Amends, repeals, and adds to existing law regarding the procurement of property by the State of Idaho.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 889 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO STATE PROCUREMENT; AMENDING SECTION 67-9203, IDAHO CODE, TO RE-2 VISE DEFINITIONS AND TO DEFINE TERMS; AMENDING SECTION 67-9205, IDAHO3 CODE, TO REVISE PROVISIONS REGARDING THE POWERS AND DUTIES OF THE ADMIN-4 ISTRATOR; AMENDING SECTION 67-9208, IDAHO CODE, TO REVISE PROVISIONS5 REGARDING SOLICITATIONS; AMENDING SECTION 67-9210, IDAHO CODE, TO RE-6 VISE PROVISIONS REGARDING THE AWARD OF CONTRACT; REPEALING SECTION7 67-9211, IDAHO CODE, RELATING TO MULTIPLE AWARDS; AMENDING CHAPTER 92,8 TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 67-9211, IDAHO9 CODE, TO ESTABLISH PROVISIONS REGARDING MULTIPLE AWARDS; AMENDING SEC-10 TION 67-9212, IDAHO CODE, TO REVISE PROVISIONS REGARDING CONTRACTS IN11 WRITING; AMENDING SECTION 67-9215, IDAHO CODE, TO PROVIDE FOR A CERTAIN12 EXCEPTION TO THE DISCLOSURE OF RECORDS; AMENDING SECTION 67-9217, IDAHO13 CODE, TO REVISE PROVISIONS REGARDING DISQUALIFICATION OF VENDORS;14 AMENDING SECTION 67-9230, IDAHO CODE, TO REVISE PROVISIONS REGARDING15 CERTAIN PROHIBITIONS; AMENDING SECTION 67-9232, IDAHO CODE, TO REVISE16 PROVISIONS REGARDING CHALLENGES AND APPEALS; AMENDING SECTION 67-9233,17 IDAHO CODE, TO REVISE PROVISIONS REGARDING ETHICS IN PROCUREMENT; AND18 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.19

Be It Enacted by the Legislature of the State of Idaho:20

SECTION 1. That Section 67-9203, Idaho Code, be, and the same is hereby21 amended to read as follows:22 67-9203. DEFINITIONS. As used in this chapter:23 (1) "Acquisition" means the process of procuring property.24 (2) "Administrator" means the administrator of the division of pur-25 chasing as created by section 67-9204, Idaho Code.26 (3) "Agency" means all officers, departments, divisions, bureaus,27 boards, commissions and institutions of the state, including the public28 utilities commission, but excluding:29 (a) The legislative and judicial branches of government;30 (b) The governor, lieutenant governor, secretary of state, state con-31 troller, state treasurer, attorney general and superintendent of pub-32 lic instruction; and33 (c) Except as provided in section 67-9234, Idaho Code, a state insti-34 tution of higher education that complies with the provisions of section35 67-9225, Idaho Code.36 (4) "Best and final offer" means a final written offer submitted by a37 bidder in response to a request by the administrator during negotiations or38 following material changes to a solicitation.39 (4) (5) "Bid" means a written offer to perform a contract to sell or oth-40 erwise supply property in response to a solicitation.41

2 (5) (6) "Bidder" means a vendor who has submitted a bid on property to be1 acquired by the state.2 (6) (7) "Contract" means an agreement for the acquisition of property,3 including a purchase order.4 (7) (8) "Contractor" means a vendor who has been awarded a contract.5 (8) (9) "Director" means the director of the department of administra-6 tion as created by section 67-5701, Idaho Code.7 (9) (10) "Environmental, social, and governance standards" means pro-8 curement standards that screen or score bids, in whole or in part, on subjec-9 tive ethical or sustainability criteria unrelated to the specifications in a10 solicitation or the qualifications of a bidder.11 (11) "Frivolous protest" means a challenge to a solicitation or con-12 tract award that:13 (a) Lacks any arguable basis in law or fact;14 (b) Is not supported by a good faith argument for the extension, modifi-15 cation, or reversal of an existing contract award;16 (c) Is filed for an improper purpose, such as to harass, cause unneces-17 sary delay, or needlessly increase the cost of the procurement process;18 or19 (d) Asserts claims that are identical or substantially similar to20 claims previously adjudicated by the administrator or a court of com-21 petent jurisdiction, including proceedings in Idaho and other states,22 involving the same vendor and a similar procurement.23 (10) (12) "Lowest responsible bidder" means the responsible bidder24 whose bid reflects the lowest acquisition price to be paid by the state and25 meets the bid qualifications, except that when specifications are valued or26 comparative performance evaluations are conducted, the results of such ex-27 aminations and the relative score of valued specifications will be weighed,28 as set out in the specifications, in determining the lowest acquisition29 price.30 (13) "Multiple-award contract" means a contract awarded to two (2) or31 more bidders to furnish the same or similar property when necessary or conve-32 nient to ensure adequate delivery, service, or product compatibility.33 (11) (14) "Open contract" means a contract awarded by the state through34 the division of purchasing as a result of a competitive solicitation to one35 (1) or more vendors who have agreed to allow all agencies to procure speci-36 fied property under the terms and conditions set forth in the contract.37 (12) (15) "Procure" means to obtain property for state use in a manner38 other than by gift, including, but not limited to, purchase, lease, or rent.39 (13) (16) "Property" means goods, services, parts, supplies, and equip-40 ment, both tangible and intangible, including, but not limited to, designs,41 plans, programs, systems, techniques, and any rights or interests in such42 property.43 (17) "Request for information" means a formal request to potential ven-44 dors to provide information on their capabilities, services, and pricing for45 the purpose of identifying the scope of requested work, which may include46 eventual procurement of property, in order to create a draft request for pro-47 posals.48

