Tennessee

Key Agency(ies):  

• The Central Procurement Office (CPO) sits within the Department of General Services (DGS), and is responsible for procuring all materials, supplies, equipment, and services for state agencies.
• The Procurement Commission oversees procurement policy within the state of Tennessee, and approves certain procurement actions. It consists of five voting members and seven non-voting members appointed by the Governor, various commissioners and members of the Tennessee State Legislature.

Key Statute:

• Tennessee Code Annotated (Tenn. Code Annotated) Title 12, Chapter 3 and Title 4, Chapter 56 govern state procurement, including competitive bidding, contracts, protests and cooperative purchasing.
  • Link

Key Regulations:

• Official Compilation Rules and Regulations of the State of Tennessee §§ 0690-03-01.01 through 0690-03-01.28 covers procurement, procedures, suspension, and debarment.
  • Link
• The Tennessee Purchasing Procedures Manual details procurement methods, protest procedures, and contract management.
  • Link

Procurement Types/Highlights:

• Competitive sealed solicitations
• Competitive negotiation
• Informal Solicitations and Small purchases
• Sole Source Procurement
• Emergency Purchases
• Reverse Auctions
• Professional Services Contracts

Bid Protests:

Regs Governing Bid Protests:

• Code Ann. § 12-3-514 governs protest procedures, deadlines, and appeals.

Eligible Protesters:

• Any respondent who submitted a response to a solicitation and claims to be aggrieved by the solicitation, award, or proposed award may protest.

Timeliness Rules:

• Protests must be submitted within seven calendar days after the earlier of notice of award/intent to award or knowledge of the matter being protested.

Protest Process:

• Protests must be in writing and signed, certifying that the submission is in good faith.
• Protesters must also provide a protest bond, which is equal to 5% of the lowest bid/cost proposal/maximum liability/revenue (or as determined by the CPO for no-cost contracts).
  • Small/minority businesses may petition for exemption if the bid is < $1 million.
• The procurement will be stayed upon receipt of the protest and bond unless continuation is necessary to protect the state’s interests.
• The CPO must resolve the protest within 60 days.
• If unresolved or upon final determination, protester may appeal to protest committee within seven days.

Appeals

• The protest committee will review a CPO decision if requested within seven days of the CPO’s decision or failure to decide within 60 days.
• Administrative remedies must be exhausted before judicial review is available for protests.
• By common law, judicial review is available by common law writ of certiorari to the local chancery court.
• Review is limited to the protest committee record and legality of actions taken by the agency.

Claims: 

• The Tennessee Claims Commission has exclusive jurisdiction for all monetary claims against the state, including contract disputes.

Suspension & Debarment:

• All contracts must include provisions for suspension/debarment.
• Certification required that contractor is not debarred, suspended, or ineligible by state/federal agency, nor convicted or charged with fraud or similar offenses in the past three years.

Interesting/Distinctions: 

• In addition to preferences for minority-owned, women-owned and small businesses, Tennessee also has statutory preferences for purchases for in-state producers of meat, coal, natural gas and agricultural products.
• Life cycle costs and energy efficiency standards are considered in procurement of major energy-consuming products.
• State agencies must purchase from TRICOR (Tennessee Rehabilitative Initiative in Correction) and central nonprofit agencies when certified as satisfactory and reasonably priced.