1. (a)

   1. (1) Under Arkansas Code § 19-11-203(14)(DD), “hidden or unknown damages” refers to damages to machinery needing repair that were not visible or readily apparent to, or were otherwise not within the knowledge of, agency personnel at the time the piece of machinery was being serviced by a vendor.
   2. (2) By way of example and not limitation, if an agency takes a piece of machinery to a vendor to repair one (1) or more problems, and in the course of such work the vendor notices one (1) or more additional problems that need repair, the agency may, but is not required to, authorize that vendor to undertake such additional repairs without having to solicit competitive bids.
2. (b) “Machinery” means mechanical devices or combinations of mechanical powers and devices purchased or constructed and used to perform some function and to produce a certain effect or result.
3. (c) This exemption does not apply to damages that are visible, readily apparent, or are or could be within the knowledge of agency personnel with the exercise of reasonable inspection or investigation.

Codification Notes: This section was promulgated as R7:19-11-203 of the Procurement Rules prior to codification into the Code of Arkansas Rules.