HB 511

03-03 19:37  1st Sub. (Buff) H.B. 511
                      David Shallenberger proposes the following substitute bill:
1Procurement Amendments
                                        2026 GENERAL SESSION
                                             STATE OF UTAH
                                 Chief Sponsor: David Shallenberger
                                     Senate Sponsor: Brady Brammer
2
3   LONG TITLE
4   General Description:
5This bill modifies provisions of Title 63G, Chapter 6a, Utah Procurement Code.
6   Highlighted Provisions:
7This bill:
8▸ defines the term "resident supplier";
9▸ authorizes the rulemaking authority for a procurement unit to make rules governing small
10   purchases that encourage procurements from resident suppliers over non-resident
11   suppliers;
12▸ modifies the process to create an approved vendor list;
13▸ requires the rulemaking authority to create a procedure to ensure vendors on an approved
14   vendor list that are resident suppliers have increased opportunity to compete for a
15   contract for a procurement item in comparison to non-resident suppliers on the approved
16   vendor list;
17▸ provides that a procurement unit shall give a preference to bidders that certify on the bid
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18   that the bidder qualifies as a resident supplier; and
19▸ makes technical and conforming changes.
20   Money Appropriated in this Bill:
21None
22   Other Special Clauses:
23None
24   Utah Code Sections Affected:
25   AMENDS:
2663G-6a-506, as last amended by Laws of Utah 2025, Chapter 69
2763G-6a-507, as last amended by Laws of Utah 2020, Chapter 257
28   ENACTS:
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2963G-6a-1005, Utah Code Annotated 1953
30
31   Be it enacted by the Legislature of the state of Utah:
32Section 1. Section 63G-6a-506 is amended to read:
3363G-6a-506 . Small purchases.
34   (1) As used in this section:
35(a) "Annual cumulative threshold" means the maximum total annual amount, established
36by the rulemaking authority under Subsection (2), that a procurement unit may
37expend to obtain procurement items from the same source under this section.
38(b) "Individual procurement item threshold" means the maximum amount, established
39by the rulemaking authority under Subsection (2), for which a procurement unit may
40purchase a procurement item under this section.
41(c) "Resident supplier" means the same as that term is defined in Section 63G-6a-1005.
42[(c)] (d) "Single procurement aggregate threshold" means the maximum total amount,
43established by the rulemaking authority under Subsection (2), that a procurement unit
44may expend to obtain multiple procurement items from one source at one time under
45this section.
46   (2)(a) The rulemaking authority may make rules governing small purchases of any
47procurement item, including construction, job order contracting, design professional
48services, other professional services, information technology, and goods.
49(b) Rules under Subsection (2)(a) may include provisions:
50(i) establishing expenditure thresholds, including:
51(A) an annual cumulative threshold;
52(B) an individual procurement item threshold; and
53(C) a single procurement aggregate threshold;
54(ii) establishing procurement requirements relating to the thresholds described in
55Subsection (2)(b)(i);[ and]
56(iii) providing for the use of electronic, telephone, or written quotes[.] ; and
57(iv) encouraging procurements from resident suppliers over non-resident suppliers,
58when available.
59(c) If a procurement unit obtains administrative law judge service through a small
60purchase standard procurement process, rules made under Subsection (2)(a) shall
61provide that the process for the procurement of administrative law judge service
62include an evaluation committee described in Subsection 63G-6a-116(3).
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63   (3) Expenditures made under this section by a procurement unit may not exceed a threshold
64established by the rulemaking authority, unless the procurement official gives written
65authorization to exceed the threshold that includes the reasons for exceeding the
66threshold.
67   (4) Except as provided in Subsection (5), an executive branch procurement unit may not
68obtain a procurement item through a small purchase standard procurement process if the
69procurement item may be obtained through a state cooperative contract or a contract
70awarded by the chief procurement officer under Subsection 63G-6a-2105(1).
