{"data":{"id":"us-ky/krs-164a.575","jurisdiction":"us-ky","citation":"KRS 164A.575","heading":"Purchasing -- Inventories -- Lease renewals -- Sales of surplus property --","body":"Bidding procedures -- Kentucky-grown agricultural products -- Reports --\nCapital construction projects and equipment not listed in budget bill --\nReciprocal preference for resident bidders -- Reverse auctions.\n(1) The governing boards of each institution may elect to purchase interest in real\nproperty, contractual services, rentals of all types, supplies, materials, equipment,\nprinting, and services, except that competitive bids may not be required for:\n(a) Contractual services where no competition exists;\n(b) Food, clothing, equipment, supplies, or other materials to be used in\nlaboratory and experimental studies;\n(c) Instructional materials available from only one (1) source;\n(d) Where rates are fixed by law or ordinance;\n(e) Library books;\n(f) Commercial items that are purchased for resale;\n(g) Professional, technical, scientific, or artistic services, but contracts shall be\nsubmitted in accordance with KRS 45A.690 to 45A.725;\n(h) All other commodities, equipment, and services which, in the reasonable\ndiscretion of the board, are available from only one (1) source; and\n(i) Interests in real property.\n(2) Nothing in this section shall deprive the boards from negotiating with vendors who\nmaintain a General Services Administration price agreement with the United States\nof America or any agency thereof, provided, however, that no contract executed\nunder this p rovision shall authorize a price higher than is contained in the contract\nbetween General Services Administration and the vendor affected.\n(3) The governing board shall require the institution to take and maintain inventories of\nplant and equipment.\n(4) The governing board shall establish procedures to identify items of common\ngeneral usage among all departments to foster volume purchasing. It shall establish\nand enforce schedules for purchasing supplies, materials, and equipment.\n(5) The governing board sh all have power to salvage, to exchange, and to condemn\nsupplies, equipment, and real property.\n(6) Upon the approval of the secretary of the Finance and Administration Cabinet, the\ngoverning board may purchase or otherwise acquire all real property determi ned to\nbe needed for the institution's use. The amount paid shall not exceed the fair market\nvalue as determined by a qualified appraiser or the value set by the eminent domain\nprocedure. Any real property acquired under this section shall be in name of th e\nCommonwealth for the use and benefit of the institution.\n(7) (a) Notwithstanding KRS 56.806, the governing board may renegotiate the cost\nof a lease after the expiration of the lease term and any renewal terms\nprovided in the lease prior to any renewal n ot provided for in the terms of the\nlease.\n(b) Except when a lease incorporates a lease -purchase under KRS 56.806, the\ngoverning board shall reserve the right to cancel a lease upon at least thirty\n(30) days' written notice.\n(c) Notwithstanding KRS 56.823(2) and (3), any lease renewals, except automatic\nrenewals permitted under KRS 56.803, 56.805(2), and 56.806(1), for which\nthe annual rental cost will exceed two hundred thousand dollars ($200,000)\nshall be reported to the Capital Projects and Bond Oversight Committee in the\nsame format as set out in KRS 56.823(2).\n(d) Notwithstanding KRS 56.813, a public college or university may pay for\nimprovements to leased property costing in excess of ten thousand dollars\n($10,000) but less than one million dollars ($1 ,000,000) in a lump sum upon\napproval of its board using non -general fund appropriations and without\nincurring debt.\n(8) The governing board shall sell or otherwise dispose of all real or personal property\nof the institution which is not needed or has beco me unsuitable for public use, or\nwould be more suitable consistent with the public interest for some other use, as\ndetermined by the board. The determination of the board shall be set forth in an\norder, and shall be reached only after review of a written r equest by the institution\ndesiring to dispose of the property. Such request shall describe the property and\nstate the reasons why the institution believes disposal should be effected. All\ninstruments required by law to be recorded which convey any interest  in any such\nreal property so disposed of shall be executed and signed by the appropriate officer\nof the board. Unless the board deems it in the best interest of the institution to\nproceed otherwise, all such real or personal property shall be sold either by\ninvitation of sealed bids or by public auction; provided, however, that the selling\nprice of any interest in real property shall not be less than the fair market value\nthereof as determined by the Finance and Administration Cabinet or the\nTransportation Cabinet for such requirements of that department.\n(9) Real property or any interest therein may, subject to the provisions of KRS Chapter\n45A, be purchased, leased, or otherwise acquired from any officer or employee of\nany board of the institution, based upon a written application by the grantor or\nlessor approved by the board, that the employee has not either himself or through\nany other person influenced or attempted to influence either the board requesting\nthe purchase of the property. In any case in wh ich such an acquisition is\nconsummated, the said request and finding shall be recorded and kept by the\nSecretary of State along with the other documents recorded pursuant to the\nprovisions of KRS Chapter 56.