North Carolina Administrative Code

01 NCAC 05B .0903 REINSPECTIONS The Division may re-inspect any item or service performed and reverse an agency decision when justified. History Note: Authority G.S. 143-60; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Pursuant to G.S. 150B-21.3A, rule is necessary wi…

01 NCAC 05B .0904 SAMPLES When samples are required in response to a solicitation document issued by the Division of Purchase and Contract, the Division shall test, or have tested, those samples. Samples shall not be sent directly to laboratories outside the Division of Purchase …

01 NCAC 05B .0905 SPECIFICATIONS When it is determined to be advantageous, the agency which awarded the contract may authorize revisions to a contract specification, including any cost adjustment associated with any such revision, as part of contract administration. If an increas…

01 NCAC 05B .0906 REPORT OF DISCREPANCY Where commodities, services or printing delivered fail to meet the specifications or contract requirements, the discrepancy shall be resolved by the agency which issued the solicitation document. History Note: Authority G.S. 143-53; 143-60;…

SECTION .1000 - GUARANTEES AND WARRANTIES 01 NCAC 05B .1001 ENFORCEMENT Using agencies shall enforce the contractual guarantee or warranty applying to the supplies, materials, and equipment purchased. History Note: Authority G.S. 143-60; Eff. February 1, 1976; Readopted Eff. Febr…

01 NCAC 05B .1002 REPORT TO PURCHASING If any agency has difficulty in obtaining satisfactory performance, including service as provided for in a guarantee or warranty, under a contract handled by the Division of Purchase and Contract, the matter shall be referred to the Division…

01 NCAC 05B .1003 RESPONSIBILITY OF USING AGENCY The using agency must notify the vendor promptly when latent or other defects are discovered. In the event the vendor fails to remedy the condition reported, and the contract was handled by the Division of Purchase and Contract, th…

SECTION .1100 - TERM CONTRACTS 01 NCAC 05B .1101 USE (a) Term contracts, known also as indefinite quantity or requirements contracts, are used generally to establish suppliers and prices of a given commodity, group of commodities, printing, or services for a period of time withou…

01 NCAC 05B .1102 DETERMINING FACTORS In determining whether a product should be on a statewide term contract, the Division shall consider such factors as volume, nature of the product, repetitiveness of use, relative stability of prices, and transportation costs. In determining …

01 NCAC 05B .1105 SPECIAL ITEMS In situations where a general type of item is covered by a term contract but a special type item is needed for a particular application, the agency may proceed with the purchase of the special type item under the rules of this Chapter. The need for…

01 NCAC 05B .1106 DISCOUNT SCHEDULES History Note: Authority G.S. 143-52; 143-55; 143-58; 143-49; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. February 1, 1996.

01 NCAC 05B .1107 ANTI-INFLATION COMPLIANCE: TERM CONTRACT PRICE INCREASES History Note: Authority G.S. 143-52; 143-53; 143-55; Eff. February 27, 1979; Repealed Eff. June 1, 1986.

SECTION .1100 - TERM CONTRACTS 01 NCAC 05B .1108 EXTENSION OF CONTRACT TERMINATION DATES When in the best interest of the State, Vendors may be requested to extend the scheduled termination dates of contracts. Extensions shall not result in a change in the prices stated in the or…

SECTION .1200 - PARTIAL AND MULTIPLE AWARDS 01 NCAC 05B .1201 USE (a) The Purchasing Agency may make a partial, multiple or Progressive award for the following reasons: (1) there are insufficient funds to make a full award; (2) a legislative mandate; (3) if the Purchasing Agency …

01 NCAC 05B .1202 SELECTION FROM LISTS OF SUPPLIERS History Note: Authority G.S. 143-53(6); Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. February 1, 1996.

SECTION .1300 - SMALL PURCHASES 01 NCAC 05B .1301 PROCEDURES History Note: Authority G.S. 143-53; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Amended Eff. February 1, 1996; Temporary Repeal Eff. February 15, 1998; Repealed Eff. April 1, 1999.

