SENATE BILL REPORT

                           ESHB 2815

      AS REPORTED BY COMMITTEE ON GOVERNMENT OPERATIONS,

                       FEBRUARY 25, 1994

Brief Description:  Reforming state procurement practices.

SPONSORS: House Committee on State Government (originally sponsored by Representatives Anderson, Veloria, Caver, Wolfe, Romero, Reams, Bray, Ballard, Pruitt, Jones and Quall; by request of Department of General Administration)

HOUSE COMMITTEE ON STATE GOVERNMENT

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  Do pass as amended. 

     Signed by Senators Haugen, Chairman; Drew, Vice Chairman; Loveland and Winsley.

Staff:  Diane Smith (786‑7410)

Hearing Dates:  February 25, 1994

BACKGROUND:

Formal sealed bid procedures are not required for state procurement contract purchases of $5,000 or less.  The Office of Financial Management is authorized to adjust that limit to reflect changes in the Consumer Price Index.  The limit is currently at $6,000.  For purchases of $400 to $6,000, agencies are required to secure enough quotations to ensure a competitive price.  Quotations may be obtained by telephone as well as in writing.  Purchases made up to $400 may be made without competitive bids.

For institutions of higher education, the sealed bid limit is currently $15,000.  For purchases between $2,500 and $15,000, institutions are required to secure enough quotations to secure a competitive price, and a record of competition must be documented.

Under current law, agency solicitation of bids must be by mail or in person.  The electronic solicitation of bids is not authorized.

SUMMARY:

Formal sealed bidding is not necessary for state agency purchases of up to $15,000.  Quotations from enough vendors to assure a competitive price will be obtained for purchases from $400 to $15,000. 

Agencies and institutions of higher education are required to invite at least one quotation each from a certified minority and a certified women-owned contractor.  Bids may be solicited by electronic transmission.

SUMMARY OF PROPOSED COMMITTEE AMENDMENT:

Formal sealed bidding is not necessary for state agency purchases of up to $100,000.  Quotations from at least three vendors will be obtained for purchases from $400 to $100,000.

Agencies and institutions of higher education are required to invite at least one quotation each from a certified minority and a certified women-owned vendor.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

TESTIMONY FOR:

This bill streamlines state procurement and provides for money saving efficiencies without compromising the competitive process.

TESTIMONY AGAINST:  None

TESTIFIED:  Jim Medina, Milly La Palm, OMWBE (pro); John Franklin, GA (pro)