South Carolina

Key Agency(ies): South Carolina’s Executive branch purchasing is centralized within the State Fiscal Accountability Authority through its Division of Procurement Services (DPS). Within DPS, the Materials Management Office is led by the Materials Management Officer, who serves as the state’s Chief Procurement Officer.

Key Statute: South Carolina’s procurement laws are codified at Title 11, Chapter 35 of the South Carolina Code of Laws  (S.C. Code Ann.), entitled the “Consolidated Procurement Code”

Key Regulations: South Carolina’s implementing regulations are codified in the South Carolina Code of Regulations (S.C. Code Ann. Regs.) at Chapter 19-445.2000 (State Procurement Regulations)

Procurement Types/Highlights:

• In South Carolina, sealed bidding is the default procurement method and is governed by S.C. Code Ann. § 11-35-1520. It requires public advertising of an Invitation for Bids (IFB), submission of sealed bids, a public bid opening, and award to the lowest responsive and responsible bidder. Bids must be evaluated strictly on the criteria set forth in the solicitation.
• In contrast, Requests for Proposals (RFPs) are permitted under S.C. Code Ann.  11-35-1530 when sealed bidding is not practicable or not advantageous. RFPs allow for consideration of both price and technical factors, with awards made to the offeror whose proposal is most advantageous to the state, based on pre-established evaluation criteria.

Bid Protests:

Regs Governing Bid Protests:

• South Carolina’s bid protest procedures are codified at S.C. Code Ann. § 11-35-4210.

Timeliness Rules:

• An unsuccessful offeror must file a protest related to a solicitation within 15 days after the solicitation was posted.
• Protests related to an award decision must be filed within 15 days after the unsuccessful offer received notice of the award decision. In addition, a timely protest of an award requires first giving notice of intent to protest within seven business days of the award announcement to the appropriate Chief Procurement Officer.

Protest Process:

• After receipt of the protest, the CPO must then attempt an informal resolution between the parties or issue a written determination resolving the protest.

Appeals:

• If a protester receives an adverse decision, they may appeal the CPO’s decision to the Procurement Review Panel within 10 days. While the protest is pending, the CPO in most cases must stay contract award or performance until the protest is resolved.
• The Procurement Review Panel is an administrative tribunal established under S.C. Code Ann. § 11-35-4410 to hear appeals arising under bid protests, contract disputes, and suspension and debarment decisions.
• The Panel conducts a de novo review and may affirm, modify, or reverse the CPO’s decision.

Claims: Contract claims in South Carolina are governed by S.C. Code Ann. § 11-35-4230. Either the contractor or the agency may initiate a contract dispute by submitting a written “request for resolution” to the CPO. The claim must be filed within one year after final performance or accrual of the claim. The CPO must investigate the claim and attempt to resolve the dispute by informal negotiation. If the dispute cannot be resolved informally, the CPO must issue a written decision on the claim within 10 days after completing their review of the claim.

Contractors may appeal an adverse decision to the Procurement Review Panel within 10 days after receiving notice of the CPO’s decision. The Panel will conduct a de novo administrative hearing and may affirm, modify, or reverse the CPO’s determination. The Panel’s decision constitutes the final administrative action available to contractors.

Suspension & Debarment: Under S.C. Code Ann. § 11-35-4220, an agency CPO has authority to suspend or debar contractors for cause. After notice and an opportunity to be heard, the CPO may suspend a party pending an investigation or debar a party for a specified period. Permissible causes include criminal convictions related to contracting, serious violations of contract terms, violations of ethics laws, or any other cause “so serious” as to affect responsibility.

The CPO must issue a written debarment/suspension decision stating the reasons and duration for the action taken. The affected contractor is notified and may request review by the Procurement Review Panel within 10 days of notice.

Interesting/Distinctions: South Carolina law includes explicit preferences favoring in-state businesses codified at S.C. Code Ann. § 11-35-1520(9). In the event of a price tie, the award must go to the South Carolina bidder over an out-of-state bidder. Similarly, if a tied bid involves a South Carolina product versus an out-of-state product, the in-state product must be chosen. Ties involving certified South Carolina minority-owned businesses likewise favor the minority business.