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1 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 334 By: Green
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6 AS INTRODUCED
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7 An Act relating to public buildings and public works;
7 amending 61 O.S. 2021, Section 103, as amended by
8 Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp.
8 2024, Section 103), which relates to public
9 construction contracts; modifying price threshold for
9 certain construction contract negotiations with
10 qualified contractor; providing an effective date;
10 and declaring an emergency.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
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15 amended by Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp. 2024,
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16 Section 103), is amended to read as follows:
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17 Section 103. A. Unless otherwise provided by law, all public
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18 construction contracts exceeding One Hundred Thousand Dollars
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19 ($100,000.00) or construction management trade contracts or
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20 subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be
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21 let and awarded to the lowest responsible bidder, by open
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22 competitive bidding after solicitation for sealed bids, in
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23 accordance with the provisions of the Public Competitive Bidding Act
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24 of 1974. No work shall be commenced until a written contract is
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Req. No. 174 Page 1
1 executed and all required bonds and insurance have been provided by
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2 the contractor to the awarding public agency.
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3 B. Notwithstanding subsection A of this section, in awarding
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4 public construction contracts exceeding One Hundred Thousand Dollars
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5 ($100,000.00) or construction management trade contracts or
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6 subcontracts exceeding Fifty Thousand Dollars ($50,000.00),
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7 counties, cities, other local units of government and any public
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8 trust with a county or a municipality as its sole beneficiary may
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9 provide for a local bid preference of not more than five percent
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10 (5%) of the bid price if the awarding public agency determines that
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11 there is an economic benefit to the local area or economy.
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12 Provided, however, the local bidder or contractor must agree to
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13 perform the contract for the same price and terms as the bid
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14 proposed by the nonlocal bidder or contractor. Any bid preference
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15 granted hereunder must be in accordance with an established policy
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16 adopted by the governing body of the awarding public agency to
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17 clearly demonstrate the economic benefit to the local area or
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18 economy. Provided, further, no local bid preference shall be
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19 granted unless the local bidding entity is the second lowest
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20 qualified bid on the contract. The bid specifications shall clearly
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21 state that the bid is subject to a local bidder preference law. For
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22 purposes of this section, "local bid" means the bidding person is
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23 authorized to transact business in this state and maintains a bona
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24 fide establishment for transacting such business within this state.
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1 This provision does not apply to any construction contract for which
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2 federal funds are available for expenditure when its provisions may
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3 be in conflict with federal law or regulation.
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4 C. Except as provided in subsection E of this section, other
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5 construction contracts for the purpose of making any public
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6 improvements or constructing any public building or making repairs
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7 to the same for One Hundred Thousand Dollars ($100,000.00) or less
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8 shall be let and awarded to the lowest responsible bidder by receipt
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9 of written bids or awarded on the basis of competitive quotes to the
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10 lowest responsible qualified contractor. Work may be commenced in
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11 accordance with the purchasing policies of the public agency.
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12 D. Except as provided in subsection E of this section, other
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13 construction contracts for less than Ten Thousand Dollars
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14 ($10,000.00) Twenty-five Thousand Dollars ($25,000.00) may be
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15 negotiated with a qualified contractor. Work may be commenced in
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16 accordance with the purchasing policies of the public agency.
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17 E. The provisions of this subsection shall apply to public
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18 construction for minor maintenance or minor repair work to public
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19 school district property. Other construction contracts for less
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20 than Twenty-five Thousand Dollars ($25,000.00) may be negotiated
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21 with a qualified contractor. Construction contracts equal to or
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22 greater than Fifty Thousand Dollars ($50,000.00) but less than One
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23 Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
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24 the lowest responsible bidder by receipt of written bids. No work
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1 shall be commenced on any construction contract until a written
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2 contract is executed and proof of insurance has been provided by the
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3 contractor to the awarding public agency.