3 (18) "Request for proposal" means a formal request for vendors to sub-1 mit a bid, which includes the total scope of services and is the basis of the2 award of a contract.3 (19) "Request for quote" means an informal request to vendors for pric-4 ing and terms on specific property.5 (14) (20) "Sole source" means the only vendor from whom specific prop-6 erty is available to procure.7 (15) (21) "Solicitation" means an invitation to bid, a request for pro-8 posal, or a request for quote issued pursuant to this chapter for the purpose9 of procuring property.10 (16) (22) "Specifications" means the standards or requirements for11 property to be procured as explicitly stated in a solicitation or contract.12 (17) (23) "State institution of higher education" means Boise state13 university, Idaho state university, or Lewis-Clark state college.14 (18) (24) "Vendor" means a person or entity capable of supplying prop-15 erty to the state.16

SECTION 2. That Section 67-9205, Idaho Code, be, and the same is hereby17 amended to read as follows:18 67-9205. POWERS AND DUTIES OF THE ADMINISTRATOR. The administrator of19 the division of purchasing:20 (1) Shall acquire all property for state agencies according to the pro-21 visions of this chapter;22 (2) Shall acquire all property by competitive solicitation, except as23 otherwise provided;24 (3) Shall determine, based on the specifications and matters relating25 to responsibility, the lowest responsible bidder or bidders in all competi-26 tive solicitations;27 (4) Shall enter into contracts and any modifications thereto for the28 acquisition of property on behalf of and in the name of state agencies;29 (5) Shall, when economically feasible and practical, consolidate so-30 licitations and acquire property in amounts as large as can be efficiently31 managed and controlled;32 (6) Shall establish a common time and date for the submission of best33 and final offers. If a bidder does not submit a notice of withdrawal or a best34 and final offer, the bidder's immediate previous offer shall be the bidder's35 best and final offer;36 (6) (7) May, in the evaluation of paper product bids, give those items37 that meet the recycled content standards as specified by the administrator38 a five percent (5%) purchasing preference. As such, those qualifying paper39 products may be considered to cost five percent (5%) less when choosing the40 lowest responsible bidder;41 (7) (8) May appoint a deputy who shall have the power to act for the42 administrator and in the administrator's place while absent, which deputy43 shall be bonded to the state of Idaho as prescribed by chapter 8, title 59,44 Idaho Code;45 (8) (9) May require from any contractor the submission of a performance46 bond for such sum as will, in the opinion of the administrator, guarantee the47 faithful performance of such contract, and the amount and requirement there-48 for shall be set out in the specifications;49

4 (9) (10) May enter into open contracts based on actual or estimated re-1 quirements;2 (10) (11) May enter into contracts, including leases and rentals, for3 periods of time exceeding one (1) year, provided that such contracts contain4 no penalty to or restriction upon on the state in the event cancellation is5 necessitated by a lack of funding for any such contract;6 (11) (12) Is authorized and empowered to formulate rules, subject to the7 approval of the director, to effect the provisions of this chapter;8 (12) (13) May enter into negotiations for acquisitions in accordance9 with established rules of the division, provided that for all complex or10 high-value acquisitions, the administrator shall ensure that subject matter11 experts from the requisitioning agency are included as active participants12 in the negotiation process alongside procurement staff to ensure contrac-13 tual terms meet the functional and operational requirements of the state;14 (13) (14) May inspect property supplied by a contractor to determine15 whether it meets specifications;16 (14) (15) May classify, after review with the various agencies, the17 requirements of the state for all property that may be acquired, and may18 adopt standards of quality for property, and may establish specifications19 for acquisition. Each specification shall, until revised or rescinded,20 apply alike in terms and effect to each future acquisition of the classified21 property;22 (15) (16) May delegate authority pursuant to section 67-9206, Idaho23 Code; and24 (16) (17) May carry out such acts as are necessary to enforce the provi-25 sions of this chapter; and26 (18) May issue a multiple-award contract to two (2) or more bidders.27

