5-18D-1      Classification of supplies.
5-18D-2      Estimates of projected purchases.
5-18D-3      Pooling of combined estimated needs.
5-18D-4      Electronic procurement.
5-18D-5      Expert advice and assistance.
5-18D-6      State contract list.
5-18D-7      State bidders list.
5-18D-8      Procurement management internal service fund created.
5-18D-9      Rejection of bids to procure more advantageously elsewhere.
5-18D-10      Drawing, signing, and filing of contracts.
5-18D-11      Cancellation or price adjustment for changing market conditions.
5-18D-12      Suspension or debarment of business for cause.
5-18D-13      Printing contracts--Penalty.
5-18D-14      Printing office not to accept contracts from private individuals or organizations.
5-18D-15      Inscription listing publisher, number of copies, and cost of publication per copy.
5-18D-16      Soybean-based inks.
5-18D-17      Professional services exceeding fifty thousand dollars.
5-18D-18      Evaluation criteria to be stated in request for proposals.
5-18D-19      Discussion and negotiation of project.
5-18D-20      Register of proposals for professional service contract--Confidential information.
5-18D-21      Exemption of certain professional service contracts.
5-18D-22      Effect on time deadline in contested case.
5-18D-23      Notice of intent to purchase property or liability insurance or performance bonds.
5-18D-24      Bureau record keeping.
5-18D-25      Motor vehicle procurement.
5-18D-26      State auditor stop order .
5-18D-27      Appeal of state auditor stop order.
5-18D-28      Criminal background checks for state contractors and subcontractors.

5-18D-1. Classification of supplies.

The Bureau of Human Resources and Administration shall classify all supplies purchased for the use of every agency of state government. The bureau shall group items of the same class so that contracts may be grouped for like commodities or classes of commodities.

Source: SL 2010, ch 31, § 94; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-2. Estimates of projected purchases.

State agencies shall submit estimates of projected purchases within established commodity classifications as required by the Bureau of Human Resources and Administration. The bureau may change or modify the agency estimates in any manner determined to be in the best interest of the state.

Source: SL 2010, ch 31, § 95; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-3. Pooling of combined estimated needs.

The Bureau of Human Resources and Administration may pool the combined estimated needs of several agencies for identical supplies or services under one contract.

Source: SL 2010, ch 31, § 96; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-4. Electronic procurement.

For any state contract, any electronic sealed bid or proposal may only be submitted through an electronic procurement system authorized for use by the Bureau of Human Resources and Administration.

Source: SL 2010, ch 31, § 97; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-5. Expert advice and assistance.

The Bureau of Human Resources and Administration may obtain expert advice and assistance from any officer or employee of any state agency for recommendations or assistance in the preparation of specifications and in the examination of bids or proposals or testing of samples submitted with bids or proposals.

Source: SL 2010, ch 31, § 98; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-6. State contract list.

The Bureau of Human Resources and Administration shall establish a state contract list that contains a listing of the supplies or services which are in contracts executed by the bureau. The list shall also contain the name and address of the vendor supplying the supplies or services and the price of the item. The bureau shall make the contract list available to other purchasing agencies in a manner determined by the bureau to be the most efficient.

Source: SL 2010, ch 31, § 99; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-7. State bidders list.

The Bureau of Human Resources and Administration may establish a state bidders list in order to facilitate the notification of official state invitations for bids or requests for proposals. Bidders may request placement on the state bidders list and notification of any lettings issued under this chapter. The bureau may establish by rules, promulgated pursuant to chapter 1-26, a fee for placement on the list to defray the cost of administration. Any fees charged shall be deposited in the internal service fund created in § 5-18D-8.

Source: SL 2010, ch 31, § 100; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-8. Procurement management internal service fund created.

There is hereby created in the state treasury a procurement management internal service fund. The commissioner of human resources and administration shall apportion all expenses incurred in the administration of the procurement management system to all state departments, agencies, and institutions utilizing such system. Payments received therefrom shall be deposited into the procurement management internal service fund.

Source: SL 2010, ch 31, § 101; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-9. Rejection of bids to procure more advantageously elsewhere.

If, after all bids or proposals are examined, the Bureau of Human Resources and Administration is satisfied that it can procure any or all of the supplies or services covered by the bids or proposals more advantageously elsewhere than from those submitting bids or proposals, it may reject any or all bids or proposals and procure any or all of the required supplies or services at the most advantageous price.

Source: SL 2010, ch 31, § 102; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-10. Drawing, signing, and filing of contracts.

The attorney general shall draw all state contracts for supplies let under the provisions of this chapter and chapters 5-18A, 5-18B, and 5-18C. Each contract shall be signed by the commissioner of human resources and administration or a designee, on the part of the state, and by the party to whom the contract has been awarded. Each contract shall have the printed name of any individual signing the contract. Each contract and any required bond shall be filed in the Bureau of Human Resources and Administration. Failure to comply with the requirement for a printed name under this section does not void the terms or purpose of the contract.

Source: SL 2010, ch 31, § 103; SL 2018, ch 46, § 2; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-11. Cancellation or price adjustment for changing market conditions.

If a contract price for goods entered into by the state becomes unreasonable in view of changing market conditions, the Bureau of Human Resources and Administration may cancel the contract or adjust the contract price to meet the changing market conditions if it is necessary to obtain necessary supplies at the required time. Any contract price adjustment shall be justified in writing by the contractor to the Bureau of Human Resources and Administration and a copy of the adjustment and the written justification for the adjustment by the contractor and the bureau shall be filed with the auditor general. No contract price adjustment may allow for increased management costs or for an increase in the dollar amount of profit for the contractor having the contract. No contract price adjustment resulting in an increase may be made for or during the first ninety days of an annual contract.

Source: SL 2010, ch 31, § 104; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-12. Suspension or debarment of business for cause.

The Bureau of Human Resources and Administration, after notice to the business involved, may suspend or debar a business for cause from consideration of any state contracts. The suspension may not exceed three months and the debarment may not exceed three years. Any action to debar or suspend shall be conducted by the Bureau of Human Resources and Administration pursuant to chapter 1-26.

Source: SL 2010, ch 31, § 105; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-13. Printing contracts--Penalty.

Each state contract for printing shall provide for a specific amount of penalty for failure on the part of the contractor to deliver the public printing in accordance with the plans and specifications within the time to be designated in the contract. The penalty shall be a fixed sum for each day so delayed. The penalty shall be applied by the Bureau of Human Resources and Administration according to the contract. The amount of the penalty shall be deducted in the voucher for payment for the work done under the contract. The state auditor may draw no warrant for any amount deducted by the bureau in any voucher certified for payment by the bureau. However, no contractor may be held accountable for any delay occasioned by holding proof sheets.

Source: SL 2010, ch 31, § 106; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-14. Printing office not to accept contracts from private individuals or organizations.

No printing office within state government, whether the office is within the Bureau of Human Resources and Administration or within an institution of higher education, may accept printing contracts or jobs from private individuals or organizations.

Source: SL 2010, ch 31, § 107; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-15. Inscription listing publisher, number of copies, and cost of publication per copy.

The Bureau of Human Resources and Administration shall establish by rules, promulgated pursuant to chapter 1-26, the criteria by which any publication, brochure, pamphlet, or flyer with a total cost exceeding one hundred dollars, paid for and distributed by a state agency shall bear an inscription listing the publisher, the number of copies published, and the approximate cost of publication per copy.

Source: SL 2010, ch 31, § 108; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-16. Soybean-based inks.

The Bureau of Human Resources and Administration shall purchase, if the price is reasonably competitive and the quality is acceptable, soybean-based inks in lieu of conventional inks for use in any state government operations. The bureau may require the use of soybean-based inks by any private vendor under contract to a state agency in carrying out the terms of the contract if the price of the inks is reasonably competitive and the quality is acceptable.

