PROCUREMENT ACT OF 1981

 

1. General

Title 11, Chapter 35, of the South Carolina Code of Laws, 1976, as amended, covers all procurements of goods, services, and construction by State agencies. Section 11-35-40(2) reads:

"Application to State Procurement. This code shall apply to every expenditure of funds by this State under contract acting through a governmental body as herein defined irrespective of the source of the funds, including federal assistance monies, except as specified in 11-35-40(3) (Compliance with Federal requirements) and except as provided in Article 19 (Intergovernmental Relations). It shall also apply to the disposal of state supplies as provided in Article 15 (Supply Management). The provisions of this code shall apply to all procurements of information technology elements by any governmental body, irrespective of the source of funds whether appropriated or not."

Subsection (3) addresses compliance when federal assistance or contract funds are used. It states:

"Compliance with Federal Requirements. Where a procurement involves the expenditure of federal assistance or contract funds, the governmental body shall also comply with such federal law and authorized regulations as are mandatorily applicable and which are not presently reflected in the code. Notwithstanding, where federal assistance or contract funds are used in a procurement by a governmental body as defined in 11-35-310(18), requirements that are more restrictive than federal requirements shall be followed."

All questions concerning the Consolidated Procurement Code should be addressed to the Budget and Control Board, Division of Operations, Office of Materials Management.

 2. Procurement Rights, Powers, Duties and Authority

Chapter 35 of Title 11, Section 11-35-510, of the Code of Laws of South Carolina 1976 states:

"All rights, powers, duties and authority relating to the procurement of supplies, services, and information technology and to the management, control, warehousing, sale and disposal of supplies, construction, information technology, and services now vested in or exercised by any state governmental body under the provisions of law relating thereto, and regardless of source of funding, are hereby vested in the Division of General Services. This vesting of authority shall be subject to Section 11-35-710 (Exemptions), 11-35-1250 (Authority to Contract for Auditing Services), 11-35-1260 (Authority to Contract for Legal Services), 11-35-1270 (Authority to Contract for Certain Services), Section 11-35-1550 (Small Purchases), 11-35-1570 (Emergency Procurements), Section 11-35-3230 (Exception for Small Architect-Engineer, and Land Surveying Services Contracts), and Section 11-35-3620 (Management of Warehouses and Inventory)."

Section 11-35-540 states:

"Except as otherwise provided in this code, Board shall have the authority and responsibility to promulgate regulations, consistent with this code, governing the procurement, management, control and disposal of any and all supplies, services and construction to be procured by the State. Such regulations shall be binding in all procurements made by the State."

 3. Procurement Exemptions

Section 11-35-710 states:

"The (Budget and Control) Board may upon the recommendation of the Division of General Services, exempt governmental bodies from purchasing certain items through the respective chief procurement officer's area of responsibility. The board may exempt specific supplies or services from the purchasing procedures herein required and for just cause may by unanimous written decision limit or withdraw any exemptions provided for in this section."

 4. Certification Authority

Section 11-35-1210 states:

    "

  1. &#p; Authority. The board may assign differential dollar limits below which individual governmental bodies may make direct procurements not under term contracts. The materials management office shall review the respective governmental body's internal procurement operation, shall certify in writing that it is consistent with the provisions of this code and the ensuing regulations, and recommend to the board those dollar limits for the respective governmental body's procurement not under term contract.

  2. Policy. Authorizations granted by the board to a governmental body are subject to the following:

    1. adherence to the provisions of this code and the ensuing regulations, particularly concerning competitive procurement methods;

    2. responsiveness to user needs;

    3. obtaining of the best prices for value received.

  3. Adherence to Provisions of the Code. All procurements shall be subject to all the appropriate provisions of this code, especially regarding competitive procurement methods and nonrestrictive specifications."

Unless certified by the Budget and Control Board, all agencies' procurement authority is $5,000.

Exceptions are purchases of exempt items, purchase from state term contracts established by the Budget and Control Board, Division of Operations, sole source or emergency procurements.

5. Small Purchases

Section 11-35-1550 reads in part:

"...small purchase procedures may be utilized in conducting procurements for governmental bodies that are less than $25,000 in actual or potential value...provided, however, that procurement requirements shall not be artificially divided by governmental bodies so as to constitute a small purchase under this section."

6. Sole Source Procurement

Section 11-35-1560 states:

"A contract may be awarded for a supply, service or construction item without competition when, under regulations promulgated by the Board, the chief procurement officer, the head of a purchasing agency, or a designee of either officer above the level of the procurement officer determines in writing that there is only one source for the required supply, service or construction item."

7. Emergency Procurement

Section 11-35-1570 states:

"Notwithstanding any other provision of this code, the chief procurement officer, the head of a purchasing agency, or a designee of either officer may make or authorize others to make emergency procurements only when there exists an immediate threat to public health, welfare, critical economy and efficiency, or safety under emergency conditions as defined in regulations promulgated by the board; and provided, that such emergency procurements shall be made with as much competition as is practicable under the circumstances. A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file."