Bill Text: MI HB6017 | 2009-2010 | 95th Legislature | Introduced
Bill Title: State financing and management; purchasing; negotiations to reduce state contract by 5%; require. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding secs. 261e & 261f.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-04-13 - Printed Bill Filed 03/26/2010 [HB6017 Detail]
Download: Michigan-2009-HB6017-Introduced.html
HOUSE BILL No. 6017
March 25, 2010, Introduced by Rep. Dillon and referred to the Committee on Appropriations.
A bill to amend 1984 PA 431, entitled
"The management and budget act,"
(MCL 18.1101 to 18.1594) by adding sections 261e and 261f.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 261e. (1) The department shall negotiate with each
contractor holding a contract described in section 261 that has an
unperformed balance of $50,000.00 or more as of May 31, 2010. The
department shall propose contract modifications to reduce amounts
yet to be expended under the contract by 5% or more. The department
shall determine whether the reduction in expenditures can best be
achieved through a change in quantity, specifications, price, or a
combination of those factors.
(2) If the department has reasonable grounds to believe that
the balance of the contract can be performed at a 5% or greater
saving to the state and the contractor does not agree to contract
modifications that produce a reduction in the remaining contract
payments, the department shall cancel and rebid any contract that
allows for cancellation without penalty to the state.
(3) If a contract does not allow for cancellation without
penalty to the state and a contractor either does not agree to a
reduction in the remaining contract payments or does not
participate in good-faith renegotiation of the contract, all of the
following apply:
(a) The contract shall not be extended and no add-on to that
contract shall be approved.
(b) The department shall place the contractor on a list of
those contractors that do not cooperate in the state's emergency
contract renegotiation program that is accessible to the public on
the department's website.
Sec. 261f. The department shall solicit services from a
private contractor to analyze outstanding contracts and review
purchasing procedures to identify and report methods to reduce
purchasing expenditures while meeting the needs of the state. If
possible, the contract shall provide for compensating the
contractor with a percentage of verified savings during the first
year that are a result of implementing the suggestions in the
contractor's report. The contract for the analysis and review shall
be put to bid within 60 days after the effective date of this
section and shall require the contractor to provide the report by 6
months after the date the contract is awarded.
