State Laws Affecting Procurements

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 Technology, Management & Budget (DTMB). The major sections which relate to Procurement 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 - DTMB competitively bids all solicitations.
See MCL 18.1261 and MCL 18.1262 for exceptions.

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 Based Firms and Clean Corporate Citizens Preference - If consistent with federal statutes, in all purchases made by the department, all other things being equal, preference shall be given to products manufactured or services offered by Michigan-based firms or by facilities with respect to which the operator is designated as a clean corporate citizen under part 14 of the natural resources and environmental protection act. (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)- A community rehabilitation organization is a non-profit charitable organization or institution incorporated in this state that is operated for the purpose of carrying out a recognized program of employment and training services for people with disabilities.  The act establishes a committee (committee on the purchase of goods and services from community rehabilitation organizations) which identifies, reviews and recommends approval of requests from CROs to provide goods and services for purchase by DTMB.  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 governor.  For information on committee service, contact DTMB at 517-284-7014.  (See MCL 18.293-18.297)  An Operations Manual is also now available.


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.

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 DTMB-Procurement 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. DTMB-Procurement is prohibited from awarding contracts to vendors who do not comply with this 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.


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.

QUALIFIED SERVICE-DISABLED VETERAN-OWNED PREFERENCE, Public Act 91 of 2005 and 133 of 2008 (MCL 18.1261)

Businesses owned by qualified service-disabled veterans get a 10% pricing preference.  "Service-connected disability" is defined as a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16). "Qualified" means a business entity that is 51% or more owned by one or more veterans with a service-connected disability.

PA 91 also establishes a goal of awarding 3% of total state expenditures for goods, services, and construction to qualified service-disabled veteran-owned companies. PA 133 of 2008 raised that goal to 5%.  See the
 service-disabled veteran page for additional information.


PUBLIC ACT NO. 232 of JULY 21, 2004 

Consistent with P.A. 232 of July 21, 2004, the Department of Technology, Management and Budget will provide the State of Michigan's bid posting website to K-12 schools to post construction solicitations. These solicitations will be posted for a minimum of two weeks in accordance with law. 

Content is the sole responsibility of the school entity and all questions regarding the bid announcements should be directed to them.

All school organizations in need of posting solicitations applicable under P.A. 232 on the DTMB Buy4Michigan website will need to contact Christine Mitchell at 517-335-0462 or by email at