Nevada

Key Agency(ies): Nevada’s procurement is overseen by the Nevada State Purchasing Division, which is part of the Department of Administration. The Administrator of the Purchasing Division is Nevada’s chief procurement official.

The Nevada State Purchasing Division can be accessed at: https://purchasing.nv.gov/

Key Statute: Nevada’s procurement is governed primarily by statutes in Title 27 of the Nevada Revised Statutes (Nev. Rev. Stat.), which codify the State Purchasing Act and other related laws.

The Nevada Revised Statutes can be found at: https://www.leg.state.nv.us/nrs/

Key Regulations: Nevada’s procurement regulations are located primarily in Chapter 333 of the Nevada Administrative Code (Nev. Admin. Code).

The Nevada Administrative Code can be accessed at: https://www.leg.state.nv.us/nac/nac-333.html

Procurement Types/Highlights:

Competitive sealed bidding: Nevada uses competitive sealed bidding when award can be made on price alone. Nev. Rev. Stat. § 333.300 requires that purchases exceeding $100,000 must be conducted using formal competitive methods and the procurement must be managed by the Nevada Purchasing Division. Purchases between $25,000 and $100,000 still require formal competitive processes, however agencies may still manage the procurement internally. Solicitations are publicly advertised, and bid openings are public. Award is made to the lowest price responsive and responsible bidder.

Request for Proposals: Nev. Rev. Stat. § 333.335 governs the use of RFPs for procurements when qualitative evaluation factors are necessary to determine best value. RFPs are mandatory for service contracts exceeding $25,000. The Nevada Purchasing Division oversees RFPs for contracts of $100,000 or more. Proposals are evaluated by a committee based on criteria included in the RFP.

Small purchases: Agencies may conduct their own purchases for procurements below $25,000. Typically, agencies must obtain three quotes for purchases, and purchases must be documented and are subject to audit. Purchases under $2,000 may be made without soliciting multiple quotes.

Bid Protests:

Regs Governing Bid Protests:

• Nevada provides a formal administrative process for bid protests governed by Nev. Rev. Stat. Chapter 333.

Timeliness Rules:

• A disappointed bidder must file a notice of appeal with the State Purchasing Division within 11 days of the award posting.

Protest Process:

• Protesters must post a protest bond equal to 25% of the value of the successful bid, and the bond can be forfeited if the protest is found to lack merit.
• Nevada law imposes an automatic stay on contract award until the protest is resolved. The matter is referred to a hearing officer within the Department of Administration. A formal hearing must occur within 20 days and the hearing officer must issue a written decision with 60 days of the protest filing. If the protest is upheld, the award may be canceled but the contract cannot be awarded to the protester directly.
• If the protest is denied, the state may recover costs incurred due to the delay from the protest bond after a separate hearing. The hearing officer’s decision is the final administrative decision and judicial review is available only after the administrative process is exhausted.

Claims: Contractors must first raise their dispute with the procuring agency’s contract manager. Agencies are encouraged to attempt alternative dispute resolution. If a resolution cannot be reached, the contractor may pursue payment by filing a suit in state district court under Nev. Rev. Stat. § 41.031, which waives sovereign immunity for contract actions. Contractors must file a notice of claim with the Attorney General’s office.

Suspension & Debarment: The Administrator of the State Purchasing Division is authorized under Nev. Rev. Stat. § 333.365 to exclude vendors who violate procurement rules or fail to successfully perform their contract. A vendor may be debarred for up to two years for reasons such as providing false information, breaching contract terms, or failing to comply with provisions of the State Purchasing Act. 

Before debarment is imposed, the vendor is notified of the grounds and may request review under Nev. Rev. Stat. Chapter 233B. Vendors may present evidence in their defense and argue against the proposed action at the administrative hearing. The Administrator of the State Purchasing Decision must make a final decision on the proposed debarment.

Interesting/Distinctions: Nevada law provides for a local bidding preference system, which provides a competitive advantage to Nevada businesses in certain procurements. When evaluating bids for contracts over $50,000, the State Purchasing Division may apply a 5% price preference to bids submitted by Nevada-based businesses if a competing out of state bidder receives a preference in their home state.