HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1921

Bidding Procedures/State Agencies/Educ. Insts.       Public Hrg: 2/26/97

Brief Title

Reps. Honeyford/Smith/L. Thomas                     Staff Contact: S. Lundin

Sponsor                                     Comm. on Govt. Admin.

                                           Phone: 786-7127

BACKGROUND:

1.   Normal contracting procedures.

In general, state agencies and institutions of higher education make purchases using either a formal competitive bidding process or a less formal quotation process from vendors.  Exceptions are made to this general requirement, including for purchases of a value of less than $400.

In general, state agencies and institutions of higher education award contracts for public works using a formal competitive bidding process or a less formal small works roster process.  Exceptions are made to these general requirements, including for awarding contracts for public works of below a specified dollar amount.

2.Women and minority-owned and controlled businesses.

The office of women and minority businesses develops overall goals for the participation by qualified women and minority-owned and controlled businesses in contracts let by each state agency and institution of higher education, certifies businesses as being women or minority-owned and controlled businesses, and adopts standard contract clauses for the inclusion of women and minority-owned businesses.

Each state agency and institution of higher education is required to comply with the annual goals established for the agency or institution and to adopt a plan to insure that minority and women-owned and controlled businesses are afforded the maximum practicable opportunity to directly and meaningfully participate in the public contracts let by the agency or institution for public works and the purchase of goods and services.

If it is necessary for a state agency or institution of higher education to meet these goals, a contract may be let to the next lowest responsible bidder in turn or all bids may be rejected and new bids obtained.  An apparent low-bidder must be in compliance with contract provisions required developed by the office of women and minority-owned businesses.

                                                     Continued

HB 1921 - Page 2

SUMMARY:

The authority is eliminated for a state agency or institution of higher education to award a contract to a women or minority-owned and controlled business that is not the lowest responsible bidder.  Instead, a contract at the amount of the lowest bid may be offered to a women or minority-owned and controlled business.

Instead of the apparent low bidder being required to be in compliance with the contract provisions for women and minority-owned and controlled businesses, the next lowest bidder that is offered a contract must be in compliance with these contract provisions.

FISCAL NOTE:  Not Requested.

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