What are the requirements for procurement pursuant to KRS 424.260 and the Local Government Model Procurement Code, KRS 45A.343 - 45A.460?

What are the requirements for procurement pursuant to KRS 424.260 and the Local Government Model Procurement Code, KRS 45A.343 - 45A.460?

Unless a city otherwise designates, KRS 424.260 requires cities making a contract, lease, or other agreement for the purchase of materials, supplies, equipment, or nonprofessional services exceeding $20,000 to first advertise for bids pursuant to KRS 424.130. The city need only advertise once, but may advertise two or more times provided that at least one advertisement occurs between 7 and 21 days before the close of bidding. The advertisement must include a description of what is to be bid, the time and place for receipt of bids, and any special terms of the sale. The statute does include some exceptions to the bidding requirements, including contracts made during a certified emergency as well as those that are for the purchase of perishable goods and professional services.

As an alternative to KRS 424.260, a city may elect by ordinance to adopt the provisions of the Local Government Model Procurement Code, KRS 45A.343 - 45A.460. If this code is adopted, all purchases made by the city must conform to its provisions (unless the code is adopted only as a condition for the receipt of grant money for specific purchases). The Model Procurement Code is similar to KRS 424.260 in that it requires invitations for bids to be advertised for contracts and purchases exceeding $20,000, with some exceptions. However, the Model Procurement Code differs from KRS 424.260 by requiring notice by newspaper publication or an Internet post at least seven days before the date set for the opening of bids. The notice must include the time and place where bids will be opened and where specifications may be obtained. The bids must be opened publicly in an announced location and the contract awarded to either the lowest bidder or the bidder submitting the lowest evaluated bid price. KRS 45A.365.

More information on this topic can be found in Chapter 18 of the 2015 City Officials Legal Handbook.