the provisions of Section 62 of
this title.
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B. The negotiation of construction manager and consultant
contracts and fees shall be performed by the Office.
C. The Office shall award and administer construction contracts
for state agencies pursuant to the provisions of the Public
Competitive Bidding Act of 1974.
D. 1. When all bids for a public construction contract exceed
the programmed estimate and available funding, the Office may enter
into negotiations with the lowest responsible bidder for the purpose
of modifying the project scope and reducing the construction cost,
provided that:
a. the unexpected higher construction costs resulted from
unforeseen economic conditions or otherwise sudden
price volatility in the construction industry,
b. the project was appropriately planned, and cost
estimates were developed using standards of care
acceptable to the Office, and
c. further delay caused by redesigning and rebidding the
project would jeopardize the using agency's mission or
result in the loss of a planned funding source.
2. To request consideration for negotiations pursuant to this
subsection, the using agency, within ten (10) days of the bid
opening date, shall make a written request to the Director of the
Office of Management and Enterprise Services to enter into
negotiations pursuant to paragraph 1 of this subsection. If
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approved by the Director, the Office shall consult with the using
agency, consultant and low bidder on methods to reduce the project
scope or other cost-saving measures.
3. If a suitable revised scope and contract amount is agreed
upon by the using agency, lowest responsible bidder, and the
Director, the Office may award the public construction contract to
the lowest responsible bidder.
4. The Office shall negotiate a fair and reasonable fee with
the project's consultant, if applicable, to make any necessary
revisions to the contract documents. The cost of this additional
consulting work shall be paid from the agency's available funds.
5. Approval and final award of the contract for the
construction negotiated pursuant to this subsection shall occur no
later than one hundred twenty (120) days from the opening bid.
E. The Office is authorized to issue solicitations and award
statewide contracts for managed construction service delivery in
order to provide efficient and cost-effective procurement solutions
for public agencies. Statewide contracts may be either mandatory or
nonmandatory as determined by the Director.
F. The Office is authorized to provide facility management and
operations and maintenance services for any state agency on a cost-
recovery basis for any facility operated by a state agency when:
1. The state agency initiates a request with the Director; or
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2. The Director determines a state agency is performing in the
bottom ten percent (10%) of all state agencies with respect to
performance measures for facility management established by the
Office.
G. The Oklahoma Water Resources Board shall be exempt from the
provisions of this section when hiring engineers and consultants to
implement programs within the agency's statutory authority and that
do not involve construction of public facilities. In addition to
the exception from this act hereby provided to the Oklahoma State
Regents for Higher Education and its constituent institutions and
the Commissioners of the Land Office, the Director may authorize an
exemption to the provisions of this act to any other state agency
provided that the recipient of the exemption:
1. Adopts standards, processes and procedures for planning,
budgeting, design, facility management, asset management and asset
preservation that are substantially compliant with those as
prescribed by the Office;
2. Adheres to procurement requirements of Sections 62 through
65 of this title and the provisions of this act;
3. Reports benchmark, budget and ongoing performance data
required by the Office; and
4. Participates in annual performance reviews and organized
forums for promoting best practices statewide as determined by the
Director.
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SECTION 2. This act shall become effective November 1, 2026.
COMMITTEE REPORT BY: COMMITTEE ON ENERGY AND NATURAL RESOURCES
OVERSIGHT, dated 02/25/2026 - DO PASS, As Amended and Coauthored.