Rules & Regulations of the State of Tennessee
Title 1240 - Human Services
Subtitle 1240-06 - Tennessee Business Enterprises
Chapter 1240-06-17 - Procurement Requirements
Section 1240-06-17-.05 - PROCUREMENT OF NON-TANGIBLE GOODS AND SERVICES

(1) In order to ensure an effective and efficient operation, the department may choose to procure certain non-tangible goods and services that can be provided better and perhaps more cost effectively by third party private sector vendors. Competitive bids are not always practical. The department shall generally negotiate a fee or pay the standard and customary rate for the service being provided.

(2) The department, after active participation by the Committee of Blind Vendors, may elect to hire its own technicians to provide vending machine maintenance and repair services or procure the services from private sector vendors. If it elects to purchase such services, the department will establish agreements with local companies who have an expertise in repairing vending machines. These agreements shall include an agreed upon hourly rate, mileage rate not to exceed the amount authorized by Comprehensive State Travel Regulations, and the amount to be paid for parts. At least once every five years, the department shall solicit bids from companies to ensure that costs are competitive. Companies expressing an interest in providing such services will be interviewed by department staff and local representatives of the Committee of Blind Vendors before a private sector vendor is selected to provide the service. Price shall not be the only factor considered when selecting the repair vendor. The department may also consider the company's record of performance, the qualifications of its vending machine technicians, its financial resources, stability of management, and other such factors.

(3) When a piece of equipment other than a vending machine is in need of repair, the department shall contact a company that specializes in such repairs. For example, if a freezer is broken, a refrigeration company will be contacted; if the air conditioning goes out, a heating and air contractor will be contacted; and if there are plumbing issues, a licensed plumber will be contacted. Whereas bidding individual repair jobs is not practical, the department shall pay the standard and customary fee that the company charges all customers for such services.

(4) The department may choose to incorporate equipment moves into its agreements with the companies providing the vending machine repair services since most of the machines being moved are vending machines. If not, the department will solicit three bids from reputable companies willing to provide the service on an hourly rate. Bids shall be good for a predetermined time period.

(5) On certain construction or renovation projects, the department may have to secure the services of an architect. The department will pay the hourly rate that has been established by the State Building Commission.

(6) From time to time, the department may be required to procure other services on behalf of the program. The department may either pay the standard and customary fee associated with a service or negotiate agreements that ensure that quality services are being provided at fair and competitive prices.