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 9  AN ACT concerning leases of office and storage space for state agencies;
10    prescribing certain competitive bidding and bid award procedures
11    therefor; amending K.S.A. 1996 Supp. 75-3739 and repealing the ex-
12    isting section.
13
14  Be it enacted by the Legislature of the State of Kansas:
15    New Section 1.  (a) The director of purchases shall develop and im-
16  plement a competitive bidding procedure for the lease of buildings or the
17  lease of office space or storage space in buildings for state agencies in
18  accordance with this section. This competitive bidding procedure shall
19  apply to all leases entered into or renewed for periods after June 30, 1997,
20  and no state agency shall enter into or renew any lease for office space
21  or storage space for any period which includes any period commencing
22  after June 30, 1997, unless such lease or renewal agreement is entered
23  into pursuant to the procedure prescribed by this section.
24    (b)  Each state agency which needs to lease office space or storage
25  space in any building, or to renew an existing lease of a building or office
26  space or storage space in a building, shall publish a notice of the state
27  agency's office and storage space requirements in the Kansas Register
28  and shall advertise and solicit bids therefor. Each notice and request for
29  bids for lease of office or storage space shall be in such form and contain
30  such information as maybe prescribed by the director of purchases.
31    (c)  On the date specified for the opening of bids submitted for the
32  lease of a building or office space or storage space in a building, all bids
33  shall be opened publicly. Subject to approval by the secretary of admin-
34  istration under K.S.A. 75-3739 and amendments thereto, the state agency
35  shall consider all qualified bids and shall award the lease to the bidder
36  submitting the bid which best suits the needs of the state agency.
37    (d)  The state agency shall publish a notice of the bid and the bidder
38  awarded the lease contract under this section. If the bid is awarded to a
39  responsible bidder other than the lowest responsible bidder, the state
40  agency shall include in the notice of the lease bid award the reasons why
41  a bid and bidder other than the bid by the lowest responsible bidder was
42  selected.
43    (e)  The provisions of this section shall not apply to any state-owned
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 1  building or to any office space or storage space in a state-owned building
 2  for which any state agency pays a rental or lease fee to the department
 3  of administration or to any other state agency.
 4    Sec. 2.  K.S.A. 1996 Supp. 75-3739 is hereby amended to read as
 5  follows: 75-3739. In the manner as provided in this act and rules and
 6  regulations established thereunder:
 7    (a)  All contracts for construction and repairs, and all purchases of and
 8  contracts for supplies, materials, equipment and contractual services to
 9  be acquired for state agencies shall be based on competitive bids, except
10  that competitive bids need not be required: (1) For contractual services
11  when, in the judgment of the director of purchases, no competition exists;
12  or (2) when, in the judgment of the director of purchases, chemicals and
13  other material or equipment for use in laboratories or experimental stud-
14  ies by state agencies are best purchased without competition, or where
15  rates are fixed by law or ordinance; or (3) when, in the judgment of the
16  director of purchases, an agency emergency requires immediate delivery
17  of supplies, materials or equipment, or immediate performance of serv-
18  ices; or (4) when any statute authorizes another procedure or provides an
19  exemption from the provisions of this section.
20    The director of purchases shall make a detailed report at least once in
21  each calendar quarter to the legislative coordinating council and the chair-
22  persons of the senate committee on ways and means and the house of
23  representatives committee on appropriations of all contracts for goods,
24  supplies, materials, equipment or contractual services entered into with-
25  out competitive bids under subsections (a)(1), (a)(2), (a)(3) or (g).
26    (b)  If the amount of the purchase is estimated to exceed approxi-
27  mately $10,000, sealed bids shall be solicited by notice published once in
28  the Kansas register not less than 10 days before the date stated therein
29  for the opening of such bids. The director of purchases may waive this
30  publication of notice requirement when the director determines that a
31  more timely procurement is in the best interest of the state. The director
32  of purchases also may designate a trade journal for such publication. The
33  director of purchases also shall solicit such bids by sending notices by mail
34  to prospective bidders. All bids shall be sealed when received and shall
35  be opened in public at the hour stated in the notice. The director of
36  purchases shall make a detailed report at least once in each calendar
37  quarter to the legislative coordinating council and the chairpersons of the
38  senate committee on ways and means and the house of representatives
39  committee on appropriations of all cases when the publication of notice
40  of bid solicitations in the Kansas register have been waived under this
41  subsection.
42    (c)  All purchases estimated to exceed approximately $5,000 but not
43  more than $10,000, shall be made after receipt of sealed bids following
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 1  at least three days' notice posted on a public bulletin board in the office
 2  of the director of purchases. The director of purchases also may solicit
 3  sealed bids by mail in such cases in like manner as provided in subsection
 4    (b).
 5    (d)  All purchases estimated to be less than $5,000 may be made after
 6  the receipt of three or more bid solicitations by telephone and after re-
 7  ceipt of sealed bids following at least three days' notice posted on a public
 8  bulletin board in the office of the director of purchases. Such bids shall
 9  be recorded as provided in subsection (e) of K.S.A. 75-3740 and amend-
10  ments thereto. With the approval of the secretary of administration, the
11  director of purchases may delegate authority to any state agency to make
12  purchases of less than $10,000 either on the open market or under certain
13  prescribed conditions and procedures. The director of purchases shall
14  make a report at least once in each calendar quarter to the legislative
15  coordinating council and the chairpersons of the senate committee on
16  ways and means and the house of representatives committee on appro-
17  priations of all current and existing delegations of authority under this
18  subsection to state agencies.
19    (e)  Subject to the provisions of subsection (d), contracts and pur-
20  chases shall be based on specifications approved by the director of pur-
21  chases. When deemed applicable and feasible by the director of pur-
22  chases, such specifications shall include either energy efficiency standards
23  or appropriate life cycle cost formulas, or both, for all supplies, materials,
24  equipment and contractual services to be purchased by the state. The
25  director of purchases may reject a contract or purchase on the basis that
26  a product is manufactured or assembled outside the United States. No
27  such specifications shall be fixed in a manner to effectively exclude any
28  responsible bidder offering comparable supplies, materials, equipment or
29  contractual services.
30    (f)  Notwithstanding anything herein to the contrary, all contracts with
31  independent construction concerns for the construction, improvement,
32  reconstruction and maintenance of the state highway system and the ac-
33  quisition of rights-of-way for state highway purposes shall be advertised
34  and let as now or hereafter provided by law.
35    (g)  The director of purchases may authorize state agencies to contract
36  for services and materials with other state agencies, or with federal agen-
37  cies, political subdivisions of Kansas, agencies of other states or subdivi-
38  sions thereof, or private nonprofit educational institutions, without com-
39  petitive bids.
40    (h)  Except as otherwise specifically provided by law, no state agency
41  shall enter into any lease of real property without the prior approval of
42  the secretary of administration. Such state agency shall submit to the
43  secretary of administration such information relating to any such pro-
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 1  posed lease as the secretary may require. Except as otherwise provided,
 2  the secretary of administration shall either approve, modify and approve
 3  or reject any such proposed lease. Each lease for a state agency of a
 4  building or of office space or storage space in a building under section 1
 5  and amendments thereto shall be subject to approval by the secretary of
 6  administration, but shall not be subject to modification by the secretary.
 7    (i)  The director of purchases shall require all bidders on state con-
 8  tracts to disclose all substantial interests held by the bidder in the state.
 9    Sec. 3.  K.S.A. 1996 Supp. 75-3739 is hereby repealed.
10    Sec. 4.  This act shall take effect and be in force from and after its
11  publication in the statute book.