SECTION 3. That Section 67-9208, Idaho Code, be, and the same is hereby28 amended to read as follows:29 67-9208. SOLICITATIONS. (1) The administrator shall not make or30 cause to be made any acquisition until a requisition for the property to31 be acquired has been submitted to the administrator's office by the req-32 uisitioning agency. The requisition shall certify to the administrator's33 satisfaction that there are sufficient funds or balance in appropriations34 out of which the amount of the requisition may be lawfully paid, except as35 provided in section 67-9221(3), Idaho Code.36 (2) Upon determining that an agency's requisition complies with the37 provisions of subsection (1) of this section, the administrator shall issue38 a solicitation. Notice of the solicitation shall be posted in a conspicuous39 manner as prescribed by rule. The notice shall describe the property to be40 acquired in sufficient detail to apprise a vendor of the exact nature of the41 property being sought and shall set forth the bid closing date, time and42 location.43 (3) The administrator may establish by rule exceptions to the notice44 provisions in subsection (2) of this section; provided however, that the45 procurements excepted from the notice provisions must be minor in nature.46 (4) At the time a notice of solicitation is issued, the administrator47 shall also publish the process for bid analysis or scoring. Such process48 shall not change after the solicitation is issued unless formally revised49

5 through a written solicitation amendment or best and final offer process1 that does not materially change the intent or purpose of the original solic-2 itation.3

SECTION 4. That Section 67-9210, Idaho Code, be, and the same is hereby4 amended to read as follows:5 67-9210. AWARD OF CONTRACT. (1) The administrator shall award con-6 tracts to, and place orders for property with, the lowest responsible7 bidder. Qualifications for responsibility shall be prescribed by rule.8 However, environmental, social, and governance standards may not be used as9 a qualification for responsibility. Prior performance on state contracts10 may be used to determine qualifications.11 (2) Where both the bids and quality of property offered are the same,12 preference shall be given to property of local and domestic production and13 manufacture or from bidders having a significant Idaho economic presence as14 defined in section 67-2349, Idaho Code. In connection with the award of any15 contract for the placement of any order for state printing, binding, engrav-16 ing or stationery work, the provisions of sections 60-101 and 60-103, Idaho17 Code, shall apply to the extent that the same may be inconsistent with any re-18 quirements contained in this section.19 (3) In awarding contracts, the administrator shall not discriminate20 against, or grant preferential treatment to, any individual or group on the21 basis of race, sex, color, ethnicity, or national origin unless permitted by22 an exception described in section 67-5909A, Idaho Code.23 (4) The administrator may award a contract to two (2) or more qualified24 bidders to furnish the same or similar property when necessary or convenient25 to ensure adequate delivery, service, or product compatibility.26

SECTION 5. That Section 67-9211, Idaho Code, be, and the same is hereby27 repealed.28

SECTION 6. That Chapter 92, Title 67, Idaho Code, be, and the same is29 hereby amended by the addition thereto of a NEW SECTION, to be known and des-30 ignated as Section 67-9211, Idaho Code, and to read as follows:31 67-9211. MULTIPLE AWARDS. (1) When a contract for property has been32 awarded to two (2) or more bidders in accordance with the provisions of sec-33 tion 67-9210, Idaho Code, a state agency shall select which bidder to pur-34 chase the property from based on factors including but not limited to:35 (a) Total cost of ownership, including acquisition price, shipping or36 delivery charges, and any applicable maintenance or licensing fees;37 (b) The degree to which the property integrates with existing agency38 equipment, software, or workflows without requiring excessive modifi-39 cation or retraining;40 (c) The vendor's compatibility, price, availability, support ser-41 vices, delivery, and past performance;42 (d) The vendor's ability to meet the agency's required delivery sched-43 ule or project timeline;44 (e) The vendor's quality and proximity of technical support, warranty45 terms, and the availability of training or installation services;46

