DAR File No. 28445

Administrative Services, Purchasing and General Services

R33-1-1

Definitions

NOTICE OF PROPOSED RULE

DAR File No.: 28445
Filed: 01/03/2006, 03:14
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The reason for the change is to establish a definition for "electronic" that will be used for rules that provide for electronic submission of bids and proposals. The Utah Procurement Policy Board, following public comment and to enable electronic commerce, is adding this definition so that where applicable electronic bids and requests for proposals (RFPs) may be received.

Summary of the rule or change:

The change adds a definition for "electronic" and then renumbers the subsequent subsections.

State statutory or constitutional authorization for this rule:

Sections 63-56-202, 63-56-208, 63-56-401, and 63-56-405

Anticipated cost or savings to:

the state budget:

None--It is not anticipated that this amendment will result in an overall positive or negative fiscal impact to the state budget. If there are additional costs associated with electronic commerce, it is anticipated that they will be offset by administrative efficiencies that doing business electronically will create. This is based upon our research from other states and entities that have implemented electronic receipt of bids.

local governments:

None--It is not anticipated that this amendment will result in an overall positive or negative fiscal impact to local governments budgets. If there are additional costs associated with electronic commerce, it is anticipated that they will be offset by administrative efficiencies that doing business electronically will create. This is based upon our research from other states and entities that have implemented electronic receipt of bids.

other persons:

There may be some cost savings for suppliers to submit bids and proposals electronically. This is based upon our research from other states and entities that have implemented electronic receipt of bids.

Compliance costs for affected persons:

None--There should not be any compliance costs for affected persons. There may be some cost savings for suppliers to submit bids and proposals electronically. This is based upon our research from other states and entities that have implemented electronic receipt of bids.

Comments by the department head on the fiscal impact the rule may have on businesses:

There may be some cost savings to businesses who submit bids and proposals electronically. The cost savings would be from reduced postage, courier and printing costs. D'Arcy Dixon-Pignanelli, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Douglas Richins at the above address, by phone at 801-538-3143, by FAX at 801-538-3882, or by Internet E-mail at drichins@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

02/14/2006

This rule may become effective on:

02/15/2006

Authorized by:

Douglas Richins, Director

RULE TEXT

R33. Administrative Services, Purchasing and General Services.

R33-1. Utah State Procurement Rules Definitions.

R33-1-1. Definitions.

A. Terms used in the procurement rules are defined in Section 63-56-105.

B. In addition:

(1) Actual Costs means direct and indirect costs which have been incurred for services rendered, supplies delivered, or construction built, as distinguished from allowable costs.

(2) Adequate Price Competition means when competitive sealed proposals are solicited and at least two responsible offerors independently contend for a contract to be awarded to the responsible offeror submitting the lowest evaluated price by submitting priced best and final offers meeting the requirements of the request for proposals. If the foregoing conditions are met, price competition shall be presumed to be "adequate" unless the procurement officer determines that there is not adequate competition.

(3) Brand Name or Equal Specification means a specification which uses a brand name specification to describe the standard of quality, performance, and other characteristics being solicited, and which invites the submission of equivalent products.

(4) Brand Name Specification means a specification calling for one or more products by manufacturers' names or catalogue numbers.

(5) Chief Procurement Officer means the procurement officer for the State of Utah.

(6) Consultant Services means work, rendered by either individuals or firms who possess specialized knowledge, experience, and expertise to investigate assigned problems or projects and to provide counsel, review, design, development, analysis, or advise in formulating or implementing programs or services or improvements in programs or services, including but not limited to such areas as management, personnel, finance, accounting, planning, and data processing.

(7) Cost Analysis means the evaluation of cost data for the purpose of arriving at estimates of costs to be incurred, prices to be paid, cost to be reimbursed, or costs actually incurred.

(8) Cost Data means factual information concerning the cost of labor, material, overhead, and other cost elements which are expected to be incurred or which have been actually incurred by the contractor in performing the contract.

(9) Cost Objective means a function, organizational subdivision, contract, or any other work unit for which provision is made to accumulate and measure the cost of processes, products, jobs, capitalized projects, and similar items.

(10) Discussions as used in source selection means negotiation during which the seller or buyer may alter or otherwise change the terms, price or other provisions of the proposed contract. Discussion can be conducted under competitive sealed proposals, sole source, and emergency procurements; such discussion is not permissible under competitive sealed bidding except to the extent in the first phase of multi-step bidding.

(11) Electronic means, in reference to any solicitation process, only those specified electronic forms described in the Invitation for Bids, Request for Proposals or other solicitation document.

(12)[(11)] Established Market Price means a current price, established in the usual and ordinary course of trade between buyers and sellers, which can be substantiated from sources independent of the manufacturer or supplier.

(13)[(12)] Lease means a contract for the use of equipment or real property under which title does not pass to the purchasing agency.

(14)[(13)] Prequalification for Inclusion on Bidders Lists means determining that a prospective bidder or offeror satisfies the criteria established for receipt of solicitations when and as issued.

(15)[(14)] Price Analysis means the evaluation of price data without analysis of the separate cost components and profit which may assist in arriving at prices to be paid or costs to be reimbursed.

(16)[(15)] Price Data means factual information concerning prices for supplies, services, or construction substantially identical to those being procured. Prices in this definition refer to offered or proposed selling prices. The definition refers to data relevant to both prime and subcontract prices.

(17)[(16)] Professional Services means work rendered by an independent contractor who has a professed knowledge of some department of learning or science used by its practical application to the affairs of others or in the practice of an art founded on it, including but not limited to accounting and auditing, court reporters, X-ray technicians, legal, medical, nursing, education, engineering, actuarial, architecture, veterinarians, and research. The knowledge is founded upon prolonged and specialized intellectual training which enables a particular service to be rendered. The word "professional" implies professed attainments in special knowledge as distinguished from mere skills.

(18)[(17)] Property means all real property, personal property, or both, owned by a purchasing agency.

(19)[(18)] Providers means suppliers of services, which might be termed "personal services", to benefit clients or citizens of the enacting jurisdiction which services otherwise might be performed by its own employees. For example, an enacting jurisdiction might contract with a school to conduct a training program for the handicapped. Similarly, the state might contract with persons to provide foster homes for children. It will be necessary to ascertain on a case-by-case basis whether the services to be rendered will involve extended analysis and significant features of judgment.

(20)[(19)] Qualified Products List means a list of supplies, services, or construction items described by model or catalogue numbers, which, prior to solicitation, the purchasing agency has determined will meet the applicable specification requirements.

(21)[(20)] Solicitation means an Invitation for Bids, a Request for Proposals, or any other document, such as a request for quotations, issued by the purchasing agency for the purpose of soliciting offers to perform a contract.

(22)[(21)] Suppliers means prospective bidders or offerors, as used in section 63-56-414 of the Utah Procurement Code.

KEY: government purchasing

Date of Enactment or Last Substantive Amendment: [1991]2006

Notice of Continuation: November 27, 2002

Authorizing, and Implemented or Interpreted Law: 63-56

ADDITIONAL INFORMATION

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For questions regarding the content or application of this rule, please contact Douglas Richins at the above address, by phone at 801-538-3143, by FAX at 801-538-3882, or by Internet E-mail at drichins@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.