KRS 45A.095: Definitions for section -- Noncompetitive negotiation.

(1) As used in this section:

(a) "Emergency condition" means a situation which creates a threat or impending

threat to public health, welfare, or safety such as may arise by reason of fires,

floods, tornadoes, other natural or man -caused disasters, epidemics, riots,

enemy attack, sabotage, explosion, power failure, energy shortages,

transportation emergencies, equipment failures, state or federal legislative

mandates, or similar events. The existence of the emergency condition creates

an immediate and serious need for services, construction, or items of tangible

personal property that cannot be met through normal procurement methods

and the lack of which would seriously threaten the functioning of government,

the preservation or protection of property, or the health or safety of any

person;

(b) "Executive branch agency" means all executive branch departments, offices,

program cabinets and their respective departments, and administrative bodies

enumerated in KRS 12.020, and any other executive branch agencies

immediately attached to a department, office, program cabinet, or

administrative body enumerated in KRS 12.020; and

(c) "Sole source" means a situation in which there is only one (1) known capable

supplier of a commodity or service, occasioned by the unique nature of the

requirement, the supplier, or market conditions.

(2) A contract may be made by noncompetitive negotiation only:

(a) For sole source purchases;

(b) When competition is not feasible, as determined by the purchasing officer in

writing prior to award, under administrative regulations promulgated by the

secretary of the Finance and Administration Cabinet or the governing boards

of universities operating under KRS Chapter 164A;

(c) When emergency conditions exist; or

(d) For sponsorships, naming rights, or other advertising or similar considerations

for which competition is not feasible.

(3) Insofar as it is practical, no fewer than three (3) suppliers shall be solicited to

submit written or oral quotations whenever it is determined that competitive sealed

bidding is not feasible. Award shall be made to the supplier offering the best value.

The names of the suppliers submitting quotations and the date and amount of each

quotation shall be placed in the procurement file and maintained as a public record.

(4) Competitive bids may not be required:

(a) For contractual services where no competition exists, such as telephone

service, electrical energy, and other public utility services;

(b) Where rates are fixed by law or ordinance;

(c) For library books;

(d) For commercial items that are purchased for resale;

(e) For interests in real property;

(f) For visiting speakers, professors, expert witnesses, and performing artists;

(g) For personal service contracts executed pursuant to KRS 45A.690 to 45A.725;

(h) For agricultural products in accordance with KRS 45A.645; and

(i) For contracts entered into by the president of the Kentucky Horse Park for

emergency purchases pursuant to KRS 148.320(5).

(5) The chief procurement officer, the head of a using agency, or a person authorized in

writing as the designee of e ither officer may make or authorize others to make

emergency procurements when an emergency condition exists.

(6) The Finance and Administration Cabinet may negotiate directly for the purchase of

contractual services, supplies, materials, or equipment in b ona fide emergencies

regardless of estimated costs. The existence of the emergency shall be fully

explained, in writing, by the head of the agency for which the purchase is to be

made. The explanation shall be approved by the secretary of the Finance and

Administration Cabinet and shall include the name of the vendor receiving the

contract along with any other price quotations and a written determination for

selection of the vendor receiving the contract. This information shall be filed with

the record of a ll such purchases and made available to the public. Where practical,

standard specifications shall be followed in making emergency purchases. In any

event, every effort should be made to effect a competitively established price for

purchases made by the state.

(7) Subsection (6) of this section shall not apply to emergency purchases made

pursuant to KRS 148.320(5).

(8) In the one hundred eighty (180) days preceding a gubernatorial inauguration, an

executive branch agency may execute or renew a contract by n oncompetitive

negotiation only when the secretary of the Finance and Administration Cabinet and

the State Treasurer both certify that the contract is necessary because of the

existence of an emergency condition.