Exhibit A 
Revised 2018

CHAPTER 5

PROCUREMENT

Table of Contents

Section 5.1 Scope of this Chapter

Section 5.2 General Provisions and Applicability of the Procurement Code

5.2.1 Scope of the Procurement Code

5.2.2 Department of Administration’s Responsibility for Procurement and 

Disposal

5.2.2.1 State Procurement Administrator

5.2.2.2 Delegation of Department of Administration’s Authority to State 

Governmental Units

5.2.2.3 Agency Chief Procurement Officer

5.2.3 State Governmental Unit’s Responsibility for the Procurement of 

Services of Clergy, Certified Public Accountants, Lawyers, 

Physicians, and Dentists

5.2.3.1 State Governmental Unit’s Procurement of Legal Services

5.2.3.2 State Governmental Unit’s Procurement of Services of Certified 

Public Accountants

5.2.3.3 State Governmental Unit’s Procurement of Information Technology 

Purchases

5.2.4 Procurement by State Governmental Units Exempted from the 

Procurement Code and Separately Authorized to Purchase

5.2.5 Specific Procurements Exempted from the Procurement Code

Section 5.3 Procurement Code Procedures

5.3.1 Source Selection Method; Materials and Services Under Existing 

Arizona State Contracts
Revised 2018

5.3.2 Procurements Not Exceeding $100,000 in the Aggregate; Small 

Business Set Aside

5.3.2.1 Simplified Construction Procurement Program

5.3.2.2 Purchases of $10,000 and Less

5.3.3 Sole Source Procurement

5.3.4 Emergency Procurement

5.3.5 Competition Impracticable Procurements

5.3.6 Unsolicited Proposals

5.3.7 Demonstration Projects

5.3.8 General Procurement of Materials and Services

5.3.8.1 Competitive Sealed Bidding

5.3.8.1.1 Contents of the Invitation for Bids (IFB)

5.3.8.1.2 Conflict of Interest

5.3.8.1.3 Bid Evaluation and Award

5.3.8.1.4 Multistep Sealed Bidding

5.3.8.2. Competitive Sealed Proposals

5.3.8.2.1. Discussions

5.3.8.2.2. Contract Award

5.3.9 Procurement of Professional Services of Clergy, Physicians, 

Dentists, Legal Counsel, and Certified Public Accountants

5.3.10 Procurement of Professional Services of or for Architects, 

Construction-Managers-at-Risk, Design-Build Construction, JobOrder-Contracting Construction, Engineers, Assayers, Geologists, 