\n(10) (a) As used in this section, \"construction manager-agency,\" \"construction\nmanagement-at-risk,\" \"design -bid-build,\" \"design -build,\" and \"construction\nmanager-general contractor\" shall have the same meaning as in KRS\n45A.030.\n(b) For capital construction projects, the procurement may be on a total de sign-\nbid-build basis, a design -build basis, construction manager -general contractor\nbasis, or construction management-at-risk basis, whichever in the judgment of\nthe board offers the best value to the taxpayer. Best value shall be determined\nin accordance with KRS 45A.070. Proposals shall be reviewed by the\ninstitution's engineering staff to assure quality and value, and compliance with\nprocurement procedures. All specifications shall be written to promote\ncompetition. Services for projects delivered on the  design-build basis,\nconstruction manager -general contractor basis, or construction management -\nat-risk basis shall be procured in accordance with KRS 45A.180, KRS\n45A.183, and the regulations promulgated in accordance with KRS 45A.180.\nNothing in this sect ion shall prohibit the procurement of construction\nmanager-agency services.\n(c) Notwithstanding KRS 45A.185, for all capital construction projects, bidder\nsecurity for competitive sealed bidding for construction contracts shall only be\nrequired when the pr ice is estimated to exceed one million dollars\n($1,000,000).\n(11) The governing board shall attempt in every practicable way to insure the\ninstitution's supplying its real needs at the lowest possible cost. To accomplish this\nthe board may enter into coope rative agreements with other public or private\ninstitutions of education or health care.\n(12) The governing board shall have control and supervision over all purchases of\nenergy consuming equipment, supplies, and related equipment purchased or\nacquired by the institution, and shall designate by regulation the manner in which\nan energy consuming item will be purchased so as to promote energy conservation\nand acquisition of energy efficient products.\n(13) The governing board may negotiate directly for the pur chase of contractual\nservices, supplies, materials, or equipment in bona fide emergencies regardless of\nestimated costs. The existence of the emergency must be fully explained, in writing,\nby the vice president responsible for business affairs and such exp lanation must be\napproved by the institution president. The letter and approval shall be filed with the\nrecord of all such purchases. Where practical, standard specifications shall be\nfollowed in making emergency purchases. A good faith effort shall be mad e to\neffect a competitively established price for emergency purchases.\n(14) (a) All governing boards that purchase agricultural products, as defined by KRS\n45A.630, shall, on or before January 1 of each year, provide a report to the\nLegislative Research Co mmission and to the Department of Agriculture\ndescribing the types, quantities, and costs of each product purchased. The\nreport shall be completed on a form provided by the department.\n(b) If purchasing agricultural products, a governing board shall encour age the\npurchase of Kentucky -grown agricultural products in accordance with KRS\n45A.645. If a governing board purchases agricultural products through a\ncontract with a vendor or food service provider, the contract shall require that\nif Kentucky-grown agricultural products are purchased, the products shall be\npurchased in accordance with KRS 45A.645. Only contracts entered into or\nrenewed after July 15, 2008, shall be required to comply with the provisions\nof this subsection.\n(c) All governing boards that pu rchase Kentucky -grown agricultural products\nshall, on or before January 1 of each year, provide a report to the Legislative\nResearch Commission and to the Department of Agriculture describing the\ntypes, quantities, and costs of each product purchased. The report shall be\ncompleted on a form provided by the department.\n(15) Notwithstanding KRS 45.760, the governing board may authorize a capital\nconstruction project or a major item of equipment even though it is not specifically\nlisted in any branch budget bill, subject to the following conditions and procedures:\n(a) The full cost shall be funded solely by non-general fund appropriations;\n(b) Moneys specifically budgeted and appropriated by the General Assembly for\nanother purpose shall not be allotted or real lotted for expenditure on the\nproject or major item of equipment. Moneys utilized shall not jeopardize any\nexisting program and shall not require the use of any current general funds\nspecifically dedicated to existing programs; and\n(c) The institution's president, or designee, shall submit the project or major item\nof equipment to the Capital Projects and Bond Oversight Committee for\nreview as provided by KRS 45.800.\n(16) Governing boards shall apply the reciprocal resident bidder preference described in\nKRS 45A.494 prior to the award of any contract.\n(17) Governing boards may authorize the use of reverse auctions as defined in KRS\n45A.070 for the procurement of goods and leases.","path":["KRS Chapter 164A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54836","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:19Z","sha256":"9afa38081120f1872a91394a8cc1e0eb6c419715b7b6df882258400787350323","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164a.570","next":"us-ky/krs-164a.577"},"notice":"GroundRules: Original legal text. Not legal advice."}