1093-S AMS GO S3035.1

 

 

 

SHB 1093 - S COMM AMD

By Committee on Government Operations

 

                                                                   

 

    Strike everything after the enacting clause and insert the following:

 

    "Sec. 1.  RCW 43.19.1906 and 1994 c 300 s 1 are each 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.  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 or under RCW 28B.10.029.  However,)) contracts for purchases of materials, supplies, equipment, and services executed by the state purchasing and material control director under the powers granted by RCW 43.19.190 through 43.19.1939 shall be made by a competitive sealed bidding process and a formal sealed invitation for bid procedure except as otherwise provided in this section.  This requirement also applies to purchases and contracts for purchases and sales executed by agencies under any delegated authority granted in accordance with RCW 43.19.190, and to educational institutions under RCW 28B.10.029.

    A formal sealed invitation for bid shall include the specifications or purchase description for services or items to be procured and those bid evaluation factors and criteria described in RCW 43.19.1911(1) that will be used in determining the lowest responsible bidder.  All elements to be given consideration in determining the lowest responsible bidder shall be specified in the invitation for bid documents.  When specifying objective measurable criteria under this subsection, if the state has reason to believe that applying the life-cycle cost technique to the bid evaluation would result in lowest total cost to the state, consideration shall be given by the state to the bid with the lowest life-cycle cost which complies with specifications.  The bid with the lowest total cost to the state shall be considered the lowest price bid.  "Life-cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life.  The "estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner.  Nothing in this section prohibits any state agency, department, board, commission, committee, or other state-level entity from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

    A formal ((sealed bidding)) competitive process is not necessary for:

    (1) When the purchasing director determines in writing that the use of competitive sealed bidding is either not practicable or not advantageous to the state and it may be necessary to make competitive evaluations, including technical or performance evaluations among acceptable proposals to complete the contract award, a contract may be entered into by use of a competitive sealed proposals method, and a formal request for proposals solicitation.

    A formal request for proposals solicitation shall include a functional description of the needs and requirements of the state and the significant factors, including the relative importance of price to other factors and criteria described in RCW 43.19.1911(1) that will be considered in evaluating competitive sealed proposals.  All elements to be given consideration in evaluating proposals shall be specified in the request for proposal documents.  When specifying significant factors under this subsection, if the state has reason to believe that applying the life-cycle cost technique to the proposal would result in the lowest total cost to the state, the request for proposal shall state that consideration will be given by the state to the proposal with the lowest life-cycle cost that meets the criteria specified in the request for proposal.  The life-cycle cost of a proposal shall be given the same relative importance as the price element specified in the request for proposal documents.  "Life-cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life.  The "estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner.  Nothing in this section prohibits any state agency, department, board, commission, committee, or other state-level entity from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

    (2) Emergency purchases made ((pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately)) in response to unforeseen circumstances beyond the control of the agency that present a real, immediate, and extreme threat to the proper performance of essential functions or that may reasonably be expected to result in excessive loss or damage to property, bodily injury, or loss of life.  The purchase file shall contain a written description of the emergency and the circumstances leading up to the emergency and an explanation of why the circumstances required an emergency purchase;

    (((2))) (3) Purchases not exceeding the sealed bid limitation of thirty-five thousand dollars((,)) or subsequent limits ((as calculated by the office of financial management)) established pursuant to subsection (9) of this section:  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 ((thirty-five thousand dollar)) sealed 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 thirty-five thousand dollars, or subsequent limits as calculated by the office of financial management,)) limit to a lower dollar amount for purchases by individual state agencies 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)) one thousand five hundred dollars to thirty-five thousand dollars, or subsequent limits ((as calculated by the office of financial management)) established pursuant to subsection (9) of this section, shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both.  The agency shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work.  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)) one thousand five hundred dollars to thirty-five thousand dollars, or subsequent limits ((as calculated by the office of financial management)) established pursuant to subsection (9) of this section, shall be documented for audit purposes.  Purchases up to ((four)) one thousand five 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))) (4) 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))) (5) Purchases of insurance and bonds by the risk management office under RCW 43.19.1935;

