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Political Subdivision <br />January 11, 1989 <br />Page 2 <br />It is not mandatory on local governments to participate in the state <br />program. However, once the local government, by resolution of its <br />governing body, agrees to participate in specific state contracts, they <br />are committed to purchase their requirements from the states contractor <br />through the end of our fiscal year (August 31). At that time a notice <br />will be sent requesting that the resolution be renewed and received by us <br />no later than January 1 to preserve your participation in the program. <br />Additions and/or deletions of selected annual contracts may be made at the <br />time a new resolution is submitted. Initially, we are limiting your <br />participation to those items covered by our automated contracts. <br />We will be happy to forward any contracts on the attached list of your <br />review before submitting a resolution. When we receive a completed <br />resolution from you, we will forward a copy of each contract selected, a <br />small supply of order forms and specific ordering instructions. <br />The Sections conclude that a local government making purchases of an item <br />under a state contract satisfies any state law requiring competitive bids <br />for the purchase of the item. <br />A cooperative purchasing program between local governments and the state <br />can be beneficial to all concerned, but particularly beneficial to the <br />taxpayer. The benefits of volume purchasing are well recognized, and we <br />think your government will be well served through participation in this <br />program. To make it work, however, requirements for a particular item <br />under state contract will have to be purchased from that contract except <br />in bona fide emergencies. Contractors cannot be expected to give us the <br />best prices if they cannot depend upon the advertised quantities. <br />If you have any further questions, please let us know. <br />Sincerely, <br />Kerry A. Stennett <br />Purchasing Clerk <br />512/463-3368 <br />KS:ka <br />Enclosures <br />