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4 F. The Construction and Properties Division of the Office of
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5 Management and Enterprise Services may award contracts using best
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6 value competitive proposals. As used in this subsection, "best
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7 value" means an optional contract award system which can evaluate
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8 and rank submitted competitive performance proposals to identify the
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9 proposal with the greatest value to the state. The Office of
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10 Management and Enterprise Services, pursuant to the Administrative
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11 Procedures Act, shall promulgate rules necessary to implement the
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12 provisions of this subsection.
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13 G. 1. A public agency shall not let or award a public
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14 construction contract exceeding One Hundred Thousand Dollars
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15 ($100,000.00) or a construction management trade contract or
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16 subcontract exceeding Fifty Thousand Dollars ($50,000.00) to any
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17 contractor affiliated with a purchasing cooperative unless the
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18 purchasing cooperative and the contractor have complied with all of
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19 the provisions of the Public Competitive Bidding Act of 1974,
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20 including, but not limited to, open competitive bidding after
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21 solicitation for sealed bids. A public agency shall not let or
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22 award a public construction contract exceeding Ten Thousand Dollars
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23 ($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
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24 contractor affiliated with a purchasing cooperative unless the
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Req. No. 174 Page 4
1 purchasing cooperative and the contractor have complied with all of
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2 the provisions of the Public Competitive Bidding Act of 1974,
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3 including submission of a written bid upon notice of competitive
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4 bidding.
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5 2. A purchasing cooperative and its affiliated contractors
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6 shall not be allowed to bid on any public construction contract
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7 exceeding One Hundred Thousand Dollars ($100,000.00) or any
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8 construction management trade contract or subcontract exceeding
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9 Fifty Thousand Dollars ($50,000.00) unless the purchasing
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10 cooperative and its affiliated contractors have complied with all of
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11 the provisions of the Public Competitive Bidding Act of 1974,
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12 including, but not limited to, open competitive bidding after
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13 solicitation for sealed bids. A purchasing cooperative and its
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14 affiliated contractors shall not be allowed to bid on any public
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15 construction contract exceeding Five Thousand Dollars ($5,000.00)
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16 unless the purchasing cooperative and its affiliated contractors
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17 have complied with all of the provisions of the Public Competitive
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18 Bidding Act of 1974, including submission of a written bid upon
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19 notice of open competitive bidding.
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20 3. Local governmental units, or local governmental units
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21 cooperating under the terms of any interlocal cooperative agreement
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22 authorized by state law, may create a purchasing cooperative or
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23 contract with a purchasing cooperative to provide leverage in
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24 achieving best value or the best terms in contracts. To encourage
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Req. No. 174 Page 5
1 intergovernmental collaboration, any purchasing cooperative or
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2 interlocal cooperative entity may utilize any single legal newspaper
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3 of this state to serve as sufficient compliance for bid notice
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4 requirements of competitive bidding or solicitation of bids. If the
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5 purchasing cooperative or interlocal cooperative entity is engaging
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6 in a project exclusive to a county or group of counties of this
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7 state, and not open to all governmental units or public trusts that
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8 wish to participate statewide, the bid notice shall be published in
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9 a legal newspaper located within the county or group of counties.
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10 Any local governmental unit or public trust that enters into
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11 membership or contracts with a purchasing cooperative or interlocal
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12 cooperative entity may enter into purchases or contracts under the
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13 terms negotiated by the purchasing cooperative or interlocal
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14 cooperative entity. If the purchasing cooperative or interlocal
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15 cooperative entity complies with the requirements of this section of
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16 law, all local governmental units shall be deemed in compliance with
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17 the requirements set forth for bid notices and publication.
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18 SECTION 2. This act shall become effective July 1, 2025.
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19 SECTION 3. It being immediately necessary for the preservation
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20 of the public peace, health or safety, an emergency is hereby
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21 declared to exist, by reason whereof this act shall take effect and
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22 be in full force from and after its passage and approval.
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24 60-1-174 RD 1/2/2025 3:39:57 PM
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Req. No. 174 Page 6Every fact on this page links to its source, starting with the official bill record.