71   (5) Subsection (4) does not apply if:
72(a) the procurement item is obtained for an unanticipated, urgent, or emergency
73condition, including:
74(i) an item needed to avoid stopping a public construction project;
75(ii) an immediate repair to a facility or equipment; or
76(iii) another emergency condition; or
77(b) the chief procurement officer or the procurement official of a procurement unit that
78is an executive branch procurement unit with independent procurement authority:
79(i) determines in writing that it is in the best interest of the procurement unit to obtain
80an individual procurement item outside of the state contract, comparing:
81(A) the contract terms and conditions applicable to the procurement item under the
82state contract with the contract terms and conditions applicable to the
83procurement item if the procurement item is obtained outside of the state
84contract;
85(B) the maintenance and service applicable to the procurement item under the
86state contract with the maintenance and service applicable to the procurement
87item if the procurement item is obtained outside of the state contract;
88(C) the warranties applicable to the procurement item under the state contract with
89the warranties applicable to the procurement item if the procurement item is
90obtained outside of the state contract;
91(D) the quality of the procurement item under the state contract with the quality of
92the procurement item if the procurement item is obtained outside of the state
93contract; and
94(E) the ability of the vendor under the state contract to match the quoted cost of
95the procurement item if the procurement item is obtained outside of the state
96contract;
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97(ii) for a procurement item that, if defective in its manufacture, installation, or
98performance, may result in serious physical injury, death, or substantial property
99damage, determines in writing that the terms and conditions, relating to liability
100for injury, death, or property damage, available from the source other than the
101contractor who holds the state contract, are similar to, or better than, the terms and
102conditions available under the state contract; and
103(iii) grants an exception, in writing, to the requirement described in Subsection (4).
104   (6) Except as otherwise expressly provided in this section, a procurement unit:
105(a) may not use the small purchase standard procurement process described in this
106section for ongoing, continuous, and regularly scheduled procurements that exceed
107the annual cumulative threshold; and
108(b) shall make its ongoing, continuous, and regularly scheduled procurements that
109exceed the annual cumulative threshold through a contract awarded through another
110standard procurement process described in this chapter or an applicable exception to
111another standard procurement process, described in Part 8, Exceptions to
112Procurement Requirements.
113   (7) This section does not prohibit regularly scheduled payments for a procurement item
114obtained under another provision of this chapter.
115   (8)(a) It is unlawful for a person knowingly to divide a single procurement into multiple
116smaller procurements, including by dividing an invoice or purchase order into
117multiple invoices or purchase orders, if:
118(i) the single procurement would not have qualified as a small purchase under this
119section;
120(ii) one or more of the multiple smaller procurements qualify as a small purchase
121under this section; and
122(iii) the division is done with the intent to:
123(A) avoid having to use a standard procurement process, other than the small
124purchase process, that the person would otherwise be required to use for the
125single procurement; or
126(B) make one or more of the multiple smaller procurements fall below a small
127purchase expenditure threshold established by rule under Subsection (2)(b) that
128the single procurement would not have fallen below without the division.
129(b) A violation of Subsection (8)(a) is subject to penalties as provided in Subsection
13063G-6a-2404.3(2).
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131   (9) The Division of Finance within the Department of Government Operations may conduct
132an audit of an executive branch procurement unit to verify compliance with the
133requirements of this section.
134   (10) An executive branch procurement unit may not make a small purchase after January 1,
1352014, unless the chief procurement officer certifies that the person responsible for
136procurements in the procurement unit has satisfactorily completed training on this
137section and the rules made under this section.
138Section 2. Section 63G-6a-507 is amended to read:
13963G-6a-507 . Approved vendor list procurement process.
140   (1) As used in this section:
141(a) "Closed-ended approved vendor list" means an approved vendor list that is subject to:
142(i) a short period of time, specified by the procurement unit, during which vendors
143may be added to the list; and
144(ii) a specified period of time after which the list will expire.
145(b) "Open-ended approved vendor list" means an approved vendor list that is subject to:
146(i) an indeterminate period of time during which vendors may be added to the list;
147(ii) the addition of vendors to the list throughout the term of the list; and
148(iii) a specified period of time after which the procurement unit is required to verify
149that vendors on the list continue to meet the minimum mandatory requirements,
150evaluation criteria, and applicable score thresholds.
151(c) "Resident supplier" means the same as that term is defined in Section 63G-6a-1005.
152   (2) A procurement unit may not establish an approved vendor list unless the procurement
153unit has first completed the statement of qualifications process described in Section
15463G-6a-410.
155   (3)(a) A procurement unit may establish an approved vendor list for:
156(i) a specific, fully defined procurement item; or
157(ii) a future procurement item that is not specifically and fully defined, if the request
158for statement of qualifications contains a general description of:
159(A) the procurement item; and
160(B) the type of vendor that the procurement unit seeks to provide the procurement
161item.
162(b) A procurement unit may not award a contract to a vendor on an approved vendor list
163for a procurement item that is outside the scope of the general description of the
164procurement item contained in the request for statement of qualifications.
