Washington State House of Representatives Office of Program Research	BILL ANALYSIS
State Government Committee

HB 2597

Brief Description:  Allowing governmental entities that award publicly funded contracts to select contractors using the lowest responsible bidder method.

Sponsors:  Representatives Conway, Wood and McIntire.

Brief Summary of Bill

$Allows state and local government agencies to use the lowest responsible bidder method in awarding contracts for public works projects.

Hearing Date:  1/31/02

Staff:  Catherine Blinn (786‑7114).

Background:

Public works projects include the construction, building, renovation, remodeling, alteration, repair, or improvement of real property.  The process for public works contracting varies based on the size of the government entity and the size of the contract.

Very low cost projects may be completed by in‑house labor or by contract without a bid process.  Contracts of a low estimated cost may be awarded using a limited public works process for contracts under $35,000, or using a small works roster process for contracts under $200,000.  Contracts of a medium estimated cost, over $200,000, are awarded to the lowest bidder following publication of the call for bids and a formal sealed bid process.  High cost contracts, over $12 million, may be awarded by authorized state agencies and local governments through one of the alternative public works contracting procedures, either the "design‑build" procedure or the "general contractor/construction manager (GCCM)" procedure.

Both alternative public works procedures require extensive preparation and evaluation of the bids, and require government entities to consider, among other factors, the ability of the professional personnel, a firm's past performance on similarly complex projects, a firm's ability to meet time and budget requirements, the scope of the work the firm proposes to perform itself and its ability to perform it, location, current and projected work loads of the firm, and the concept of the proposal.  Firms awarded a contract under the GCCM process may judge subcontractor eligibility by considering whether the financial resources of the subcontractor are adequate or can be adequately secured, history of successful completion of a contract of similar type and scope, the project management, whether the supervising personnel have experience on similar projects, the availability of such personnel for the project, the current and projected workload of the subcontractor, ability to accurately estimate the bid package, the eligibility to receive an award under applicable laws and regulations, and the ability to meet scheduling requirements.

When purchasing material, supplies, services, and equipment for state agencies through a formal sealed bid process, the Office of General Administation (GA) must usually award the contract to the lowest responsible bidder.  In determining "lowest responsible bidder", the GA must consider, in addition to price, the ability, capacity, and skill of the bidder to perform the contract or provide the service; the character, integrity, reputation, judgment, experience, and efficiency of the bidder; whether the bidder can perform the contract within the time specified; the quality of previous performance; and the bidder's previous and current compliance with relevant law.

Summary of Bill:

State and local governments may use the lowest responsible bidder method when awarding contracts for public works projects.  The government entity must examine all bids to determine which contractors are the lowest responsible bidder, and must make an affirmative determination of responsibility.

In determining lowest responsible bidder, the government entity must consider, in addition to price, the ability, capacity, and skill of the bidder to perform the contract or provide the service; the reputation and experience of the bidder; whether the bidder can perform the contract within the time specified; the quality of previous performance; and previous and current compliance with relevant law.  Government entities may create their own questionnaire, or may use a questionnaire created by the GA or by the Office of the Superintendent of Public Instruction to determine compliance with the responsible bidder requirement.

The apparent low bidder must supply the requested information within two business days of the bid opening.  Failing to timely submit the information, or providing materially false information, will render the bid non-responsible.  All information submitted is subject to public inspection.  Following a determination that the lowest bidder is not responsible, the bidder may withdraw the bid or request a hearing.  Both the government entity and the entity's contracting officer are immune from liability for deciding that a bidder is not responsible.

Rulemaking Authority:  No express authority.

Appropriation:  None.

Fiscal Note:  Not Requested.

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