Oregon Revised Statutes

Or. Rev. Stat. § 279.850 (2026)

Procurement of product or service; agreements for procurement; exceptions; preferences

✓ current as of May 2026
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      279.850 Procurement of product or service; agreements for procurement; exceptions; preferences. (1)(a) Except as provided in paragraph (b) of this subsection and subject to paragraph (c) of this subsection, a public agency that intends to procure a product or service on the procurement list that the Oregon Department of Administrative Services established under ORS 279.845 shall, in accordance with the department’s rules, procure the product or service at the price the department establishes from a qualified nonprofit agency for individuals with disabilities, provided that the product or service is of the appropriate specifications and is available within the period the public agency requires.

      (b) A public agency may procure a product or service that is on the procurement list described in paragraph (a) of this subsection from a person other than a qualified nonprofit agency for individuals with disabilities if:

      (A) All of the qualified nonprofit agencies for individuals with disabilities on the procurement list that applies to the public agency have a record in the previous three years of repeatedly violating, or are not now in compliance with, applicable local ordinances or resolutions that govern labor standards; and

      (B) The person, for a period of 90 days after the person enters into an agreement with the public agency, offers to employ the employees of a qualified nonprofit agency for individuals with disabilities from which the public agency would have procured the product or service but for the failure of the qualified nonprofit agency for individuals with disabilities to comply with an applicable local ordinance or resolution that governs labor standards.

      (c) If a public agency may choose to procure a product or service from more than one qualified nonprofit agency for individuals with disabilities, the public agency may give a preference to the qualified nonprofit agency for individuals with disabilities that best demonstrates that the qualified nonprofit agency for individuals with disabilities:

      (A) Complies with all applicable local ordinances and resolutions that govern labor standards; and

      (B) Provides wages, health care benefits, alternative dispute resolution services and pension or other retirement arrangements that, in the aggregate, are better than the average package of wages, health care benefits, alternative dispute resolution services and pension or other retirement arrangements that private employers provide to employees that perform the same or similar job duties:

      (i) In the same industry in which the qualified nonprofit agency for individuals with disabilities engages; and

      (ii) In the county in which the qualified nonprofit agency for individuals with disabilities will deliver the product or perform the service.

      (2)(a) A public agency may require in any agreement with a qualified nonprofit agency for individuals with disabilities under ORS 279.835 to 279.855 that the qualified nonprofit agency for individuals with disabilities comply with applicable local ordinances or resolutions that govern labor standards.

      (b) A public agency may disqualify a qualified nonprofit agency for individuals with disabilities from entering into an agreement with the public agency under ORS 279.835 to 279.855 for a period of three years if the public agency:

      (A) Determines that the qualified nonprofit agency for individuals with disabilities repeatedly violated local ordinances or resolutions that govern labor standards during the term of an agreement with the public agency under ORS 279.835 to 279.855; or

      (B) Finds that the qualified nonprofit agency for individuals with disabilities has a record in the previous three years of repeatedly violating applicable local ordinances or resolutions that govern labor standards.

      (3) In furthering the purposes of ORS 279.835 to 279.855, 279A.025 (4) and 279C.335, the Legislative Assembly intends that the department, public agencies and qualified nonprofit agencies for individuals with disabilities cooperate closely. The department on behalf of public agencies and qualified nonprofit agencies for individuals with disabilities may enter into contractual agreements, cooperative working relationships or other arrangements that are necessary to effectively coordinate and efficiently realize the objectives of ORS 279.835 to 279.855, 279A.025 (4) and 279C.335 and any other law that governs a procurement of products or services. [1977 c.304 §5; 1989 c.224 §45; 2003 c.794 §229e; 2007 c.70 §65; 2015 c.526 §3]