6 (f) The vendor's documented history of reliability, quality of goods,1 and responsiveness under the current contract or previous agency en-2 gagements; and3 (g) The vendor's willingness to cover costs and liabilities related to4 the replacement of existing property.5 (2) State agencies that make recurring purchases pursuant to a contract6 awarded pursuant to this section shall perform the analysis outlined in sub-7 section (1) of this section at least annually and provide the analysis to the8 administrator.9 (3) State agencies shall notify the administrator of purchases made un-10 der a multiple-award contract that provides the names of the considered ven-11 dors, the factors provided in subsection (1) of this section that were pri-12 oritized for the purchase, and an explanation of why the selected vendor was13 chosen over other vendors.14

SECTION 7. That Section 67-9212, Idaho Code, be, and the same is hereby15 amended to read as follows:16 67-9212. CONTRACTS SHALL BE IN WRITING. (1) Every contract made by the17 administrator on behalf of the state shall be in writing and shall be signed18 manually or electronically by the contracting parties. Every contract shall19 be filed in the office of the administrator, together with all bids, specifi-20 cations, and other documents and records associated with the acquisition or21 intended acquisition.22 (2) For acquisitions involving federal funding requiring approval by23 the centers for medicare and medicaid services or other federal oversight24 agencies, the administrator shall ensure that all vendor negotiations are25 completed and a final contract is agreed on prior to the submission of the26 contract for federal review, unless otherwise prohibited by federal law.27

SECTION 8. That Section 67-9215, Idaho Code, be, and the same is hereby28 amended to read as follows:29 67-9215. PRESERVATION AND DISCLOSURE OF RECORDS -- EXCEPTION. (1) The30 administrator shall preserve all records relating to solicitations in the31 administrator's office, and information with respect thereto, in such form32 as the administrator shall prescribe by rule, for a period of three (3) years33 after the date of final action, or for a period of time as may be prescribed34 by a record retention guideline schedule approved by the director. Records35 preserved under the provisions of this section shall be subject to disclo-36 sure according to chapter 1, title 74, Idaho Code.37 (2) If a solicitation is canceled prior to award of a contract, the38 administrator shall immediately return all bids to the submitting vendors39 or delete bids that were received electronically. Bids returned or deleted40 pursuant to this subsection shall not be subject to disclosure under chapter41 1, title 74, Idaho Code.42 (3) Vendor information provided in a request for information shall not43 be subject to disclosure unless the vendors respond to the relevant solici-44 tation as provided in section 67-9208, Idaho Code.45

7

SECTION 9. That Section 67-9217, Idaho Code, be, and the same is hereby1 amended to read as follows:2 67-9217. DEBARMENT AND DISQUALIFICATION OF VENDORS. (1) A debarred or3 disqualified vendor may not submit a bid.4 (2) The administrator may debar a vendor from bidding on any state5 project or service for a period of up to three (3) years upon a finding of per-6 formance failure. Performance failure shall include but not be limited to:7 (a) A documented record of unsatisfactory performance on one (1) or8 more state contracts within the preceding three (3) years based on in-9 cluded contract metrics;10 (b) Failure to complete a project or service within the time frames es-11 tablished in the contract without good cause; or12 (c) A history of filing three (3) or more frivolous bid protests, as es-13 tablished by final agency decisions issued pursuant to section 67-9232,14 Idaho Code, within a twenty-four (24) month period.15 (2) (3) A vendor may be disqualified by the administrator for any of the16 following reasons:17 (a) Failure to perform according to the terms of any contract;18 (b) Attempts by whatever means to cause specifications to be drawn so as19 to favor a specific vendor;20 (c) Use of the provisions of this chapter to obstruct or unreasonably21 delay acquisitions by the state;22 (d) Perjury in a vendor disqualification hearing;23 (e) Knowingly violate violating the provisions of this chapter; or24 (f) Debarment, suspension, or ineligibility from federal contracting25 of the vendor, its principals or its affiliates.26 (4)(a) Upon determination of a performance failure or contract breach27 that does not represent an immediate risk to public health, safety, or28 integrity, the administrator shall issue a written cure notice to the29 vendor of the exact nature of the failure and the violated contract pro-30 visions.31 (b) The vendor shall have fourteen (14) calendar days from receipt of32 the cure notice to correct the deficiency or provide a correction plan33 acceptable to the administrator.34 (c) If the vendor fails to correct the deficiency or provide a correc-35 tion plan accepted by the administrator within fourteen (14) calendar36 days, the administrator may proceed with debarment or disqualification37 of the vendor.38 (d) If the vendor fails to complete the approved correction plan, the39 administrator may proceed with debarment or disqualification.40 (3) (5) A vendor shall be notified by registered mail within ten (10)41 days of the vendor's debarment or disqualification by the administrator.42 The vendor may, within thirty (30) days of the receipt of such notice, re-43 quest a hearing, which shall be held in accordance with chapter 52, title 67,44 Idaho Code.45 (6) The vendor may submit a challenge to the debarment or disqualifica-46 tion based on documented state actions that interfered with or delayed con-47 tract execution.48

