SENATE BILL REPORT

SB 5180

BYSenators 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)

                  February 3, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 2, 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.

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

SUMMARY:

Purchases not exceeding $5,000 are exempt from formal sealed bidding procedures.  Purchases by universities made by participating in contracts entered into by hospital service organizations are expanded and include any purchases made for materials, supplies and equipment.  Cooperative is stricken in reference to hospital service organizations.

EFFECT OF PROPOSED SUBSTITUTE:

The exemption from formal bidding requirements applicable to purchases by universities when made by participating in contracts entered into by hospital service organizations is changed.  This exemption affects only the designated items purchased for hospital operation or biomedical teaching or research purposes.

Cooperative is reinserted in reference to 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