01 NCAC 05B .1302 DOLLAR LIMITATIONS History Note: Authority G.S. 143-53; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. February 1, 1996.

01 NCAC 05B .1303 DESIGNATION OF AUTHORIZED PERSONS History Note: Authority G.S. 143-53; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. April 1, 1999.

SECTION .1400 - WAIVER OF COMPETITION 01 NCAC 05B .1401 POLICY Under conditions listed in this Rule, and otherwise if deemed to be in the public interest by the SPO or the agency, if under its delegation or benchmark, competition may be waived. Conditions permitting waiver includ…

01 NCAC 05B .1402 APPROVAL AND DOCUMENTATION Although competition may be waived pursuant to Rule .1401 of this Section, its use is required wherever practicable. Where waiver is contemplated, agencies may negotiate with a potential vendor(s) in an effort to acquire the quality of…

01 NCAC 05B .1403 DATA PROCESSING HARDWARE AND SOFTWARE History Note: Authority G.S. 143-53; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Amended Eff. July 1, 1987; Repealed Eff. February 1, 1996.

SECTION .1500 - MISCELLANEOUS PROVISIONS 01 NCAC 05B .1501 CONFIDENTIALITY History Note: Authority G.S. 143-52; 143-53; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Amended Eff. April 1, 1999; February 1, 1996; Repealed Eff. October 1, 2019.

01 NCAC 05B .1504 PAYMENT PLANS Purchase contracts may provide for payment over a period of time. Such instances, however, shall be fully justified, kept to a minimum and carry written prior approval of the administrative head of the agency. Administrative heads and governing boa…

01 NCAC 05B .1505 FUNDS FROM DIFFERENT SOURCES (a) All public funds irrespective of source, whether special, federal, local, gifts, bequests, receipts, fees, or State appropriated, used for the purchase, rental, lease, installment purchase and lease/purchase of commodities, print…

01 NCAC 05B .1506 CONDITIONAL GRANTS ETC IN PUBLIC PURCHASING Where a grant, donation or special discount is predicated upon making a purchase from the grantor, the proposed transaction shall be explained in writing and shall have prior approval of the SPO. Prior to approval, the…

01 NCAC 05B .1507 CHANGE IN CORPORATE STRUCTURE Contracts following an award to a Vendor are not instruments for sale and shall not be assigned. If a Vendor is involved in corporate consolidations, acquisitions or mergers, the Purchasing Agency may negotiate agreements for the tr…

01 NCAC 05B .1508 PURCHASES FOR ACROSS THE COUNTER RESALE Purchases of items for "across the counter" resale are not handled through the Division of Purchase and Contract. However, all purchases of items for use by agencies, even if channeled through bookstores or other internal …

01 NCAC 05B .1509 PURCHASING FROM OR THROUGH AGENCY EMPLOYEES Every reasonable effort shall be made to avoid making purchases from or through employees of any agency. Prior written approval from the SPO is required in any instance which may develop of doing business with such per…

01 NCAC 05B .1510 USE OF PURCHASING POWER FOR PRIVATE GAIN History Note: Authority G.S. 143-53; 143-58.1; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Amended Eff. April 1, 1999; February 1, 1996; July 1, 1987; Repealed Eff. October 1, 2019.

01 NCAC 05B .1511 Anticompetitive, deceptive, and fraudulent practices (a) A Purchasing Agency shall act to prevent the continuance of anticompetitive, deceptive, or fraudulent practices. Anticompetitive practices include actions involving Vendors that restrain trade or commerce …

01 NCAC 05B .1512 AVAILABILITY OF SERVICES TO CERTAIN NON-STATE AGENCIES (a) The Division of Purchase and Contract shall make purchasing services available to certain non-State agencies as defined by G.S. 143-49 and G.S. 143-49.1. This may be affected by budgetary allowances for …

01 NCAC 05B .1513 COOPERATIVE PURCHASING Where an agency is a participant in an authorized cooperative project with another governmental activity or with a charitable non-profit organization, goods and services necessary to the project shall be acquired according to the rules of …

01 NCAC 05B .1516 ADVERTISING No Vendor shall advertise or otherwise use any Contract for marketing purposes. A Vendor may only include the State on a listing of existing customers. History Note: Authority G.S. 143-53; 143-60; Eff. February 1, 1996; Readopted Eff. October 1, 2019…

01 NCAC 05B .1517 GOODS REQUIRING IMMEDIATE ACCEPTANCE History Note: Authority G.S. 143-49; 143-52; Eff. February 1, 1996; Repealed Eff. April 1, 1999.

