(a) Unless an exemption is approved by the State Procurement Director in writing, a state agency that requires commodities or services that are under a mandatory state contract shall procure these commodities and services exclusively under the mandatory state contract. Except in the case of emergency procurements, as defined in Ark. Code Ann. § 19--11--204(4) and as provided in Ark. Code Ann. § 19--11--233, the director may only approve an exemption from a mandatory state contract awarded under this section if the state agency demonstrates that substantial savings will likely be effected by purchasing outside of the mandatory state contract.

(b) “Substantial savings” are the lesser of: (1) savings of five percent (5%) or more when compared against purchasing from the mandatory state contract; or (2) ten thousand dollars ($10,000) or more when compared against purchasing from the mandatory state contract.