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45A.045
Authority of cabinet -- Authority to promulgate administrative
regulations.
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The Finance and Administration Cabinet shall serve as the central
procurement and contracting agency of the Commonwealth.
(a) The cabinet shall require all agencies to furnish an estimate of specific
needs for supplies, materials, and equipment to be purchased by
competitive bidding for the purpose of permitting scheduling of purchasing
in large volume. The cabinet shall establish and enforce schedules for
purchasing supplies, materials, and equipment. In addition, prior to the
beginning of each fiscal year all agencies shall submit to the Finance and
Administration Cabinet an estimate of all needs for supplies, materials,
and equipment during that year which will have to be required through
competitive bidding.
(b) The Finance and Administration Cabinet shall have power, with the
approval of the secretary of the Finance and Administration Cabinet, to
transfer between departments, to salvage, to exchange, and to condemn
supplies, equipment, and real property.
(c) The Finance and Administration Cabinet shall attempt in every
practicable way to ensure that state agencies are fulfilling their business
needs through the application of the best value criteria.
The Finance and Administration Cabinet shall recommend regulations, rules,
and procedures and shall have supervision over all purchases by the various
spending agencies, except as otherwise provided by law, and, subject to the
approval of the secretary of the Finance and Administration Cabinet, shall
promulgate administrative regulations to govern purchasing by or for all these
agencies. The cabinet shall publish a manual of procedures which shall be
incorporated by reference as an administrative regulation pursuant to KRS
Chapter 13A. This manual shall be distributed to agencies and shall be revised
upon issuance of amendments to these procedures. No purchase or contract
shall be binding on the state or any agency thereof unless approved by the
Finance and Administration Cabinet or made under general administrative
regulations promulgated by the cabinet.
The Finance and Administration Cabinet shall purchase or otherwise acquire,
or, with the approval of the secretary, may delegate and control the purchase
and acquisition of the combined requirements of all spending agencies of the
state, including, but not limited to, interests in real property, contractual
services, rentals of all types, supplies, materials, equipment, and services.
The Finance and Administration Cabinet shall sell, trade, or otherwise dispose
of any interest in real property of the state which is not needed, or has become
unsuitable for public use, or would be more suitable to the public's interest if
used in another manner, as determined by the secretary of the Finance and
Administration Cabinet. The determination of the secretary of the Finance and
Administration Cabinet shall be set forth in an order and shall be reached only
after review of a written request by the agency desiring to dispose of the
property. This request shall describe the property and state the reasons why
the agency believes the property should be disposed. All instruments required
by law to be recorded which convey any interest in any real property so
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disposed of shall be executed and signed by the secretary of the Finance and
Administration Cabinet and approved by the Governor. Unless the secretary of
the Finance and Administration Cabinet deems it in the best interest of the
state to proceed otherwise, all interests in real property shall be sold either by
invitation of sealed bids or by public auction. The selling price of any interest in
real property shall not be less than the appraised value thereof as determined
by the cabinet, or the Transportation Cabinet for the requirements of that
cabinet.
The Finance and Administration Cabinet shall sell, trade, or otherwise dispose
of all personal property of the state that is not needed, or has become
unsuitable for public use, or would be more suitable to the public's interest if
used in another manner, or, with the approval of the secretary, may delegate
the sale, trade, or other disposal of the personal property. In the event the
authority is delegated, the method for disposal shall be determined by the
agency head, in accordance with administrative regulations promulgated by the
Finance and Administration Cabinet, and shall be set forth in a document
describing the property and stating the method of disposal and the reasons
why the agency believes the property should be disposed of. In the event the
authority is not delegated, requests to the Finance and Administration Cabinet
to sell, trade, or otherwise dispose of the property shall describe the property
and state the reasons why the agency believes the property should be
disposed of. The method for disposal shall be determined by the Division of
Surplus Properties, and approved by the secretary of the Finance and
Administration Cabinet or his or her designee.
The Finance and Administration Cabinet shall exercise general supervision
and control over all warehouses, storerooms, and stores and of all inventories
of supplies, services, and construction belonging to the Commonwealth. The
cabinet shall promulgate administrative regulations to require agencies to take
and maintain inventories of plant property, buildings, structures, other fixed
assets, and equipment. The cabinet shall conduct periodic physical audits of
inventories.
The Finance and Administration Cabinet shall establish and maintain programs
for the development and use of purchasing specifications and for the
inspection, testing, and acceptance of supplies, services, and construction.
