KRS 45A.375: Negotiations after competitive sealed bidding when all bids exceed

available funds -- Action when no bids received.

(1) In the event that all bids submitted pursuant to competitive sealed bidding under

KRS 45A.365 result in bid prices in excess of the funds available for the purchase,

and the local public agency determines in writing:

(a) That there are no additional funds then available from any source so as to

permit an award to the lowest responsive and responsible bidder; and

(b) The best interest of the local public agency will not permit the delay attendant

to a resolicitation under revised specifications or revised quantities under

competitive sealed bidding as provided in KRS 45A.365; then a negotiated

award may be made as set forth in subsections (2) or (3) of this section.

(2) Where there is more than one (1) bidder, competitive negotiations pursuant to KRS

45A.370 shall be conducted with the three (3) (two (2) if there are only two (2))

bidders determined in writing by the local public agency to be the lowest responsive

and responsible bidders to the competitive sealed bid invitation after application of

the reciprocal preference for resident bidders required in KRS 45A.494. Such

competitive negotiations shall be conducted under the following restrictions:

(a) If discussions pertaining to the revision of the specifications or quantities are

held with any potential offeror, all other potential offerors shall be afforded an

opportunity to take part in such discussions; and

(b) A request for propos als, based upon revised specifications or quantities, shall

be issued as promptly as possible, shall provide for an expeditious response to

the revised requirements, and shall be awarded upon the basis of the lowest

bid price or lowest evaluated bid price submitted by any responsive and

responsible offeror after application of the reciprocal preference for resident

bidders required in KRS 45A.494. No discussion shall be conducted with

offerors after submission of proposals except for a compelling reason as

determined in writing by the local public agency. The request for proposals

shall state that award is to be made without discussions except as herein

provided.

(3) Where, after competitive sealed bidding, it is determined in writing that there is

only one (1) responsive and responsible bidder, a noncompetitive negotiated award

may be made with such bidder in accordance with KRS 45A.380.

(4) Where, after invitation for bids has been made in accordance with KRS 45A.365

and no bids have been received from resp onsive and responsible bidders, the local

public agency may proceed to acquire the supplies, services, or construction by

noncompetitive negotiations in accordance with KRS 45A.380.