FINAL BILL REPORT

                 ESHB 1093

                         C 4 L 95 E1

                     Synopsis as Enacted

Brief Description:  Revising bidding procedures for public agencies.

Sponsors:  House Committee on Transportation (originally sponsored by Representatives K. Schmidt, Johnson, Romero and Wolfe; by request of Department of General Administration).

House Committee on Transportation

Senate Committee on Government Operations

Background:  The 1994 Legislature directed the departments of Transportation (DOT) and General Administration (GA) and the Office of Financial Management (OFM), in consultation with the Legislative Transportation Committee, to review GA, Office of State Procurement's acquisition authorities and determine the impact on the operation of Washington State Ferries (WSF) as a public mass transportation system. The multi-agency review resulted in a series of recommendations on procurement methods and statutory changes that are responsive to the needs of WSF and that streamline the procurement process for all state agencies.  The study results and proposed legislation were reported to the LTC in December 1994.

The major focus of legislation introduced in the 1995 legislative session was on giving GA clear authority to use, in addition to the traditional competitive bid process (Invitation for Bid or IFB) which selects bidders solely on the basis of the lowest cost, a Request for Proposal (RFP) process that takes into consideration criteria, other than cost, in evaluating and selecting contracts for technologically complex procurements (such as propulsion systems for ferry vessels).

Concern regarding expansion of the RFP process to all state agencies, led to a compromise bill that addresses only the procurement needs of WSF.

Summary:  The DOT is required to procure materials, supplies, services and equipment for ferries and terminals in accordance with the state competitive bid law using an Invitation for Bid (IFB) unless the secretary of the DOT determines in writing that use of the IFB is not practicable or advantageous to the state.  DOT may then pursue purchases for WSF using the RFP process.

The RFP solicitation must include a functional description of the needs and requirements of WSF for the item procured. The DOT is prohibited from using evaluation criteria not specified in the RFP.  The contract is awarded to the bidder whose sealed bid is determined by the DOT to be the most advantageous to the state, taking into consideration price, and other evaluation factors set forth in the RFP.

If life cycle cost analysis is used (the total cost of an item over its estimated useful life, including costs of selection, acquisition, operation, maintenance and, where applicable, disposal), it must be given the same relative importance as the price of an item specified in the RFP.

DOT is authorized to extend ferry concession contracts from five to 10 years and may use either an IFB or RFP process in selecting such contracts.

The law establishing the existing RFP process used to procure ferry passenger-only vessels is repealed.

Votes on Final Passage:

House     97 0

First Special Session

House     89 0

Senate    30 17

Effective:  June 14, 1995