AN ACT Relating to limited public works; amending RCW 39.04.155; and adding a new section to chapter 39.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 39.04 RCW to read as follows:

In addition to any other power or authority that an agency may have, an agency alone or in concert with another agency may award contracts for work, construction, alteration, repair, or improvement projects estimated to cost less than thirty-five thousand dollars using a limited public works process without advertising and competitive bidding. An agency using the limited public works process shall solicit electronic or written quotations from a minimum of three contractors included on the appropriate small works roster established under RCW 39.04.150 and shall award the contract to the lowest responsible bidder, even if only one quotation is received, or shall reject all quotations. After an award is made, the quotations shall be open to public inspection and available by electronic request. Unless the agency chooses to notify all contractors on the appropriate roster who are willing to perform work in the geographic area of the work, a contractor on the appropriate roster who is willing to perform work in that geographic area and who has been sent a notice of a project shall not be sent another notice of a project until all others on the appropriate roster who are willing to perform work in the geographic area have been sent notice of a project. An agency shall maintain a list each biennium of the contracts awarded under the limited public works process, including the name of the contractor, the amount of the contract, a brief description of the type of work performed, and the date it was awarded. For limited public works projects, an agency may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed pursuant to Title 82 RCW that may be due from the contractor for the limited public works project, however the agency shall have a right of recovery against the contractor for any payments made on the contractor's behalf.

(2) The breaking down of any public work or improvement into units or accomplishing any public work or improvement by phases for the purpose of avoiding the minimum dollar amount for bidding is contrary to public policy and is prohibited.

(3) As used in this section, the term "agency" means the department of general administration, the department of fish and wildlife, the department of natural resources, the department of transportation, and the state parks and recreation commission.

Sec. 2. RCW 39.04.155 and 1998 c 278 s 12 are each amended to read as follows:

(1) A municipality may use either the small works roster process as defined in subsection (2) of this section or an alternative small works roster process that is called the limited public works process as defined in subsection (3) of this section for work, construction, repair, alteration, or improvement projects.

(2)(a) This ((~~section~~)) subsection provides a uniform process to award contracts for public works projects by those municipalities that are authorized to use a small works roster in lieu of the requirements for formal sealed bidding. The state statutes governing a specific type of municipality shall establish the maximum dollar thresholds of the contracts that can be awarded under this process, and may include other matters concerning the small works roster process, for the municipality.

((~~(2)~~)) (b) Such municipalities may create a single general small works roster, or may create a small works roster for different categories of anticipated work. The small works roster or rosters shall consist of all responsible contractors who have requested to be on the list, and where required by law are properly licensed or registered to perform such work in this state. At least twice a year, the municipality shall publish in a newspaper of general circulation within the jurisdiction a notice of the existence of the roster or rosters and solicit the names of contractors for such roster or rosters.

The governing body of the municipality shall establish a procedure for securing ((~~telephone~~)) electronic or written quotations from the contractors on the general small works roster, or a specific small works roster for the appropriate category of work, to assure that a competitive price is established and to award contracts to the lowest responsible bidder, as defined in RCW 43.19.1911. Such invitations for quotations shall include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished. However, detailed plans and specifications need not be included in the invitation. This section does not eliminate other requirements for architectural or engineering approvals as to quality and compliance with building codes. Whenever possible at least five contractors shall be invited to submit bids. Once a contractor has been afforded an opportunity to submit a proposal, that contractor shall not be offered another opportunity until all other appropriate contractors on the small works roster have been afforded an opportunity to submit a proposal on a contract. Proposals may be invited from all appropriate contractors on the small works roster.

A contract awarded from a small works roster under this section need not be advertised.

Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by ((~~telephone~~)) electronic inquiry.

(3)(a) Work, construction, alteration, repair, or improvement projects estimated to cost less than thirty-five thousand dollars are limited public works exempt from the small works roster process and from the requirement that contracts be awarded after advertisement and competitive bid as provided in RCW 39.04.010. For limited public works projects, the municipality shall solicit electronic or written quotations from a minimum of three contractors on the appropriate small works roster and shall award the contract to the lowest responsible bidder, even if only one quotation is received, or reject all quotations. After an award is made, the quotations must be open to public inspection and available by electronic request. Unless the municipality chooses to notify all contractors on the appropriate roster, a contractor on the appropriate roster who has been sent a notice of a project shall not be sent another notice of a project until all others on the appropriate roster who are willing to perform work have been sent notice of a project. A municipality shall maintain a list each biennium of the contracts awarded under the limited public works process, including the name of the contractor, the amount of the contract, a brief description of the type of work performed, and the date it was awarded. For limited public works projects, a municipality may waive the payment and performance bond requirements of chapter 39.08 RCW and the retainage requirements of chapter 60.28 RCW, thereby assuming the liability for the contractor's nonpayment of laborers, mechanics, subcontractors, materialmen, suppliers, and taxes imposed pursuant to Title 82 RCW that may be due from the contractor for the limited public works project, however the agency shall have a right of recovery against the contractor for any payments made on the contractor's behalf.

(b) The breaking down of any public work or improvement into units or accomplishing any public work or improvement by phases for the purpose of avoiding the minimum dollar amount for bidding is contrary to public policy and is prohibited.