Landscape Architects, and Land Surveyors

5.3.10.1 Request for Qualifications

5.3.10.2 Evaluation and Negotiation
Revised 2018

5.3.10.3 Alternative to A.R.S. § 41-2578(E) for Certain Construction Projects

5.3.11 Procurement of Information Systems and Telecommunication 

Systems

5.3.12 Procurement of Earth-Moving, Material Handling, Road 

Maintenance and Construction Equipment

5.3.13 Public-Private Partnership Contracts

Section 5.4 General Procurement Requirements

5.4.1 Responsible Bidder

5.4.2 Prequalification of Contractors

5.4.3 Requests for Information

5.4.4 Conformity of Invitation for Bids (IFB) or Request for Proposals 

(RFP) to Specifications

5.4.5 Bid and Contract Security

5.4.5.1 Construction and Construction Services Contracts

5.4.6 Cost or Pricing Data 

5.4.7 Written Contracts

5.4.8 Indemnity Agreements in Construction and Architect-Engineer 

Contracts

5.4.9 Modification, Correction, and Withdrawal of Bids or Offers

5.4.10 Solicitation Amendments

5.4.11 Cancellation of Solicitation

5.4.12 Multi-term Contracts

5.4.13 Right to Inspect Plant and Audit Records

5.4.14 Conflict of Interest

5.4.15 Personal Use Prohibition
Revised 2018

5.4.16 Prohibition Against Discrimination

5.4.17 On-line Bidding

5.4.18 No-Boycott-of-Israel Certification.

Section 5.5 Materials Management

5.5.1 Disposition of Surplus Materials

Section 5.6 Legal and Contractual Remedies

5.6.1 Exclusive Remedy

5.6.2 Protested Solicitations and Awards

5.6.2.1 Procurement Officer

5.6.2.2 Appeals to the Director

5.6.3 Contract Claims and Controversies Between a Contractor and the 

State

5.6.3.1 Claims Initiated by the Contractor

5.6.3.2 Claims Initiated by the State

5.6.4 Debarring or Suspending a Person from Participating in State 

Procurements

5.6.5 Hearings Under the Procurement Rules

5.6.6 Rehearing

5.6.7 Judicial Review of Administrative Decisions

Section 5.7 Intergovernmental Procurement

5.7.1 Cooperative Purchasing

5.7.1.1 Compliance with Procurement Code

5.7.1.2 Controversies
Revised 2018

5.7.2 Purchasing from the Arizona Industries for the Blind and from 

Arizona Correctional Industries

5.7.3 General Services Administration Contracts

Section 5.8 Violation of the Procurement Code

5.8.1 Enforcement of the Procurement Code

5.8.2 Civil Penalty

5.8.3. Criminal Penalty

5.8.4 Reporting of Anticompetitive Practices

Section 5.9 Procurement and the Antitrust Laws

5.9.1 The Procurement Officer’s Function

5.9.2 Objectives of the Antitrust Laws

5.9.3 Federal Antitrust Laws

5.9.3.1 The Sherman Antitrust Act

5.9.3.2 The Clayton Antitrust Act

5.9.3.3 The Federal Trade Commission Act

5.9.4 State Antitrust Laws

5.9.4.1 Uniform State Antitrust Act

5.9.4.2 Bid-Rigging Statutes

5.9.5 Conduct Illegal Under the Antitrust Laws

5.9.5.1 Price Fixing

5.9.5.2 Bid Rigging

5.9.5.3 Division of Markets - Territorial Market Allocation

5.9.5.4 Tying Arrangements

5.9.5.5 Group Boycotts - Horizontal Refusals to Deal
Revised 2018

5.9.5.6 Monopolization

5.9.5.7 Other Unlawful Acts

5.9.6 Exemptions

5.9.6.1 State Action Exceptions and Immunities

5.9.7 Enforcement of Antitrust Laws

5.9.8 Detecting Antitrust Violations in Bidding

5.9.8.1 Identical Bids

5.9.8.2 Simultaneous Price Increases and Price Maintenance

5.9.8.3 Bid Rotation

5.9.8.4 Customer Allocation

5.9.8.5 Territorial Allocation

5.9.8.6 Other Suspicious Bidding Practices

5.9.9 Application of the Antitrust Laws to State Employees Engaged in 

Purchasing

5.9.10 Antitrust Attorney’s Fees

Appendix 5.1 Exemptions from Procurement Code
5-18 Revised 2018

the contractor at any time while the contract or any extension of the contract is in effect. 

A.R.S. § 38-511.

Any state officer or employee who has a significant role (as defined in 

A.R.S. § 41-741(14)) in the procurement of materials, services or construction is prohibited 

from accepting employment or having discussions concerning employment or other direct 

benefit with any person or entity lobbying for or potentially responding or responding to a 

solicitation. This prohibition applies from the time the first non-disclosure agreement is 

signed for that solicitation until one year after the delivery of goods or services or the 

beginning of construction. A.R.S. § 41-753(D); see also A.R.S. § 41-2517. Violation of the 

statute is a class 2 misdemeanor and may be cause for suspension or dismissal and 

becoming ineligible for employment with the state for five years. A.R.S. § 41-753(E), 

(G)-(H).

5.4.15 Personal Use Prohibition. “State employees and public officers shall not 

purchase materials or services for their own personal or business use from contracts 

entered into by the state unless authorized in writing by the Director [of DOA].” 

A.A.C. R2-7-204.

5.4.16 Prohibition Against Discrimination. Contractors must agree to comply 

with Chapter 9, Title 41, Arizona Revised Statutes (Civil Rights) and Executive Order 

No. 2009-9 (amending Executive Order No. 75-5 and 99-4; current version at Historical and 

Statutory Notes, A.R.S. § 41-1463).

5.4.17 On-line Bidding. If an agency chief procurement officer determines that 

on-line bidding is more advantageous than other procurement methods, the procurement 

officer may use on-line bidding to obtain bids electronically. A.R.S. § 41-2672.

