SENATE BILL REPORT

ESSB 5180

BYSenate Committee on Governmental Operations (originally sponsored by Senators Rinehart, Saling and Stratton)

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

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 2, 1987

Majority Report:  That Substitute Senate Bill No. 5180 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Walt Corneille (786-7452); Sam Thompson (786-7754)

                  April 3, 1987

AS PASSED SENATE, MARCH 11, 1987

BACKGROUND:

All state agencies, except educational institutions in some instances, must utilize competitive sealed bidding procedures for purchases exceeding $2,500.  Universities and colleges are not required to utilize competitive sealed bidding procedures for purchases not exceeding $5,000 when purchasing equipment and materials used for research.  Quotations from $400 to $2,500 or $5,000 are required from enough vendors to assure a competitive price on purchases not subject to competitive sealed bidding procedures.

Purchases by universities for hospital operations are exempt from formal bidding procedures when participating in contracts for materials, supplies and equipment entered into by cooperative hospital service organizations.

SUMMARY:

Purchases not exceeding $5,000 are exempt from formal sealed bidding procedures.  Quotations to assure competitive prices are required from $400 to $5,000.  These quotations may be obtained by telephone or by written quotation and must be recorded and open to public inspection.

Purchases by universities for biomedical teaching or research purposes are included in those exempt from formal bidding procedures when participating in contracts entered into by cooperative hospital service organizations.

Fiscal Note:      available

Senate Committee - Testified: Bob Edie and John Pettit, University of Washington; Meredith Jennings, State Purchasing, GA; Dick Lund, State Board for Community College Education; Dennis Norton, Department of Transportation

HOUSE AMENDMENT:

The dollar limit over which competitive sealed bids is required must be adjusted every odd numbered year to reflect the federal inflationary index.  The adjustment is made by the Office of Financial Management beginning July 1 1989.