    (((5))) (6) 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))) (7) 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 nonprofit cooperative hospital group purchasing organizations;

    (((7))) (8) Purchases by institutions of higher education not exceeding thirty-five thousand dollars or subsequent limits established pursuant to subsection (9) of this section:  PROVIDED, That for purchases between two thousand five hundred dollars and thirty-five thousand dollars or subsequent limits established pursuant to subsection (9) of this section quotations shall be secured from at least three vendors to assure establishment of a competitive price and may be obtained by telephone or written quotations, or both.  For purchases between two thousand five hundred dollars and thirty-five thousand dollars or subsequent limits established pursuant to subsection (9) of this section, each institution of higher education shall invite at least one quotation each from a certified minority and a certified women-owned vendor who shall otherwise qualify to perform such work.  A record of competition for all such purchases made from two thousand five hundred to thirty-five thousand dollars or subsequent limits established pursuant to subsection (9) of this section shall be documented for audit purposes; and

    (((8))) (9) Beginning on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows:  The office of financial management shall calculate such limits by adjusting the previous biennium's limits 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.

 

    Sec. 2.  RCW 43.19.1911 and 1989 c 431 s 60 are each amended to read as follows:

    (1) When purchases are made through ((competitive bidding)) a formal sealed invitation for bid procedure, the contract shall be ((let)) awarded to the lowest responsible bidder, subject to any preferences provided by law to and for Washington products and vendors ((and)) pursuant to RCW 43.19.704 or for recycled materials or products pursuant to chapter 43.19A RCW, and taking into consideration lowest total cost, the quality of the articles proposed to be supplied, their conformity with specifications, the purposes for which required, and the times of delivery:  PROVIDED, That the state may reject any and all bids.  Whenever ((there is reason to)) the state believes that the lowest ((acceptable)) responsible bid is not the best price obtainable, ((all bids may be rejected and)) the division of purchasing may call for new bids or enter into direct negotiations with the lowest responsible bidder to achieve the best possible price.  Each bid with the name of the bidder shall be entered of record and each record, with the successful bid indicated, shall, after ((letting)) notice of ((the)) contract award, be open to public inspection and shall be available by telephone inquiry.  In determining "lowest responsible bidder", in addition to price, the following elements shall be given consideration:

    (((1))) (a) The ability, capacity, and skill of the bidder to perform the contract or provide the service required;

    (((2))) (b) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

    (((3))) (c) Whether the bidder can perform the contract within the time specified;

    (((4))) (d) The quality of performance of previous contracts or services;

    (((5))) (e) The previous and existing compliance by the bidder with laws relating to the contract or services;

    (((6))) (f) Objective, measurable criteria defined in the invitation for bid.  These criteria may include but are not limited to items such as discounts, delivery costs, maintenance services costs, installation costs, and transportation costs; and

    (g) Such other information as may be secured having a bearing on the decision to award the contract((:  PROVIDED, That in considering bids for purchase, manufacture, or lease, and in determining the "lowest responsible bidder," whenever there is reason to believe that applying the "life cycle costing" technique to bid evaluation would result in lowest total cost to the state, first consideration shall be given by state purchasing activities to the bid with the lowest life cycle cost which complies with specifications.  "Life cycle cost" means the total cost of an item to the state over its estimated useful life, including costs of selection, acquisition, operation, maintenance, and where applicable, disposal, as far as these costs can reasonably be determined, minus the salvage value at the end of its estimated useful life.  The "estimated useful life" of an item means the estimated time from the date of acquisition to the date of replacement or disposal, determined in any reasonable manner.  Nothing in this section shall prohibit any state agency, department, board, commission, committee, or other state-level entity from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused)).