8 (4) (7) In lieu of debarment or disqualification, for reasons not1 listed in subsection (3) of this section, the determinations officer at a2 hearing conducted pursuant to subsection (3) of this section the provisions3 of chapter 52, title 67, Idaho Code, may recommend to the director specific4 conditions to the vendor's continued participation in acquisitions by the5 state.6 (5) (8) Disqualification or conditions may be imposed for a period of7 not less than six (6) months or not more than five (5) years.8 (6) (9) For purposes of this section, "obstruction" means a lack of suc-9 cess in more than fifty percent (50%) of the specification challenges made in10 each of three (3) different acquisitions during any twenty-four (24) month11 period.12

SECTION 10. That Section 67-9230, Idaho Code, be, and the same is hereby13 amended to read as follows:14 67-9230. PROHIBITIONS. (1) No contract or any interest therein shall15 be transferred by the contractor to whom such contract is given to any other16 party without approval in writing by the administrator and by the board of17 examiners pursuant to section 67-1027, Idaho Code. Transfer of a contract18 without approval shall cause the annulment of the contract so transferred,19 at the option of the state. All rights of action, however, for any breach of20 such contract by the contracting parties are reserved to the state.21 (2) No member of the legislature or any officer or employee of any22 branch of the state government shall directly, himself, or by any other per-23 son in trust for him or for his use or benefit or on his account, undertake,24 execute, hold or enjoy, in whole or in part, any contract made or entered into25 by or on behalf of the state of Idaho, if made by, through, or on behalf of the26 department in which he is an officer or employee; or if made by, through or27 on behalf of any other department unless the same is made after competitive28 bids.29 (3) Except as provided in this chapter, no officer or employee shall in-30 fluence or attempt to influence the award of a contract to a particular ven-31 dor, or to deprive or attempt to deprive any vendor of a contract.32 (4) No officer or employee shall conspire with a vendor or its agent,33 and no vendor or its agent shall conspire with an officer or employee, to in-34 fluence or attempt to influence the award of a contract, or to deprive or at-35 tempt to deprive a vendor of a contract.36 (5) No officer or employee shall fail to use an open contract except as37 provided in this chapter.38 (6) No officer or employee shall accept property knowing that the prop-39 erty does not meet specifications or other acceptance criteria set forth in40 the contract.41 (7) Deprivation, influence or attempts thereat shall not include writ-42 ten reports, based upon on substantial evidence, sent to the administrator43 concerning matters relating to the responsibility of vendors.44 (8)(a) No vendor or related party, or subsidiary, or affiliate of a ven-45 dor, may submit a bid to obtain a contract to provide property to the46 state, if the vendor or related party, or affiliate, or subsidiary was47 paid for services used in preparing the specifications or if the ser-48

9 vices influenced the procurement process to prepare the specifications1 for the property.2 (b) Nothing in this subsection shall prohibit a vendor from submitting3 a bid after providing technical assistance relating to such bid, pro-4 viding consulting or other services to a state agency, or participating5 in legislative committee meetings related to the property that is the6 subject of planned solicitation as long as:7 (i) Such technical assistance, consulting or other services, or8 participation in legislative committee meetings does not result9 in bid specifications to be drawn such that only the vendor or re-10 lated party, or affiliate or subsidiary of the vendor, can meet the11 bid specifications;12 (ii) Such technical assistance, consulting or other services,13 or participation in legislative committee meetings does not oth-14 erwise provide the vendor or related party, or affiliate or sub-15 sidiary of the vendor, with a quantifiable and objective advantage16 in the bid process; and17 (iii) Any work product or written documentation produced as a re-18 sult of the technical assistance, consulting or other services, or19 participation in legislative committee meetings is accessible to20 a public records request if the vendor responds to a relevant so-21 licitation as provided in section 67-9208, Idaho Code.22 (9) No person who has served in elected public office within three hun-23 dred sixty-five (365) days of a bid submission deadline shall participate24 in the solicitation, bid, or contract process pursuant to the provisions of25 this chapter on behalf of a vendor.26 (10) No vendor shall employ an individual who has served in public of-27 fice, or worked in a state agency or institution, within three hundred sixty-28 five (365) days of winning a bid where such individual participated in the29 solicitation, bid, or contract process pursuant to the provisions of this30 chapter.31

