An Act To Create the Procurement Review Board
Maine Legislature, Session 128, LD 1295
Committee Amendment CA_A_S274 (Senate)
Amends: 5 MRSA §12004-G, 5 MRSA §1826-E

COMMITTEE AMENDMENT "A" to S.P. 447, L.D. 1295, Bill, "An Act To 
Create the Procurement Review Board' 
Amend the bill by striking out the title and substituting the following: 
'An Act To Create the Sole-source Procurement Review Board' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA c. 155, sub-c. 3 is enacted to read: 
SUBCHAPTER 3 
SOLE-SOURCE PROCUREMENT REVIEW BOARD 
§1826-E. Sole-source Procurement Review Board 
1. Board established. The Sole-source Procurement Review Board, referred to in 
this subchapter as "the board," is established pursuant to section 12004-G, subsection 
32-A. 
A. The board consists of 7 members: 
(1) The Attorney General or the Attorney General's designee; 
(2) The Treasurer of State or the Treasurer of State's designee; and 
(3) Five members nominated by the Governor and confirmed by a majority vote 
of the joint standing committee of the Legislature having jurisdiction over state 
and local government matters and by a majority vote of the Senate. 
Each 
member must have demonstrated sufficient business or professional experience in 
the area of procurement to perfonn the functions of the board. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 447, L.D. 1295 
The Attorney General and the Treasurer of State or their designees serve as nonvoting 
members of the board. 
A member of the board may not be a member of the 
Legislature. In the event that the Governor has not nominated an individual to fill a 
vacancy on the board within 30 days of the vacancy, the President of the Senate shall 
nominate an individual to fill the vacancy. 
B. At the first meeting, the voting members of the board shall select a chair from 
among its members. The chair serves for a one-year term. 
C. 
A voting member of the board serves for a 4-year te1m. The Governor may 
nominate a voting member for a 2nd term. 
D. A member of the board employed by or holding an interest in an entity doing 
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business with or attempting to do business with the State does not by the member's 
service on the board preclude that entity from doing business with or attempting to do 
business with the State. 
E. The board shall meet at least twice per month. Meetings of the board must be 
conducted in person and must be open to the public. 
Written minutes of such 
meetings must be created and made available for public inspection and copying. 
F. A majority of the voting members of the board constitutes a quorum. 
G. A member of the board receives no compensation but must be reimbursed for 
expenses reasonably incurred in the performance of the member's duties. 
2. Authority and duties. Notwithstanding any other provision of law, the board 
shall review, comment upon and approve or disapprove all sole-source contracts and 
contract renewals, amendments, extensions or other changes to an existing sole-source 
contract for the procurement of supplies or services, including but not limited to 
professional, aitistic and construction services, and for real property and capital 
improvement leases procured by the State. If the board takes no action to initiate the 
review of a sole-source contract or contract renewal, amendment, extension or other 
change to an existing sole-source contract within 30 days of submission by a depa1tment 
or agency in accordance with subsection 3, the department or agency may proceed 
without the review, comment or approval of the board. The board may review, study and 
hold public hearings concerning the implementation of its duties. 
As used in this section, unless the context otherwise indicates, "sole-source contract" 
means a contract that is not subject to the requirement of competitive bidding under 
subchapter 1-A, including contracts for which the requirement of competitive bidding is 
waived under section 1825-B, subsection 2 and contracts exempted from competitive 
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bidding under any other provision of law. 
3. Responsibilities of agencies. State depaitments and agencies shall submit to the 
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board for approval all proposed sole-source contracts and contract renewals, amendments, 
8 
extensions or other changes to an existing sole-source contract. Each chief procurement 
officer, state purchasing officer, procurement compliance monitor and state deprutment or 
agency shall cooperate with the board, provide infmmation to the board and be 
responsive to the board in the board's conduct of its reviews, studies and hearings. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" Pi" to S.P. 447, L.D. 1295 
4. Advice of Attorney General. The board shall timely seek legal advice from the 
Attorney General regarding any proposed sole-source contract when the board determines 
the contract: 
A. May expose the State to substantial risk in the event of nonperformance; or 
B. Could reasonably be expected to incur costs to the State in excess of $3,000,000 
over the full term of the proposed contract, exclusive of extensions or amendments. 
Upon a majority vote of the voting members of the board, the board also may seek 
legal review by and consult with the Attorney General on any contractual matter 
subject to the board's approval. 
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5. Approval criteria. The board shall approve the award of a sole-source contract if 
the board is satisfied that: 
A. The depmiment or agency has exercised due diligence in determining that the 
costs, fees or rates negotiated are fair and responsible; and 
B. The department or agency has demonstrated: 
(I) The contract is critical or essential to department or agency responsibilities or 
operations; 
(2) Sufficient staffing or expe1iise is not available from within the department or 
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agency or through other government entities; 
(3) The supplies or services required are unique to a specific contractor; or 
( 4) Timeliness in supporting depmiment or agency responsibilities or operations 
is an immediate concern through no fault of the department or agency and only 
one known source can meet the depmiment's or agency's needs within the 
required time frame. 
