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Business Procedures Manual

22.5 Purchasing

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All state entities must comply with the provision of the State Purchasing Act for the purchase of goods and/or services governed by that act. The use of federal funds does not create an exemption to the State Purchasing Act.

Federal law regarding the appropriate use of ARRA funds has the following procurement process implications:

  1. Building solicitation specifications and requirements must be prepared so that they adhere to ARRA regulations, such as the Buy American provision. Section 1605 of the ARRA imposes a mandate that certain manufactured products must be produced in the United States. Projects for the construction, alteration, maintenance, or repair of a public building or public work must use iron, steel and manufactured goods produced in the United States.

  2. ARRA-imposed wage rate requirements must be kept in mind. Section 1606 of the ARRA imposes a requirement that all laborers and mechanics employed by contractors and subcontractors must be paid wages at not less than prevailing rates on projects of similar character in the locality.

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