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SUBSTITUTE
SENATE BILL 6328
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Passed
Legislature - 1992 Regular Session
State of Washington 52nd
Legislature 1992 Regular Session
Read first time 02/07/92.Changing bid procedures for public institutions of higher
education.
AN ACT
Relating to higher education purchasing; and reenacting and amending RCW
43.19.1906.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
43.19.1906 and 1987 c 81 s 1 and 1987 c 70 s 2 are each reenacted and amended
to read as follows:
Insofar
as practicable, all purchases and sales shall be based on competitive bids, and
a formal sealed bid procedure shall be used as standard procedure for all
purchases and contracts for purchases and sales executed by the state
purchasing and material control director and under the powers granted by RCW 43.19.190
through 43.19.1939, as now or hereafter amended. This requirement also applies
to purchases and contracts for purchases and sales executed by agencies,
including educational institutions, under delegated authority granted in
accordance with provisions of RCW 43.19.190 as now or hereafter amended.
However, formal sealed bidding is not necessary for:
(1)
Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding
procedure would prevent or hinder the emergency from being met appropriately;
(2)
Purchases not exceeding five thousand dollars, or subsequent limits as
calculated by the office of financial management: PROVIDED, That the state
director of general administration shall establish procedures to assure that
purchases made by or on behalf of the various state agencies shall not be made
so as to avoid the five thousand dollar bid limitation, or subsequent bid
limitations as calculated by the office of financial management: PROVIDED
FURTHER, That the state purchasing and material control director is authorized
to reduce the formal sealed bid limits of five thousand dollars, or subsequent
limits as calculated by the office of financial management, to a lower dollar
amount for purchases by individual state agencies, including purchases of
specialized equipment, instructional, and research equipment and materials by
colleges and universities, if considered necessary to maintain full disclosure
of competitive procurement or otherwise to achieve overall state efficiency and
economy in purchasing and material control. Quotations from four hundred
dollars to five thousand dollars, or subsequent limits as calculated by the
office of financial management, shall be secured from enough vendors to assure
establishment of a competitive price and may be obtained by telephone or
written quotations, or both. Immediately after the award is made, the bid
quotations obtained shall be recorded and open to public inspection and shall
be available by telephone inquiry. A record of competition for all such
purchases from four hundred dollars to five thousand dollars, or subsequent
limits as calculated by the office of financial management, shall be documented
for audit purposes on a standard state form approved by the forms management
center under the provisions of RCW 43.19.510. Purchases up to four hundred
dollars may be made without competitive bids based on buyer experience and
knowledge of the market in achieving maximum quality at minimum cost:
PROVIDED, That this four hundred dollar direct buy limit without competitive
bids may be increased incrementally as required to a maximum of eight hundred
dollars with the approval of at least ten of the members of the state supply
management advisory board, if warranted by increases in purchasing costs due to
inflationary trends;
(3)
Purchases which are clearly and legitimately limited to a single source of
supply and purchases involving special facilities, services, or market
conditions, in which instances the purchase price may be best established by
direct negotiation;
(4)
Purchases of insurance and bonds by the risk management office under RCW
43.19.1935 as now or hereafter amended;
(5)
Purchases and contracts for vocational rehabilitation clients of the department
of social and health services: PROVIDED, That this exemption is effective only
when the state purchasing and material control director, after consultation
with the director of the division of vocational rehabilitation and appropriate
department of social and health services procurement personnel, declares that
such purchases may be best executed through direct negotiation with one or more
suppliers in order to expeditiously meet the special needs of the state's
vocational rehabilitation clients;
(6)
Purchases by universities for hospital operation or biomedical teaching or
research purposes and by the state purchasing and material control director, as
the agent for state hospitals as defined in RCW 72.23.010, and for health care
programs provided in state correctional institutions as defined in RCW
72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and
72.36.070, made by participating in contracts for materials, supplies, and
equipment entered into by cooperative hospital service organizations as defined
in section 501(e) of the Internal Revenue Code, or its successor; ((and))
(7) Purchases
by institutions of higher education not exceeding fifteen thousand dollars that
are funded by research grant or contract funds, or other nonstate appropriated
funds: PROVIDED, That for purchases between two thousand five hundred dollars
and fifteen thousand dollars quotations shall be secured from enough vendors to
assure establishment of a competitive price and may be obtained by telephone or
written quotations, or both. A record of competition for all such purchases
made from two thousand five hundred to fifteen thousand dollars shall be
documented for audit purposes on a standard state form approved by the forms
management center under provisions of RCW 43.19.510; and
(8)
Beginning on July 1, 1989, and on July 1 of each succeeding odd-numbered year,
the five thousand dollar limit specified in subsection (2) of this section
shall be adjusted as follows: The office of financial management shall
calculate such limit by adjusting the previous biennium's limit by the
appropriate federal inflationary index reflecting the rate of inflation for the
previous biennium. Such amounts shall be rounded to the nearest one hundred
dollars.
