June 21, 2007, Introduced by Rep. Young and referred to the Committee on Government Operations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
by amending section 261 (MCL 18.1261), as amended by 2006 PA 622.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 261. (1) The department shall provide for the purchase
of, the contracting for, and the providing of supplies, materials,
services, insurance, utilities, third party financing, equipment,
printing, and all other items as needed by state agencies for which
the legislature has not otherwise expressly provided. In all
purchases made by the department, all other things being equal,
preference shall be given to products manufactured or services
offered by Michigan-based firms, if consistent with federal
statutes. The department shall solicit competitive bids from the
private sector whenever practicable to efficiently and effectively
meet the state's needs. The department shall first determine that
competitive solicitation of bids in the private sector is not
appropriate before it shall use any other procurement method for an
(2) The department shall make all discretionary decisions
concerning the solicitation, award, amendment, cancellation, and
appeal of state contracts.
(3) The department shall utilize competitive solicitation for
all purchases authorized under this act unless 1 or more of the
(a) Procurement of goods or services is necessary for the
imminent protection of public health or safety or to mitigate an
imminent threat to public health or safety, as determined by the
director or his or her designated representative.
(b) Procurement of goods or services is for emergency repair
or construction caused by unforeseen circumstances when the repair
or construction is necessary to protect life or property.
(c) Procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) Procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) Procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
(f) Procurement of goods or services is within a state
agency's purchasing authority delegated under subsection (4), and
the state agency has established policies or procedures approved by
the department to ensure that goods or services are purchased by
the state agency at fair and reasonable prices.
(4) The department may delegate its procurement authority to
other state agencies within dollar limitations and for designated
types of procurements. The department may withdraw delegated
authority upon a finding that a state agency did not comply with
departmental procurement directives.
(5) The department may enter into lease purchases or
installment purchases for periods not exceeding the anticipated
useful life of the items purchased unless otherwise prohibited by
(6) The department shall issue directives for the procurement,
receipt, inspection, and storage of supplies, materials, and
equipment, and for printing and services needed by state agencies.
The department shall provide standard specifications and standards
of performance applicable to purchases.
(7) The department may enter into a cooperative purchasing
agreement with 1 or more other states or public entities for the
purchase of goods, including, but not limited to, recycled goods,
and services necessary for state programs.
(8) In awarding a contract under this section, the department
shall give a preference of up to 10% of the amount of the contract
to a qualified disabled veteran. If the qualified disabled veteran
otherwise meets the requirements of the contract solicitation and
with the preference is the lowest bidder, the department shall
enter into a procurement contract with the qualified disabled
veteran under this act. If 2 or more qualified disabled veterans
are the lowest bidders on a contract, all other things being equal,
the qualified disabled veteran with the lowest bid shall be awarded
the contract under this act.
(9) It is the goal of the department to award each year not
less than 3% of its total expenditures for construction, goods, and
services to qualified disabled veterans. The department may count
toward its 3% yearly goal described in this subsection that portion
of all procurement contracts in which the business entity that
received the procurement contract subcontracts with a qualified
disabled veteran. Each year, the department shall report to each
house of the legislature on all of the following for the
immediately preceding 12-month period:
(a) The number of qualified disabled veterans who submitted a
bid for a state procurement contract.
(b) The number of qualified disabled veterans who entered into
procurement contracts with this state and the total value of those
(c) Whether the department achieved the goal described in this
(d) The recommendations described in subsection (10).
(10) Each year, the department shall review the progress of
all state agencies in meeting the 3% goal with input from statewide
veterans service organizations and from the business community,
including businesses owned by qualified disabled veterans, and
shall make recommendations to each house of the legislature
regarding continuation, increases, or decreases in the percentage
goal. The recommendations shall be based upon the number of
businesses that are owned by qualified disabled veterans and on the
continued need to encourage and promote businesses owned by
qualified disabled veterans.
(11) To assist the department in reaching the goal described
in subsection (9), the governor shall recommend to the legislature
changes in programs to assist businesses owned by qualified
(12) Beginning on the effective date of the amendatory act
that added this subsection, the department and all state agencies
shall not enter into a contract for the purchase of goods or
services under this act with a vendor or supplier who conducts
business in or with the republic of Sudan.
As used in this section:
(a) "Qualified disabled veteran" means a business entity that
is 51% or more owned by 1 or more veterans with a service-connected
(b) "Service-connected disability" means a disability incurred
or aggravated in the line of duty in the active military, naval, or
air service as described in 38 USC 101(16).
(c) "Veteran" means a person who served in the active
military, naval, or air service and who was discharged or released
from his or her service under conditions other than dishonorable.