SECTION 11. That Section 67-9232, Idaho Code, be, and the same is hereby32 amended to read as follows:33 67-9232. CHALLENGES AND APPEALS. (1) Bid specifications.34 (a) There shall be, beginning with the date of receipt of notice, a35 period of no more than ten (10) working days in which any vendor, quali-36 fied and able to sell or supply the items to be acquired, may notify the37 administrator in writing of his intention to challenge the specifica-38 tions and shall specifically state the exact nature of his challenge.39 The specific challenge shall describe the location of the challenged40 portion or clause in the specification document, unless the challenge41 concerns an omission, explain why any provision should be struck, added42 or altered, and contain suggested corrections.43 (b) Upon receipt of the challenge, the administrator shall either deny44 the challenge, and such denial shall be considered the final agency de-45 cision, or he shall present the matter to the director for appointment46 of a determinations officer. If the director appoints a determinations47 officer, then all vendors, who are invited to bid on the property sought48 to be acquired, shall be notified of the appeal and the appointment of49

10 a determinations officer and may indicate in writing their agreement or1 disagreement with the challenge within five (5) days. The notice to the2 vendors may be electronic. Any vendor may note his agreement or dis-3 agreement with the challenge. The determinations officer may, on his4 own motion, refer the challenge portion and any related portions of the5 challenge to the author of the specification to be rewritten with the6 advice and comments of the vendors capable of supplying the property,7 rewrite the specification himself and/or reject all or any part of any8 challenge. If specifications are to be rewritten, the matter shall be9 continued until the determinations officer makes a final determination10 of the acceptability of the revised specifications.11 (c) The administrator shall reset the bid opening no later than fif-12 teen (15) days after final determination of challenges or the amendment13 of the specifications. If the administrator denies the challenge, then14 the bid opening date shall not be reset.15 (d) The final decision of the determinations officer or administrator16 on the challenge to specifications shall not be considered a contested17 case within the meaning of the administrative procedure act; provided18 that a vendor disagreeing with specifications may include such dis-19 agreement as a reason for asking for appointment of a determinations20 officer pursuant to subsection (3) of this section.21 (2) Nonresponsive bids.22 (a) There shall be, beginning with the day following receipt of notice23 of rejection, a period of five (5) working days in which a bidder whose24 bid was found nonresponsive may appeal such decision to the director25 of the department of administration. A nonresponsive bid, within the26 meaning of this chapter, is a bid that does not comply with the bid invi-27 tation and specifications and shall not apply to a vendor whose bid is28 considered but who is determined not to be the lowest responsible bidder29 as defined in this chapter. The director shall:30 (i) Deny the application; or31 (ii) Appoint a determinations officer to review the record and32 submit a recommended order to the director to affirm or reverse the33 administrator's decision of bid nonresponsiveness.34 (b) The director shall, upon receipt of a written recommendation from35 the determinations officer, sustain, modify or reverse the administra-36 tor's nonresponsive bid decision. An appeal conducted under the pro-37 visions of this subsection shall not be considered a contested case and38 shall not be subject to judicial review under the provisions of chapter39 52, title 67, Idaho Code.40 (3) Lowest responsible bidder.41 (a) A vendor whose bid is considered may, within five (5) working days42 following receipt of notice that he is not the lowest responsible bid-43 der, apply to the director for appointment of a determinations officer.44 The application shall set forth in specific terms the reasons why the45 administrator's decision is thought to be erroneous. Upon receipt of46 the application, the director shall within five (5) working days:47 (i) Deny the application, and such denial shall be considered the48 final agency decision;49

