The complete text of these statutes is available by entering the Michigan Compiled Laws (MCL) number on the Michigan Legislature website.

THE MANAGEMENT AND BUDGET ACT, Public Act 431 of 1984 (MCL 18.1101 - 18.1594)

The Act sets forth the duties and powers of the Department of Management and Budget (DMB). The major sections which relate to Purchasing Operations are listed below.

State Purchasing Authority - The department is responsible for contracting for supplies, materials, services, insurance, utilities, third-party financing, printing, and other items needed by state agencies. The department is also responsible for issuing specifications and performance standards applicable to purchases. All discretionary decisions concerning state purchases are made by the department. (See MCL 18.1261)

Competitive Solicitations and Bids - DMB competitively bids all solicitations.

State law allows methods other than competitive bidding, however, Executive Directive 2005-3 prohibits sole source contracts.  Solicitations may be limited to prequalified vendors in order to meet applicable statutory or licensing requirements or when the timely award of a contract would be jeopardized. (See MCL 18.1261, MCL 18.1262, and Executive Directive 2005-3)

Delegation of Purchasing Authority - Purchasing authority may be delegated to other state agencies within certain dollar limits and for specific types of purchases. (See MCL 18.1261)

Michigan Preference - A preference is given to products manufactured or services offered by Michigan-based firms if all other things are equal and if not inconsistent with federal statute. (See MCL 18.1261)

Reciprocal Preference - A reciprocal preference to a Michigan business against an out-of-state business is allowed for purchases exceeding $100,000 and if not inconsistent with federal statutes. Under this provision, a Michigan bidder is preferred in the same manner in which the out-of-state bidder would be preferred in its home state. To claim this preference a bidder must certify to being a Michigan business and must authorize the Department of Treasury to release information necessary to verify the entitlement. A business that purposefully or willfully submits a false certification is guilty of a felony, punishable by a fine of not less than $25,000. (See MCL 18.1268)

Community Rehabilitation Organizations (CRO) (formerly called Sheltered Workshops) - The act establishes a Committee (Committee on the purchase of goods and services from Rehabilitation Organizations) which aids in the identification of goods and services to be purchased from CROs. The committee also establishes fair market prices for these goods and services.  Committee meetings are open to the public, and committee members are appointed by the Director of the Department of Management and Budget (DMB).  For information on committee service, contact DMB at 517-373-6327.

A Community Rehabilitation Organization is a recognized non-profit program for rehabilitating individuals with disabilities providing remunerative employment and educational or therapeutic occupational rehabilitation. (See MCL 18.1294)

Purchasing Operations uses a set-aside program for goods and services procured from Community Rehabilitation Organizations and ensures that the quality, function, and quantity complies with specifications established and published by the Department of Management and Budget. All solicitations are competitively bid, including those set aside for the CRO community.  If CRO bid responses are not determined to be the best value for the state, the contract may be awarded to a non-CRO entity. For this reason, bid responses from non-CRO entities are accepted. (See MCL 18.1293 - 18.1297)

Recycled Paper - To the extent available, a portion of the paper products purchased by the state must contain recycled paper if the cost of such paper products does not exceed by 10 percent the cost of non-recycled paper products. The statutory goals require that 50% of the paper purchased must contain 50% recycled fibers. (See MCL 18.1261b)

Recycled Materials - To the extent available, a portion of supplies, materials and equipment purchased by the state must be made from recycled materials if the cost of such products does not exceed by 10 percent the cost of products that do not contain recycled material. The statutory goals require that 20% of all supplies, materials, and equipment must be made from recycled material to the extent to which they are readily available. (See MCL 18.1261a)

Payment Procedure

Businesses which provide goods and services to the State of Michigan are entitled to be paid promptly. The Prompt Payment Act (Public Act 279 of 1984) requires state departments to pay for goods and services within 45 days (unless otherwise agreed to). Vendors should work with the agency which received the goods or services regarding required documentation and payment issues.

STATE PRINTING LAW, Public Act 153 of 1937 (MCL 24.62)

All printing for the State of Michigan, except that which is printed for primary school districts, local government units and legal publications for elective state officers, must be printed in Michigan.

FREEDOM OF INFORMATION ACT , Public Act 442 of 1976 (MCL 15.231 - 15.244)

The Freedom of Information Act entitles citizens of the state to full and complete information regarding the affairs of government and the official acts of public officials and public employees. The documents Purchasing Operations issues or receives in soliciting, evaluating, and awarding procurements are available to the public for inspection and copying under the terms of the Freedom of Information Act.

THE ELLIOTT-LARSEN CIVIL RIGHTS ACT , Public Act 453 of 1976 (MCL 37.2101 - 37.2804)

The Elliott-Larsen Civil Rights Act provides for equal opportunity in obtaining employment, housing, and real estate regardless of religion, race, color, national origin, age, sex, height, weight, or marital status. The Michigan Department of Civil Rights is responsible for determining that employers comply with this law. Purchasing Operations is prohibited from awarding contracts to vendors who do not comply with this law.

RIGHT TO KNOW LAW

The Right to Know Law is included in several sections of the Michigan Occupational Safety and Health Act, Public Act 154 of 1974 (MCL 408.1001 - 408.1094). These sections are administered by the Departments of Labor, Public Health, and Agriculture, and provide protection and information to employees who encounter hazardous substances in the workplace. Under this law, the manufacturing industry must label containers of hazardous materials and provide material safety data sheets, worker education, and training.

THE HANDICAPPER BUSINESS OPPORTUNITY ACT, Public Act 112 of 1988 (MCL 450.791 - 450.795)

The Handicapper Business Opportunity Act provides for a systematic manner to reach a goal of awarding not less than 3% of total expenditures for construction, goods, and services, less expenditures to sole source vendors, to handicapper-owned businesses.

STANDARDS OF CONDUCT FOR PUBLIC OFFICERS AND EMPLOYEES , Public Act 196 of 1973 (MCL 15.341- 15.348)

This Act establishes a code of ethics for State of Michigan employees and officers. The Act prohibits employees and officers from accepting gifts that would influence his or her duties, prohibits engaging in business transactions in which the employee or official would benefit from confidential State information and limits the ability of employees and officers to execute or negotiate contracts in which he or she has a financial or personal interest.