State Laws Affecting Procurements

State Laws & Executive Directives Affecting Procurements

State Laws

The Management and Budget Act, Public Act 431 of 1984

Link: MCL.18.1101 - 18.1594.

The act sets forth the duties and powers of the Department of Technology, Management, & Budget (DTMB). The major sections that relate to the procurement of goods and services 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 departments. 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)

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 percent of the paper purchased must contain 50 percent 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 percent 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 that 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 that received the goods or services regarding required documentation and payment issues.

Freedom of Information Act, Public Act 442 of 1976

Link: MCL 15.231 - 15.244

The Freedom of Information Act (FOIA) 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 Central Procurement issues or receives in soliciting, evaluating, and awarding procurements are available to the public for inspection and copying under the terms of FOIA. Learn more about requesting documents.

The Elliott-Larsen Civil Rights Act, Public Act 453 of 1976

Link: 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 Central Procurement 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

Link: 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 percent 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

Link: 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.

Public Act 232 of July 21, 2004

Consistent with P.A. 232 of July 21, 2004, the Department of Technology, Management, & 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.

Executive Directives

Executive Directive 2019 - 08

Governor Whitmer issued Executive Directive 2019 - 08 calling on the Department of Technology, Management and Budget (DTMB) to encourage expanded business opportunities within low-income communities and underutilized business areas. The full text of the directive is available here: Executive Directive 2019 - 08

A Report of a violation of Executive Directive 2019-08 may be transmitted to:

Executive Directive 2019 - 15

Governor Whitmer issued Executive Directive 2019 - 15 calling on the Department of Technology, Management and Budget (DTMB) to make purchasing decisions that put the well-being of the state’s businesses, workers, communities and families first. The full text of the directive is available here: Executive Directive 2019 - 15

A Report of a violation of Executive Directive 2019-15 may be transmitted to: