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This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and universities.

Chapter 123-1 | State Agencies, Boards, or Commissions

 
 
 
Rule
Rule 123-1-01 | Creation of any state agency, board or commission.
 

Whenever any state agency, board or commission is created, the director of administrative services shall be notified not later than fifteen days after creation.

Supplemental Information

Authorized By:
Amplifies:
Five Year Review Date:
Rule 123-1-02 | Termination of any state agency, board or commission.
 

(A) Pursuant to section 125.82 of the Revised Code, notification to the director of administrative services shall include:

(1) A copy of the terminating legislation or executive order and the date of termination.

(2) The steps that have been taken, or will be taken, to transfer all continuing, necessary functions and equipment to another state agency.

(B) The terminating agency shall also notify the director of the office of budget and management of its termination not later than ninety days prior to the specified termination date.

(C) Thirty days prior to the termination date, an amount sufficient to pay all expenses incurred prior to the date on which operations are terminated shall be encumbered by the office of budget and management from the terminating agency's appropriation for the fiscal year in which the agency will terminate.

(D) The office of budget and management will:

(1) Review and approve the encumbered amount thus insuring that it is sufficient to pay all expenses incurred prior to the agency's termination.

(2) Insure that final payment of all the terminating agency's employees has been arranged, which payment shall include the value of accumulated vacation leave.

(3) Approve payments to be made after the agency's termination and prepare and submit the necessary forms for payment.

(E) The department of administrative services, unemployment compensation section, shall certify the employment status of former employees of the terminated agency.

(F) The terminating agency shall, prior to its termination date, make the necessary arrangements with the state records commission and the state records center of the department of administrative services to transfer the agency's records to the state records center.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-03 | Acquisition and use of state-owned vehicles.
 

(A) Each agency shall adhere to division (E) of section 123.011 of the Revised Code which provides that passenger automobiles acquired each fiscal year, except law enforcement and emergency rescue vehicles, shall achieve a fleet average fuel economy of not less than twenty-two miles per gallon in fiscal year 1981, and in future fiscal years a fleet average fuel economy prescribed by the department of administrative services.

(B) The appointing authority of each state agency is responsible for all state vehicles in his/her agency and for ensuring that vehicles are used only for state business.

(C) Use of pool cars is encouraged, whenever possible, so that improved vehicle utilization can be realized.

(D) All vehicles, including those assigned to individuals, shall be made available as circumstances warrant for use by any authorized agency personnel.

(E) Agencies shall instruct their employees who are utilizing vehicles to make use of their agency's fuel and maintenance facilities if applicable and to utilize the state of Ohio's term contract for "Service and Maintenance of State-Owned Vehicles."

(F) Agencies shall provide the department of administrative services and office of budget and management a monthly activity report on the miles driven, fuel purchased, and miles per gallon for each vehicle owned or rented. This may be a summary-fleet report.

Supplemental Information

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Amplifies:
Five Year Review Date:
Prior Effective Dates: 7/10/1980
Rule 123-1-04 | Guidelines for state agency vehicle acquisition and use policies.
 

(A) Each state agency shall have a written vehicle policy which shall be approved by the department of administrative services and the office of budget and management. A copy of the policy shall be forwarded to the director of administrative services.

(B) The appointing authority of each state agency is responsible for the operation and implementation of its agency's policy.

(C) All vehicle purchases and rental agreements shall be approved by the office of budget and management. Submission of all such documents to office of budget and management shall be accompanied by a statement explaining the need for the purchase or rental.

(D) Each vehicle shall have a map and listing of department of transportation emergency assistance locations.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-05 | Guidelines for reporting fleet average fuel economy.
 

(A) All acquired vehicles will be included in the following guidelines:

(1) The formula for determining the average fuel economy will be as follows:

(a) Multiply the total number of vehicles in each class times the average fuel economy as determined by federal environmental protection agency for that vehicle.

(b) Add the total number of vehicles from paragraph (A)(1)(a) of this rule.

(c) Divide the total number of vehicles from paragraph (A)(1)(b) of this rule into the total "fuel" number arrived at in paragraph (A)(1)(a) of this rule.

(d) This will give the weighted average fleet fuel economy.

(2) Monthly reports shall be made using suggested format as shown in "Diagrams 1 and 2." Machine produced reports are acceptable.

(B) "Acquired" means leased for a period of sixty continuous days or more, or purchased.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-06 | Purpose and objectives.
 

(A) The purpose of these rules is to develop and establish standards and specifications for the best interests of the state of Ohio by setting guidelines for an energy conservation program to procure commodities, equipment, and services.

