SENATE BILL REPORT

SB 5514

BYSenators Talmadge, von Reichbauer, Nelson and Bender

Revising competitive bidding requirements for water and sewer districts.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 16, 1987; February 19, 1987

Majority Report:  That Substitute Senate Bill No. 5514 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:Eugene Green (786-7405); Walt Corneille (786-7452)

                  February 19, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 19, 1987

BACKGROUND:

The only instance wherein the competitive bid requirements, for materials purchased or work ordered by a water district or a sewer district, may be waived is upon a declaration of emergency.

The term "lowest responsible bidder" is not defined.  The sewer and water districts feel that elements other than price should be taken into consideration when determining the lowest responsible bidder.

SUMMARY:

In addition to a declaration of emergency, the competitive bid requirements for purchases by a sewer district or water district may be waived for purchases which are clearly and legitimately limited to a single source of supply, and purchases in special instances wherein the price may be best established by direct negotiation.

In addition to price, the following elements shall be considered when determining "lowest responsible bidder":  ability of the contractor to perform; character and efficiency of the bidder; time considerations; quality of performance of previous contracts; and previous and existing compliance by the bidder with pertinent laws.

EFFECT OF PROPOSED SUBSTITUTE:

All language modifying "lowest responsible bidder" is stricken.

Fiscal Note:      none requested

Senate Committee - Testified: Joe Daniels, Washington State Association of Water Districts; Bert Lysen, Southwest Suburban Sewer District; Dick DuCharme, Utility Contractors Association; Bill Mudge, Washington State Association of Sewer Districts