    (2) When purchases are made through a formal request for proposals solicitation the contract shall be awarded to the responsible offeror whose competitive sealed proposal is determined in writing to be the most advantageous to the state taking into consideration price and evaluation factors set forth in the request for proposals.  No significant factors may be used in evaluating a proposal that are not specified in the request for proposals.  Factors that may be considered in evaluating proposals include but are not limited to:  Maintainability, reliability, commonality, performance levels, life cycle cost if applicable under this section, public/private partnerships, research and development capability, technological superiority, cost of transportation or delivery, delivery schedule offered, installation cost, cost of spare parts, availability of parts and service offered, and the criteria listed in subsection (1) (a) through (g) of this section.  When purchases are made through a request for proposal process, proposals received shall be evaluated based on the evaluation factors set forth in the request for proposal.  The purchaser may reject any and all proposals received.  If the proposals are not rejected, the award shall be made to the proposer whose proposal is most advantageous to the purchaser, considering the evaluation factors set forth in the request for proposal.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 43.19 RCW to read as follows:

    The director of general administration may recover costs of purchasing and material control operations by charging an amount sufficient to cover the cost of purchasing and contracts administration.  Funds collected may not be used for any purpose other than cost recovery, and must be treated as a separate operating entity within the central stores revolving fund under RCW 43.19.1923.

 

    Sec. 4.  RCW 47.60.140 and 1987 c 69 s 1 are each amended to read as follows:

    (1) The department is empowered to operate such ferry system, including all operations, whether intrastate or international, upon any route or routes, and toll bridges as a revenue-producing and self-liquidating undertaking.  The department has full charge of the construction, rehabilitation, rebuilding, enlarging, improving, operation, and maintenance of the ferry system, including toll bridges, approaches, and roadways incidental thereto that may be authorized by the department, including the collection of tolls and other charges for the services and facilities of the undertaking.  The department has the exclusive right to enter into leases and contracts for use and occupancy by other parties of the concessions and space located on the ferries, wharves, docks, approaches, and landings, but, except as provided in subsection (2) of this section, no such leases or contracts may be entered into for more than ((five years, nor without public advertisement for bids as may be prescribed by the department.  However, except as provided in subsection (2) of this section, the Colman Dock facilities may be leased for a period not to exceed)) ten years, nor without a competitive contract process, except as otherwise provided in this section.  The competitive process shall be either an invitation for bids (IFB) or a request for proposals (RFP) process.  The department has the sole discretion to select the actual contract process used for any such contract.

    (2) As part of a joint development agreement under which a public or private developer constructs or installs improvements on ferry system property, the department may lease all or part of such property and improvements to such developers for that period of time, not to exceed fifty-five years, or not to exceed thirty years for those areas located within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on its initial investment.  Any lease entered into as provided for in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable statutory requirements as determined by the department of natural resources.  That portion of the lease rate attributable to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as provided in RCW 79.24.580.

 

    NEW SECTION.  Sec. 5.  The following acts or parts of acts are each repealed:

    (1) RCW 47.60.651 and 1987 c 183 s 1;

    (2) RCW 47.60.653 and 1987 c 183 s 2;

    (3) RCW 47.60.655 and 1987 c 183 s 3;

    (4) RCW 47.60.657 and 1987 c 183 s 4;

    (5) RCW 47.60.659 and 1987 c 183 s 5; and

    (6) RCW 47.60.661 and 1987 c 183 s 6."

 

 

 

SHB 1093 - S COMM AMD

By Committee on Government Operations

 

                                                                   

 

    On page 1, line 2 of the title, after "ferries;" strike the remainder of the title and insert "amending RCW 43.19.1906, 43.19.1911, and 47.60.140; adding a new section to chapter 43.19 RCW; and repealing RCW 47.60.651, 47.60.653, 47.60.655, 47.60.657, 47.60.659, and 47.60.661."

 


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