Notes of Decisions
Cited in 9 cases (3 in the last 5 years), 2006–2025 · leading case: Depaul Indus. v. Benjamin Miller, 14 F.4th 1021 (9th Cir. 2021).
Depaul Indus. v. Benjamin Miller, 14 F.4th 1021 (9th Cir. 2021). “Or. Rev. Stat. § 279.850 (1)(a). Various Oregon regulations expand on the statute, for example, by preventing agencies from “develop[ing] specifications that inhibit or tend to discourage” contracting with QRF providers, Or.”
Indep. Contractors Rsch. Inst. v. Dep't of Admin. Servs., 139 P.3d 995 (Or. Ct. App. 2006). · cites it 2× “ORS 279.850(1). In 1981, DAS promulgated a “temporary” rule to administer the program created by the PDIA.”
BWK, Inc. v. Dep't of Admin. Servs., 218 P.3d 156 (Or. Ct. App. 2009). · cites it 2× “ORS 279.850(1). In 2001, petitioner filed an action in Marion County Circuit Court to challenge DAS’s renewal of its previous QRF contract with Garten for mail presorting services.”
State Ex Rel. Portland Habilitation Ctr., Inc. v. Portland State Univ., 292 P.3d 537 (Or. 2012). · cites it 2× “In November 2009, plaintiff filed a petition for an alternative writ of mandamus in the circuit court, contending that defendant had violated its statutory obligation under ORS 279.850 by procuring services through a nonqualifying company.”
Depaul Indus. v. City of Portland (D. Or. 2022). · cites it 10× “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
Servs. Employees Int'l v. Portland Habilitation Ctr., Inc., 173 P.3d 1268 (Or. Ct. App. 2007). “015(b) (2003), repealed by Or Laws 2003, ch 794, § 332; ORS 279.850. In response to the request for proposals, at least two QRFs, Tualatin Valley Workshop and defendant, submitted proposals to the district.”
Nw. Success, Inc. v. City of Portland (D. Or. 2025). · cites it 7× “The Ninth Circuit in ASPA noted that markets “run by or affiliated with a governmental entity” may not be private markets and emphasized the “inherently competitive and commercial nature of airport operations” in holding that the City of Los Angeles was acting like a private…”
DePaul Indus. v. City of Eugene (D. Or. 2020). · cites it 6× “850(1)(a) provides that, subject to certain exceptions, all public agencies shall purchase goods and services from QRFs when the product or service is listed on a QRF Procurement List and meets the agency’s procurement requirements. Public agencies must purchase QRF goods and…”
DePaul Indus. v. City of Eugene (D. Or. 2020). · cites it 2× “Defendants first argue that this Court lacks jurisdiction over these claims. Defs.”
— Or. Rev. Stat. § 279.850(1) — 3 cases
BWK, Inc. v. Dep't of Admin. Servs., 218 P.3d 156 (Or. Ct. App. 2009). “ORS 279.850(1). In 2001, petitioner filed an action in Marion County Circuit Court to challenge DAS’s renewal of its previous QRF contract with Garten for mail presorting services.”
Indep. Contractors Rsch. Inst. v. Dep't of Admin. Servs., 139 P.3d 995 (Or. Ct. App. 2006). “ORS 279.850(1). In 1981, DAS promulgated a “temporary” rule to administer the program created by the PDIA.”
State Ex Rel. Portland Habilitation Ctr., Inc. v. Portland State Univ., 292 P.3d 537 (Or. 2012). “In November 2009, plaintiff filed a petition for an alternative writ of mandamus in the circuit court, contending that defendant had violated its statutory obligation under ORS 279.850 by procuring services through a nonqualifying company.”
— Or. Rev. Stat. § 279.850(1)(B)(a) — 1 case
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
— Or. Rev. Stat. § 279.850(1)(a) — 3 cases
DePaul Indus. v. City of Eugene (D. Or. 2020). “850(1)(a) provides that, subject to certain exceptions, all public agencies shall purchase goods and services from QRFs when the product or service is listed on a QRF Procurement List and meets the agency’s procurement requirements. Public agencies must purchase QRF goods and…”
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
Nw. Success, Inc. v. City of Portland (D. Or. 2025). “The Ninth Circuit in ASPA noted that markets “run by or affiliated with a governmental entity” may not be private markets and emphasized the “inherently competitive and commercial nature of airport operations” in holding that the City of Los Angeles was acting like a private…”
— Or. Rev. Stat. § 279.850(1)(b) — 1 case
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
— Or. Rev. Stat. § 279.850(1)(b)(A) — 2 cases
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
Nw. Success, Inc. v. City of Portland (D. Or. 2025). “The Ninth Circuit in ASPA noted that markets “run by or affiliated with a governmental entity” may not be private markets and emphasized the “inherently competitive and commercial nature of airport operations” in holding that the City of Los Angeles was acting like a private…”
— Or. Rev. Stat. § 279.850(2) — 2 cases
Indep. Contractors Rsch. Inst. v. Dep't of Admin. Servs., 139 P.3d 995 (Or. Ct. App. 2006). “ORS 279.850(1). In 1981, DAS promulgated a “temporary” rule to administer the program created by the PDIA.”
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
— Or. Rev. Stat. § 279.850(2)(a) — 2 cases
Depaul Indus. v. City of Portland (D. Or. 2022). “” For the purpose of ORS 279.850, local ordinances or resolutions that govern labor standards means “ordinances or resolutions, duly adopted by a local government body .”
Nw. Success, Inc. v. City of Portland (D. Or. 2025). “The Ninth Circuit in ASPA noted that markets “run by or affiliated with a governmental entity” may not be private markets and emphasized the “inherently competitive and commercial nature of airport operations” in holding that the City of Los Angeles was acting like a private…”
— Or. Rev. Stat. § 279.850(3) — 2 cases
DePaul Indus. v. City of Eugene (D. Or. 2020). “850(1)(a) provides that, subject to certain exceptions, all public agencies shall purchase goods and services from QRFs when the product or service is listed on a QRF Procurement List and meets the agency’s procurement requirements. Public agencies must purchase QRF goods and…”
Nw. Success, Inc. v. City of Portland (D. Or. 2025). “The Ninth Circuit in ASPA noted that markets “run by or affiliated with a governmental entity” may not be private markets and emphasized the “inherently competitive and commercial nature of airport operations” in holding that the City of Los Angeles was acting like a private…”
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