5.4.18 No-Boycott-of-Israel Certification. “A public entity may not enter into a 

contract with a company to acquire or dispose of services, supplies, information technology 

or construction unless the contract includes a written certification that the company is not 

currently engaged in, and agrees for the duration of the contract to not engage in, a boycott 

of Israel.” A.R.S. § 35-393.01(A). In implementing the above, public entities should follow 

the statute’s scope and defined terms.

First, the statute covers actions by a “company.” Company is defined as the 

business types listed in A.R.S. § 35-393(2), and does not apply to natural persons in their 

non-business capacities. A public entity may contract with a business so long as the 

business is not engaged in a “boycott of Israel,” even if a natural person who owns the 

company is engaged in a boycott in their personal (i.e., non-business) capacity. Similarly, 

the definition of company includes an “affiliate,” but companies are not affiliates in this 

context merely because they share natural-person owner(s) if the companies are operated 

separately.

Second, the statute relates to a “boycott of Israel.” “Boycott,” as defined in 

A.R.S. § 35-393(1), refers solely to conduct and does not include any speech related to 
5-19 Revised 2018

boycotts. Moreover, “boycott of Israel,” as used in A.R.S. § 35-393.01(A), means a boycott 

that is directed at “Israel or with persons or entities doing business in Israel or in territories 

controlled by Israel.” A.R.S. § 35-393(1). A boycott is not a “boycott of Israel” if it targets 

multiple countries and does not principally target Israel or those doing business with them. 

Finally, to qualify as a “boycott” under § 35-393(1)(a), the actions must be “[i]n compliance 

with or adherence to calls for a boycott of Israel other than those boycotts to which 

[50 U.S.C. § 4607(c)] applies.” A boycott that is self-generated or differs substantially in its 

scope from the calls for a boycott would not be covered.

5.5 Materials Management. DOA is charged with managing all state materials 

during their entire life cycle, including disposing of excess and surplus materials. 

A.R.S. §§ 41-2602 to -2606; A.A.C. R2-15-301 and -303 to -310.

5.5.1 Disposition of Surplus Materials. No using agency, except the Department 

of Public Safety, the Arizona Exposition and State Fair Board, and the Arizona Correctional 

Industries may transfer, sell, trade-in, condemn, or otherwise dispose of materials owned 

by the State without written authorization of the Surplus Property Administrator at DOA. 

A.R.S. §§ 3-1007(A)(1), 41-1623(E), 41-1624(B), 41-1713(B)(6); A.A.C. R2-15-303(B). 

Using agencies must notify the Surplus Property Administrator of all excess and surplus 

materials in the manner prescribed by the Surplus Property Administrator.

A.A.C. R2-15-303(C). The Surplus Property Administrator shall then dispose of the excess 

and surplus materials through competitive bidding or one of the other methods identified in 

A.A.C. R2-15-303(E).

5.6 Legal and Contractual Remedies.

5.6.1 Exclusive Remedy. Any solicitation or contract claim or controversy made 

by any bidder, offeror, or contractor may be asserted against the State or an agency of the 

State only under the procedures set forth in Article 9 of the Arizona Procurement Code and 

the rules promulgated thereunder. A.R.S. § 41-2615; see A.A.C. R2-7-A901 to -A912, 

-B901 to -B905, -C901 to -C911, -D901 to -D902. Under no circumstances may a state 

governmental unit settle a claim or make a payment to a bidder, offeror, or contractor 

making a claim or protest without complying with the applicable rules and procedures. The 

statutes authorizing actions against the State (A.R.S. §§ 12-820 to -826) and the Uniform 

Arbitration Act (A.R.S. §§ 12-1501 to -1518) do not apply to a claim against the State 

relating to a procurement governed by the Procurement Code. Id. A claim or controversy 

arising from a procurement not governed by the Procurement Code is addressed in 

Section 13.6.5.

5.6.2 Protested Solicitations and Awards.

5.6.2.1 Procurement Officer. The procedure for resolving protested solicitations 

and awards is authorized by A.R.S. §§ 41-2611 through 41-2617 and found in 

A.A.C. R2-7-A901 to -A912. A protest is commenced when an "interested party," i.e., an 

offeror or prospective offeror whose economic interest is affected (see