(B) The objectives of these rules are as follows:

(1) To prepare, establish, and develop a minimum energy efficiency standard where possible and incept a life cycle costing formula for such energy-related commodities, equipment, and services, as well as review and amend, if necessary, those formulas now being used.

(2) To set guidelines for comparing various goods and services on their energy efficiency by using a uniform system.

(3) To establish and publish an index of all energy related products and services procured by the state of Ohio.

(4) To establish various standards for energy oriented products by promoting testing and analysis related to energy efficiency.

(5) To incept in all energy related bids, a precise requirement to furnish all energy related data required by section 125.09 of the Revised Code.

(6) To develop a communication system between the department of energy and the department of administrative services, standards & specifications section, which will:

(a) Provide for interchange of information, and

(b) Monitor experiences with energy conservation buying practices.

(7) To monitor the energy savings at various state agencies and institutions.

(8) To develop a maintenance program and/or criteria for each energy-related commodity to accomplish the monitoring concept.

(9) To set an example for local governments and serve as a consultant for energy conservation procurement through seminars and workshops.

(10) To promote the national goal of conserving the finite supply of energy available to us.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-07 | Definitions.
 

(A) "Life cycle costing (LCC)" - a method of procurement evaluation based on a commodity or service's economic life - taking into account not only the initial acquisition or purchasing cost, but also the cost of ownership and its slavage value, if any. Thus, we have:

(1) Initial acquisition or purchasing cost.

(2) Cost of ownership; economic life will be determined by two things:

(a) How long the asset is used

(b) How long the asset lasts physically

Therefore, the "economic life" or "average useful life" is that period during which the asset is expected to be retained as the lowest cost alternative for satisfying an intended purpose.

(3) Salvage value.

(B) "Sunk costs" - those costs already incurred that would be non-recoverable if the commodity or service would be discontinued.

(C) "Energy efficient ration (EER)" - the efficiency rating of an energy consuming commodity, determined by dividing the service output (Btu's, etc.), by the power input (watts, etc.). Thus, the greater the EER, the more efficient the commodity or service.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-08 | Organization responsibilities.
 

The responsibility of the energy conservation program for procurement will lie in the standards and specifications section of state purchasing. These responsibilities are:

(A) To prepare, establish and develop a minimum standard for energy-related commodities and incept life cycle costing formulas in these rules to ensure the procurement of the most efficient commodity or service.

(B) To maintain competitive bidding in accordance with the Chapter 125. of the Revised Code.

(C) To incept and maintain a monitoring and maintenance program for each energy-related commodity.

(D) The manager of the standards and specification section will assume the task of accomplishing the aforementioned responsibilities and objectives.

Supplemental Information

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Amplifies:
Five Year Review Date:
Rule 123-1-09 | Procedures for implementation.
 

The procedures coinciding with the objective stated in rule 123-1-06 of the Administrative Code are as follows:

(A) To uniformly utilize a life cycle costing formula, the standards and specifications section shall:

(1) Identify alternatives and substitutes.

(2) Identify costs associated with the item to be procured. These include:

(a) Purchase price

(b) Operation costs

(c) Corrective and preventive maintenance costs

(d) Salvage value

(e) Disposal cost

(f) Transportation cost

(g) Installation cost

(h) Inventory and associated costs

(i) Management cost

(j) Training cost

(k) Inspection costs

(3) Note physical or functional characteristics which are likely to differ among bidders' products, for example, the energy efficiency ratio (EER). This ratio can be obtained from manufacturers.

(4) Sunk costs may be used if feasible, provided it does not make the bid non-competitive. Among these sunk costs are parts inventory, personnel training, support equipment, and extensive documentation.

(5) If physical or functional characteristics and associated costs are not likely to vary among bidders and sunk costs are not large enough to justify a sole source supplier, price competition can commence immediately. Otherwise, if the potential savings justifies this type of analysis, evaluate the impact that variations in equipment characteristics can have on the associated costs.

(6) Other specifics of LCC analysis that shall be considered are:

(a) LCC assesses initial costs, maintenance costs, and operating costs as well as qualitative standards such as specifications, defining characteristics of the product, energy efficiency ratios, and quality of repair service in this analysis. This procedure can sometimes justify higher initial expenditures which yield great long-term benefits. If the anticipated benefits outweigh the added expense of LCC and the costs can be recovered before the end of the product's useful life, this technique is most appropriate.

