HOUSE BILL REPORT

                  HB 1808

             As Reported By House Committee On:

                  Government Administration

Title:  An act relating to public works projects for state agencies.

Brief Description:  Requiring public works projects over five thousand dollars for state agencies to be contracted by public notice and competitive bid or small works roster.

Sponsors:  Representatives D. Sommers, D. Schmidt, Sherstad and Dunn.

Brief History:

Committee Activity:

Government Administration:  2/28/97, 3/5/97 [DPS].

HOUSE COMMITTEE ON GOVERNMENT ADMINISTRATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 7 members:  Representatives D. Schmidt, Chairman; D. Sommers, Vice Chairman; Dunn; Reams; Smith; L. Thomas and Wensman.

Minority Report:  Do not pass.  Signed by 6 members:  Representatives Scott, Ranking Minority Member; Gardner, Assistant Ranking Minority Member; Doumit; Dunshee; Murray and Wolfe.

Staff:  Bill Lynch (786-7092).

Background:  Public works projects by institutions of higher education with an estimated value of $25,000 or more must be let by contract.  Projects with an estimated value of less than $25,000 may be awarded in any fashion, or may be done in-house.  If the estimated value of the project is less than $100,000 the contract may be awarded through a small works roster.  Projects with an estimated value of $100,000 or more must be let through formal competitive bidding procedures. 

State agencies may use a small works roster to award public works contracts with an estimated value of $100,000 or less.  If a public works project has an estimated value of more than $100,000, it must be awarded through a formal competitive bidding process.  Although the statutes provide a certain exception from competitive bidding and the small works roster process for contracts with an estimated value over $25,000, there is no express dollar threshold which specifies when state agencies must let public works projects by contract.

Summary of Substitute Bill:  Any public work by a state agency, other than the Department of Transportation or an institution of higher education, with an estimated cost in excess of $20,000 must be let by contract either through a small works roster or formal competitive bidding.  The public work includes the cost of materials, supplies, equipment, and labor.

Substitute Bill Compared to Original Bill:  The dollar threshold for when public works by state agencies must be done by contract is raised from $5,000 to $20,000.  The original bill did not exempt institutions of higher education or the Department of Transportation.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is an opportunity to reduce the size of government by letting more private sector businesses do the work in-house employees are performing.  Private contractors are paying taxes to support their competition.

Testimony Against:  This will raise the cost of projects because prevailing wage is higher than state employee wages.  Projects done in-house can be done much quicker than through the bidding process.  The current practice is to use in-house employees for small jobs.

Testified:  Representative Dave Schmidt, prime sponsor;  Larry Stevens, United Subcontractors Association; Dave Betschart, Betschart Electric; and Richard A. King, IBCW, 46.

(Concerns) Ron McQueen, Department of General Administration; Kathleen Nicols, University of Washington; and Bill Cahill, Washington Federation of State Employees;