§ 17-24-111. Purchasing Requirement

1. 1. The director is hereby authorized to develop programs that produce goods and services, including capital construction items, which are used by agencies financed in whole or in part by the state, any political subdivision thereof, or the federal government and to develop programs that produce goods, including capital construction items, which are used by public entities involved in financed purchase of an asset or certificate of participation agreements as provided in section 17-24-106 (1)(f)(II). The director shall also develop programs to market goods and services to distributor networks, nonprofit organizations, private sector retailers, and the general public. The state and its institutions, agencies, and departments may purchase through the department of personnel or purchasing agency authorized by section 24-102-302 (2) such goods and services as are produced by the division, unless similar goods and services can be obtained at or below the amount established for small purchases which are exempt from the invitation-for-bids requirements of the “Procurement Code” contained in part 2 of article 103 of title 24. Goods and services produced by the division shall be provided at a price comparable to the current market price for similar goods and services. State agencies may purchase goods and services from sources other than the division; except that office furniture and office systems shall be purchased from the division. Printing services shall be purchased from the division unless a state agency operates its own printing operation. If the division is not able to provide its goods or services at a price or level of quality which is comparable to that provided by the private sector or provide them in a timely manner, which price, level of quality, or timeliness is determined by the department of personnel, the department of personnel shall make a certification to that effect, and the state agency purchasing such goods or services shall not be required to purchase them from the division.
   2. Repealed.
   3. The financial and staff resources dedicated to said purchasing function in the affected agency shall be under the authority of the department of personnel during the period of suspension, and purchases made for the affected agency shall be in accordance with the requirements of this subsection (1).
   4. When a state agency issues an invitation for bids pursuant to section 24-103-202, C.R.S., for goods or services which are available from the division of correctional industries, as shown on the list provided by the division pursuant to paragraph (a) of subsection (2) of this section, the division of correctional industries shall be included on its list of prospective bidders.
   5. Repealed.
   6. The division of correctional industries shall have access to the purchasing records of the department of personnel and the records of purchasing agents of state agencies established pursuant to section 24-102-302, C.R.S.
2. 1. Repealed.
   2. State agencies which have purchased goods and services available from the division of correctional industries, as shown on the list provided by the division pursuant to paragraph (a) of this subsection (2), shall, as a part of their annual budget requests to the joint budget committee of the general assembly, report on all such purchases and of the value of the goods and services actually purchased from the division of correctional industries, and the division of correctional industries shall, as a part of its annual budget request to the joint budget committee, report on the value of all goods and services sold to each state agency.
   4. Repealed.
3. Repealed.
4. To the extent the articles and products which are produced or manufactured by the division are not purchased pursuant to the provisions of subsection (1) of this section, said articles or products may be purchased from the division on the open market by any person at the then current prevailing market prices.
5. Articles and products manufactured or produced by the division shall first be used in supplying the requirements of state agencies and secondly in supplying the political subdivisions of the state which purchase the same. Only the surplus of such articles and products left after meeting the requirements of state agencies and their political subdivisions shall be made available for purchase by the general public.
6. 1. Notwithstanding any provision of this section to the contrary, on and after July 1, 2012, a state institution of higher education or the Auraria higher education center created in article 70 of title 23 may, but is not required to, purchase goods and services from the division pursuant to this section. In purchasing furniture and office systems that exceed the amount established for small purchases that are exempt from the invitation-for-bids requirements of the “Procurement Code” contained in part 2 of article 103 of title 24, a state institution of higher education or the Auraria higher education center shall request a bid from the division for the purchase, and the institution or the center shall consider the bid on a competitive basis.
   2. Nothing in paragraph (a) of this subsection (6) shall require a state institution of higher education or the Auraria higher education center to engage in competitive bidding for an item or items if the institution or the center chooses to use the division as the sole source supplier for the item or items.

Source: L. 77: Entire title R&RE, p. 931, § 10, effective August 1. L. 81: (1), (2), and (3) amended, p. 1285, § 2, effective January 1, 1982. L. 83: (1) amended, p. 690, § 2, effective April 29. L. 84: (1), (2), and (3) amended, p. 525, § 1, effective May 2. L. 87: (1)(e) repealed, p. 349, § 4, effective July 1; (2)(c) and (2)(d) added, p. 664, § 3, effective July 1. L. 88: (1)(a) and (2)(a) amended and (1)(b) and (3) repealed, pp. 703, 704, §§ 2, 3, effective July 1. L. 95: (1)(c) amended, p. 639, § 27, effective July 1. L. 96: (1)(a), (1)(c), (1)(f), and (2)(a) amended, p. 1514, § 44, effective June 1. L. 98: (2)(a) repealed, p. 728, § 13, effective May 18. L. 2011: (6) added, (HB 11-1301), ch. 297, p. 1424, § 18, effective August 10. L. 2017: (1)(a) and (6)(a) amended, (HB 17-1051), ch. 99, p. 349, § 62, effective August 9. L. 2021: (1)(a) amended, (HB 21-1316), ch. 325, p. 2000, § 11, effective July 1.

Editor’s note:

1. This section is similar to former § 27-25-106 as it existed prior to 1977.
2. Subsections (2)(c) and (2)(d) provided for the repeal of subsections (2)(c) and (2)(d), respectively, effective June 30, 1994. (See L. 87, p. 664 .)

Cross references: For the authority of state agencies to contract with private enterprise for goods or services, see § 6-2-115.5.