01 NCAC 05B .1518 BOARD OF AWARD History Note: Authority G.S. 143-53; 143-318.18(10); Eff. February 1, 1996; Amended Eff. April 1, 1999; Expired Eff. August 1, 2016 pursuant to G.S. 150B-21.3A.

01 NCAC 05B .1519 PROTEST PROCEDURES (a) When a Vendor wants to protest a Contract awarded by a Purchasing Agency valued at less than the amount set forth in G.S. 143-53, the Purchasing Agency and Vendor shall comply with the following: (1) The Vendor shall submit a written reque…

01 NCAC 05B .1520 DEBARMENT (a) For the purpose of this Rule, "debarred" or "debarment" means a Vendor shall not be entitled to enter into a Contract for Goods or Services and shall be removed from any distribution lists which may be utilized by the Division. (b) A Vendor shall b…

01 NCAC 05B .1521 FAITHFUL PERFORMANCE A Solicitation and Contract may include terms ensuring a Vendor's performance such as: (1) a bond, or similar assurance; (2) liquidated damages; (3) a percentage of the Contract value held as a retainage; (4) withholding final payment contin…

01 ncac 05b .1522 RECIPROCAL PREFERENCE (a) Each Solicitation used to obtain contracts for Goods and Services that exceed thresholds mandated in G.S. 143-59(b) shall include space for a bidder to give their principal place of business address if it is different than the address g…

01 NCAC 05B .1523 PROCUREMENT CARDS (a) Procurement cards (organizational charge cards) are for official use only and shall be used in accordance with this Section and with the statewide contract established and maintained by the Division of Purchase and Contract. Use of procurem…

SECTION .1600 - EXEMPTIONS, EMERGENCIES AND SPECIAL DELEGATIONS 01 NCAC 05B .1601 EXEMPTIONS (a) Except as provided in Paragraph (c) of this Rule, it is not mandatory for the items and services listed in this Rule to be purchased through the Division of Purchase and Contract. (1)…

01 NCAC 05B .1602 EMERGENCIES (a) An agency may make purchases of commodities, printing or services in the open market in cases of emergency or pressing need. For this purpose, a pressing need is one arising from unforeseen causes including, but not limited to, delay by contracto…

01 NCAC 05B .1603 SPECIAL DELEGATIONS (a) The SPO may authorize, by special delegation, any agency to purchase specific commodities, printing or services without limitation as to expenditure. Such delegation is normally confined, but not limited to, commodities, printing or servi…

01 NCAC 05B .1604 GENERAL DELEGATIONS History Note: Authority G.S. 143-53; Temporary Adoption Eff. February 15, 1998; Eff. April 1, 1999; Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. July 23, 2016; Repealed Eff. March 1, 2022.

01 NCAC 05B .1605 COMPLIANCE REVIEWS (a) The Division of Purchase and Contract shall conduct compliance reviews on purchasing practices at all agencies. The purpose of the compliance review shall be for determining if an agency is complying with North Carolina's purchasing statut…

SECTION .1800 - INVENTORIES AND STORES 01 NCAC 05B .1801 SUPERVISION History Note: Authority G.S. 143-49(4); 143-60; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. June 1, 1987.

01 NCAC 05B .1802 PERSONAL PROPERTY INVENTORY PLAN History Note: Authority G.S. 143-49(4); 143-60; Eff. February 1, 1976; Readopted Eff. February 27, 1979; Repealed Eff. June 1, 1987.