Approval for the purchase or lease of data processing equipment, with an annual cost of $10,000 or more must be obtained from the Office of Information Technology Planning-Research and Statistics (see Procurement Approval - Data Processing Equipment and Services of this section). All lease/purchase and installment purchase agreements must be approved by the State Treasurer's Office. Use the Lease Register within the State Treasurer's Office Lease Reporting Package to determine which leases are capital leases. An amortization schedule must be on file in the Comptroller General's Office prior to payment on capital leases. Refer to Definition of Codes - Equipment for coding of principal and interest payments. Also refer to Lease, Lease/Purchase and Installment Purchase Contracts - Personal Property below.

Within certification limits, agencies may enter into lease agreements for personal property provided that lease, lease/purchase, installment purchase, or rental agreements are subject to the same procedures as a normal purchase, including the solicitation of bids. All lease purchase and installment purchase agreements must be approved by the State Treasurer's Office.

Agency heads and purchasing officials are responsible to see that the most economical methods possible are used to acquire personal property. Lease and lease/ purchase are to be justified on the basis that it is more advantageous and economical to lease than to purchase. The lease payments and conversion costs are to be considered by the agency in determining the most economical method before agencies enter into the contract. Lease and lease/purchases are to be considered only when the following conditions are met:

1. Lease only when the product or service is necessary to the function of the agency.

2. Lease only when competitive bids are solicited.

3. Lease only when lease form has been approved by Office of Materials Management.

4. Lease only when appropriations are made available and only when leases can be canceled within one year (so as not to bind successors and to prevent spending unappropriated monies).

Agency heads and purchasing officials are responsible for assuring the above conditions are complied with.

Use the Lease Register within the State Treasurer's Office Lease Reporting Package to determine which leases are capital leases. An amortization schedule must be on file in the Comptroller General's Office prior to payment on capital leases. Refer to Definition of Codes - Fixed Charges and Contributions for coding of principal and interest payments.

New contracts are to be entered into only after the lease has been approved by the Budget and Control Board, Division of Operations under conditions outlined in the following paragraphs:

Section 1-11-55 of the Consolidated Procurement Code (amended) reads:

"The (State Budget and Control) Board is hereby designated as the single central broker for the leasing of real property for state agencies. No governmental body shall enter into any lease agreement or renew any existing lease except in accordance with the provisions of this Section."

All governmental bodies are exempt from the real property leasing procedure requirements for non state-owned real property: (1) for less than 3 months in a single fiscal year, or (2) for a total cost of less than $10,000 in a single fiscal year.

The Lease Payment Authorization form (See form below) will be completed by the Real Property Manager, Budget and Control Board, Division of Operations, and forwarded directly to the Comptroller General's Office upon their approval. Vouchers for lease payments should be accompanied by invoices from the lessor or, since most agreements specify fixed amounts of payments, a copy of a statement from the lessor stating the fixed amount and the payment frequency for the term of the lease. If the payee, payment frequency, or payment amount differs from the Lease Payment Authorization, the voucher will be returned. This does not apply to rent escalation and onetime payments. The approved document provided by Real Property Management will be required for these payments.

Chapter 35 of Title 11 of the Code of Laws of South Carolina 1976 states:

"There is hereby created within the Division of General Services the Information Technology Management Office to be headed by the Information Technology Management Officer. All procurements involving information technology, and any pre- and post-procurement activities in this area, shall be conducted in accordance with the regulations promulgated by the board except as otherwise provided for in this code by specific reference to the information technology management office."

All procurements above agency certification of data processing equipment and/or services must receive prior approval of the Office of Information Technology Management.

In post-divestiture circumstances, the State, its boards, committees, commissions, councils, and agencies, and other entities excluding counties, municipalities, and special service and school districts must be treated as a single enterprise for purposes of securing and utilizing local and long distance telecommunications equipment and services.

The State Budget and Control Board shall secure all telecommunications equipment and services for the state government enterprise under terms it considers suitable and coordinate the supply of the equipment and services for state government use. No entity of state government may enter into an agreement or renew an existing agreement for telecommunications services unless approved by the board.

