In general, public works contracts in Washington are subject to competitive bidding. The exact process required can depend on the agency conducting the project and on the cost of the project. For more expensive projects, full competitive bidding may be required, while agencies may be able to utilize small public works rosters or a limited public works process for less expensive projects.
In some circumstances, however, projects are exempt from competitive bidding requirements altogether. One such exemption allows counties, cities, school districts, park districts, or port districts to contract with community service organizations for certain local improvement projects.
In order to qualify for this exemption, the community service organization must be a chamber of commerce, service organization, youth or sports association, or other similar association located in, and providing service to, its immediate neighborhood. The work must involve drawing design plans; making improvements to a park, school playground, public square, or port habitat site; installing equipment or art; or providing maintenance services as a community, neighborhood, or environmental stewardship project. The community service organization can use volunteers for the project, and can provide clothing, tools, meals, insurance coverage, and reimbursement of the volunteers' expenses. The local government can reimburse the community service organizations for its expenses, but the value of the work must be at least three times as much as the payment to the community service organization.
The yearly total payments made to community service organizations under this exemption cannot exceed the greater of $25,000 or $2 per resident in the local government's jurisdiction. The $25,000 limit is therefore applicable to a local government with fewer than 12,500 residents within its jurisdiction.
The total yearly payments made to community service organizations under the competitive bidding exemption for local government's contracting with community service organizations cannot exceed the greater of $75,000 or $2 per resident in the local government's jurisdiction. The $75,000 limit is therefore applicable to a local government with fewer than 37,500 residents within its jurisdiction.
The Senate amendment:
(In support) This bill is important for small rural districts and benefits small municipalities, park districts, and schools. Currently, there are outdated contract limits in statute for contracts with public service organizations that limit the annual contracts to $25,000 for smaller jurisdictions. Raising this limit to $75,000 a year would benefit these jurisdictions, which would see an increase, while larger jurisdictions would not. The limit applies to the annual total, not to the amount allowed per project. The current limit is too low to provide adequate quality services with the rise in material costs and the impacts of the pandemic. A project just to work on a t-ball infield would cost $26,000. This change would give smaller districts relief and provide inflationary adjustments. This would allow local governments to work with volunteers to improve and invest in communities. When local governments receive assistance from youth organizations, they should be able to appropriately reimburse them. This bill would support enhancing public spaces in small communities.
(Opposed) None.