11 (ii) Appoint a determinations officer to review the record to de-1 termine whether the administrator's selection of the lowest re-2 sponsible bidder is correct; or3 (iii) Appoint a determinations officer with authority to conduct a4 contested case hearing in accordance with the provisions of chap-5 ter 52, title 67, Idaho Code.6 (b) The period for filing an application pursuant to paragraph (a) of7 this subsection shall be suspended upon a request by a bidder for pub-8 lic records related to the solicitation pursuant to chapter 1, title 74,9 Idaho Code. The period for filing an application shall resume upon the10 public agency's written confirmation it has produced the public records11 requested or written denial of the request pursuant to section 74-103,12 Idaho Code.13 (c) A determinations officer appointed pursuant to paragraph (a)(ii)14 of this subsection shall inform the director by written recommendation15 whether, in his opinion, the administrator's selection of the lowest16 responsible bidder is correct. The determinations officer in making17 this recommendation may rely on the documents of record, statements18 of employees of the state of Idaho participating in any phase of the19 selection process, and statements of any vendor submitting a bid. A20 contested case hearing shall not be allowed and the determinations21 officer shall not be required to solicit statements from any person.22 Upon receipt of the recommendation from the determinations officer,23 the director shall sustain, modify or reverse the decision of the ad-24 ministrator on the selection of the lowest responsible bidder, or the25 director may appoint a determinations officer pursuant to paragraph26 (a)(iii) of this subsection.27 (d)(i) Any final decision rendered by the director that denied28 an application pursuant to paragraph (a)(i) of this subsection or29 that sustained the decision of the administrator under paragraph30 (c) of this subsection shall be subject to judicial review. A pe-31 tition for judicial review pursuant to this subsection shall be32 filed within twenty-eight (28) days of any final decision rendered33 by the director. The director shall as soon as possible transmit34 to the reviewing court the original record or a certified copy of35 the record that shall consist of all information received or re-36 lied on by the administrator in making the lowest responsible bid-37 der determination, all information submitted to the director or38 the determinations officer, and any other information allowed by39 the court. The court shall affirm the decision rendered by the di-40 rector unless the court finds that the administrator's determina-41 tion of the lowest responsible bidder or the director's findings,42 inferences, conclusions, or decisions rendered are:43 1. In violation of constitutional or statutory provisions;44 2. In excess of the statutory authority of the agency;45 3. Made on unlawful procedure;46 4. Not supported by substantial evidence on the record as a47 whole; or48 5. Arbitrary, capricious, or an abuse of discretion.49

12 (ii) In judicial review proceedings pursuant to the provisions1 of this paragraph, the time for filing of briefs and for hearings2 shall be set by the court at the earliest possible time, or in no3 event beyond twenty-eight (28) calendar days from the date of fil-4 ing of the petition.5 (iii) If the court does not affirm the decision rendered by the di-6 rector, the proposed award of the contract or the award of the con-7 tract shall be deemed in violation of this chapter.8 (e) A determinations officer appointed pursuant to paragraph (a)(iii)9 of this subsection shall conduct a contested case hearing and upon con-10 clusion of the hearing shall prepare findings of fact, conclusions of11 law and a recommended order for the director of the department of admin-12 istration. Upon receipt of the findings of fact, conclusions of law and13 recommended order, the director shall enter a final order sustaining,14 modifying or reversing the decision of the administrator on the selec-15 tion of the lowest responsible bidder.16 (4) Sole source procurement.17 (a) In the case of a sole source procurement, there shall be a period of18 not more than five (5) working days from the last date of public notice19 in which any vendor, able to sell or supply the property to be acquired,20 may notify the administrator, in writing, of his intention to challenge21 the sole source procurement and briefly explain the nature of the chal-22 lenge.23 (b) Upon receipt of the challenge, the director shall either:24 (i) Deny the application; or25 (ii) Appoint a determinations officer to review the record and26 submit a recommended order to the director to affirm or reverse the27 administrator's sole source determination.28 (c) The director shall, upon receipt of a written recommendation from29 the determinations officer, sustain, modify or reverse the administra-30 tor's sole source determination. An appeal conducted under the provi-31 sions of this subsection shall not be considered a contested case and32 shall not be subject to judicial review under the provisions of chapter33 52, title 67, Idaho Code.34 (5) The administrator may, on his own initiative, file a complaint with35 the director for a hearing before a determinations officer. The director36 shall appoint a determinations officer who shall make written recommenda-37 tions to the director and the director shall render whatever decision is nec-38 essary to resolve the complaint.39 (6) The director is hereby authorized and directed to appoint a deter-40 minations officer whenever one is required by this chapter. The officer41 shall meet and render whatever determination is called for. When a complaint42 is filed pursuant to subsection (2) of this section, no bid may be awarded43 until the final decision is rendered by the director; provided that in all44 other cases where a determinations officer is appointed by the director, the45 director shall have the power to allow the acquisition contract to be awarded46 to the successful bidder prior to or after the decision of the determinations47 officer if he determines such award to be in the best interests of the state.48 Any determinations officer appointed pursuant to this section shall exist49 only for the duration of unresolved complaints on an acquisition and shall50

