b) Conditions for Use

The CPO shall, in consultation with the State Use Committee created by the Procurement Code (Section 45-35(c)), determine which articles, materials, services, food stuffs and supplies that are produced or manufactured by persons with disabilities in State use sheltered workshops shall be given preference by purchasing agencies procuring those items. The CPO shall use procedures established by CMS for implementing this Section.

d) Pricing Approval

1. 1) While notice and competition is not required prior to contracting with a sheltered workshop, prices must be reasonable. Whether a price is reasonable will be determined based upon current market prices, historical prices, prices received by other State agencies for similar supplies or services, the policy of the Code to promote procurements from sheltered workshops, and other such relevant factors.

2. 2) The State Use Committee, established under Section 45-35(c) of the Code, must approve contracts for reasonableness of price if:

   1. A) the supply or service would ordinarily be subject to competitive sealed bidding or competitive sealed proposals methods of source selection; or
   2. B) the supply or service is bid and the sheltered workshop is selected even though not the lowest responsible bidder.

3) State Use Committee approval is not required if:

1. A) the contract qualifies as a small purchase as defined in Section 2600.315 and no bidding was conducted; or
2. B) the contract is awarded to the sheltered workshop under a competitive procedure.