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Arkansas General Assembly· SB 538Notification that SB538 is now Act 782

An act TO AMEND THE ARKANSAS PROCUREMENT LAW, the official text

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Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas           As Engrossed: S4/2/25 S4/7/25
2 95th General Assembly
                                       A Bill

3 Regular Session, 2025                                          SENATE BILL 538

4

5 By: Senators Gilmore, Hickey, Irvin, J. Dotson

6 By: Representative Wardlaw

7

8                             For An Act To Be Entitled

9   AN ACT TO AMEND THE ARKANSAS PROCUREMENT LAW; AND FOR

10  OTHER PURPOSES.

11

12

13                                                Subtitle

14                       TO AMEND THE ARKANSAS PROCUREMENT LAW.

15

16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

17

18  SECTION 1. Arkansas Code � 19-11-217(c), concerning the powers and

19 duties of State Procurement Director, is amended to add an additional

20 subdivision to read as follows:

21  (16) Within one hundred twenty (120) days after the effective

22 date of a new or revised statute or rule relating to procurement, shall

23 review the procurement materials of the office and revise the procurement

24 materials to maintain alignment between the procurement materials and the

25 relevant procurement statutes and rules.

26

27  SECTION 2. Arkansas Code � 19-11-229(f), concerning competitive sealed

28 bidding, is amended to add an additional subdivision to read as follows:

29  (4)(A) A state agency may determine that the cost of the bid is

30 unrealistic.

31                       (B) As used in this subdivision (f)(4), "unrealistic"

32 means too low to reflect the ability of the bidder to meet the requirements

33 of the invitation for bids.

34                       (C) The director shall promulgate rules concerning the

35 requirements for determining that a bid is unrealistic.

36

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1       SECTION 3. Arkansas Code � 19-11-230(c), concerning competitive sealed

2 proposals, is amended to read as follows:

3       (c)(1) Public Except as provided in subdivision (c)(2) of this

4 section, public notice of the request for proposals shall be given in the

5 same manner as provided in � 19-11-229(d), which refers to public notice of

6 competitive sealed bidding.

7       (2)(A) A request for proposals under this section shall be

8 issued at least twenty (20) business days before the deadline for the

9 submission of proposals.

10      (B) If a request for proposals is reissued before the

11 anticipation to award, the state agency shall extend the original deadline

12 for the submission of proposals by at least ten (10) business days.

13

14      SECTION 4. Arkansas Code � 19-11-230(d)(4), concerning competitive

15 sealed proposals, is amended to read as follows:

16      (4) A state agency shall: not

17      (A) Not include prior experience with the state as a

18 mandatory requirement for submitting a proposal under this section;

19      (B) Evaluate the cost of each proposal received from a

20 responsible offeror in response to a request for proposals under this section

21 in the state agency's initial evaluation of the proposals; and

22      (C) Not identify responsible offerors as being reasonably

23 susceptible of being awarded a contract under this section until the cost

24 proposal from each responsible offeror has been evaluated.

25

26      SECTION 5. Arkansas Code � 19-11-230(d), concerning competitive sealed

27 proposals, is amended to add an additional subdivision to read as follows:

28      (5)(A) A state agency may determine that the cost of the

29 proposal is unreasonable or unrealistic.

30      (B) As used in this subdivision (d)(5):

31      (i) "Unrealistic" means too low to reflect the

32 ability of the offeror to meet the requirements of the request for proposals;

33 and

34      (ii) "Unreasonable" means too high for the

35 requirements of the request for proposals.

36      (C) The director shall promulgate rules concerning the

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1 requirements for determining that the cost of a proposal is unreasonable or

2 unrealistic.

3

4   SECTION 6. Arkansas Code � 19-11-230(e), concerning competitive sealed

5 proposals, is amended to add additional subdivisions to read as follows:

6            (4)(A) Negotiations under this section shall be conducted by a

7 person who is trained and certified in negotiation and procurement processes.

8               (B)(i) The office shall provide for the training and

9 certification required under subdivision (e)(4)(A) of this section.

10              (ii) The training provided by the office under this

11 subdivision (e)(4) shall be specific to Arkansas law.

12           (5) The director shall promulgate rules detailing the

13 requirements for negotiations under this section.

14

15  SECTION 7. Arkansas Code � 19-11-230, concerning competitive sealed

16 proposals, is amended to add an additional subsection to read as follows:

17  (j) A state agency using the method of procurement provided for under

18 this section shall adhere to the procurement rules, policies, and guidance

19 issued by the office concerning the scoring of the technical and cost

20 elements of submitted proposals.

21

22  SECTION 8. Arkansas Code � 19-11-244(a)(5)(B), concerning the

23 resolution of a protest by a person named in an anticipation to award a

24 contract, is amended to read as follows:

25              (B) A response to a protest submitted under subdivision

26 (a)(5)(A) of this section shall be submitted in writing within five (5)

27 calendar days of the date the person is given notice of the protest under

28 subdivision (a)(2)(B) of this section.

29

30  SECTION 9. Arkansas Code � 19-11-244(d), concerning the resolution of

31 protested solicitations and awards of contracts, is amended to read as

32 follows:

33  (d) A copy of the decision under subsection (c) of this section shall

34 be mailed or otherwise furnished within five (5) calendar days after it is

35 written to the protestor and any other party intervening.

36

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1   SECTION 10. Arkansas Code � 19-11-244(f), concerning the resolution of

2 protested solicitations and awards of contracts, is amended to read as

3 follows:

4   (f) In the event of a timely protest under subsection (a) of this

5 section,: the

6            (1) The state shall not execute a contract that is the result of

7 the protested solicitation or award unless the director or the head of the

8 relevant procurement agency makes a written determination that the execution

9 of the contract without delay is necessary to protect substantial interests

10 of the state; and

11           (2) Contract negotiations with the anticipated awardee may

12 proceed.

