Title VI, Financial Administration

This chapter shall be known as the "Kentucky Model Procurement Code."

(1) This code shall be liberally construed and applied to promote its underlying purposes and policies. (2) The underlying purposes and policies of this code shall be: (a) To simplify, clarify, and modernize the law governing purchasing by the Commonwealth; (b) To permit the cont…

(1) Unless displaced by the particular provisions of this code, the principles of law and equity, including the Uniform Commercial Code, the law merchant, and law relative to capacity to contract, agency, fraud, misrepresentation, duress, coercion, mistake, and bankruptcy, shall …

(1) This code shall apply to every expenditure of public funds by this Commonwealth and every payment by contingency fee under any contract or like business agreement, excepting only that this code shall not apply to contracts or like business agreements between the Commonwealth …

(1) This chapter shall apply to all insurance contracts purchased by the Commonwealth, except where the commissioner of insurance determines, with the concurrence of the secretary of Finance and Administration Cabinet, that: (a) An emergency exists; (b) Competition is not feasibl…

(1) Notwithstanding any other provision of law to the contrary, the Department for Local Government, the Department of Military Affairs, and the Kentucky Office of Homeland Security may enter into multiyear contracts, memoranda of agreement, memoranda of understanding, grant agre…

Every determination required by this code shall be in writing and based upon written findings of the public official making the determination. These determinations and written findings shall be retained in an official contract file in the office of the chief purchasing officer or…

As used in this code, unless the context requires otherwise: (1) "Business" means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other legal entity through which business is conducted; (2) "Change order" means a written o…

(1) The secretary of the Finance and Administration Cabinet shall have power and authority over, and may, except as otherwise expressly provided in this code, adopt regulations pursuant to KRS Chapter 13A and consistent with this code governing the purchasing, management, and con…

The secretary of the Finance and Administration Cabinet shall provide for the distribution of the cabinet's procurement activities and functions among the various bureaus within the cabinet.

regulations -- Disposal of state-owned real and personal property. (1) The Finance and Administration Cabinet shall serve as the central procurement and contracting agency of the Commonwealth. The cabinet shall: (a) Require all agencies to furnish an estimate of specific needs fo…

Disposition of proceeds upon sale -- Restriction on purchase of body armor for service animal. (1) When an agency of Kentucky state government or a public university safety and security department organized pursuant to KRS 164.950 disposes of firearms or ammunition owned by that …

resident bidders. (1) Except as provided in KRS 45A.800 to 45A.835 and KRS Chapters 175, 176, 177, and 180, all rights, powers, duties, and authority relating to the procurement of supplies, services, and construction, and the management, control, warehousing, sale, and disposal …

(1) Prior to January 1, 1979, the secretary of the Finance and Administration Cabinet shall publish the initial state purchasing regulations in accordance with current Finance and Administration Cabinet policies and procedures. The initial regulations may be promulgated on an int…

The secretary of the Finance and Administration Cabinet shall maintain a close and cooperative relationship with the using agencies of the Commonwealth. Any using agency may at any time make recommendations concerning procurement to the secretary.

(1) The secretary of the Finance and Administration Cabinet may appoint advisory councils to assist him with respect to specifications and procurement in specific commodity areas as well as other matters within his authority. Advisory council members may consist of such qualified…

remit sales and use tax -- Exemption -- Applicability to foreign persons -- Administrative regulation. (1) As used in this section: (a) "Affiliate" means a person who directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with …

As used in KRS 45A.070 to 45A.180, unless the context in which they are used clearly requires a different meaning: (1) "Best value" means a procurement in which the decision is based on the primary objective of meeting the specific business requirements and best interests of the …

Except as otherwise authorized by law, all state contracts shall be awarded by: (1) Competitive sealed bidding, pursuant to KRS 45A.080; (2) Competitive negotiation, pursuant to KRS 45A.077, 45A.085, 45A.090, or 45A.180; (3) Noncompetitive negotiation, pursuant to KRS 45A.095; or…

for capital construction projects. (1) A public-private partnership delivery method may be utilized as provided in this section and administrative regulations promulgated thereunder. State contracts using this method shall be awarded by competitive negotiation. (2) A contracting …

(1) Contracts exceeding the amount provided by KRS 45A.100 shall be awarded by competitive sealed bidding, which may include the use of a reverse auction, unless it is determined in writing that this method is not practicable. Factors to be considered in determining whether compe…

(1) When, under administrative regulations promulgated by the secretary or under KRS 45A.180, the purchasing officer determines in writing that the use of competitive sealed bidding is not practicable, and except as provided in KRS 45A.095 and 45A.100, a contract may be awarded b…

available funds. (1) In the event that all bids submitted pursuant to competitive sealed bidding under KRS 45A.080 result in bid prices in excess of the funds available for the purchase, and the chief purchasing officer determines in writing: (a) That there are no additional fund…

(1) As used in this section: (a) "Emergency condition" means a situation which creates a threat or impending threat to public health, welfare, or safety such as may arise by reason of fires, floods, tornadoes, other natural or man-caused disasters, epidemics, riots, enemy attack,…

