Opinion No. 66-40
April 6, 1966
TO: Don Hancock, City Attorney, Post Office Box 808, Alamogordo, New Mexico 88310
QUESTION
QUESTION
Can a city lawfully renew a contract, for the purchase of a particular type of supplies on an annual basis, which was previously bid in the proper legal manner on a one-year basis, without advertising and taking new bids?
CONCLUSION
No.
OPINION
{*48} ANALYSIS
The purchasing by municipalities is governed by the Public Purchases Act, 6-5-1 through 6-5-9, N.M.S.A., 1953 Compilation, as amended. See Attorney General Opinions Nos. 62-66 and 62-70 (Copies enclosed). Section 6-5-4 A. of the Act in question provides as follows:
"A. Purchases, or contracts for materials or labor, or both materials and labor to be furnished or performed, made at any one time, which involve the expenditure of more than five hundred dollars ($ 500) but less than one thousand dollars ($ 1,000) shall only be made or entered into after obtaining at least three bona fide written bids. Where goods are to be purchased, such bids shall be from regular dealers in the commodity being purchased." (Emphasis supplied.)
A reading of the above law clearly discloses that contracts meeting the conditions of the Public Purchases Act are subject to written bids. A renewal of a contract which was for a definite term is obviously a new and separate contract. It must therefore meet the requirements of the Public Purchases Act.