(a) For purposes of this section:

(1) “Governing board” means, as appropriate, either the board of trustees of the University of Tennessee or the board of regents of the state university and community college system;

(2) “Group purchasing program” means any plan, program or method that is intended to provide the opportunity for institutions of higher education to obtain goods or services at a discount or savings not otherwise available through the purchasing practices of the institutions;

(3) “Institutions of higher education” and “institutions” mean the University of Tennessee, the state university and community college system and the constituent schools, colleges, universities and centers of each; and

(4) “Services” means those routine, nonprofessional services otherwise purchased by the state pursuant to title 12, chapter 3. “Services” does not mean those services procured pursuant to former § 12-4-109 [See the Compiler's Notes].

(b) Notwithstanding any other the law, institutions of higher education may make purchases of goods and services through a group purchasing program; provided, that:

(1)

(A) Any contract with a group purchasing program is not an exclusive contract, permits purchasing from other lawful sources and by other lawful means and does not require payment or compensation by the governing board or institution to the group purchasing program;

(B) For purposes of this section, membership in and the payment of reasonable dues to a not-for-profit buying cooperative shall not be considered as a payment or compensation and shall not be construed as prohibiting an institution of higher education from making purchases of goods and services through a group purchasing program;

(2) The supplier contracts within the group purchasing program result from a competitive process and represent the most competitive supplier bids or proposals, considering price, quality and service for the goods or services to be purchased;

(3) The group purchasing program certifies to the governing board that it uses effective competitive procedures to obtain quotations or contracts for goods or services to be purchased by institutions of higher education, so as to obtain the most competitive bid or proposal available to the group purchasing program for the goods or services made available for purchase and the procedures and prices resulting from the purchases are capable of being audited by the institutions;

(4) The officials responsible for administering the purchasing function at the University of Tennessee or the board of regents of the state university and community college system shall provide annually a summary and evaluation report of the results of the purchases made utilizing a group purchasing program to the comptroller of the treasury and the commissioner of general services by October 1 of each year with regard to purchases made in the preceding fiscal years; and

(5) The price quotation or contracts for goods or services under the group purchasing program is lower than the price available on state contracts in the department of general services.

(c) This section shall be construed as authority supplemental to purchasing authority provided under any other public or private act. In the event of conflict between this section and any other public or private act, this section shall prevail.

(d) The comptroller of the treasury is directed to report to the general assembly on the success or failure of group purchasing programs authorized by this section eighteen (18) months after the implementation of a group purchasing program by institutions of higher education. The comptroller's report shall analyze the costs incurred, if any, in implementing the programs, calculate the savings, if any, attributable to the programs and suggest any modifications that are deemed advisable to the programs.

(e) Any institutions of higher education that have entered group purchasing arrangements under title 68, chapter 11, part 12 shall not be precluded from continuing the arrangements.