NC S1213

Prohibits all state agencies and institutions from awarding "cost plus percentage of cost" contracts, defined as contracts where contractors receive payment for indeterminate costs plus a stated percentage or amount of profit based on those costs.

Requires state agencies and exempt institutions to submit all proposed statewide and agency term contracts exceeding $1,000,000 for supplies, materials, printing, equipment, and contractual services to the Attorney General for legal review to ensure proper form and enforceability.

Mandates inclusion of standard audit clauses in all state contracts allowing the State Auditor and internal auditors to review contractor records during contract term to verify accounts and data affecting fees and performance.

Establishes new powers and duties for the Secretary of Administration to monitor and enforce statewide term contracts, develop contract management procedures, work with the Attorney General on contract submission protocols, and implement quality management systems.

Applies requirements to 27 different state agencies and institutions including the Department of Transportation, Department of Correction, insurance commissioners, health plan boards, and university systems, with effective date of October 1, 2010.