HOUSE BILL REPORT

ESSB 5180

As Amended by the House

BYSenate Committee on Governmental Operations (originally sponsored by Senators Rinehart, Saling and Stratton)

Raising the maximum dollar amount that may be spent for state purchases without competitive bidding.

House Committe on State Government

Majority Report:  Do pass with amendments.  (6)

      Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Chandler, Hankins, O'Brien and Walk.

Minority Report:  Without recommendation.  (2)

      Signed by Representatives Baugher and Sayan.

House Staff:Pam Madson (786-7135)

AS PASSED HOUSE APRIL 2, 1987

BACKGROUND:

All state agencies, except educational institutions in some instances, must use competitive sealed bidding procedures for purchases exceeding $2,500.  Universities and colleges need not use such procedures when purchasing up to $5,000 of equipment and materials used for research.  Quotations from $400 to $2,500 or $5,000 (whichever is applicable) are required from enough vendors to assure a competitive price on purchases not subject to competitive sealed bidding procedures.

Purchases by universities for hospital operations, irrespective of cost, are exempt from formal bidding procedures when contracts with cooperative hospital service organizations are involved.

SUMMARY:

The cost of purchases below which most state entities are exempt from sealed bidding procedures is raised from $2,500 to $5,000.  Quotations to assure competitive prices are required for purchases from $400 to $5,000.  These quotations may be obtained by telephone or by written quotation and must be recorded and open to public inspection.  This $5,000 exemption limit must be adjusted for inflation biennially by the Office of Financial Management.

Purchases by universities for biomedical teaching or research are included in those purchases exempt from formal bidding procedures when contracts with cooperative hospital service organizations are involved.

Fiscal Note:      No Impact.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.