Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology & Economic Development Committee

SB 5760

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 Summary of Bill

Increases the minimum dollar value of a purchase of materials, equipment, or supplies by a joint operating agency (JOA) that must be made through a sealed bid process from $10,000 to $15,000, exclusive of sales tax.
Increases the minimum dollar value for work ordered by a JOA for construction of generating projects that must be made through a sealed bid process from $10,000 to $25,000, exclusive of sales tax.

Background:

Joint operating agencies (JOA) are formed by cities and public utility districts (PUD) that join together to develop electricity generation projects. The only JOA currently operating in the state is Energy Northwest, which operates and maintains the state's only nuclear powered electrical generation facility. Energy Northwest is comprised of 22 PUDs and five municipal utilities.

A JOA must use a sealed bid process to purchase materials, equipment, and supplies costing more than $10,000 or to order work for the construction of generating projects and associated facilities costing more than $10,000.

A JOA may use a competitive negotiation process for contracts to acquire materials, equipment, and supplies or for work performed during the commercial operation of a nuclear generating project and associated facilities. This process may be used to replace a defaulted or terminated contract or if the managing director and the executive board of the JOA finds that the project will be completed or will operate more economically than using the sealed bid process.

In the negotiated bid process, a request for proposals is issued stating the requirements to be met. A fixed price or cost-reimbursable contract is awarded to the bidder whose proposal is determined to be the most advantageous to the JOA and the state.

Purchases in excess of $5,000 but less than $75,000 may be made through a telephone or written quotation process. Quotations are received from at least five vendors, where practical, and awards are made to the lowest responsible bidder. In this process, the agency maintains a procurement roster of suppliers and manufacturers who may supply materials or equipment to the operating agency for the purpose of soliciting quotations. Bid opportunities must be equitably distributed among those on the roster. When it is determined that competition is not available or is impracticable, such as for replacement parts in support of specialized equipment, purchases may be made without competition. Purchases of any amount may be made without bidding in certain emergency conditions when it is determined that public safety, property damage, or serious financial injury would result if the purchase could not be obtained by a certain time through the sealed bid process.

Summary of Bill:

The minimum dollar value of a purchase of materials, supplies, and equipment by joint operating agencies (JOA) that must be made through a sealed bid process is increased from $10,000 to $15,000, exclusive of sales tax. The minimum dollar value for work ordered by a JOA for construction of generating projects and associated facilities that must be made through a sealed bid process is increased from $10,000 to $25,000, exclusive of sales tax.