Upon a majority vote of its voting members that the conditions under paragraphs A and B 
have not been satisfied, the board may reject a contract renewal, amendment, extension or 
other change to an existing sole-source contract. 
6. 
Cost overrun. 
A state depmiment or agency shall notify the legislative 
committee of jurisdiction of a sole-source contract that results in a cost overrun and shall 
report the dollar amount of the ovenun. 
7. Staff support. Upon a majority vote of its voting members, the board may 
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employ an executive director, subject to appropriation. The board also may employ a 
reasonable and necessa1y number of staff persons, subject to appropriation. 
8. 
Rulemaking. The board may adopt rules to implement this section. Rules 
adopted pursuant to this subsection are routine technical rules as defined in chapter 375, 
subchapter 2-A. 
Sec. 2. 5 MRSA §12004-G, sub-§32-A is enacted to read: 
32-A. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A 
"to S.P. 447, L.D. 1295 
State Procurement 
Sole-source 
Expenses Only 
MRSA §1826-E 
Procurement Review 
Board 
Sec. 3. 
Initial terms of Sole-source Procurement Review Board. 
Notwithstanding the Maine Revised Statutes, Title 5, section 1826-E, subsection 1, 
paragraph C, of the initial confinned members of the Sole-source Procurement Review 
Board, the first member serves for a one-year tenn, the 2nd and 3rd members serve for 
2-year tenns and the 4th and 5th members serve for 3-year tenns. 
Sec. 4. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Purchases - Division of 0007 
Initiative: Establishes 8 full-time and one part-time Management Analyst II positions and 
one Secretmy Associate position to provide support to the Sole-source Procurement 
Review Board. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOT AL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
TREASURER OF STATE, OFFICE OF 
Administration - Treasury 0022 
2017-18 
9.250 
$650,907 
$27,300 
$678,207 
2017-18 
$678,207 
$678,207 
2018-19 
9.250 
$855,694 
$36,400 
$892,094 
2018-19 
$892,094 
$892,094 
Initiative: Provides funding for one part-time Management Analyst position and related 
costs to provide administrative suppo1t to the Sole-source Procurement Review Board. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
2017-18 
0.500 
$26,280 
COMMITTEE AMENDMENT 
2018-19 
0.500 
$27,068 
COMMITTEE AMENDMENT "A "to S.P. 447, L.D. 1295 
All Other 
GENERAL FUND TOT AL 
TREASURER OF STATE, OFFICE OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
SECTION TOTALS 
GENERAL FUND 
SECTION TOT AL - ALL FUNDS 
SUMMARY 
$3,000 
$3,000 
$29,280 
$30,068 
2017-18 
2018-19 
$29,280 
$30,068 
$29,280 
$30,068 
2017-18 
2018-19 
$707,487 
$922,162 
$707,487 
$922,162 
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This amendment is the majority rep01i of the committee. The amendment replaces 
the bill. The amendment establishes the Sole-source Procurement Review Board, which 
is required to review and approve or disapprove all sole-source contracts and contract 
renewals, amendments, extensions or other changes to an existing sole-source contract for 
the procurement of supplies or services, including but not limited to professional, artistic 
and construction services, and for real property and capital improvement leases procured 
by the State. The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/10/17 feac 
LD 1295 
LR 1518(02) 
An Act To Create the Procurement Review Board 
F1scal Note for Bill as Amended by Committee Amendment ''A' ( S-)10 
Committee: State and Local Government 
~ 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
$707,487 
$922,162 
$707,487 
$922,162 
Projections 
FY 2019-20 
$948,645 
$948,645 
Projections 
FY 2020-21 
$975,923 
$975,923 
The Department of Administrative and Financial Services has indicated it will require 9 .25 staff positions to provide 
support to the Sole-source Procurement Board. The bill includes General Fund appropriations of $678,207 in fiscal 
year 2017-18 and $892,094 in fiscal year 2018-19 for that purpose. 
The State Treasurer has indicated the need for a part-time Management Analyst position to fulfill that agency's 
responsibilities under this bill. The bill includes General Fund appropriations of $29 ,280 in fiscal year 2017-18 and 
$30,068 in fiscal year 2018-19 to the Office of State Treasurer for that pmpose. 
The Department of Transportation could incur increased construction costs if the contracting process is extended and 
contractors need to accelerate their work to complete the contract on time. No estimate can be made of any additional 
cost at this time. 
Additional costs to the Department of the Attorney General can be absorbed utilizing existing budgeted resources. 
LR1518(02) - Fiscal Note - Page 1 of 1