FINAL BILL REPORT

                 SHB 2664

                         C 257 L 96

                     Synopsis as Enacted

Brief Description:  Authorizing municipalities to utilize competitive negotiations in the acquisition of electronic data processing or telecommunication systems.

Sponsors:  By House Committee on Government Operations (originally sponsored by Representatives Hargrove, Sheahan, Reams, Cairnes, Hymes and Thompson).

House Committee on Government Operations

Senate Committee on Energy, Telecommunications & Utilities

Background:  Local government competitive bidding statutes do not specifically address the purchase of computer or telecommunication systems.  As a result, many local governments are unsure whether other statutory exemptions from competitive bidding, such as the purchase of special services, apply to these purchases.  Many municipalities purchase these systems through competitive negotiations, but there are no statutory guidelines for how these competitive negotiations are to be conducted.

Summary:  Municipalities may acquire electronic data processing or telecommunication equipment, software, or services either through competitive negotiation or competitive bidding.

If competitive negotiation is used, then a request for proposal must be prepared and submitted to an adequate number of qualified sources as determined by the municipality, to permit reasonable competition for the procurement. 

Notice of the request for proposal must be published in a newspaper of general circulation in the municipality at least 13 days before the last date upon which proposals will be received.  The request for proposal must identify significant evaluation factors, including price, and their relative importance.

The municipality must provide reasonable procedures for technical evaluation of the proposals received, identification of qualified sources, and selection for awarding the contract.  The contract must be awarded to the qualified bidder whose proposal is most advantageous to the municipality, with price and other factors considered.  The municipality may reject any and all proposals for good cause and request new proposals.

Votes on Final Passage:

House     97 0

Senate    47 0

Effective:  June 6, 1996