CHAPTER 419

FORMERLY

SENATE BILL NO. 307

AS AMENDED BY

SENATE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO STATE PROCUREMENT.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE :

Section 1. Amend § 6902, Title 29 of the Delaware Code by renumbering the paragraphs “(14) through (26)” thereof as paragraph “(15) through (27)” respectively.

Section 2. Amend § 6902, Title 29 of the Delaware Code by adding a new subsection (14) to read as follows:

“(14) ‘Lifecycle costing analysis’ means the contracting agency’s evaluation of costs associated with the cost of acquisition, the cost of energy consumption required for operation, the cost of maintenance, and the cost of consumables that affect the state’s overall cost of ownership of equipment or public works projects. Such evaluation is used by the contracting agency or project architect or project engineer for the development of contract specifications.”

Section 3. Amend Chapter 69, Title 29 of the Delaware Code, by redesignating § 6909 through § 6915 thereof as § 6910 through § 6916 respectively.

Section 4. Amend Chapter 69, Title 29 of the Delaware Code by adding a new § 6909 to read as follows:
Ҥ 6909. Lifecycle Costing Analysis

(1) In the case of small and large public works contracts awarded under § 6961, § 6962 or § 6965 of Title 29, the contracting agency shall require the project architect or project engineer to perform lifecycle costing analysis on equipment, systems, materiel, and design elements for public works projects when said equipment, systems, materiel and design elements have the potential to reduce operating, maintenance, or energy costs over the useful life of the public works project. On the basis of said analysis, the project architect or the project engineer shall incorporate in the public works contract specifications the equipment, systems, materiel, and design elements for the public works project that have the lowest total cost of ownership and operation over the useful life of the public works project. The use of lifecycle costing analysis may be waived by the agency head, in writing, if any of said equipment, systems, materiel or design elements are not appropriate for lifecycle costing analysis.

(2) In the case of contracts awarded under sections § 6922, § 6923, § 6924, § 6925, § 6933, § 6934, and § 6938, the contracting agency shall perform lifecycle costing analysis on equipment that has the potential to reduce operating, maintenance or energy costs over the useful life of the equipment. On the basis of said analysis, the contracting agency shall incorporate specifications in the contract for equipment that has the lowest total cost of ownership and operation over the useful life of the equipment. The use of lifecycle costing analysis may be waived by the agency head, in writing, if the equipment is not appropriate for lifecycle costing analysis. In the case of central contracts, and public works contracts awarded by the Department, only the Secretary may waive the use of lifecycle costing analysis.

Section 5. Amend § 6922(b), Title 29 of the Delaware Code, by adding the following sentence after the first sentence to read as follows:

“The procedure shall incorporate the procedures identified as lifecycle costing analysis as specified in § 6902 and § 6909(2) herein.”

Section 6. Amend § 6925(a), Title 29 of the Delaware Code by inserting in the third sentence the following language after the word “data” and before the words “prior to an award”: “which shall include lifecycle costing analysis as specified in § 6902 and § 6909(2) of this title if the sole source offers more than one type or variety of equipment”.

Section 7. Amend § 6934, Title 29 of the Delaware Code by adding a sentence at the end of said section to read as follows: “The contracting agency shall use lifecycle costing analysis as specified in § 6902 and § 6909(2) of this title prior to demonstrating to the agency head that the negotiated price is reasonable for the intended use.”

Section 8. Amend § 6938(b)(3), Title 29 of the Delaware Code by adding the following sentence to the end of said subsection to read as follows: “Such costs shall include lifecycle costing analysis as defined by § 6902 and § 6909(2) of this title.”

Section 9. Amend § 6963(b)(2), Title 29 of the Delaware Code by deleting “.” and adding “; or” at the end of the sentence and by adding a new subparagraph (3) to read as follows:

“(3) Be subject to the requirement for lifecycle costing analysis as described in § 6902 and § 6909(1), of this title”.

Section 10. Amend § 6965(a), Title 29 of the Delaware Code by inserting the following language after the word “data” and before the words “prior to an award”: “which shall include lifecycle costing analysis as described in § 6902 and § 6909(1) of this title if the sole source offers more than one type or variety of equipment.”

Section 11. This Act shall become effective 180 days after its enactment.

Approved August 19, 2004