As used in this section and KRS 45A.097: (1) "Business" has the same meaning as in KRS 11A.010; (2) "Commemoration" means an object, such as a plaque or a sign, honoring a living person or an event, but does not include naming rights; (3) "Does business with" or "doing business w…

of establishing commemoration, memorial, naming rights, or sponsorships. (1) A governmental body may accept donations and gifts from persons or businesses to further the governmental body's mission or to benefit the Commonwealth. Donations and gifts shall not be from a prohibited…

(1) Procurements may be made in accordance with small purchase administrative regulations promulgated by the secretary of the Finance and Administration Cabinet, pursuant to KRS Chapter 13A, as follows: (a) Up to ten thousand dollars ($10,000) per project for construction and one…

An invitation for bids, a request for proposals, or other solicitation may be canceled, or all bids or proposals may be rejected, if it is determined in writing that such action is taken in the best interest of the Commonwealth and approved by the purchasing officer.

nondisclosure. (1) A written determination of responsibility of a bidder or offeror shall be made and it shall be made in accordance with administrative regulations promulgated by the secretary of the Finance and Administration Cabinet. A reasonable inquiry to determine the respo…

The secretary of the Finance and Administration Cabinet may provide for prequalification of suppliers as responsible prospective contractors for particular types of supplies, services, and construction. The secretary of the Finance and Administration Cabinet shall not prequalify …

(1) A contractor shall submit cost or pricing data and shall certify that, to the best of his knowledge and belief, the cost or pricing data submitted was accurate, complete, and current as of a mutually determined specified date prior to the date of: (a) The pricing of any negot…

The cost plus a percentage of cost system of contracting shall not be used.

(1) No contract providing for the reimbursement of the contractor's cost plus a fixed fee, hereinafter referred to as a cost reimbursement contract, may be made under KRS 45A.085, 45A.090 or 45A.095, unless it is determined in writing by the secretary of the Finance and Administr…

Subject to the limitations of KRS 45A.125 and 45A.130, any type of contract which will promote the best interests of the Commonwealth may be used.

undisputed and disputed invoices -- Interest penalty -- Secretary to promulgate administrative regulations -- Payment resolution process -- Required reporting. (1) As used in this section: (a) "Purchasing agency" means a unit or body of state government that receives goods or ser…

Except with respect to firm fixed price type contracts, no contract type shall be used unless it has been determined in writing that the proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract…

(1) Unless otherwise provided in the statute making appropriations therefor, multiyear contracts for supplies and services may be entered into for periods not extending beyond the end of the biennium in which the contract was made, if funds for the first fiscal year of the contem…

(1) The Finance and Administration Cabinet may inspect the plant or place of business of a contractor or any subcontractor under any contract awarded or to be awarded by the Commonwealth. (2) The Finance and Administration Cabinet may audit the books and records of any person who…

The determinations required by KRS 45A.085(1), (3), (6), and (7); 45A.090(1), (2) and (3); 45A.095; 45A.105; 45A.110(1); 45A.120(3); and 45A.130(1) shall be final and conclusive unless they are clearly erroneous, arbitrary, capricious, or contrary to law.

(1) When for any reason collusion is suspected among any bidders or offerors, a written notice of the facts giving rise to such suspicion shall be transmitted to the Attorney General. (2) All documents involved in any procurement in which collusion is suspected shall be retained …

(1) A report shall be compiled annually by the chief purchasing officer, within ninety (90) days following the close of the fiscal year, of contracts made under KRS 45A.095 during that preceding fiscal year. The report shall: (a) Name each contractor; (b) State the amount and typ…

(1) The Finance and Administration Cabinet shall have responsibility for issuing and maintaining all standard specifications for supplies, services, and construction required by the Commonwealth. Among its duties, it shall, to the greatest extent practicable: (a) Prepare and issu…

(1) The secretary of the Finance and Administration Cabinet shall promulgate administrative regulations by October 15, 2003, providing for as many alternative methods of management of construction contracting as he or she may determine to be feasible; setting forth criteria to be…

constructed utilizing the design-build construction method. When a capital project is to be constructed utilizing the design-build construction method in accordance with KRS 45A.180, the percentage of scoring to be attributed to the guaranteed maximum price shall be stated in the…

constructed utilizing the design-build method -- Cancellation or rejection of requests or proposals. (1) When a capital project is to be constructed utilizing the design-build method in accordance with KRS 45A.180, a process parallel to the selection committee procedures establis…

constructed using the construction management-at-risk method -- Eligibility of construction management-at-risk entity -- Competitive process consistent with code to apply when construction project is to be constructed using the construction manager-general contractor method -- El…

construction manager-agency for a fee. The selection committee procedures established in KRS 45A.180 shall apply when procuring services of a construction manager-agency for a fee if the fee amount exceeds fifty thousand dollars ($50,000).

(1) Bidder security shall be required for all competitive sealed bidding for construction contracts when the price is estimated by the Commonwealth to exceed forty thousand dollars ($40,000). Bidder's security shall be a bond provided by a surety company authorized to do business…

The reverse auction process shall not be used to procure architectural, engineering, or engineering-related services as described in KRS 45A.730; underwriter, bond counsel, or financial advisors as described in KRS 45A.850; or contracts for construction as described in KRS 45A.03…

performance bond should be required -- Audit of contract performance -- Release from performance bond. (1) As used in this section, "agency contract administrator" means the state agency employee responsible for the administration of a contract. (2) When a construction contract i…