DAR File No. 40047

Administrative Services, Purchasing and General Services

Section R33-12-502

Technology Modifications

Notice of Proposed Rule

(Amendment)

DAR File No.: 40047
Filed: 12/31/2015 02:03:15 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Section R33-12-502 has been amended to incorporate contract modifications for new technology and technological upgrades. Technology modifications are no longer needed as part of the rule. Sections R33-6-114 and R33-12-502 addressed the same issue, technology acquisitions. It was confusing to have this issue addressed in duplicate rules so the Board decided to rewrite Section R33-12-502 to clarify some recent issues pertaining to technology acquisitions. The Technology Advisory Board no longer meets or functions. As a result, the recommendation from the Department of Technology Services (DTS) was to have approvals made by the director of DTS. (DAR NOTE: The proposed amendment to Section R33-6-114 is under DAR No. 40048 in this issue, January 15, 2016, of the Bulletin.)

Summary of the rule or change:

Section R33-12-502 has been rewritten to comply with the Board's decision to clarify some recent issues pertaining to technology acquisitions, including that the Technology Advisory Board no longer meets or functions, and as a result, the recommendation from DTS was to have approvals made by the director of DTS. Additionally, Section R33-12-502 will now address contract modifications for new technology and technological upgrades, which will require obtaining the approval of the executive director of DTS.

State statutory or constitutional authorization for this rule:

• Title 63G, Chapter 6a

Anticipated cost or savings to:

the state budget:

There are no anticipated costs or savings that are expected to the state budget. The changes to the rule simply rewrite Section R33-12-502 to provide clarification on recent issues pertaining to technology acquisitions, which includes addressing contract modifications for new technology and technological upgrades.

local governments:

There are no anticipated costs or savings that are expected for local government. The changes to the rule simply rewrite Section R33-12-502 to provide clarification on recent issues pertaining to technology acquisitions, which includes addressing contract modifications for new technology and technological upgrades.

small businesses:

There are no anticipated costs or savings that are expected for small businesses. Small businesses are not affected by the amendment as the rule only applies to contract modifications for new technology and technological upgrades, and requires executive branch procurement units to obtain the approval of the executive director of DTS.

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

There are no anticipated costs or savings that are expected for persons other than small businesses, businesses, or local government. Said persons are not affected by the amendment as the rule only applies to contract modifications for new technology and technological upgrades, and requires executive branch procurement units to obtain the approval of the executive director of DTS.

Compliance costs for affected persons:

There are no anticipated compliance costs for affected persons. The changes to the rule simply rewrite Section R33-12-502 to provide clarification on recent issues pertaining to technology acquisitions, which now addresses contract modifications for new technology and technological upgrades. Additionally, the rule only applies to contract modifications for new technology and technological upgrades, and requires executive branch procurement units to obtain the approval of the executive director of DTS.

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

There are no anticipated fiscal impacts that the rule may have on businesses. The changes only address that a contract for a procurement item may be modified to include new technology or technological upgrades associated with the procurement item. Additionally, the change only provides clarification on recent issues pertaining to technology acquisitions, which includes addressing contract modifications for new technology and technological upgrades.

Kimberly 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:

• Alan Bachman at the above address, by phone at 801-538-3105, by FAX at 801-538-3313, or by Internet E-mail at abachman@utah.gov
• Kent Beers at the above address, by phone at 801-538-3143, by FAX at 801-538-3882, or by Internet E-mail at kbeers@utah.gov
• Nicole Alder at the above address, by phone at 801-538-3240, by FAX at , or by Internet E-mail at nicolealder@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:

02/16/2016

This rule may become effective on:

02/23/2016

Authorized by:

Kent Beers, Director

R33. Administrative Services, Division of Purchasing and General Services.

R33-12. Terms and Conditions, Contracts, Change Orders and Costs.

R33-12-502. Contract Modifications for New Technology and Technological Upgrades. [ Technology Modifications.

(1) Any contract subject to a modification for technological upgrades shall have had a provision to that effect included in the solicitation. Any modification to a contract for upgraded technology must be substantially within the scope of the original procurement or contract, and if both parties agree to the modification, then the contract may be modified.

(2) Any contract subject to a modification for technological upgrades shall have had a provision to that effect included in the solicitation. No contract modification for new technology requested by an acquiring agency shall be exercised without the approval required under Section 63F-1-205, the new technology modification has been subject to the review as described in Rule R33-6-113 and the contracting parties agree to the modification.

(3) No contract may be extended beyond the term of the contract included in the solicitation except as provided in the Utah Procurement Code.]

A contract for a procurement item may be modified to include new technology or technological upgrades associated with the procurement item, provided:

(1) The solicitation contains a statement indicating that:

(a) the awarded contract may be modified to incorporate new technology or technological upgrades associated with the procurement item being solicited, including new or upgraded:

(i) systems;

(ii) apparatuses;

(iii) modules;

(iv) components; and

(v) other supplementary items;

(b) a maintenance or service agreement associated with the procurement item under contract may be modified to include any new technology or technological upgrades; and

(c) Any contract modification incorporating new technology or technological upgrades is specific to the procurement item being solicited and substantially within the scope of the original procurement or contract.

(2) Any contract modification incorporating new technology or technological upgrades is agreed upon by all parties and is executed using the process set forth in the contract for other contract modifications.

(3) Prior to executing a contract modification incorporating new technology or technological upgrades, executive branch procurement units shall obtain the approval of the Executive Director of the Department of Technology Services.

(4) A contract modification for new technology or technology upgrades may not extend the term of the contract except as provided in the Utah Procurement Code.

 

KEY: terms and conditions, contracts, change orders, costs

Date of Enactment or Last Substantive Amendment: [January 28, 2015]2016

Notice of Continuation: July 8, 2014

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