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165   (4) After receiving the statements of qualifications and evaluation scores submitted by the
166evaluation committee under Subsection 63G-6a-410(9)(f), the procurement official of
167the procurement unit using the request for statement of qualifications process under
168Section 63G-6a-410 as part of an approved vendor list process shall:
169(a) include on an approved vendor list those vendors meeting the minimum mandatory
170requirements, evaluation criteria, and applicable score thresholds;[ and]
171(b) reject any vendor not meeting the minimum mandatory requirements, evaluation
172criteria, and applicable score thresholds as ineligible for inclusion on the approved
173vendor list[.] ; and
174(c) indicate on an approved vendor list those vendors that qualify as a resident supplier,
175if the vendor includes that information in the vendor's statement of qualifications.
176   (5)(a) A procurement unit shall include approved vendors on a closed-ended approved
177vendor list or an open-ended approved vendor list.
178(b)(i) A closed-ended approved vendor list shall expire no later than 18 months after
179the publication of the closed-ended approved vendor list.
180(ii) A procurement unit shall verify, no less frequently than every 18 months, by a
181method approved by the procurement official, that each vendor on an open-ended
182approved vendor list continues to meet the minimum mandatory requirements,
183evaluation criteria, and applicable score thresholds.
184   (6) A procurement unit may:
185(a)(i) using a bidding process, request for proposals process, small purchase process,
186or design professional procurement process, award a contract to a vendor on an
187approved vendor list for any procurement item or type of procurement item
188specified by the procurement unit in the request for statement of qualifications,
189including procurement items that the procurement unit intends to acquire in a
190series of future procurements described in the request for statement of
191qualifications; and
192(ii) limit participation in a bidding process, request for proposals process, small
193purchase process, or design professional procurement process to vendors on an
194approved vendor list; or
195(b) award a contract to a vendor on an approved vendor list at a price established as
196provided in Section 63G-6a-113.
197   (7)(a) After establishing an approved vendor list as provided in this section, a
198conducting procurement unit shall, before using the approved vendor list, submit the
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199approved vendor list to the issuing procurement unit.
200(b) An issuing procurement unit that receives an approved vendor list under Subsection
201(7)(a) shall make the approved vendor list available to the public.
202   (8) A conducting procurement unit administering an open-ended approved vendor list shall:
203(a) require a vendor seeking inclusion on the approved vendor list to submit a statement
204of qualifications that complies with all requirements applicable at the time of the
205initial request for statement of qualifications; and
206(b) if modifying the requirements for inclusion on the approved vendor list, apply any
207new or additional requirement to all vendors equally, whether a vendor is seeking
208inclusion on the approved vendor list for the first time or is already included on the
209approved vendor list.
210   (9) A rulemaking authority shall make rules pertaining to an approved vendor list process,
211including:
212(a) procedures to ensure that:
213(i) all vendors on an approved vendor list that are resident suppliers have a fair and
214equitable opportunity to compete for a contract for a procurement item in
215comparison to other resident suppliers on the approved vendor list;
216(ii) all vendors on an approved vendor list that are not resident suppliers have a fair
217and equitable opportunity to compete for a contract for a procurement item in
218comparison to other non-resident suppliers on the approved vendor list; and
219(iii) vendors on an approved vendor list that are resident suppliers have a greater
220opportunity to compete for a contract for a procurement item in comparison to
221non-resident suppliers on the approved vendor list; and
222(b) requirements for using an approved vendor list with the small purchase process.
223Section 3. Section 63G-6a-1005 is enacted to read:
22463G-6a-1005 . Preference for resident suppliers.
225   (1) As used in this section, "resident supplier" means a person, partnership, corporation, or
226other business entity that:
227(a) maintains a principal place of business in Utah;
228(b) is registered and in good standing with the Division of Corporations and Commercial
229Code created in Section 13-1a-1; and
230(c) has maintained the principal place of business described in Subsection (1)(a) for at
231least one year before the day on which bids or requests for qualifications were first
232solicited.
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233    (2) The provisions of this section apply if the provisions of Sections 63G-6a-1002 and
23463G-6a-1003 do not apply.
235    (3)(a) For a procurement that is awarded based on evaluation criteria with assigned point
236values, an issuing procurement unit shall award a resident supplier additional points
237equal to 10% of the total available evaluation points.
238(b) The additional points described in Subsection (3)(a) shall be added to the resident
239supplier's final evaluation score.
240(c) The preference described in this Subsection (3):
241(i) is waived if the certification that the Ŝ→ [bidder ] vendor ←Ŝ
241a  qualifies as a resident supplier does
242not appear on the bid or proposal; and
243(ii) does not apply if application of the preference might jeopardize the receipt of
244federal funds.
245Section 4. Effective Date.
246    This bill takes effect on May 6, 2026.
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