HB 1830 -
By Committee on Economic Development, Trade & Innovation
Strike everything after the enacting clause and insert the following:
"Sec. 1 RCW 39.04.010 and 2008 c 130 s 16 are each amended to
read as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Award" means the formal decision by the state or municipality
notifying a responsible bidder with the lowest responsive bid of the
state's or municipality's acceptance of the bid and intent to enter
into a contract with the bidder.
(2) "Contract" means a contract in writing for the execution of
public work for a fixed or determinable amount duly awarded after
advertisement and competitive bid, or a contract awarded under the
small works roster process in RCW 39.04.155.
(3) "Microbusiness" means any business entity, including a sole
proprietorship, corporation, partnership, or other legal entity, that:
(a) Is owned and operated independent from all other businesses; and
(b) has a gross revenue of less than one million dollars annually as
reported on its federal tax return or on its return filed with the
department of revenue.
(4) "Minibusiness" means any business entity, including a sole
proprietorship, corporation, partnership, or other legal entity, that:
(a) Is owned and operated independent from all other businesses; and
(b) has a gross revenue of less than three million dollars, but more
than one million dollars annually as reported on its federal tax return
or on its return filed with the department of revenue.
(5) "Municipality" means every city, county, town, port district,
district, or other public agency authorized by law to require the
execution of public work, except drainage districts, diking districts,
diking and drainage improvement districts, drainage improvement
districts, diking improvement districts, consolidated diking and
drainage improvement districts, consolidated drainage improvement
districts, consolidated diking improvement districts, irrigation
districts, or other districts authorized by law for the reclamation or
development of waste or undeveloped lands.
(((4))) (6) "Public work" means all work, construction, alteration,
repair, or improvement other than ordinary maintenance, executed at the
cost of the state or of any municipality, or which is by law a lien or
charge on any property therein. All public works, including
maintenance when performed by contract shall comply with chapter 39.12
RCW. "Public work" does not include work, construction, alteration,
repair, or improvement performed under contracts entered into under RCW
36.102.060(4) or under development agreements entered into under RCW
36.102.060(7) or leases entered into under RCW 36.102.060(8).
(((5))) (7) "Responsible bidder" means a contractor who meets the
criteria in RCW 39.04.350.
(((6))) (8) "Small business" has the same meaning as defined in RCW
39.29.006(11).
(9) "State" means the state of Washington and all departments,
supervisors, commissioners, and agencies of the state.
Sec. 2 RCW 39.04.155 and 2009 c 74 s 1 are each amended to read
as follows:
(1) This section provides uniform small works roster provisions to
award contracts for construction, building, renovation, remodeling,
alteration, repair, or improvement of real property that may be used by
state agencies and by any local government that is expressly authorized
to use these provisions. These provisions may be used in lieu of other
procedures to award contracts for such work with an estimated cost of
three hundred thousand dollars or less. The small works roster process
includes the limited public works process authorized under subsection
(3) of this section and any local government authorized to award
contracts using the small works roster process under this section may
award contracts using the limited public works process under subsection
(3) of this section.
(2)(a) A state agency or authorized local government may create a
single general small works roster, or may create a small works roster
for different specialties or categories of anticipated work. Where
applicable, small works rosters may make distinctions between
contractors based upon different geographic areas served by the
contractor. 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. A state agency or local government establishing a
small works roster or rosters may require eligible contractors desiring
to be placed on a roster or rosters to keep current records of any
applicable licenses, certifications, registrations, bonding, insurance,
or other appropriate matters on file with the state agency or local
government as a condition of being placed on a roster or rosters. At
least once a year, the state agency or local government 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. In addition, responsible
contractors shall be added to an appropriate roster or rosters at any
time they submit a written request and necessary records. Master
contracts may be required to be signed that become effective when a
specific award is made using a small works roster.
(b) A state agency establishing a small works roster or rosters
shall adopt rules implementing this subsection. A local government
establishing a small works roster or rosters shall adopt an ordinance
or resolution implementing this subsection. Procedures included in
rules adopted by the department of general administration in
implementing this subsection must be included in any rules providing
for a small works roster or rosters that is adopted by another state
agency, if the authority for that state agency to engage in these
activities has been delegated to it by the department of general
administration under chapter 43.19 RCW. An interlocal contract or
agreement between two or more state agencies or local governments
establishing a small works roster or rosters to be used by the parties
to the agreement or contract must clearly identify the lead entity that
is responsible for implementing the provisions of this subsection.
