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<br />The owning agency or the Department of Administration, in contracts involving a State agency, and the owning agency or the
<br />governing board, in contracts involving a political subdivision of the State, may reject the bonds of any surety company against which
<br />there is pending any unsettled claim or complaint made by a State agency or the owning agency or governing board of any political
<br />subdivision of the State arising out of any contract under which State funds, in contracts with the State, or funds of political
<br />subdivisions of the State, in contracts with such political subdivision, were expended, provided such claim or complaint has been
<br />pending more than 180 days.
<br />(d) Use of Unemployment Relief Labor. - Nothing in this section shall operate so as to require any public agency to enter into
<br />a contract which will prevent the use of unemployment relieflabor paid for in whole or in part by appropriations or funds furnished by
<br />the State or federal government.
<br />(e) Exceptions. - The requirements of this Article do not apply to:
<br />(1) The purchase, lease, or other acquisition of any apparatus, supplies, materials, or equipment from: (i) the United
<br />States of America or any agency thereof; or (ii) any other government unit or agency thereof within the United
<br />States. The Secretary of Administration or the governing board of any political subdivision of the State may
<br />designate any officer or employee of the State or political subdivision to enter a bid or bids in its behalf at any
<br />sale of apparatus, supplies, materials, equipment, or other property owned by: (i) the United States of America
<br />or any agency thereof; or (ii) any other governmental unit or agency thereof within the United States. The
<br />Secretary of Administration or the governing board of any political subdivision of the State may authorize the
<br />officer or employee to make any partial or down payment or payment in full that may be required by regulations
<br />ofthe governmental unit or agency disposing of the property.
<br />(2) Cases of special emergency involving the health and safety of the people or their property.
<br />(3) Purchases made through a competitive bidding group purchasing program, which is a formally organized program
<br />that offers competitively obtained purchasing services at discount prices to two or more public agencies.
<br />(4) Construction or repair work undertaken during the progress of a construction or repair project initially begun
<br />pursuant to this section.
<br />(5) Purchase of gasoline, diesel fuel, alcohol fuel, motor oil, fuel oil, or natural gas. These purchases are subject to
<br />G.S.143-131.
<br />(6) Purchases of apparatus, supplies, materials, or equipment when: (i) performance or price competition for a
<br />product are not available; (ii) a needed product is available from only one source of supply; or (iii)
<br />standardization or compatibility is the overriding consideration. Notwithstanding any other provision of this
<br />section, the governing board of a political subdivision of the State shall approve the purchases listed in the
<br />preceding sentence prior to the award of the contract.
<br />In the case of purchases by hospitals, in addition to the other exceptions in this subsection, the provisions of
<br />this Article shall not apply when: (i) a particular medical item or prosthetic appliance is needed; (ii) a particular
<br />product is ordered by an attending physician for his patients; (iii) additional products are needed to complete an
<br />ongoing job or task; (iv) products are purchased for "over-the-counter" resale; (v) a particular product is needed
<br />or desired for experimental, developmental, or research work; or (vi) equipment is already installed, connected,
<br />and in service under a lease or other agreement and the governing body of the hospital determines that the
<br />equipment should be purchased. The governing body of a hospital shall keep a record of all purchases made
<br />pursuant to this subdivision. TheSe records are subject to public inspection.
<br />(7) Purchases of information technology through contracts established by the State Office of Information Technology
<br />Services as provided in G.S. 147-33.82(b) and G.S. 147-33.92(b).
<br />(8) Guaranteed energy savings contracts, which are governed by Article 3B of Chapter 143 of the General Statutes.
<br />(9) Purchases from contracts established by the State or any agency of the State, if the contractor is willing to extend
<br />to a political subdivision of the State the same or more favorable prices, terms, and conditions as established in
<br />the State contract.
<br />(10) Purchase of used apparatus, supplies, materials, or equipment. For purposes of this subdivision, remanufactured,
<br />refabricated or demo apparatus, supplies, materials, or equipment are not included in the exception. A demo
<br />item is one that is used for demonstration and is sold by the manufacturer or retailer at a discount.
<br />(II) Contracts by a public entity with a construction manager at risk executed pursuant to G.S. 143-128.1.
<br />(I) Repealed by Session Laws 2001-328, s. I, effective August 2,2001.
<br />(g) Waiver of Bidding for Previously Bid Contracts. - When the governing board of any political subdivision of the State, or
<br />the person to whom authority has been delegated under subsection (a) of this section, determines that it is in the best interest of the
<br />unit, the requirements of this section may be waived for the purchase of apparatus, supplies, materials, or equipment from any person
<br />or entity that has, within the previous 12 months, after having completed a public, formal bid process substantially similar to that
<br />required by this Article, contracted to furnish the apparatus, supplies, materials, or equipment to:
<br />(I) The United States of America or any federal agency;
<br />(2) The State of North Carolina or any agency or political subdivision of the State; or
<br />(3) Any other state or any agency or political subdivision of that state, if the person or entity is willing to furnish the
<br />items at the same or more favorable prices, terms, and conditions as those provided under the contract with the
<br />other unit or agency. Notwithstanding any other provision of this section, any purchase made under this
<br />subsection shall be approved by the governing body of the purchasing political subdivision of the State at a
<br />regularly scheduled meeting of the governing body no fewer than 10 days after publication of notice that a
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