Opinion ID: 1121386
Heading Depth: 1
Heading Rank: 3

Heading: opa was the only entity authorized to negotiate and modify the contract

Text: The Oklahoma Legislature adopted the Central Purchasing Act, 74 O.S. 1981, § 85.1 et seq., as amended, to govern the expenditures of the various governmental agencies in acquiring goods or services. The Act provides the State Purchasing Director, under the Supervision of the Director of Public Affairs, has the sole and exclusive authority and responsibility for the acquisition of all materials, supplies, equipment, and services acquired, used or consumed by state agencies, subject to certain exceptions not pertinent here. 74 O.S.Supp. 1983, § 85.5. Section 85.5 also gives the Director of Public Affairs the authority and responsibility to promulgate rules and regulations governing the form, time and manner of submission of any bids submitted for contracts to furnish items or services [§ 85.5(3)], and the conditions under which written contracts for such purchases are to be required and the conditions and manner of negotiating such contracts. § 85.5(4). The Act requires competitive bidding for most major purchases and is designed to protect the public at large by promoting economy in government and reducing the likelihood of fraud. State of Oklahoma ex rel. Cartwright v. Tidmore, 674 P.2d 14, 16 (Okla. 1983). It also insures that government officials are accountable to the public, and are discharging their duties competently and responsibly. Id. The instant acquisition of computer equipment was subject to the Act and its provisions concerning competitive bidding. In conformity with the rulemaking responsibility, rules were passed which are contained in an official publication entitled How to Sell to the State of Oklahoma, pertinent portions of which were attached to DHS' materials in support of summary judgment. As agency rules they have the force and effect of law. Toxic Waste Impact Group v. Leavitt, 755 P.2d 626, 630 (Okla. 1988). The rules provide in pertinent part as follows: C. Bid Contents  Terms and conditions 1. Entire Agreement. The terms and conditions of this section together with the Invitation to Bid and any other sheets or documents made a part of the Invitation to Bid, shall constitute the entire agreement between the parties. 2. Modifications. An addendum will be issued for any changes in, additions to, or waivers of specification, terms, or conditions of a bid. This addendum must be issued by the Central Purchasing Division. 3. Offer Firm For Thirty Days. Return of an Invitation to Bid constitutes a valid offer guaranteed for a minimum of thirty (30) days by the vendor. (bolding in original) The language on the back of the Invitation to Bid further stated: 13. All bids submitted are subject to Central Purchasing Rules and Regulations, and these General or any Special Conditions and specification listed herein  all of which are made a part of this bid invitation by reference. 14. This bid is submitted as a legal offer and any bid when accepted by the Office of Public Affairs constitutes a firm contract. (R. 193). The rules and the language on the Invitation to Bid, coupled with the sole and exclusive authority given to the Purchasing Director of OPA in § 85.5, to acquire all materials, supplies, equipment and services used by State agencies, make it abundantly clear that when OPA awards a contract it is OPA that had to agree to any changes after the bid was submitted. The regulations describe the terms of the entire agreement as the bid contents, the Invitation to Bid and any other sheets or documents made a part of the Invitation to Bid. Thus, when OPA awarded the contract based on these documents the entire agreement between the parties was formed. [5] INB points to no statute or rule that would be relevant to the instant situation which expresses an intent to allow agencies the ability to modify contractual terms submitted with a bid after OPA has awarded a contract, and, like the Court of Appeals, we believe to allow any material modifications by agencies after a contract is awarded by OPA, without approval of OPA, would completely undermine the intent and purpose behind the Act. [6] The language of the Act and the rules clearly indicate it is OPA that is to be the sole entity with the authority to negotiate and accept contract offers, with certain exceptions not relevant here. [7] To allow agencies to subsequently negotiate and modify material clauses after other parties have been excluded through the competitive bidding process undermines the integrity of the system and makes such a system meaningless. We do not believe in the instant situation the Legislature intended or contemplated such a result, nor do we believe the rules of OPA allow for such a subsequent material modification. [8] Because the rules governing the modification of contracts have the force and effect of law, DHS was powerless to waive their requirements. Ashland Oil, Inc. v. Corporation Com'n., 595 P.2d 423, 426 (Okla. 1979). INB cites U.C. Leasing v. State Board, of Public Affairs, 737 P.2d 1191 (Okla. 1987), to support an argument negotiations and subsequent modifications between agencies and private contractors is permitted under the Act after OPA has awarded a contract. In U.C. Leasing, we stated: ... [Appellee's predecessor] submitted a proposal for bid which resulted in a written lease agreement and the State Board of Public Affairs issuing an award of contract for the lease of one message switching device. Thereafter, Appellant negotiated with [predecessor] for additional features and equipment to be added to modify the original system, all of which became a part of the lease agreement. Id. at 1193-1194. INB asserts U.C. Leasing, thus, somehow sanctioned the authority of agencies other than OPA to negotiate modifications to agreements after OPA has accepted a bid, without obtaining ultimate approval by OPA. We disagree. The facts of U.C. Leasing as revealed by the opinion do not indicate such modifications were unauthorized by OPA or lacked OPA approval. Accordingly, U.C. Leasing does not hold other State agencies are authorized to modify contracts entered into between OPA and private vendors. We now squarely hold it is only OPA that has authority to approve material modifications of agreements once it has accepted a bid in response to an invitation to bid, in the absence of some other Legislative authority to the contrary or specific approval from OPA sanctioning another agencies' authority to agree to such a modification. To rule otherwise would completely obliterate the Central Purchasing Act.