Exceptions:

1. Agencies planning for an annual net increase in station lines that does not exceed 5% of existing lines, or 30 lines in a fiscal year do not have to request a review or receive approval from the Division of Information Resource Management (DIRM). Responsibility to notify the Information Technology Planning Office does not change.

2. Moves/Adds/Changes for which the cost is under $2,500 do not need DIRM approval unless the resulting net increase in station lines will exceed 5%, or more than 30 lines for the fiscal year.

3. By August 31st following the end of a fiscal year, agencies must provide to DIRM a summary of the telephone services they contracted for during the fiscal year just ended.

Notes:

1. Individual purchase orders for moves/adds/changes must be handled in accordance with the S.C. Consolidated Procurement Code.

2. All procurements of cellular telephones and services must be approved by DIRM.

All procurements of Automated Data Processing shall be based upon a plan submitted to and approved by the Office of Information Technology Planning.

The Office of Information Technology Planning is responsible for:

1. determining the need for Automated Data Processing;

2. administering all procurement and contracting activities undertaken for governmental bodies involving Automated Data Processing in accordance with this title;

3. providing for the disposal of all Automated Data Processing property surplus to the needs of a using agency.

A copy of the approval granted by the Office of Information Technology Planning should be attached to each invoice submitted on a disbursement voucher to the Comptroller General.

The Appropriations Act states:

"Provided, Further, That any state agency providing computer or other services to any other agency, agencies, or political subdivisions shall submit in advance to the Budget and Control Board a detailed statement of charges and costs to be associated with the provision of such services. The Budget and Control Board shall examine the statement to determine the reasonableness and appropriateness of any charges for such services, and shall make recommendations to the providing and receiving agency regarding revisions of charges and/or methods of cost avoidance. Final approval must be obtained from the Budget and Control Board before such charges can be made by the providing agency."

All procurements of architect-engineer, construction management and land surveying services must be approved by the State Engineer's Office in accordance with Sections 11-35-3220 and 11-35-3230 of the Consolidated Procurement Code. Request for payment should be accompanied by either an SE-220, Professional Services Selection Approval Request, or, an SE-230 Professional Services Selection Approval Request-Small Contracts.

Section 11-35-3240 - Manual for Planning and Execution of State Permanent Improvements:

"As relates to this code and the ensuing regulations, a Manual for Planning and Execution of State Permanent Improvements shall be published by the board or its designee for use by governmental bodies and included in the regulations of the board. The manual may be revised as the board deems necessary."

Questions should be addressed to the Budget and Control Board, Division of Operations - Office of Materials Management and the State Engineer's Office.

State agencies may procure consultant services up to their respective certification limits as established by the Budget and Control Board. Unless exempt, procurements of consultant services above that amount must be made by the Budget and Control Board, Division of Operations.

Questions should be addressed to the Budget and Control Board, Division of Operations-Office of Materials Management. The Division of Human Resource Management's regulations addressing Special Contract Services may also impact on this area. Questions should be addressed to them.

Any contract for legal or consultant services entered into by a state agency or institution shall include a provision which requires completion of all services. The provision shall further require that in the event all services are not fully rendered as provided for in the contract, any monies which have been paid by the agency under the contract must be refunded to the agency along with a twelve percent penalty.

A provision in the South Carolina Consolidated Procurement Code provides:

"No contract for auditing and accounting services shall be awarded without the approval of the State Auditor except where specific statutory authority is otherwise provided."

Vouchers processed for payment for auditing and accounting services must include approval of the State Auditor.

Provisions in the Attorney General's Office section of the General Appropriation Act reads as follows:

"No department or agency of the State Government shall hire any classified or temporary attorney as an employee except upon the written approval of the Attorney General and at a compensation approved by him. All such attorneys shall at all times be under the supervision and control of the Attorney General except as otherwise provided by law unless obtaining prior approval by the Budget and Control Board.

No department or agency of the State Government shall engage on a fee basis any attorney at law except upon the written approval of the Attorney General and upon such fee as shall be approved by him. This shall not apply to the employment of attorneys in special cases in inferior courts where the fee to be paid does not exceed two hundred fifty ($250.00) dollars or exceptions approved by the Budget and Control Board."

