REFERENCE TITLE: Arizona procurement code; amendments

 

 

 

State of Arizona

Senate

Fifty-third Legislature

First Regular Session

2017

 

 

SB 1164

 

Introduced by

Senator Kavanagh

 

 

AN ACT

 

amending sections 41‑2567 and 41‑2573, Arizona Revised Statutes; relating to the arizona procurement code.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 41-2567, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2567.  Specifications for energy consumptive material

In conjunction with the governor's office of energy policy, The director shall establish specifications based on national standards for considerations of energy conservation for the procurement of selected energy consumptive material. END_STATUTE

Sec. 2.  Section 41-2573, Arizona Revised Statutes, is amended to read:

START_STATUTE41-2573.  Bid security

A.  As a guarantee that the contractor will enter into a contract, bid security is required for all construction procured pursuant to section 41‑2533 and all construction services procured pursuant to section 41‑2578, subsection F or section 41‑2579, subsection F if the purchasing agency estimates that the budget for construction, excluding the cost of any finance services, maintenance services, operations services, design services, preconstruction services or other related services included in the contract, will be more than the amount established by section 41‑2535, subsection D.  Bid security shall be a certified check, cashier's check or surety bond.

B.  Bid security shall be submitted in the following amounts:

1.  For design‑bid‑build construction services, ten per cent percent of the contractor's bid.

2.  For design‑build construction services awarded by competitive sealed proposals pursuant to section 41‑2578, subsection F, ten per cent percent of the purchasing agency's construction budget for the project as stated in the request for proposals, excluding finance services, maintenance services, operations services, design services, preconstruction services or any other related services included in the contract.

3.  For job‑order‑contracting construction services awarded by competitive sealed proposals pursuant to section 41‑2578, subsection F or section 41‑2579, subsection F, the amount prescribed by the purchasing agency in the request for proposals, but not more than ten per cent percent of the purchasing agency's reasonably estimated budget for construction that the purchasing agency believes is likely to actually be done during the first year under the contract, excluding any finance services, maintenance services, operations services, design services, preconstruction services or other related services included in the contract.

C.  Nothing in This section prevents does not prevent a state governmental unit from requiring such bid security in relation to any construction contract.  The surety bond shall be executed and furnished as required by title 34, chapter 2 or chapter 6, as applicable, and the conditions and provisions of the surety bond regarding the surety's obligations shall follow the form required by section 34‑201 or 34-608, as applicable.

D.  If the invitation for bids or request for proposals requires security, noncompliance requires that the bid be rejected unless, pursuant to rules, it is determined that the bid fails to comply in a nonsubstantial manner with the security requirements.

E.  After the bids or proposals are opened, they are irrevocable for the period specified in the invitation for bids or request for proposals, except as provided in section 41‑2533, subsection F, section 41‑2578, subsection F and section 41‑2579, subsection F.  If a bidder is permitted to withdraw its bid before award, no action may be had against the bidder or the bid security. END_STATUTE