HOUSE BILL REPORT

HB 123

BYRepresentatives H. Sommers,  O'Brien and Jacobsen

Raising the maximum dollar amount that may be spent for state purchases without competitive bidding.

House Committe on State Government

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (7)

     Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Baugher, Hankins, O'Brien, Sayan and Walk.

House Staff:Pam Madson (786-7135)

AS REPORTED BY COMMITTEE ON STATE GOVERNMENT FEBRUARY 20, 1987

BACKGROUND:

The following state entities are required by statute to use a competitive bid process when purchasing most materials, supplies, services, and equipment: state agencies, offices of appointed or elected officials, the Supreme Court, the Court of Appeals, and colleges and universities.

Although sealed bidding procedures are generally required, exceptions include the following:  Purchases not exceeding $2,500, purchases by colleges and universities of equipment and materials used for research purposes and not exceeding $5,000, and certain purchases by universities for hospital operation and involving contracts with cooperative hospital service organizations.

The State Purchasing and Material Control Director may reduce the bid limits for individual state agencies.

SUMMARY:

SUBSTITUTE BILL:  The substitute bill raises from $2,500 to $5,000 the cost of purchases below which most state entities are exempt from sealed bidding procedures.  This $5,000 exemption limit must be adjusted for inflation biennially by the Office of Financial Management.

Certain university purchases for hospital operation and biomedical teaching or research are exempt from formal sealed bidding procedures.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The Office of Financial Management shall biennially adjust for inflation the $5,000 sealed bid exemption limit.  Certain university purchases exempt from the sealed bid procedures are specified to include purchases for hospital operation and biomedical teaching or research.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     John Pettit, University of Washington; Meredith Jennings, Department of General Administration; Don Cole, Western Washington University; and Dick Lund, State Board for Community College Education.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     The bill would double the state's sealed bid exemption limit from $2,500 to $5,000 to account for inflation since 1976.  This change would result in the faster, cheaper handling of higher education purchase transactions between $2,500 and $5,000.  The bill would also allow the University of Washington to purchase biomedical teaching supplies more cheaply in bulk from a source not subject to sealed bidding procedures.

House Committee - Testimony Against: None Presented.