Nothing in this section shall prevent the Finance and Administration Cabinet
from negotiating with vendors who maintain a General Services Administration
price agreement with the United States of America or any agency thereof. No
contract executed under this provision shall authorize a price higher than is
contained in the contract between the General Services Administration and the
vendor affected.
Except as provided in KRS Chapters 175, 176, 177, and 180, and subject to
the provisions of this code, the Finance and Administration Cabinet shall
purchase or otherwise acquire all real property determined to be needed for
state use, upon approval of the secretary of the Finance and Administration
Cabinet as to the determination of need and as to the action of purchase or
other acquisition. The amount paid for this real property shall not exceed the
appraised value as determined by the cabinet or the Transportation Cabinet
(for such requirements of that cabinet), or the value set by eminent domain
procedure. Subject to the provisions of this code, real property or any interest
therein may be purchased, leased, or otherwise acquired from any officer or
employee of any agency of the state upon a finding by the Finance and
Administration Cabinet, based upon a written application by the head of the
agency requesting the purchase, and approved by the secretary of the Finance
and Administration Cabinet and the Governor, that the employee has not either
himself or herself, or through any other person, influenced or attempted to
influence either the agency requesting the acquisition of the property or the
Finance and Administration Cabinet in connection with such acquisition.
Whenever such an acquisition is consummated, the request and finding shall
be recorded and kept by the Secretary of State along with the other documents
recorded pursuant to the provisions of KRS Chapter 56.
(10) The Finance and Administration Cabinet shall maintain records of all
purchases and sales made under its authority and shall make periodic
summary reports of all transactions to the secretary of the Finance and
Administration Cabinet, the Governor, and the General Assembly. The Finance
and Administration Cabinet shall also report trends in costs and prices,
including savings realized through improved practices, to the above authorities.
The Finance and Administration Cabinet shall also compile an annual report of
state purchases by all spending agencies in the state's statewide accounting
and reporting system. The report format shall include, but not be limited to,
dollar amount, volume, type of purchase, and vendor.
(11) For capital construction projects, subject to the provisions of this code and
KRS 45A.180, the procurement may be on whichever of the following
alternative project delivery methods, in the judgment of the secretary of the
Finance and Administration Cabinet after first considering the traditional
design-bid-build project delivery method, offers the best value to the taxpayer:
(a) A design-build basis; or
(b) A construction management-at-risk basis.
Proposals shall be reviewed by the engineering staff to assure quality and
value, and compliance with procurement procedures. All specifications shall be
written to promote competition. Nothing in this section shall prohibit the
procurement of phased bidding or construction manager-agency services.
(12) The Finance and Administration Cabinet shall have control and supervision
over all purchases of energy-consuming equipment, supplies, and related
equipment purchased or acquired by any agency of the state as provided in
this code, and shall promulgate administrative regulations to designate the
manner in which an energy-consuming item will be purchased so as to promote
energy conservation and acquisition of energy efficient products. Major energy
components shall be amortized on a seven (7) to ten (10) years' recovery basis
and shall take into consideration the projected cost of fuel. The Finance and
Administration Cabinet, in consultation with the Cabinet for Economic
Development, shall conduct a thorough economic feasibility analysis on any
major energy-using component of at least three million (3,000,000) BTU's per
hour heat input and shall issue a certificate of economic feasibility prior to the
Finance and Administration Cabinet's purchasing or retrofitting any such
component that utilizes any fuel other than coal. The economic feasibility
analysis shall consist of life-cycle cost comparisons of a component that would
utilize coal and one(s) that would utilize any fuel other than coal. For the
analysis, the Finance and Administration Cabinet shall provide detailed
estimates of equipment purchase price, installation cost, annual operation and
maintenance costs, and usage patterns of energy-using components.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 69, effective June 20, 2005. -Amended 2003 Ky. Acts ch. 98, sec. 2, effective June 24, 2003. -- Amended
2000 Ky. Acts ch. 5, sec. 7, effective July 14, 2000. -- Amended 1997 (1st Extra.
Sess.) Ky. Acts ch. 4, sec. 24, effective May 30, 1997. -- Amended 1994 Ky.
Acts ch. 277, sec. 4, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 496,
sec. 1, effective July 13, 1990. -- Created 1978 Ky. Acts ch. 110, sec. 10,
effective January 1, 1979.
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