DAR File No. 41023

Administrative Services, Purchasing and General Services

Section R33-8-102

Adding Additional Funds to a Contract

Notice of Proposed Rule

(Amendment)

DAR File No.: 41023
Filed: 11/16/2016 01:54:27 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Procurement Policy Board voted to remove Section R33-8-102 because it is redundant and is in conflict with, and preempted by, Title 63G, Chapter 6a, of the Utah Code. This section was deemed unnecessary.

Summary of the rule or change:

Section R33-8-102 has been removed from Rule R33-8; however, it is labeled "Reserved".

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 to the state budget because the changes to this rule are technical in nature. The removal of the redundant language from Section R33-8-102 will remove the conflict between the section and its governing statute.

local governments:

There are no anticipated costs or savings to local government because the changes to this rule are technical in nature. The removal of the redundant language from Section R33-8-102 will remove the conflict between the section and its governing statute.

small businesses:

There are no anticipated costs or savings to small businesses because the changes to this rule are technical in nature. The removal of the redundant language from Section R33-8-102 will remove the conflict between the section and its governing statute.

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

There are no anticipated costs or savings to persons other than small businesses, businesses, or local government entities because the changes to this rule are technical in nature. The removal of the redundant language from Section R33-8-102 will remove the conflict between the section and its governing statute.

Compliance costs for affected persons:

There are no compliance costs for affected persons because the changes to this rule are technical in nature. The removal of the redundant language from Section R33-8-102 will remove the conflict between the section and its governing statute.

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

There are no anticipated fiscal impacts that this rule may have on businesses.

Jared Gardner, Procurement Policy Board Chair

The full text of this rule may be inspected, during regular business hours, at the Office 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
• Jared Gardner at the above address, by phone at 385-646-4561, by FAX at , or by Internet E-mail at jbgardner@graniteschools.org
• Simone Rudas at the above address, by phone at 801-538-3240, by FAX at , or by Internet E-mail at srudas@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:

01/17/2017

This rule may become effective on:

01/24/2017

Authorized by:

Jared Gardner, Chair, Procurement Policy Board

R33. Administrative Services, Purchasing and General Services.

R33-8. Exceptions to Standard Procurement Process.

R33-8-102. [Adding Additional Funds to a Contract.]Reserved.

[(1) Adding funds to an existing contract constitutes an expenditure of public funds without competition and is an exception to the standard procurement process. Two of the purposes of the Utah Procurement Code identified in Section 63G-6a-102 are to ensure the fair and equitable treatment of all persons who deal with the procurement system; and to provide increased economy in state procurement activities. In order to achieve these competing objectives, when adding additional funds to a contract, the following provisions shall apply to executive branch procurement units:

(a) Up to 25 percent in additional funds may be added to the initial total amount of a contract issued and conducted by an executive branch procurement unit if, after reviewing the applicable laws and rules, the chief procurement officer or head of a procurement unit with independent procurement authority approves adding the additional funds.

(b) Over 25 percent in additional funds may be added to the initial total amount of a contract issued and conducted by an executive branch procurement unit if approved by the chief procurement officer or head of an executive branch procurement unit with independent procurement authority and the Attorney General's Office. The approval from the Attorney General's Office shall include a written determination that adding the additional funds does not violate state or federal antitrust laws and is consistent with the purpose of ensuring the fair and equitable treatment of all persons who deal with the procurement system.

(c) Explicit statutory authorization to add additional funds to a specific existing contract issued and conducted by an executive branch agency overrides subsections (a) and (b).

(d) Additional funds may only be added to an existing contract for the procurement item(s) identified in the scope of work or procurement specifications set forth in the solicitation and resulting contract.]Reserved.

 

KEY: government purchasing, exceptions to procurement requirements, emergency procurements

Date of Enactment or Last Substantive Amendment: [August 22, 2016]2017

Notice of Continuation: July 8, 2014

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