Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

State Government & Tribal Affairs Committee

HB 1198

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Changing public works bid limits.

Sponsors: Representatives Haigh, Kristiansen, Hunt and Armstrong; by request of Capital Projects Advisory Review Board.

Brief Summary of Bill

  • Increases public works bid limits.

Hearing Date: 1/23/09

Staff: Marsha Reilly (786-7135)

Background:

Most public entities are required to use the open competitive bid process for public works projects estimated to cost above a certain dollar figure. Projects estimated to cost below the limits can be performed by in-house staff or contracted out without competitive bid. In most instances, the dollar figure varies based on how many trades are required for the project. Different public entities have different bid limits. The basic proposition of competitive bidding procedures is that the contract is awarded to the lowest responsible bidder.

Various bid limits are included in Table 1:

Table 1. Self Performance and Bid Limits for Public Works

Dollar Limits for Self Performance/No Bid Requirements

Last Increase

School Districts

<$40,000

2005

$40,000 - $100,000 - competitive bid

> $100,000 - formal bid

Universities

< $35,000 for 1 trade

< $55,000 for 2+ trades

2007

Community Colleges

< $35,000 for 1 trade

< $55,000 for 2+ trades

2007

First Class Cities

<10% of public works budget, including work by county; and

2002

> 150,000 population

<$70,000 2+ trades and <$90,000 after 1/1/2010

<$35,000 1 trade and <$45,000 after 1/1/2010

<150,000 population

<$50,000 2+ trades and <$65,000 after 1/1/2010

<$30,000 1 trade and <$40,000 after 1/1/2010

Second Class Cities

<$45,000 or < $60,000 after 1/1/2010

<$30,000 1 trade or <$40,000 after 1/1/2010

2002

Counties

<10% of public works budget;

and

1986

> 1,000,000 population

<$70,000 2+ trades

<$25,000 1 trade

<1,000,000 population

<$10,000

1993

Fire Protection Districts

<$2,500

1984

Water Sewer Districts

<$10,000

2003

Public Utility Districts

<$25,000

<$150,000 for maximum cost of materials

2008

Hospital Districts

<$50,000

2002

Ports

<$200,000

2007

State Agencies

No bid limit

Summary of Bill:

Bid limits for certain public entities are changed, as follows:

Single Trade Multiple Trades

Higher Education: $45,000 $90,000

lst Class Cities: $45,000 $90,000

2nd Class Cities: $40,000 $65,000

Code Cities > 20,000 $40,000 $65,000

Code Cities < 20,000 $40,000 $65,000

Counties over one million $45,000 $90,000

Other counties $40,000 $40,000

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.