The South Carolina Consolidated Procurement Code also addresses this issue. It states:

"No contract for the services of attorneys shall be awarded without the approval of the State Attorney General except where specific statutory authority is otherwise provided."

Any vouchers submitted to the Comptroller General's Office paying legal fees must include a copy of the Form 1 approved by the Attorney General's Office.

Exceptions not requiring approval are:

1. Guardians ad Litem retained by agencies, including:

   Department of Social Services
   Mental Health Department of Disabilities and Special Needs
   Governor's Office - OEPP
   Attorney General (Child Support)
   
   

2. Insurance Reserve Fund (defense of medical malpractice and general torts)

3. Department of Social Services:

   1. Attorneys representing DSS in termination of parent rights cases, as needed (maximum of $300.00);

   2. Attorneys representing DSS in periodic judicial review of children in foster care (flat $50.00);

   3. Attorneys representing adoptive parents of "special needs" children (maximum $300.00, all federal funds);

   4. Attorneys representing DSS in adult protective matters, including appointment, in Probate Court, of Guardian or Committee (maximum of $300.00);

   5. The payment of attorney fees for court-appointed counsel for abused or neglected children ($100.00) per case pursuant to Family Court Rule #51;

   6. Attorneys representing Respondents-under-disability (confined or mentally ill) in all matters as set forth above (maximum of $300.00).

4. Youth Services:

   Juvenile parole hearings, under §20-7-2105.

   Legal fees covered by Section 38-35-100, 1976 Code are also excluded in certain cases from the approval of the Attorney General:

   "Any policy or contract of accident and health insurance issued in this State may include therein provision for subrogation by the insurer to the insured's right of recovery against a liable third party for not more than the amount of insurance benefits that the insurer shall have previously paid in relation to the insured's injury the liable third party; provided, that the Chief Insurance Commissioner, in approving such policy or contract for issuance in this State, determines that the exercise of such subrogation by the insurer is equitable and commits no injustice to the insured. Attorneys' fees and costs shall be paid by the insurer from the amounts so recovered."

Section 1-11-80 of the Code of Laws of South Carolina 1976 reads as follows:

"In addition to the powers granted the Budget and Control Board under this Chapter or any other provision of law, the board may approve blanket bonds for a state department, agency, or institution including bonds for state officials or personnel. However, the form and execution of blanket bonds must be aproved by the Attorney General."

Section 58-3-320 of the Code of Laws of South Carolina 1976 requires the bonding of the Public Service Commission's Transportation Division Inspectors. These bonds shall be approved by the Attorney General prior to payment of vouchers for premiums by the Comptroller General.

The charges for legal advertisements are found in Section 15-29-80 of the 1976 Code as amended are as follows:

"State and county officials authorized by law to publish advertisements in the newspapers of this State, including advertisements of sales of real and personal property by masters, clerks of court, judges of probate and sheriffs, citations, notices to creditors, notices of final settlement by executors, administrators, guardians and all other persons acting in a fiduciary capacity, service of summons by publication, notices of election ordered by commissioners, reports of county treasurers, supervisors and superintendents of education, notices of county auditors, proclamations of the executive department, proposals for works and supplies by the head of departments or other officials authorized to advertise for competitive bids and all other advertising whatever done by order of court or by State and county officials, shall be charged not more than the local retail display advertising rate shown on the newspaper's rate card or the rates published in the newspaper, deducting any and all applicable discounts earned by the volume or frequency of the legal advertising. The advertisement shall be set in solid six point type, including the caption and all other parts of the advertisement. Newspapers that do not use six point type shall receive compensation based on six point measure and any lesser measure shall be charged only at actual space measurement as printed; however, agencies placing advertisements may order larger measure at their discretion.

The publication of any of the notices provided for in this section may be let by contract for not more than the price authorized by this section.

No publication will be allowed to make any extra charges for affidavit of publication."

The expenditure of funds by any state agency, except the Department of Transportation for permanent improvements as defined in the state budget, is subject to approval and regulation of the State Budget and Control Board. The Board shall have authority to allot to specific projects from funds made available for such purposes, such amounts as are estimated to cover the respective costs of such projects, to declare the completion of any such projects, and to dispose, according to law, of any unexpended balances of allotments, or appropriations, or funds otherwise provided for such projects, upon the completion thereof. The approval of the Budget and Control Board is not required for minor construction projects, including renovations and alterations, where the cost does not exceed an amount determined by the Joint Bond Review Committee and the Budget and Control Board.

