§ 61-208. Approval, negotiation and award of contracts - Costs exceeding estimated and available funding – Negotiations – Contracts for managed construction services delivery – Facility management and maintenance.

A.  The Department of Real Estate Services of the Office of Management and Enterprise Services shall select and award contracts to construction managers and design consultants pursuant to the provisions of Section 62 of this title.

B.  The negotiation of construction manager and consultant contracts and fees shall be performed by the Department.

C.  The Department shall award and administer construction contracts for state agencies pursuant to the provisions of the Public Competitive Bidding Act of 1974.

D.  1.  When all bids for a public construction contract exceed the programmed estimate and available funding, the Department may enter into negotiations with the lowest responsible bidder for the purpose of modifying the project scope and reducing the construction cost, provided that:

a.the unexpected higher construction costs resulted from unforeseen economic conditions or otherwise sudden price volatility in the construction industry,

b.the project was appropriately planned, and cost estimates were developed using standards of care acceptable to the Department, and

c.further delay caused by redesigning and rebidding the project would jeopardize the using agency's mission or result in the loss of a planned funding source.

2.  To request consideration for negotiations pursuant to this subsection, the using agency, within ten (10) days of the bid opening date, shall make a written request to the Director of the Office of Management and Enterprise Services to enter into negotiations pursuant to paragraph 1 of this subsection.  If approved by the Director, the Department shall consult with the using agency, consultant and low bidder on methods to reduce the project scope or other cost-saving measures.

3.  If a suitable revised scope and contract amount is agreed upon by the using agency, low bidder and the SFD, the Department may award the public construction contract to the low bidder.

4.  The Department shall negotiate a fair and reasonable fee with the project's consultant, if applicable, to make any necessary revisions to the contract documents.  The cost of this additional consulting work shall be paid from the agency's available funds.

5.  Approval and final award of the contract for the construction negotiated pursuant to this subsection shall occur no later than one hundred twenty (120) days from the opening bid.

E.  The Department of Real Estate Services is authorized to issue solicitations and award statewide contracts for managed construction service delivery in order to provide efficient and cost-effective procurement solutions for public agencies.  Statewide contracts may be either mandatory or nonmandatory as determined by the SFD.

F.  The Department of Real Estate Services is authorized to provide facility management and operations and maintenance services for any state agency on a cost-recovery basis for any facility operated by a state agency when:

1.  The state agency initiates a request with the SFD; or

2.  Beginning on or after July 1, 2016, the SFD determines a state agency is performing in the bottom ten percent (10%) of all state agencies with respect to performance measures for facility management established by the Department.

G.  In addition to the exception from this act hereby provided to the Oklahoma State Regents for Higher Education and its constituent institutions, the State Facilities Director may authorize an exemption to the provisions of this act to any other state agency provided that the recipient of the exemption:

1.  Adopts standards, processes and procedures for planning, budgeting, design, facility management, asset management and asset preservation that are substantially compliant with those as prescribed by the Department;

2.  Adheres to procurement requirements of Sections 62 through 65 of this title and the provisions of this act;

3.  Reports benchmark, budget and ongoing performance data required by the Department; and

4.  Participates in annual performance reviews and organized forums for promoting best practices statewide as determined by the SFD.

Added by Laws 1983, c. 304, § 176, eff. Jan. 1, 1984.  Amended by Laws 2000, c. 363, § 19, emerg. eff. June 6, 2000; Laws 2006, c. 271, § 30, eff. July 1, 2006; Laws 2012, c. 304, § 324; Laws 2013, c. 302, § 11, eff. Nov. 1, 2013.