13 be dismissed upon resolution of all such complaints. The determinations1 officer shall be guided in his determination by the best economic interests2 of the state for both the near future and more extended periods of time. In3 addition to the powers conferred on the determinations officer, the director4 may:5 (a) Impose the penalty prescribed by section 67-9231(3), Idaho Code;6 (b) Enjoin any activity that violates this chapter;7 (c) Direct that bids be rejected or sustained;8 (d) Direct that specifications be rejected, sustained or modified; and9 (e) Direct further legal action.10 (7) Challenges or appeals conducted pursuant to subsection (1), (2),11 (3)(a)(i), or (3)(a)(ii) of this section shall not be considered to be a con-12 tested case as that term is defined in the administrative procedure act. An13 appeal conducted pursuant to subsection (3)(a)(iii) of this section shall be14 conducted as a contested case according to the provisions of chapter 52, ti-15 tle 67, Idaho Code.16 (8) Any person or vendor filing a formal written protest of his inten-17 tion to challenge bid specifications pursuant to subsection (1) of this sec-18 tion, or an appeal pursuant to subsection (2) of this section, shall post19 with the administrator at the time of filing a protest bond in the form of a20 certified check, cashier's check, bid bond, or surety bond.21 (a) For contract bids with an estimated total value of less than ten22 million dollars ($10,000,000) over the initial term, the protest bond23 amount shall be equal to one percent (1%).24 (b) For contract bids with an estimated total value of ten million25 dollars ($10,000,000) or more over the initial term, the protest bond26 amount shall be equal to one-half percent (0.5%) and capped at ten mil-27 lion dollars ($10,000,000).28 (c) The agency shall provide the estimated contract value to any29 prospective protester within twenty-four (24) hours of a written re-30 quest.31 (d) Failure to post the protest bond at the time of filing the formal32 written protest shall result in the immediate summary dismissal of the33 protest by the administrator.34 (e) If the protest or appeal is successful, the protest bond shall be35 returned to the protester in full. If the protest or appeal is denied,36 and the final agency decision issued by the administrator or direc-37 tor finds the protest to be a frivolous protest as defined in section38 67-9203, Idaho Code, the state shall retain the protest bond in its en-39 tirety as liquidated damages for the delay and administrative costs of40 the procurement. Such findings shall constitute a determined frivolous41 protest for the purposes of debarment under section 67-9217, Idaho42 Code.43

SECTION 12. That Section 67-9233, Idaho Code, be, and the same is hereby44 amended to read as follows:45 67-9233. ETHICS IN PROCUREMENT. (1) It is the intent of the legisla-46 ture that all persons involved in the process of procuring property for the47 state conduct themselves in a manner that protects the public interest and48

14 fosters confidence in the integrity of the process. To that end, this sec-1 tion shall apply to all such persons, including:2 (a) State officers, even if the officer or officer's employer is ex-3 cluded from the definition of "agency" under section 67-9203, Idaho4 Code;5 (b) State employees, even if the employee works for an officer, insti-6 tution or entity that is excluded from the definition of "agency" under7 section 67-9203, Idaho Code; and8 (c) Vendors or any person acting on behalf of a vendor.9 (2) In any matter relating to state procurement, it is an unethical10 breach of the public trust to:11 (a) Knowingly attempt to realize personal gain through state office or12 employment by any conduct inconsistent with this chapter or any other13 applicable law or rule;14 (b) Attempt to influence a state officer or employee to violate the pol-15 icy or provisions of this chapter or any other applicable law or rule; or16 (c) Knowingly violate an applicable law or rule.17 (3) Subject to due process requirements, and in addition to any other18 administrative, civil or criminal sanctions provided by law or rule, a state19 employee's supervisor may impose the following sanctions on the employee for20 an unethical breach of the public trust:21 (a) A reprimand or warning, either oral or written;22 (b) Suspension with or without pay for a specified period of time; or23 (c) Termination of employment.24 (4) In addition to any other administrative, civil or criminal sanction25 provided by law or rule, a vendor who commits an unethical breach of the pub-26 lic trust, or whose advocate or representative commits an unethical breach27 of the public trust, may be disqualified pursuant to section 67-9217, Idaho28 Code.29 (5) Vendors, employees of a vendor, or any persons acting on behalf of30 a vendor shall report to the secretary of state any financial expenditures31 over fifty dollars ($50.00), including but not limited to reimbursements for32 meals and travel.33

SECTION 13. An emergency existing therefor, which emergency is hereby34 declared to exist, this act shall be in full force and effect on and after35 July 1, 2026.36