(b) Prerequisites for a good LCC analysis:

(i) The operating and maintenance costs must be predicted with a fair degree of accuracy. Although total accuracy is unlikely and not completely necessary, the more precise the elements, the better the analysis.

(ii) Bidders' claims should be verifiable. This can be accomplished by examining samples, reviewing a bidder's own analysis, and incorporating the findings into contracts.

(iii) The award criteria should be stated in clear and definite terms. This will ensure equity and competition among bidders and a fair determination of the award.

(iv) LCC analysis should be economically feasible. As mentioned above, benefits must be greater than costs.

(v) Energy efficiency ratios (EER) should be obtained from manufacturers.

(c) LCC criteria

(i) Measured service life

(ii) Testable product (to determine EER and useful life)

(iii) Standard commercial item readily available

(iv) Existing competitive procurement environment

(v) Central procurement

(vi) All relevant information which a particular LCC formula requires be in the bid.

(d) The general inflation rate is currently nine per cent. To adjust the cash flow, multiply each year's cost by the inflation factor (X), where N is equal to the year.

(7) Award the contract to the bidder whose product has the lowest purchase price consistent with the lowest associated ownership costs. The specific formula used to facilitate this analysis will vary according to the different features of each commodity.

(B) An index of all energy related products and services procured by the state of Ohio shall appear in the appendix to these rules.

(C) Analysis and testing shall be used in establishing minimum energy efficiency standards. The following steps shall be taken:

(1) Each product's end use must be specifically defined.

(2) Advice, assistance, and recommendation shall be sought from the state purchasing buyers section responsible for a particular commodity regrading minimum and maximum limits on size, weight, height, volume, and other key elements of a product.

(3) A market variance concerning these same key elements shall be sought from the individual vendors of a product.

(4) Safety and environmental regulations and requirements shall be considered and adhered to.

(5) Independent or voluntary testing laboratories and/or organizations shall be consulted for previous test results and standards currently being used in a particular industry.

(6) The federal specification index may need to be consulted.

(7) Narrow ranges in specifications should be avoided, where possible, to prevent loss of competition and higher prices.

(8) Four months before the inception of the term contracts the specifications should be updated and sent to the contract procurement section.

(D) Energy related bids shall contain all relevant energy data in precise language.

(1) As required by division (D) of section 123.011 of the Revised Code, the standards and specifications section shall include in the "invitation to bid", precise language requiring energy related standards and specifications and/or energy efficient ratios.

(2) The standards & specifications analyst shall explain the purpose and function of this energy data to the contract specialist for bid evaluation when returned by the vendor.

(3) The contract buyers, with additional consultation from the standards and specifications analyst, shall be responsible for answering all questions vendors may have concerning the energy data required of them.

(E) A communication system shall be incepted between the procurement specialists of the department of energy and the standards and specifications analysts of the department of administrative services.

They shall interchange information and monitor experiences dealing with energy conservation and buying.

(F) A monitoring and maintenance program shall be incepted. The following steps shall be taken:

(1) Every contract incepted with energy efficiency must have a defined maintenance program.

(2) Every institution using the contract shall implement that maintenance program.

(3) Either every six months, or quarterly, all institutions shall summarize their energy savings and details and forward them to their main department office.

(4) A centralized form to obtain the statistical data for each item related to energy savings shall be submitted to the department of energy.

(5) A directive shall be sent to all departments for proper implementation.

(6) The department of energy shall be directed to establish a centralized data base by utilizing its computer resources.

(7) A quarterly or semi-annual energy report focusing on total energy savings on each item shall be prepared by the department of energy.

(8) That information shall be sent semi-annually to state purchasing, department of energy, and the news media.

(9) While conducting the seminars, such information must be brought to the personnel by various departments in terms of a communication system which will encourage them to pay their full attention discharging the responsibility.

(10) The department of energy, in conjunction with the standards and specifications section of the department of administrative services, shall also review new energy saving products which can be used as a guiding factor for future modification of energy related contracts. The reports will project the feasibility of energy/cost savings.

(G) State purchasing shall promote the national goal of conserving energy and setting an example for local governments to follow, by doing three things:

(1) Planning and holding seminars and workshops explaining the implementation of this energy conservation procurement system and how it can be applied to local government purchasing.

(2) Acting as a consultant for local governments, should they have questions concerning the implementation of a similar energy conservation procurement system.

(3) Releasing energy reports indicating the amount of energy and dollars saved by using such energy conservation programs.

Supplemental Information

Authorized By:
Amplifies:
Five Year Review Date: