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DEPARTMENT OF CORRECTIONS

 

DIVISION 163

PURCHASING -- WORK PROGRAMS

 291-163-0010

Authority and Purpose

(1) Authority: The authority for these rules is granted to the Director of the Department of Corrections in accordance with ORS 179.040(1)(d), 179.460, 421.305(1), 421.310(1), 421.440, 423.020, 423.030, and 423.075(5)(d).

(2) Purpose: The Department of Corrections is subject to the Department of Administrative Services purchasing rules unless otherwise excepted or exempted. ORS 421.438 provides that "ORS chapter 279 and ORS 291.021 do not apply" to certain prison operations and programs, as defined in OAR 291-163-0020(6). Additionally, Article I, Section 41(9) of the Oregon Constitution provides that "prison industry work programs shall be exempt from statutory competitive bid and purchase requirements." Accordingly, the purpose of these rules is to set forth guidelines for the:

(a) Purchase of property and services for such inmate work programs;

(b) Disposal of surplus property for an inmate work program;

(c) Sale of inmate products and inmate services produced or provided under Corrections Inmate Work Programs; and

(d) Process to establish certain contractual relationships between Corrections Industries and private entities to generate and establish such inmate work programs.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0020

Definitions

(1) Functional Unit Manager: Any person within the Department of Corrections who reports to either the Director, an Assistant Director or administrator and has responsibility for delivery of services or coordination of operations.

(2) Industries: Department of Corrections, Corrections Industries.

(3) Inmate: Any person under the supervision of the Department of Corrections who is not on parole, post-prison supervision or probation status.

(4) Inmate Product: Forming anew or transforming (e.g., creating, producing, manufacturing, or mining) of a tangible item by an inmate, and to which the inmate has added substantial value.

(5) Inmate Service: Labor or other services rendered directly by inmates that does not result in adding substantial value to the production of a tangible item, and which may include certain restoration activities, packaging, handling, dismantling, and incidental processing.

(6) Prison Operations and Programs: Inmate work programs, forest and work camps, farm and agricultural operations and programs, food services operations and programs, facility or property maintenance operations, and programs and vocational or work training programs defined as follows:

(a) Inmate Work Programs: The Department's programs that sell inmate services or inmates products to other Department programs, other state agencies, local governments, private entities or the general public;

(b) Forest and Work Camps: Forest camp operations that are established and subject to the provisions of ORS 421.450 to 421. 480, and work camp operations established under ORS 421.490;

(c) Farm and Agricultural Operations and Programs: Operations and programs for the production, processing, packaging, sale, distribution or disposal of the Department's agricultural products or by-products;

(d) Food Services Operations and Programs: Operations and programs for the purchase, distribution, preparation and delivery of food and food services to the Department's institutions and facilities;

(e) Facility or Property Maintenance Operations and Programs: Operations and programs for the maintenance, janitorial, carpentry, landscaping and repair services for the Department's administration buildings, institutions, offices and warehouses;

(f) Vocational or Work Training Programs: Programs for the education or occupational training of inmates.

(7) Private Entity: Person, corporation, partnership or other business or private party recognized by law.

(8) Property: Personal property, including inventory, goods or equipment. Property does not include real property.

(9) Purchase: Acquisition of property or services with cash or a cash equivalent, or an exchange of surplus property, inmate products, or inmate services. Purchase includes acquisition by true lease, but does not include acquisition by lease purchase or other financing agreements unless:

(a) The Director or his/her designee, in consultation with the Department of Justice, determines such financing agreement is lawful; and

(b) The financing agreement is approved, when necessary, by the Department of Administrative Services and the Prison Industries Board.

(10) Sale or Sell: Includes, but is not limited to a sale, transfer, lease, disposition, grant or other conveyance of inmate products, the provision of or leasing of inmate services, or the surplus property of a program.

(11) Services: Labor or services performed by an independent contractor for temporary labor, trade-related activities or in such contractor's professional capacity.

(12) Surplus Property: All personal and real property, vehicles, and titled equipment excess to the state agency's needs and available for sale. Surplus property does not include inmate products.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

Procedures

291-163-0030

Authority and Approval of Purchases and Sales for Programs

(1) Functional unit managers or their designees have authority to effect and must approve the purchase of property and services, sale of inmate products and inmate services, and the sale of surplus property in accordance with Department of Administrative Services rules governing such transactions and the Department of Corrections rule on Purchasing.

(2) The Inmate Work Programs Administrator or his/her designee has authority to effect and must approve the purchase of property and services, the sale of inmate products and inmate services, and the sale of surplus property for prison operations and programs in accordance with these rules.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0040

Purchases

(1) Solicitation: The Inmate Work Programs Administrator or the Fiscal Services Administrator, as appropriate, or their designees must obtain no fewer than three quotes from vendors, contractors, manufacturers, owners or suppliers of the subject purchase or class of purchases, unless they make written findings stating:

(a) There is insufficient time to obtain three or more quotes without negatively affecting the ability of a program to provide timely services; or

(b) Obtaining three or more quotes may negatively affect the value of the property or increase the cost of the services; or

(c) The property or services are only practicably available from one vendor, or a specific vendor is preferred due to availability, capacity, experience, reputation, performance history or other stated reasons; or

(d) The selection of the particular vendor, contractor, manufacturer, owner, or supplier will help achieve public policy objectives including, but not limited to the promotion of emerging small, disadvantaged, minority-owned and/or women-owned businesses and qualified rehabilitation facilities as defined in ORS 279 .835;

(e) The requirement to obtain no fewer than three competitive quotations, unless exempted based upon criteria stated in (a) through (d) above, shall apply to purchases with cost estimates equal to or exceeding the minimum dollar values specified by the then current Department of Administrative Services Purchasing rule as requiring three or more competitive quotations.

(2) Negotiation: The Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may acquire property or services by negotiation. Upon identification of one or more potential vendors, contractors, manufacturers, owners, or suppliers, the Inmate Work Programs Administrator or functional unit manager, or their designees, may negotiate and execute a contract setting forth the substance, terms, and conditions of the purchase, subject to approval by the Prison Industries Board, where appropriate. (See OAR 291-163-0070).

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0050

Sales

(1) Offer: The Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may offer for sale or exchange personal property, equipment, inventory, or inmate services or inmate products. Offer for sale or exchange may take place through retail, wholesale, barter, auction, private treaty, or by any other lawful means.

(2) Negotiation: The Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may sell surplus property or inmate products or inmate services by negotiation. Upon identification of one or more potential purchasers, the Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may negotiate an agreement setting forth the substance, terms, and conditions of the sale, subject to approval by the Prison Industries Board, where appropriate. (See OAR 291-163-0070)

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0060

Surplus Property

(1) Property is only "surplus property" when designated in writing as such by the Inmate Work Programs Administrator or Fiscal Services Administrator, or their designees who will also make written findings that such property is no longer useable by or useful to a program.

(2) Trade: The Inmate Work Programs Administrator or Fiscal Services Administrator, as appropriate, or their designees may dispose of surplus property by trading in such property to purchase like property of comparable function. The Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may negotiate and execute an agreement for trade setting forth the substantive terms and conditions of the trade.

(3) Sale: The Inmate Work Programs Administrator or Fiscal Services Administrator, as appropriate, or their designees may dispose of surplus property by sale of such property. Sale of surplus property shall be conducted so as to provide the highest sale price possible given market conditions and the value of the surplus property to be sold. The Inmate Work Programs Administrator or functional unit manager, as appropriate, or their designees may negotiate and execute an agreement for sale setting forth the substantive terms and conditions of the sale.

(4) Dedicated Funds: To the extent dedicated funds are used for the purchase of property, the Inmate Work Programs Administrator or Fiscal Services Administrator, as appropriate, or their designees will take steps to ensure that any property, cash or cash equivalent received for such surplus property by trade or sale shall remain in the program for which such surplus property was purchased.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0070

Prison Industries Board Approval

Under Article I, Section 41 of the Oregon Constitution, "agreements with private enterprise as to state prison work programs must be approved by the Prison Industries Board." All such agreements obtained, negotiated, and executed under these rules (OAR 291-163-0010 through 291-163-0090) are subject to approval by the Prison Industries Board.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0080

Agreements With Private Enterprise

The Department will make efforts to establish contractual relationships with private entities to create, establish, and expand its inmate work programs. Any contractual relationship between the Department and a private entity to jointly produce, create, mine, manufacture, or use inmate products or inmate services in a manner that is reasonably designed and managed to achieve either net cost savings in maintaining the State of Oregon's government operations, or a net profit for the Department's private sector activities will be an agreement for purposes of its private enterprise program. Subject to approval by the Prison Industries Board, the Inmate Work Programs Administrator or his/her designee shall have authority to negotiate, approve, and execute a contract or agreement with a private entity under its private enterprise program.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stat. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

291-163-0090

Application of Federal Law

Notwithstanding any provisions in these rules, the applicable federal laws, rules, and regulations shall govern if federal funds are used in the transaction and such laws, rules, or regulations conflict with these rules.

Stat. Auth.: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Stats. Implemented: ORS 179.040, ORS 179.460, ORS 421.305(1), ORS 421.310(1), ORS 421.440, ORS 423.020, ORS 423.030 & ORS 423.075
Hist.: CD 6-1997(Temp), f. & cert. ef. 4-10-97; CD 13-1997, f. 7-23-97, cert. ef. 8-1-97

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