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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