{"data":{"id":"us-ky/krs-45a.077","jurisdiction":"us-ky","citation":"KRS 45A.077","heading":"Public -private partnership delivery method of awarding state contracts","body":"for capital construction projects.\n(1) A public -private partnership delivery method may be utilized as provided in this\nsection and administrative regulations promulgate d thereunder. State contracts\nusing this method shall be awarded by competitive negotiation.\n(2) A contracting body utilizing a public -private partnership shall continue to be\nresponsible for oversight of any function that is delegated to or otherwise performed\nby a private partner.\n(3) On or before December 31, 2016, the secretary of the Finance and Administration\nCabinet shall promulgate administrative regulations setting forth criteria to be used\nin determining when a public -private partnership is to be used for a particular\nproject. The administrative regulations shall reflect the intent of the General\nAssembly to promote and encourage the use of public -private partnerships in the\nCommonwealth. The secretary shall consult with design -builders, constructi on\nmanagers, contractors, design professionals including engineers and architects, and\nother appropriate professionals during the development of these administrative\nregulations.\n(4) A request for proposal for a project utilizing a public -private partnersh ip shall\ninclude at a minimum:\n(a) The parameters of the proposed public-private partnership agreement;\n(b) The duties and responsibilities to be performed by the private partner or\npartners;\n(c) The methods of oversight to be employed by the contracting body;\n(d) The duties and responsibilities that are to be performed by the contracting\nbody and any other partners to the contract;\n(e) The evaluation factors and the relative weight of each to be used in the\nscoring of awards;\n(f) Plans for financing and op erating the qualifying project and the revenues,\nservice payments, bond financings, and appropriations of public funds needed\nfor the qualifying project;\n(g) Comprehensive documentation of the experience, capabilities, capitalization\nand financial condition, and other relevant qualifications of the private entity;\n(h) The ability of a private partner or partners to quickly respond to the needs\npresented in the request for proposal, and the importance of economic\ndevelopment opportunities represented by the qualifying project. In evaluating\nproposals, preference shall be given to a plan that includes the involvement of\nsmall businesses as subcontractors, to the e xtent that small businesses can\nprovide services in a competitive manner, unless any preference interferes\nwith the qualification for federal or other funds; and\n(i) Other information required by the contracting body or the cabinet to evaluate\nthe proposal s submitted by respondents and the overall proposed public -\nprivate partnership.\n(5) A private entity desiring to be a private partner shall demonstrate to the satisfaction\nof the contracting body or the cabinet that it is capable of performing any duty,\nresponsibility, or function it may be authorized or directed to perform as part of the\npublic-private partnership agreement.\n(6) When a request for proposal for a project utilizing a public -private partnership is\nissued for a capital project, the contracting body shall transmit a copy of the request\nfor proposal to the Capital Projects and Bond Oversight Committee staff, clearly\nidentifying to the staff that a public -private partnership is being utilized. The\ncontracting body shall submit the final contract t o the Capital Projects and Bond\nOversight Committee under KRS 45.763 before work may be begun on the project.\n(7) A request for proposal or other solicitation may be canceled, or all proposals may\nbe rejected, if it is determined in writing that the action  is taken in the best interest\nof the Commonwealth and approved by the purchasing officer.\n(8) (a) Beginning July 1, 2024, in the case of any public -private partnership for a\ncapital project with an aggregate value of twenty -five million dollars\n($25,000,000) or more, the project shall be authorized by the General\nAssembly, by inclusion in the branch budget bill or by any other means\nspecified by the General Assembly, explicitly identifying and authorizing the\nutilization of a public -private partnership del ivery method for the applicable\ncapital project. The authorization of a capital project required by this\nsubsection is in addition to any other statutorily required authorization for a\ncapital project.\n(b) The provisions of this subsection shall not apply to any public -private\npartnership project made public through a request for proposal or a public\nnotice of an unsolicited proposal issued prior to July 1, 2024.\n(9) Any corporation as described by KRS 45.750(2)(c), or as created under the\nKentucky Revised Statutes as a governmental agency and instrumentality of the\nCommonwealth, that manages its capital construction program shall:\n(a) Adhere to the administrative regulations promulgated under this section when\nutilizing a public-private partnership for financing capital projects;\n(b) Report to legislative committees as specified in this section; and\n(c) Submit public -private partnership agreements issued by it to the General\nAssembly for authorization as provided in subsection (8) of this section.\n(10) (a) The governing body of a postsecondary institution that manages its capital\nconstruction program under KRS 164A.580 shall report to the Capital Projects\nand Bond Oversight Committee staff as specified in this section.\n(b) Any provision of a public -private pa rtnership agreement issued by a\npostsecondary institution which provides for a lease by or to the\npostsecondary institution shall be valid and enforceable if approved by the\ngoverning board of the institution.\n(11) (a) A person or business may submit an un solicited proposal to a governmental\nbody, which may receive the unsolicited proposal.\n(b) Within ninety (90) days of receiving an unsolicited proposal, a governmental\nbody may elect to consider further action on the proposal, at which point the\ngovernmental body shall provide public notice of the proposal. Discussion of\nthe project shall not be deemed a solicitation of the project or its concepts\nafter public notice is given. The public notice shall:\n1. Provide specific information regarding the proposed n ature, timing, and\nscope of the unsolicited proposal, except that trade secrets, financial\nrecords, or other records of the person or business making the proposal\nshall not be posted unless otherwise agreed to by the governmental body\nand the person or business; and\n2. Provide for a notice period for the submission of competing proposals as\nfollows:\na. Unsolicited proposals valued below five million dollars\n($5,000,000) shall be posted for thirty (30) days;\nb. Unsolicited proposals valued between five milli on dollars\n($5,000,000) and twenty -five million dollars ($25,000,000) shall\nbe posted for sixty (60) days; and\nc. Unsolicited proposals valued over twenty -five million dollars\n($25,000,000) shall be posted for ninety (90) days.\n(c) Upon the end of the noti ce period provided under paragraph (b)2. of this\nsubsection, the governmental body may consider the unsolicited proposal and\nany competing proposals received. If the governmental body determines it is\nin the best interest of the Commonwealth to implement s ome or all of the\nconcepts contained within the unsolicited proposal or competing proposals\nreceived by it, the governmental body may begin an open, competitive\nprocurement process to do so pursuant to this chapter.\n(d) An unsolicited proposal shall be dee med rejected if no written response is\nreceived from the governmental body within ninety (90) days of submission,\nduring which time the governmental body has not taken any action on the\nproposal under paragraph (b) of this subsection.","path":["KRS Chapter 45A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53096","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:06Z","sha256":"556c3deb4f76fa90d5849b60b7c7e704f6d2d0f2e88fcd26d52f7a5901a31566","source_id":"us-ky","stale":false,"prev":"us-ky/krs-45a.075","next":"us-ky/krs-45a.080"},"notice":"GroundRules: Original legal text. Not legal advice."}