(c) Procedures shall be established for securing telephone,
written, or electronic quotations from contractors on the appropriate
small works roster to assure that a competitive price is established
and to award contracts to the lowest responsible bidder, as defined in
RCW 39.04.010. 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 subsection
does not eliminate other requirements for architectural or engineering
approvals as to quality and compliance with building codes. Quotations
may be invited from all appropriate contractors on the appropriate
small works roster. As an alternative, quotations may be invited from
at least five contractors on the appropriate small works roster who
have indicated the capability of performing the kind of work being
contracted, in a manner that will equitably distribute the opportunity
among the contractors on the appropriate roster. However, if the
estimated cost of the work is from one hundred fifty thousand dollars
to three hundred thousand dollars, a state agency or local government
that chooses to solicit bids from less than all the appropriate
contractors on the appropriate small works roster must also notify the
remaining contractors on the appropriate small works roster that
quotations on the work are being sought. The government has the sole
option of determining whether this notice to the remaining contractors
is made by: (i) Publishing notice in a legal newspaper in general
circulation in the area where the work is to be done; (ii) mailing a
notice to these contractors; or (iii) sending a notice to these
contractors by facsimile or other electronic means. For purposes of
this subsection (2)(c), "equitably distribute" means that a state
agency or local government soliciting bids may not favor certain
contractors on the appropriate small works roster over other
contractors on the appropriate small works roster who perform similar
services.
(d) A contract awarded from a small works roster under this section
need not be advertised.
(e) Immediately after an award is made, the bid quotations obtained
shall be recorded, open to public inspection, and available by
telephone inquiry.
(3) In lieu of awarding contracts under subsection (2) of this
section, a state agency or authorized local government may award a
contract for work, construction, alteration, repair, or improvement
projects estimated to cost less than thirty-five thousand dollars using
the limited public works process provided under this subsection.
Public works projects awarded under this subsection are exempt from the
other requirements of the small works roster process provided under
subsection (2) of this section and are exempt from the requirement that
contracts be awarded after advertisement as provided under RCW
39.04.010.
For limited public works projects, a state agency or authorized
local government shall solicit electronic or written quotations from a
minimum of three contractors from the appropriate small works roster
and shall award the contract to the lowest responsible bidder as
defined under RCW 39.04.010. After an award is made, the quotations
shall be open to public inspection and available by electronic request.
A state agency or authorized local government shall attempt to
distribute opportunities for limited public works projects equitably
among contractors willing to perform in the geographic area of the
work. A state agency or authorized local government shall maintain a
list of the contractors contacted and the contracts awarded during the
previous twenty-four months under the limited public works process,
including the name of the contractor, the contractor's registration
number, the amount of the contract, a brief description of the type of
work performed, and the date the contract was awarded. For limited
public works projects, a state agency or authorized local government
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, materialpersons, suppliers, and taxes
imposed under Title 82 RCW that may be due from the contractor for the
limited public works project, however the state agency or authorized
local government shall have the right of recovery against the
contractor for any payments made on the contractor's behalf.
(4) The breaking of any project into units or accomplishing any
projects by phases is prohibited if it is done for the purpose of
avoiding the maximum dollar amount of a contract that may be let using
the small works roster process or limited public works process.
(5)(a) A state agency or authorized local government may use the
limited public works process of subsection (3) of this section to
solicit and award small works roster contracts to all responsible
contractors who have requested to be on the roster or rosters,
including small businesses ((that are registered contractors with gross
revenues under one million dollars annually as reported on their
federal tax return)), minibusinesses, and microbusinesses.
(b) A state agency or authorized local government may adopt
additional procedures to encourage small businesses that are registered
contractors with gross revenues under two hundred fifty thousand
dollars annually as reported on their federal tax returns to submit
quotations or bids on small works roster contracts.
(6) As used in this section, "state agency" means the department of
general administration, the state parks and recreation commission, the
department of natural resources, the department of fish and wildlife,
the department of transportation, any institution of higher education
as defined under RCW 28B.10.016, and any other state agency delegated
authority by the department of general administration to engage in
construction, building, renovation, remodeling, alteration,
improvement, or repair activities."
HB 1830 -
By Committee on Economic Development, Trade & Innovation
On page 1, line 1 of the title, after "contracting;" strike the remainder of the title and insert "and amending RCW 39.04.010 and 39.04.155."