Section 2. KRS 45A.345 is amended to read as follows:
As used in KRS 45A.343 to 45A.460, unless the context indicates otherwise:
(1) "Aggregate amount" shall mean the total dollar amount during a fiscal year of items of a like nature, function, and use the need for which can reasonably be determined at the beginning of the fiscal year. Items the need for which could not reasonably be established in advance or which were unavailable because of a failure of delivery need not be included in the aggregate amount.
(2) "Capital cost avoidance" means moneys expended by a local public agency to pay for an energy conservation measure identified as a permanent equipment replacement and whose cost has been discounted by any additional energy and operation savings generated from other energy conservation measures identified in the guaranteed energy savings contract, except that for school districts capital cost avoidance shall also mean moneys expended by the district from one or more of the following sources:
(a) General fund;
(b) Capital outlay allotment under Section 9 of this Act; and
(c) State and local funds from the Facilities Support Program of Kentucky under Section 10 of this Act.
(3) "Chief executive officer" shall mean the mayor, county judge/executive, superintendent of schools, or the principal administrative officer of a local public agency, or the person designated by the chief executive officer or legislative body of the local public agency to perform the procurement function.
[(3)] "Construction" shall mean the process of building, altering, repairing, or improving any public structure or building, or other public improvements of any kind to any public real property. It does not include the routine operation, routine repair, or routine maintenance of existing structures, buildings, or real property.
[(4)] "Contract" shall mean all types of local public agency agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It includes awards and notices of award; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; and purchase orders. It also includes supplemental agreements with respect to any of the foregoing. It does not include labor contracts with employees of local public agencies.
[(5)] "Established catalogue price" shall mean the price included in the most current catalogue, price list, schedule, or other form that:
(a) Is regularly maintained by the manufacturer or vendor of an item; and
(b) Is either published or otherwise available for inspection by customers; and
(c) States prices at which sales are currently or were last made to a significant number of buyers constituting the general buying public for that item.
[(6)] "Evaluated bid price" shall mean the dollar amount of a bid after bid price adjustments are made pursuant to objective measurable criteria, set forth in the invitation for bids, which affect the economy and effectiveness in the operation or use of the product, such as reliability, maintainability, useful life, residual value, and time of delivery, performance, or completion.
[(7)] "Invitation for bids" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting bids in accordance with the procedures set forth in KRS 45A.365.
[(8)] "The legislative body or governing board" shall mean a council, commission, or other legislative body of a city or urban-county; a county fiscal court; board of education of a county or independent school district; board of directors of an area development district or special district; or board of any other local public agency.
[(9)] "Local public agency" shall mean a city, county, urban-county, school district, special district, or an agency formed by a combination of such agencies under KRS Chapter 79, or any department, board, commission, authority, office, or other sub-unit of a political subdivision which shall include the offices of the county clerk, county sheriff, county attorney, coroner, and jailer.
[(10)] "May" shall mean permissive. However, the words "no person may . . ." mean that no person is required, authorized, or permitted to do the act prescribed.
[(11)] "Negotiation" shall mean contracting by either the method set forth in KRS 45A.370, 45A.375, or 45A.380.
[(12)] "Noncompetitive negotiation" shall mean informal negotiation with one (1) or more vendor, contractor, or individual without advertisement or notice.
[(13)] "Objective measurable criteria" shall mean sufficient information in the invitation to bid as to weight and method of evaluation so that the evaluation may be determined with reasonable mathematical certainty. Criteria which are otherwise subjective such as taste and appearance may be established when appropriate.
[(14)] "Person" shall mean any business, individual, union, committee, club, or other organization or group of individuals.
[(15)] "Procurement" shall mean the purchasing, buying, renting, leasing, or otherwise obtaining any supplies, services, or construction. It also includes all functions that pertain to the obtaining of any public procurement, including description of requirements, selection, and solicitation of sources, preparation and award of contract, and all phases of contract administration.