CHAPTER 454

AN ACT TO AMEND CHAPTER 69, TITLE 29, DELAWARE CODE, RELATING TO THE PROCUREMENT OF MATERIEL AND AWARD OF CONTRACTS FOR PUBLIC WORKS BY STATE AGENCIES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Section 6904 (a), Title 29, Delaware Code, is amended by inserting the words "except where hereinafter provided" immediately after the word "purchased" as it appears therein.

Section 2. Paragraph (1), Section 6904 (a), Title 29, Delaware Code, is amended by striking the figure "1,000" and inserting in lieu thereof the figure "2,000".

Section 3. Section 6904 (b), Title 29, Delaware Code, is amended by striking said subsection in its entirety, and inserting in lieu thereof the following:

(b) If the probable cost of the materiel is estimated to exceed $2000, but not more than $5,000 the purchase may be made in the open market; provided, however, that the agency shall solicit written competitive quotations from five sources or all available sources, whichever is the lesser, the quotations shall be opened publicly at the time and place stated in the solicitation, and the award shall be made pursuant to the provisions of section 6908 of this title.

(c) If the probable cost of the work is estimated to exceed $2,000 but not more than $10,000, the services may be obtained in the open market; provided, however, that the agency shall solicit written competitive quotations from five sources or all available sources, whichever is the lesser, the quotations shall be opened publicly at the time and place stated in the solicitation, and the award shall be made pursuant to provisions of section 6908 of this title.

Section 4. Section 6904 (c), Title 29, Delaware Code, is amended by striking said subsection and inserting in lieu thereof the following:

(d) If the probable cost of the materiel is estimated to exceed $5,000, the purchase shall be made only after public advertising and the receipt of sealed bids as provided for in this chapter.

() If the probable cost of the work is estimated to exceed $10,000, the contract shall be made only after public advertising and the receipt of sealed bids as provided for in this chapter.

Section 5. Section 6904 (d), Title 29, Delaware Code, is redesignated as Section 6904 (f), and amended to read as follows:

(a) Any person, who, with intent to avoid compliance with this section, willfully fragmentizes or subdivides any contract for the purchase of materiel or work, the probable cost of which will require the receipt of competitive quotations or bids under subsections (b), (c), (d), or (e) of this section, into 2 or more contracts for the purchase of the same materiel or work shall be guilty of a misdemeanor and shall be fined not less than $1,000 nor more than $5,000 for each offense.

Section 6. Section 6905 (b), Title 29, Delaware Code, is hereby redesignated as Section 6905 (c).

Section 7. Section 6907 (a), Title 29, Delaware Code, is amended by striking the word "All" as it appears therein, and inserting in lieu thereof the words "If the probable cost of any public works contract is estimated to exceed $10,000, all".

Section 8. Section 6907 (b), Title 29, Delaware Code, is redesignated as Section 6907 (c), and a new Section 6907 (b) is inserted in lieu thereof to read as follows:

(b) For the purchase of materiel, in accordance with the provisions of Section 6904 (d) and for work to be contracted for in accordance with the provisions of section 6904 (c) the agency, or a representative delegated by the agency in accordance with regulations prescribed by the agency may, at their discretion, require that bids be accompanied by a deposit of either a good and sufficient bond to the State of Delaware for the benefit of the agency involved, with corporate surety authorized to do business in this State, the form of the bond and the surety to be approved by the agency, or a certified check of the bidder drawn upon some responsible banking institution to the order of the agency, for a sum equal to at least 10% of the bid. The bid bond need not be for a specific sum but may be stated to be for a sum equal to 10% of the bid to which it relates and not to exceed a certain stated sum, if said sum is equal to at least 10% of the bid.

Section 9. Section 6905 (a), Title 29, Delaware Code, is amended by striking said subsection in its entirety and inserting in lieu thereof the following:

(a) When an agency proposes to purchase any materiel and the probable cost of such purchase exceeds $5,000, the agency shall prepare a suitable description of such materiel and shall prescribe such other terms and conditions as it deems necessary. The description or specifications shall not use a brand or trade name except as an indication of the type or quality of materiel and in all such cases shall contain the words "or equal".

(b) When an agency proposes to contract for any work to be done and the probable cost of such contract exceeds $10,000, the agency shall prepare suitable plans and specifications for such work, and shall prescribe such other terms and conditions as it deems necessary. The description or specifications shall not use a brand or trade name except as an indication of the type or quality of materiel and in all such cases shall contain the words "or equal".

Section 10. Section 6908, Title 29, Delaware Code, is amended to read as follows:

§ 6908. Opening of bids; award of contracts; right to reject bids

The bids shall be publicly opened at the time and place specified and the contract shall be awarded within thirty (30) days thereafter by the agency or a representative delegated by the agency, in accordance with regulations prescribed by the agency, to the lowest responsible vendor unless in the opinion of the agency or its delegated representative, the interest of the State shall be better served by the awarding of the contract to some other vendor, which may then be done, provided the agency shall set down in its minutes the reason or reasons for granting the contract to the person other than the lowest responsible vendor, and clearly describing how the interest of the State shall be better served by awarding the contract to other than the lowest vendor. If two or more responsible vendors shall bid an equal amount, and such amount shall be the lowest bid, the agency or its delegated representative may award the contract to any one of them. The agency or its delegated representative may reject all bids.

Section 11. Section 6909 (a), Title 29, Delaware Code, is amended by striking the "." at the end thereof, and inserting in lieu thereof the following language:

"provided, however, that for materiel purchased in accordance with Section 6904 (b), and for work contracted for in accordance with Section 6904 (c) the agency, or a representative delegated by the agency, in accordance with regulations prescribed by the agency, may waive the requirement for the execution of a formal contract."

Section 12. Section 6909 (b), Title 29, Delaware Code, is amended by striking the words "bond within 20 days" as they appear therein, and by inserting in lieu thereof the words "bond where such contract and bond are required within 20 days".

Section 13. Section 6910 (a), Title 29, Delaware Code, is amended by striking the words "formal contract" as they appear therein, and inserting in lieu thereof the words "formal contract where required by Section 6909 (a)".

Section 14. Section 6904 (a), Title 29, Delaware Code, is amended by inserting the words "except as hereinafter provided" immediately after the word "nature" as it appears in said subsection.

Section 15. Section 6907 (a), Title 29, Delaware Code, is amended by striking the words "with a warrant of attorney to confess judgment thereon attached thereto," as they appear in said subsection.

Section 16. Section 6910 (c), Title 29, Delaware Code, is amended by striking the first sentence of said subsection in its entirety.

Section 17. Section 6913, Title 29, Delaware Code, is amended by striking the word "advertising" as it appears in the first sentence of said section, and by striking the word "advertised" as it appears in the third sentence of said section.

Approved May 22, 1970.