The Public Competitive Bidding Act of 1974 applies to all buildings, improvements to public buildings, and the construction of the highway system. Under the Public Competitive Bidding Act, improvement is defined as any beneficial or valuable change or addition intended to enhance its value, beauty, or utility or to adapt it to new or further purposes.

• 61 O.S. § 101 ~138
• 69 O.S. § 1101
• 61 O.S. § 102

Note: Road and bridge construction services have been added to the County Purchasing Law in Title 19 of the Oklahoma Statutes. A recommended best practice is that purchasing for construction “projects” follows the mandates of Title 61 in the Oklahoma Statutes and that the district attorney be consulted for advice.
69 O.S. § 633

While some road and bridge construction contracts require engineering, that is not a requirement in the Public Competitive Bidding Act. See reference to Title 69.

As a political subdivision of the state, counties are subject to the Public Competitive Bidding Act, as is any department or agency of the county. Any departments receiving monies from the county are subject to the Public Competitive Bidding Act, just as they are subject to the county purchasing laws.

All public construction contracts must have prior board of county commissioners’ approval. The project should be submitted on a posted agenda in accordance with the Open Meeting Law.

Three different bidding thresholds are in place when bidding under the Public Competitive Bidding Act:

• Applies to any public construction.
• Applies to road construction projects.
• Applies to any repairs or construction of public buildings.

There are two types of project delivery methods:

• Standard contracts are a project delivery method in which the county contracts directly with the entity doing the work without the help of a construction manager.
• Construction management contracts are a project delivery method based on an agreement whereby the county acquires from a construction entity a series of services that include, but are not necessarily limited to, design review, scheduling, cost control, value engineering, constructability evaluation, preparation and coordination of bid packages, and construction administration.

Title 61 O.S. § 202(6)(a)
“Agency Construction Management” - the construction entity provides services to the county without taking on financial risks for the execution of the actual construction or time of performance, and the county contracts directly with those awarded trade contracts for the work.

Title 61 O.S. § 202(6)(b)
“At-risk Construction Management” – the construction entity, after providing agency services during the pre-construction period:

1. Takes on the financial obligation to timely carry out construction under a specified cost agreement.
2. Enters into written subcontracts for the work in accordance with the construction management procedures.

Each threshold requires different procedures.

Written specifications should accompany all projects completed under the Public Competitive Bidding Act. A written description of the project or work to be performed helps communicate the scope of the project and the technical requirements. Refer to Chapter Ten, “Writing Specifications.” Some projects are such that plans will be prepared by an architect or engineer. However, even small projects should have written specifications to ensure the written quotes satisfy the scope of the project.
61 O.S. § 131

No contract shall be split into partial contracts for the purpose of avoiding the requirements of the Public Competitive Bidding Act. However, Attorney General Opinion 2009-19 provides some insight as to allowing partial contracts. Splitting a project into multiple contracts does not in and of itself constitute “bid splitting.” A highly recommended best practice is that a careful review of this section of the law and the Attorney General Opinion should be made when reviewing a project on the basis of “multiple” contracts. Items or services of like nature should never be split. Thus, accepting the same vendor for two contracts under one project could become suspect to bid splitting.

• 61 O.S. § 126
• 2009 AG 19
• 61 O.S. § 131

A contractor who has a public contract with a county, or a subcontractor to that public contract, may make purchases exempt from sales tax of tangible personal property or services that are necessary for carrying out the public contract. The contractor must obtain the following documentation required for this limited exemption:

• Documentation indicating the contractual relationship between the contractor and the county; OAC 710:65-7-13
• A copy of the exemption letter or card issued to the county as described in the statutes;
• Certification by the purchaser, on the face of each invoice or sales receipt, which sets out the name of the exempt county, that the purchases are being made on behalf of the county, and that they are necessary for the completion of the contract.