Source: SL 2010, ch 31, § 109; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-17. Professional services exceeding fifty thousand dollars.

No agency of the state may award or renew a contract for professional services exceeding fifty thousand dollars without complying with the procedures set forth in this section to § 5-18D-22, inclusive. Any agency seeking such professional services shall issue a request for proposals. The agency shall publish any request for proposals issued pursuant to this section on the electronic procurement system maintained by the Bureau of Human Resources and Administration. The request for proposals shall include the procedures for the solicitation and award of the contract.

Source: SL 2010, ch 31, § 111; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-18. Evaluation criteria to be stated in request for proposals.

The request for proposals shall state the relative importance of evaluation criteria to be used in the ranking of prospective contractors. The agency shall include the following evaluation criteria in any request for proposals:

(1)    Specialized expertise, capabilities, and technical competence as demonstrated by the proposed approach and methodology to meet the project requirements;

(2)    Resources available to perform the work, including any specialized services, within the specified time limits for the project;

(3)    Record of past performance, including price and cost data from previous projects, quality of work, ability to meet schedules, cost control, and contract administration;

(4)    Availability to the project locale;

(5)    Familiarity with the project locale;

(6)    Proposed project management techniques; and

(7)    Ability and proven history in handling special project constraints.

Source: SL 2010, ch 31, § 112.

5-18D-19. Discussion and negotiation of project.

The agency and the highest ranked contractor shall mutually discuss and refine the scope of services for the project and shall negotiate terms, including compensation and performance schedule. The compensation level paid shall be reasonable and fair to the agency, as determined by the agency. If the agency and the highest ranked contractor are unable for any reason to negotiate a contract at a compensation level that is reasonable and fair to the agency, the agency shall, by notification either orally or in writing, terminate negotiations with the contractor. The agency may then negotiate with the next highest ranked contractor. The negotiation process may continue through successive contractors, according to agency ranking, until an agreement is reached or the agency terminates the contracting process.

Source: SL 2010, ch 31, § 113.

5-18D-20. Register of proposals for professional service contract--Confidential information.

A register of proposals shall be prepared and maintained by any state agency issuing a request for proposals for a professional service contract. The register shall contain the names of any person whose qualifications were considered and the name of the person that was awarded the contract. Any professional service contract and the documentation that was the basis for the contract is public except for proprietary information which shall remain confidential. The qualifications and any other documentation of any person not issued a contract shall remain confidential.

Source: SL 2010, ch 31, § 114.

5-18D-21. Exemption of certain professional service contracts.

The provisions of §§ 5-18D-17 to 5-18D-20, inclusive, do not apply to contracts issued for:

(1)    Services of such a unique nature that the contractor selected is clearly and justifiably the only practicable source to provide the service. Determination that the contractor selected is justifiably the sole source is based on either the uniqueness of the service or sole availability at the location required;

(2)    Emergency services necessary to meet an urgent or unexpected requirement or if health and public safety or the conservation of public resources is at risk;

(3)    Services subject to federal law, regulation, or policy or state statute, under which a state agency is required to use a different selection process or to contract with an identified contractor or type of contractor;

(4)    Services for professional legal services;

(5)    Services of expert witnesses, hearing officers, or administrative law judges retained by state agencies for administrative or court proceedings;

(6)    Services involving state or federal financial assistance passed through by a state agency to a political subdivision;

(7)    Medical services and home and community-based services;

(8)    Services to be performed for a state agency by another state or local government agency or contracts made by a state agency with a local government agency for the direct provision of services to the public; or

(9)    Services to be provided by entertainers for the state fair and other events.

Source: SL 2010, ch 31, § 115.

5-18D-22. Effect on time deadline in contested case.

Notwithstanding any other provisions of law, an agency that is required to issue a decision in a contested case proceeding in one year or less may increase its statutory deadline for issuing the agency decision by sixty days if the agency seeks to enter into a professional services contract covered by §§ 5-18D-17 to 5-18D-20, inclusive.

