Administrative Services, Purchasing and General Services

Section R33-6-101

Revisions to Contract Clauses

Notice of Proposed Rule

(Amendment)

DAR File No.: 35666
Filed: 01/12/2012 05:48:45 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 476 (2011 General Session) directs that rules be drafted governing the procurement, management, and control of any and all technology to be procured by the state.

Summary of the rule or change:

This amendment adds language that allows for modification of existing contracts when the modification is in the best interest of the acquiring agency. This pertains to contracts for supplies, services, construction, and new technology or advancements or upgrades in technology.

State statutory or constitutional authorization for this rule:

• Title 63G, Chapter 6

Anticipated cost or savings to:

the state budget:

It is possible that cost savings may be obtained by state agencies for not having to conduct re-procurements for new technologies and/or upgrades. This amendment allows state agencies greater flexibility in conducting pilot tests of new technology which may reduce costs for research.

local governments:

It is possible that cost savings may be obtained by local governments for not having to conduct re-procurements for new technologies and/or upgrades.

small businesses:

May allow small business access to state agency technology opportunities to demonstrate or pilot new technology or upgrades/enhancements to existing technologies.

persons other than small businesses, businesses, or local governmental entities:

Cost savings may be realized by all government entities and all those doing or interested in doing business with the state.

Compliance costs for affected persons:

None--There are no known compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

I foresee the potential for greater efficiencies in government through the ability of government entities being able to modify existing contracts for technology-related enhancements, provided the ability to modify was contained in the original solicitation, thereby reducing procurement-related costs to vendors. Potential state contractors will have the opportunity to pilot their technology and technology-related goods and services without a lengthy competitive process.

Kimberly K. Hood, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Administrative Services
Purchasing and General Services
Room 3150 STATE OFFICE BLDG
450 N STATE ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Paul Mash at the above address, by phone at 801-538-3138, by FAX at 801-538-3882, or by Internet E-mail at pmash@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/02/2012

This rule may become effective on:

03/09/2012

Authorized by:

Kent Beers, Director

R33. Administrative Services, Purchasing and General Services.

R33-6. Modification and Termination of Contracts for Supplies, [and ]Services , Construction, and Technology.

R33-6-101. [Revisions to Contract Clauses]Contract Modifications.

[The clauses set forth in this rule may be varied for use in a particular contract at the discretion of the procurement officer.](1) Contracts may be modified when it is determined in writing by the Chief Procurement Officer or head of a purchasing agency that the modification is in the best interest of the acquiring agency. Contract modifications must be in compliance with the Utah Procurement Code.

(2) Modifications to existing contracts for supplies, services, construction and new technology or advancements or upgrades in technology are allowed subject to the provisions of R33-3-101(5) provided:

(a) The initial solicitation indicated that the procurement was for an entire system, project service or technology;

(b) The initial solicitation indicated that the entire system, project, service or technology included: all future modules, components, programs, upgrades and technological advancements related to the system, project, service or technology;

(c) The modification is substantially within the scope of the original procurement or contract;

(d) An acquiring agency has complied with Section 63F-1-205 for contracts involving technology; and

(e) All parties agree to the modification.

(3) If the modification is not allowed under subsection (2) of this rule, the acquiring agency may keep the original contract while procuring the additional contract, or may terminate the original contract, whichever is in the best interest of the acquiring agency. If the contract is terminated, then the vendor shall be paid for the services or work properly performed up to the date of termination; all in accordance with the contract provisions.

 

KEY: government purchasing

Date of Enactment or Last Substantive Amendment: [1988]2012

Notice of Continuation: January 29, 2009

Authorizing, and Implemented or Interpreted Law: 63G-6