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Contracting with the State and State Universities

When contracting with the State and State Universities, the following should be considered:

  1. All procurement by departments, agencies, boards and commissions of the State of Arizona must be conducted in accordance with the procurement procedures described in ARS 41 Chapter 23 of the Arizona Revised Statutes (ARS § 41-2501 through 41-2673) ("the State Procurement Code"). The Arizona Board of Regents (ABOR) and the Universities are exempted from the State Procurement Code. See ARS § 41-2501(E). The exemption, however, is specifically conditioned on the requirement that ABOR and the Universities adopt procurement policies and procedures that are "substantially equivalent" to those set out in the State Procurement Code. ABOR has adopted such policies and procedures which can be found at ABOR Policy, 3-801 et seq. Accordingly, the Universities conduct their procurements in accordance with ABOR Policy, 3-801 et seq.
  2. Generally, procurements of $50,000 and more must be competitively bid with different procedures for procurements between $25,000 and less than $50,000. Exceptions are made for sole source and emergency procurements. In addition, State agencies subject to ARS § 41-2501 may procure services and materials not in excess of $50,000 according to rules promulgated by the Arizona Director of the Department of Administration. (See ARS § 41-2535.)
  3. Contracts generally cannot be in excess of 5 years.
  4. State of Arizona Provisions: Certain contractual provisions are mandated by the State Constitution and/or state statutes and are generally not negotiable. These provisions are incorporated into contracts entered into with Arizona State University.