60A-1.017. Acquisition of Commodities through Service Contracts

Contracts which include services that provide for a Vendor to purchase commodities for subsequent transfer to the state, may be entered into by an agency only under the following circumstances: (1) The agency has determined that there is a demonstrated need to acquire the commodity through the Vendor, as opposed to direct acquisition by the agency; (2) The agency has provided a means to identify the commodity, including line-item costs, acquired by the Vendor for subsequent transfer to and control by the agency; and, (3) The agency has specified the quality of the commodity to be acquired and made provisions for warranty, service, and transfer of ownership.