Source: SL 2010, ch 31, § 116.

5-18D-23. Notice of intent to purchase property or liability insurance or performance bonds.

The Bureau of Human Resources and Administration shall publish notice of its intent to purchase property or liability insurance or performance bonds. Publication of a notice containing a description of the coverage sought as a display advertisement in at least three newspapers of general circulation in different parts of the state at least sixty days prior to the purchase, along with publication in the South Dakota Register, shall be considered compliance with the notice requirements of this section.

The notice provisions of this section do not apply to expenditures of less than five thousand dollars.

Source: SL 2010, ch 31, § 117; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-24. Bureau record keeping.

The Bureau of Human Resources and Administration shall keep suitable records in which shall be recorded all requisitions for public printing, stationery, and supplies, all advertisements, bids, certified checks, bonds, contracts, orders, vouchers, and all acts and proceedings taken under the provisions of this chapter and chapters 5-18A, 5-18B, and 5-18C. All requisitions, advertisements, bids, certified checks, bonds, specifications, schedules of specifications, contracts, reports, and any other papers or documents executed under the provisions of this chapter and chapters 5-18A, 5-18B, and 5-18C shall constitute the files in the bureau, except as otherwise provided for in this chapter and chapters 5-18A, 5-18B, and 5-18C.

Source: SL 2010, ch 31, § 119; SL 2024, ch 1 (Ex. Ord. 24-1), § 34, eff. Apr. 8, 2024.

5-18D-25. Motor vehicle procurement.

The procurement of motor vehicles by the state shall only be from authorized dealers licensed by the State of South Dakota.

Source: SL 2010, ch 31, § 93.

5-18D-26. State auditor stop order.

The state auditor may stop the letting or the execution of any contract with the state, or with any state officer, commission, board, institution, or agency by serving a written notice of the order on the officer, commission, or board involved, the secretary of state, the attorney general, and on the contractor, if any, stating the grounds on which the state auditor has determined that the contract is illegal, unauthorized, or improper.

Source: SL 2010, ch 31, § 24.

5-18D-27. Appeal of state auditor stop order.

From any order or decision of the state auditor stopping execution of any contract obligation of the state, any person aggrieved or interested may appeal to the State Board of Finance at any time within twenty days after the stop order was filed with either the attorney general, the secretary of state, the state treasurer, or the department involved by serving notice of appeal on the state auditor and the Governor. The notice shall state the decision being appealed and shall ask for a hearing on the appeal. Upon receiving the notice, the Governor shall call a meeting of the State Board of Finance. The board shall consider the appeal, make a decision, enter the decision in the journal, and give notice to the appellant and the department involved. Any order of the Board of Finance as expressed in the board's decision is binding upon the state department, institution, agency, or office involved and shall be carried out accordingly.

Source: SL 2010, ch 31, § 25.

5-18D-28. Criminal background checks for state contractors and subcontractors.

The state shall notify each current or prospective contractor or subcontractor that the awarding of a contract with the state has granted or will grant access to confidential information obtained from the United States Internal Revenue Service or an authorized secondary source. Each person who is granted access to the confidential information as a result of entering into a contract with the state shall submit to and successfully pass a state and federal criminal background investigation. The contractor or subcontractor shall submit to a fingerprint check by the Division of Criminal Investigation and the Federal Bureau of Investigation before being granted access to any confidential information. The appointing authority shall submit the completed fingerprint card to the Division of Criminal Investigation.

Each contract entered into by the state where access to confidential information obtained from the United States Internal Revenue Service or from an authorized secondary source is granted to a contractor or a subcontractor shall include terms regarding which party is responsible for payment of any fee charged for the cost of fingerprinting or the criminal background investigation and regarding the potential event that a disqualifying record is discovered through the background investigation process.

Source: SL 2017, ch 24, § 2.