All construction, improvement, and renovation of state buildings shall comply with the applicable standards and specifications set forth in each of the following codes: The Standard Building Code, The Standard Existing Building Code, The Standard Gas Code, The Standard Mechanical Code, The Standard Plumbing Code and The Standard Fire Prevention Code, all as adopted by the Southern Building Code Congress International, Inc.; and the National Electrical Code NFPA 70, The National Electrical Safety Code - ANSI-C2, The National Fire Protection Association Standard - NFPA 59, all with the code editions, revision years, and deletions as specified in the Manual For Planning and Execution of State Permanent Improvements. The State Engineer shall determine the enforcement and interpretation of the aforementioned codes and referenced standards on state buildings. Any interested local officials shall coordinate their comments related to state buildings through the State Engineer and shall neither delay construction nor delay or deny water, sewer, power, other utilities, or firefighting services. Agencies may appeal to the Director of Office of Internal Operations regarding the application of these codes to state buildings.

The following will provide additional information relative to construction procurement. It will help to clarify the roles of the four groups involved in the process as required by the Consolidated Procurement Code.

1. Construction - This can be a single or multi-purpose construction contract. Bid documents should be prepared by the agency or its professional agent. Bids shall be received and awarded by the agency with the approval of the State Engineer's Office per Section 11-35-3020(2) of the Code.

2. Basic Equipment (Fixed) - This is any equipment that becomes a fixed part of the building. The equipment may be that which could have been included in the contract, or it may be equipment either agency furnished, contractor installed, or agency furnished, agency installed. Fixed equipment includes, but is not limited to, manufactured equipment such as boilers, chillers, pumps, switch gear, windows, cabinet work, laboratory furniture, and kitchen equipment. This also includes site improvements such as water, sewer storm drainage lines, pavement, sidewalks, landscaping and lighting. Bid documents should be prepared by the agency or its professional agent. Bids shall be received and awarded by the agency per Section 11-35-3020 (2) of the Code. Except, basic equipment (fixed) that is specifically identified as information technology procurements, the Information Technology Management Officer must make these procurements per Section 11-35-1580 of the Code if over $2500 or the certification limit assigned.

3. Basic Equipment (Moveable) - This is any equipment that does not become a permanent part of the building, but is included in the construction contract. The equipment should have a useful life of five years or more and a minimum dollar limit as established by the agency per appropriate guidelines. Moveable equipment includes such items as office furniture and classroom furniture. Bid documents should be prepared by the agency or its professional agent. If estimated cost of bid package is more than the amount of certification limits assigned the agency for goods and services, then bids will be received by the Materials Management Office in cooperation with the agency in accordance with Section 11-35-1520 of the Code. Except, basic equipment (moveable) that is specifically identified as information technology procurements, then the Information Technology Management Officer must make the procurement per Section 11-35-1580 of the Code if over $2500 or the certification limit assigned.

4. Construction Material for In-House Construction - This is standard stock building materials or manufactured items such as brick, lumber, metal studs, gypsum board, stock electrical items, pipe, pipe fittings and valves. Following project approval by State Engineer, bid documents should be prepared by agency or its professional agent. Bids may be solicited and contracts awarded in accordance with Section 11-35-1520 by agencies up to their respective certifications. Above that, awards must be made by the Materials Management Office.

The current Appropriations Act provides:

"That before any governmental body, with the exception of the South Carolina Museum Commission, as defined under the South Carolina Consolidated Procurement Code, procures any art objects such as paintings, antiques, sculptures, or similar objects above $1,000, the head of the Purchasing Agency shall prepare a written determination specifying the need for such objects and benefits to the State. The South Carolina Arts Commission shall review such determination for approval prior to any acquisition."

Budget and Control Board Regulation 19-445.2015 states:

"The ratification of an act obligating the State in a contract by any person without the requisite authority to do so by an appointment or delegation under the Procurement Code rests with the Division of General Services."