13

14  SECTION 11. Arkansas Code � 19-11-245(e) and (f), concerning debarment

15 and suspension under the Arkansas Procurement Law, are amended to read as

16 follows:

17  (e) Notice of Decision. A copy of the decision under subsection (d) of

18 this section shall be mailed or otherwise furnished within five (5) calendar

19 days after it is written to the debarred or suspended person and any other

20 party intervening.

21  (f) Finality of Decision. A decision under subsection (d) of this

22 section shall be final and conclusive and not an order as defined in the

23 Arkansas Administrative Procedure Act, � 25-15-201 et seq., but may be

24 appealed to the Secretary of the Department of Shared Administrative Services

25 in accordance with the rules promulgated by the director.

26

27  SECTION 12. Arkansas Code � 19-11-247(a)�(c), concerning the remedies

28 for unlawful solicitation or award of a contract, are amended to read as

29 follows:

30  (a) The provisions of this section apply where it is determined upon

31 any review provided by law that a solicitation or award the creation,

32 solicitation, award, management, or modification of a contract is in

33 violation of law.

34  (b) If prior to award it is determined that a solicitation, or

35 proposed award, or modification of a contract is in violation of law, then

36 the solicitation, or proposed award, or modification shall be:

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1           (1) Cancelled; or

2           (2) Revised to comply with the law.

3       (c) If after an award it is determined that a solicitation or award

4 the creation, solicitation, award, management, or modification of a contract

5 is in violation of law, then in addition to or in lieu of other remedies

6 provided by law:

7           (1) If the person awarded the contract vendor has not acted

8 fraudulently or in bad faith:

9                   (A) The contract may be ratified and affirmed if it is

10 determined that doing so is in the best interests of the state; or

11                  (B) The contract may be terminated; and

12          (2) If the person awarded the contract vendor has acted

13 fraudulently or in bad faith:

14                  (A) The contract may be declared null and void; or

15                  (B) The person awarded the contract may be directed to

16 proceed with performance of the contract and pay such damages, if any, as may

17 be appropriate if such action shall be in the best interests of the state.

18

19      SECTION 13. Arkansas Code � 19-11-279, concerning requests for

20 information, is amended to add an additional subsection to read as follows:

21      (f) A response to a request for information under this section is not

22 required for a vendor's bid, proposal, or statement of qualifications and

23 performance data to be accepted unless the response requirement is:

24          (1) Explicitly stated in the invitation for bids, request for

25 proposals, or request for statements of qualifications and performance data;

26 and

27          (2) Approved by the director or the head of the procurement

28 agency.

29

30      SECTION 14. Arkansas Code � 19-11-280(a), concerning the training and

31 certification of procurement personnel, is amended to read as follows:

32      (a)(1) The State Procurement Director shall establish a an in-person

33 training and certification program to facilitate the training, continuing

34 education, and annual certification of state agency procurement personnel.

35          (2) The training and certification program required under

36 subdivision (a)(1) of this section may be offered through an in-person

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1 training course or a live, virtual course.

2

3   SECTION 15. Arkansas Code � 19-11-280(c), concerning the training and

4 certification of procurement personnel, is amended to read as follows:

5   (c)(1) Beginning July 1, 2021, a A state agency employee shall not

6 conduct a procurement under this chapter unless the state agency employee is

7 certified annually through the training and certification program required

8 under this section.

9   (2) To maintain certification under this section, a state agency

10 employee shall complete a reasonable number of hours of continuing education

11 each year, as provided for by rule by the director.

12

13  SECTION 16. Arkansas Code � 19-11-280, concerning the training and

14 certification of procurement personnel, is amended to add an additional

15 subsection to read as follows:

16  (e)(1) The director shall report to the Review Subcommittee of the

17 Legislative Council concerning:

18  (A) The progress made in developing an implementing the

19 training and certification program required under this section; and

20  (B) The state agencies that have had employees complete

21 the training and certification program required under this section.

22  (2) The report required under section shall be presented:

23  (A) For the first year following the effective date of

24 this act, every ninety (90) days; and

25  (B) Annually each subsequent year.

26

27  SECTION 17. Arkansas Code Title 19, Chapter 11, Subchapter 2, is

28 amended to add an additional section to read as follows:

29  19-11-282. Notification to Office of State Procurement.

30  A state agency other than an institution of higher education shall

31 notify the Office of State Procurement that the state agency is going to

32 issue an invitation for bids or a request for proposals at least seven (7)

33 calendar days before issuing the solicitation.

34

35  SECTION 18. Arkansas Code � 19-11-802(c)(2), concerning annual

36 statements of qualifications and performance data and restrictions on

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1 competitive bidding, is amended to read as follows:

2   (2) A political subdivision shall may elect to not use

3 competitive bidding for the procurement of other professional services with a

4 two-thirds () vote of its governing body.

5

6   SECTION 19. DO NOT CODIFY. Repromulgation of rules.

7   (a) Within one hundred twenty (120) days of the effective date of this

8 act, the State Procurement Director shall repromulgate all rules related to

9 the sections of the Arkansas Code amended by this act and the recommendations

10 adopted by the Executive Subcommittee of the Legislative Council upon the

11 conclusion of the procurement study conducted for the 2025 regular session to

12 ensure that the rules promulgated under the sections of the Arkansas Code

13 that are amended by this act are in line with the intent of the General

14 Assembly in enacting this act.

15  (b) The director shall submit a monthly report to the Review

16 Subcommittee of the Legislative Council concerning his or her progress during

17 the reporting period in complying with subsection (a) of this section.

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19                                 /s/Gilmore

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