Purchases for Other Local Governments Summary

Reference Number: MTAS-2029
Tennessee Code Annotated
Reviewed Date: August 31, 2018
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A municipality may buy supplies, equipment, and services for any other local government entity (i.e., other municipalities, counties, utility districts or other local government units). The purchase must be made on the terms of the purchaser. THe cost of the purchase shall be borne by the local government for which the purchase was made. All competitive bidding and public advertisement requirements of the local government making the request are met if the purchasing government complies with its own purchasing requirements.

Any local education agency (LEA) may purchase equipment under the same terms of a legal bid initiated by any other LEA in Tennessee. Any LEA may purchase directly from a vendor the same equipment at the same price and under the same terms in a contract entered into by any other LEA. The originating LEA will have no liability or responsibility for any purchases made by another LEA and all payments, refunds, returns, and any other communications will be handled without involving the LEA originating the contract.

A municipality may purchase supplies, goods, equipment and services from a vendor under the same price and terms of a legal bid initiated by any other local government unit of this state. The purchase shall be made on the terms of the purchaser. The local government that purchases does so without involving the original purchasing entity. The original entity shares no liability or responsibility for any purchases made by another local government. Any local or private act, charter, or general law requirements for public advertisement or competitive bidding are met in accordance with this section. This subsection shall not apply to:
     1. Purchases of new or unused motor vehicles unless the motor vehicles are manufactured for a special purpose as defined in T.C.A. § 12-3-1208; and
     2. Purchases related to any transportation infrastructure project including, but not limited to, projects for the construction or improvements of streets, highways, bridges, tunnels, or any roadway related facility.

The T.C.A. citation for this topic is T.C.A. § 12-3-1203.