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74 O.S. § 85.44B. Payment for Goods or Services Pursuant to Contract

Payment for products or services pursuant to a contract executed by a state agency, whether or not such state agency is subject to the Oklahoma Central Purchasing Act, Section 85.1 et seq. of this title, shall be made only after products have been provided or services rendered. This section shall not prohibit the payment for subscriptions to magazines, periodicals, or books or for payment to suppliers providing subscription services. This section shall not prohibit payment for services provided by the United States Army Corp of Engineers prior to the services being rendered if the action is taken pursuant to a cooperative agreement between a state agency and the Corp to provide emergency response or to protect the public health, safety, or  welfare. 

Associated Rules

  1. Form requirements. The bidder shall complete and submit all required forms as specified by the solicitation. 
    1. Information the bidder submits shall be legibly hand written, typewritten, printed or electronically conveyed. 
    2. Should the bidder alter the form or bid information, the bidder shall initial each alteration. 
    3. Any form requiring a bidder’s signature submitted to the OMES shall have an authorized signature. 
    4. If a form specifies notarization, the form shall bear the signature and seal of a licensed Notary Public in the manner specified by the laws of the bidder’s state. 
  2. Firm bid for one hundred twenty (120) days. A bidder’s bid shall be considered a firm bid for one hundred twenty (120) days following the bid closing date, unless otherwise stated in the solicitation. 
  3. Bidder travel expenses. The price a bidder submits in response to a solicitation shall include travel expenses for the bidder to perform the contract. Unless otherwise provided by law, a state agency shall not pay travel expenses not specified by the successful solicitation response. 
  4. Tax exemptions. State agency acquisitions are exempt from sales taxes and federal excise taxes. Purchases made by suppliers on behalf of a state agency are not exempt from sales or federal taxes unless otherwise authorized by law.1 
  5. Payment terms. Suppliers are paid by state agencies pursuant to 62 O.S. §34.71. Suppliers shall not consider a payment late until forty-five (45) days after state agency receipt of a valid and proper invoice. Early payment discounts may be negotiated and awarded unless prohibited by federal or state law.
  6. Used or new products. A bidder shall offer new items of current design unless the solicitation specifies used, reconditioned or remanufactured products are acceptable. 
  7. Price. Unless the solicitation specifies otherwise, a bidder shall submit a firm, fixed price for the term of the contract. 
  8. Alternate bids. Unless the solicitation prohibits, a bidder may submit alternate bids. If a bidder submits an alternate bid, the alternate bid shall be a complete bid. The bidder shall clearly identify an alternate bid. If the bidder submits more than one alternate bid, the bidder shall number each alternate bid as "Alternate Bid 1", "Alternate Bid 2", etc. 
  9. All or none bid. 
    1. Award to more than one bidder. If the solicitation specifies that the State Purchasing Director may award a contract to more than one bidder, a bidder may indicate on the bid that terms and conditions of the bid are all or none. 
    2. Award by item. If the solicitation indicates that the State Purchasing Director may award the bid to more than one bidder by item, a bidder may indicate that the terms and conditions of the bid are all or none. 
  10. Bidder delivery. If the solicitation does not specify a delivery date for goods and/or services, the bidder shall specify the delivery date in the bid. 
  11. Sample submission. A solicitation may specify submission of samples of the required items or products when essential to the assessment of product quality during bid evaluation. When required, samples must be received no later than the date and time specified by the solicitation. 
    1. Sample identification. The bidder shall clearly identify the sample the bidder submits by placing the bidder’s name, bidder’s address, requisition number and closing date/time on both the sample container and on the sample shipping container. 
    2. Sample costs. The bidder shall pay costs for the sample and submission to the State. 
    3. Sample requirements. A bidder shall submit a sample that represents the quality of the whole. 
    4. Sample tests. Whenever testing is determined necessary by the State Purchasing Director, appropriate standard testing procedures will be used. All samples submitted may be subject to consumption or destruction as a result of tests by the agency. 
    5. Sample tests costs. If the sample a bidder submits fails to meet the specification or standards the solicitation requires, the bidder may be required to pay testing costs the acquiring state agency incurs. 
    6. Return of sample to bidder. If return of samples is stipulated in a bidder’s solicitation response, samples not destroyed by testing may be returned at the bidder’s expense. 
    7. Successful bidder samples. The State Purchasing Director may retain samples submitted by the successful bidder to ensure the products or items delivered meet specifications in the solicitation 
  12. Proof of insurance. The responding bidder shall provide proof of all insurance required by the solicitation prior to contract award. A supplier who contracts to do business with the state shall provide proof of workers’ compensation insurance or proof of an alternative or exemption authorized by state law. 
  13. Subcontractor notice. If a solicitation specifies submission of information for subcontractors a bidder intends to use for an acquisition, the bidder shall provide the information in the bid. 
  • 1. See Attorney General Opinion No. 78-256 regarding the prohibition against the state’s payment of taxes assessed against a private entity or reimbursement of that entity for taxes lawfully paid in connection with a contract between the state and the entity.

