HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1642

Changing bidding for water-sewer districts           Public Hrg:  2/14/97

Brief Title

Reps. D. Sommers/Scott/Wolfe                          Staff Contact: B. Lynch

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7092

BACKGROUND:

Water-sewer district must follow certain procedures when awarding contracts for purchases or public works.  If a contract for the purchase of materials, supplies, or equipment has an estimated value of more than $10,000, it must be awarded by contract.  If the contract for purchases has an estimated value of $5,000 to less than $50,000, it may be awarded pursuant to either a small works roster process or formal competitive bidding.  If the contract for purchases has an estimated value of $50,000 or more, it must be awarded through a formal competitive bidding process involving sealed bids.

Water-sewer districts follow a similar process for awarding public works contracts.  A public works contract includes all the labor, materials, supplies, and equipment used on the project.  A water-sewer district must award all public works with an estimated value over $5,000 by contract.  If the estimated value of the contract for the public work is less than $50,000, a small works roster process may be used to award the contract.  If the estimated value of the contract for the public work is $50,000 or more, then formal competitive bidding procedures must be used.

The statutes do not establish a separate process for the purchase of labor.

SUMMARY:

A new process is created for the purchase of labor by a water-sewer district.  Any purchase of labor by a water-sewer district with an estimated cost over $10,000 must be done by contract.  If the estimated cost for the labor is from $10,000 to less than $50,000, the water-sewer district may use a small works roster process or formal competitive bidding to award the contract.  If the estimated cost for the labor is $50,000 or more, the contract must be awarded through formal competitive bidding procedures.

                                                     Continued

HB 1642 - Page 2

A water-sewer district may use the uniform process to award contracts for purchases when the contract has an estimated cost from $10,000 to less than $50,000.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.