The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Life Cycle Cost and Procurement Act

Reference Number: MTAS-1706
Tennessee Code Annotated
Reviewed Date: August 27, 2014
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12-3-901. Short title — This part shall be known as and may be cited as the “Life Cycle Cost and Procurement Act of 1978.”

12-3-902. Part Definitions — As used in this part, unless the context otherwise requires:

(1) “Energy efficiency standard” means a performance standard which prescribes the relationship of the energy use of a product to its useful output of services;
(2) “Major energy-consuming product” means any article so designated by the chief procurement officer in consultation with the central procurement office staff;
(3) “Political subdivision” means any city, town, municipality or county within the state; and
(4) “State procurement commission” means the commission established as set forth in title 4, chapter 56.

12-3-903. Policy of the state -- It is hereby declared to be the policy of the state and its political subdivisions to use the life cycle costs of commodities as developed and disseminated by the federal government when purchased by the state or its political subdivisions where feasible as povided in this part.

12-3-904. Purchases to be made according to energy efficiency standards — The chief procurement officer, to the maximum extent feasible, shall determine which commodities and products purchased by the state may be purchased according to energy efficiency standards based on rules and regulations, policies, and procedures approved by the procurement commission.

12-3-905. Energy efficiency standards to be adopted — Equipment, appliances, lighting and heating and cooling products and systems to be Energy Star qualified – Future contracts – Guidelines --
(a) The chief procurement officer, in consultation with the central procurement office staff, shall adopt rules and regulations approved by the procurement commission relative to energy efficiency standards for major energy-consuming products to be procured by the state.

(b) When federal energy efficiency standards exist, the procurement commission, in consultation with the department of general services, shall, where feasible, adopt standards at least as stringent as the federal standards.

(c) For the purpose of implementing this part only, the central procurement office shall advise and consult with the chief procurement officer as an ex officio member.

(d) All future office equipment, appliances, lighting and heating and cooling products and systems purchased by and for state agencies shall be Energy Star qualified; provided, that such Energy Star qualified products and systems are commercially available.

(e) Existing purchasing contracts for all state agencies that do not provide as options Energy Star qualified office equipment, appliances, lighting and heating and cooling products and systems shall not be renewed upon expiration. All future contracts for state agencies shall provide as options Energy Star qualified office equipment, appliances, lighting and heating and cooling products and systems.

(f) The central procurement office, in consultation with the department of finance and administration, shall establish and publish guidelines providing direction to all state agencies regarding implementation of this section.

12-3-906. Life cycle costs used in purchase of major energy-consuming products — When energy efficiency standards are established, the procurement commission shall adopt rules requiring life cycle costs to be used by the chief procurement officer in contracting for major energy-consuming products. In determining life cycle costs, the procurement commission and the chief procurement officer may consider the acquisition cost of the product, the energy consumption and the projected cost of energy over the useful life of the product, and the anticipated resale or salvage value of the product.

12-3-907. Energy efficiency standards and life cycle costs to be used by political subdivisions — Except when private act or state law prohibits, every political subdivision shall adopt and incorporate in its procurement policies energy efficiency standards and life cycle costing employed by the state in its procurement policies.

12-3-908. Action by aggrieved party to void executory contract for purchase of commodities
(a) Executory contracts for the purchase of commodities by a political subdivision included in this part shall be voidable by the circuit courts upon the bringing of an action by an aggrieved party.

(b) The court may void the contract upon the showing by the aggrieved party that:
(1) The party is a seller of the commodity;
(2) The party is doing business in the state;
(3) The commodity to be sold has an energy efficiency rating and life cycle cost lower than the commodity contracted for by the purchaser;
(4) The purchaser is a political subdivision, and the standard for the commodity has been adopted for one (1) year by the procurement commission and has not been incorporated or adopted by the political subdivision; and
(5) The aggrieved party is ready, willing and able, without any other legal constraints, to sell the commodity to the purchaser.

12-3-909. Assistance in development of energy efficiency standards — The chief procurement officer shall provide technical assistance to aid in the development or implementation of energy efficiency standards for procurement policies to political subdivisions that request assistance.

12-3-910. Cooperation among state and local agencies — The appropriate state agencies shall cooperate and coordinate their efforts in the development and implementation of energy efficiency standards for procurement policies to the fullest extent possible with the Tennessee Municipal League, the Municipal Technical Advisory Service, the County Technical Assistance Service, the Tennessee County Services Association, and any other appropriate state or local agency or group.

12-3-911. Adoption of more stringent energy efficiency standards by political subdivisions — Nothing in this part shall be construed to prohibit the adoption of an energy efficiency standard by a political subdivision when that standard has not been adopted by rules of the procurement commission, or where the standard proposed to be adopted by the political subdivision is more stringent than the standard adopted by the procurement commission.

12-3-912. Administrative procedures — The Uniform Administrative Procedures Act, compiled in title 4, chapter 5 applies to this part.

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