If a state agency makes an unauthorized commitment on behalf of the state to a supplier, the state may, if in the best interest of the state, ratify the commitment. 

  1. State agency actions. The chief administrative officer of the state agency shall approve or disapprove a ratification request. 
    1. Chief administrative officer approves request. If the chief administrative officer approves the request, the state agency shall perform steps as follows: 
      1. The state agency shall negotiate a proposal for a ratification agreement with the supplier. 
      2. The chief administrative officer shall document facts and circumstances of the unauthorized commitment. 
      3. The chief administrative officer shall sign the proposed ratification agreement. 
      4. The chief administrative officer shall provide a copy of the ratification agreement and, upon request, the supporting documents to the State Purchasing Director. 
    2. Chief administrative officer disapproves request. If the chief administrative officer disapproves the request, the state agency shall retain documents from the supplier and the state agency. 
  2. State Purchasing Director actions. The State Purchasing Director shall retain a copy of the ratification agreement. 

  1. Delivery. A supplier shall deliver acquisitions to a state agency within time periods the contract specifies. 
  2. Inspection. Unless otherwise provided in the contract documents, the state agency shall inspect acquisitions from the supplier within a reasonable time after supplier delivery. 
  3. Rejection. The state agency shall reject acquisitions from the supplier that do not meet specifications or other terms and conditions of the contract. The supplier shall pay costs to retrieve and replace acquisitions that do not meet specifications with a conforming item or service. 
  4. Acquisition title. Title to acquisitions shall not pass from the supplier to the state agency until the state agency receives, inspects and accepts the items. The state agency shall document, at a minimum, the date of delivery, the name and address of the supplier, a description of the goods received, and the signature of the receiving agency employee. 
  5. Subcontractor performance. A supplier shall be responsible for the performance of subcontractors. The supplier shall provide a single point of contact for the state agency when the supplier uses subcontractors. The supplier shall notify the state agency and the Central Purchasing Division if the supplier uses a subcontractor the supplier did not disclose in the supplier’s bid. 
  6. Contract changes. If a supplier determines a requested change to the contract or performance exceeds the original scope of the solicitation, the supplier shall notify the State Purchasing Director or the state agency. No changes shall be made prior to the approval of a change order in accordance with Section 260:115-9-3
  7. Contract assignment. A supplier shall not assign or subcontract a contract to another supplier, individual, business entity or organization unless otherwise specified in the solicitation. 
  8. Performance evaluation. 
    1. State agencies shall develop a process to consistently assess and document the quality of products and/or services acquired from a supplier. 
    2. State agencies shall retain written documentation of evaluation of the performance of services provided pursuant to a professional services contract with the acquisition file. If the evaluation indicates deficiencies with the supplier’s work, the state agency shall submit a Professional Service Evaluation to the State Purchasing Director. [Reference 74 O.S. §85.41

  1. Supplier invoice submission. Following transfer of title of an acquisition to a state agency, the supplier shall submit invoices to the state agency. 
  2. Advance payment for acquisitions. The state agency shall not pay for acquisitions a supplier has yet to deliver, unless otherwise authorized by law. 
  3. Payment and state agency acceptance. State agency payment to a supplier for an acquisition may not constitute final acceptance of the acquisition by the state agency. If subsequent state agency inspection affirms that the acquisition does not meet or exceed the specifications of the contract, or that the acquisition has latent defects, the state agency shall notify the supplier. The supplier shall retrieve and replace the acquisition at the supplier’s expense, or the state agency shall request a refund from the supplier if the supplier is unable to replace the acquisition. 
  1. Supplier invoice submission. Following transfer of title of an acquisition to a state agency, the supplier shall submit invoices to the state agency. 
  2. Advance payment for acquisitions. The state agency shall not pay for acquisitions a supplier has yet to deliver, unless otherwise authorized by law. 
  3. Payment and state agency acceptance. State agency payment to a supplier for an acquisition may not constitute final acceptance of the acquisition by the state agency. If subsequent state agency inspection affirms that the acquisition does not meet or exceed the specifications of the contract, or that the acquisition has latent defects, the state agency shall notify the supplier. The supplier shall retrieve and replace the acquisition at the supplier’s expense, or the state agency shall request a refund from the supplier if the supplier is unable to replace the acquisition. 

Purchasing Reference Guide

References

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