Section 164. Exemptions

Services and commodities such as are incident to
  the performance of a contract for  labor  and  material  and  which  are
  subject  to the jurisdiction of the public service commission or subject
  to the jurisdiction of another similar entity shall be exempt  from  the
  provisions of this article with respect to purchasing and contracting so
  long as no competition exists for the particular service required by the
  state agency.