HOUSE BILL REPORT

SHB 1386

As Amended by the Senate

BYHouse Committee on Local Government (originally sponsored by Representatives Phillips, Ferguson, Horn and Haugen)

Amending the requirement for creating small works roster.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Rayburn, Todd, Wolfe, Wood and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE MARCH 6, 1989

BACKGROUND:

Many local governments are required to award contracts for public works projects that exceed a specified amount to the lowest responsible bidder as determined under a formal public bidding process that involves publishing notices, requesting bids on the project, obtaining sealed bids, and opening the sealed bids at a public meeting.

Some local governments are permitted to award public works projects of a limited amount under a less formal process referred to as a small works roster process, that involves soliciting bids from contractors who have registered their names with the local government.  Cities and towns can award public works projects of a value of up to $100,000 using a small works roster process.  Counties have not been authorized to use a small works roster process to award public works contracts.

A county with a purchasing department must award or make non-road related contracts, leases, and purchases, by using a formal competitive bidding process if the value of the contract, lease, or purchase is $3500 or more.  A less formal telephone or written solicitation process can be used by a county with a purchasing department for non-road related contracts, leases and purchases, if the value is from $1000 to less than $3500.

SUMMARY:

Counties are permitted to use a small works roster to award contracts for any project the estimated cost of which is less than $100,000.

Each county is permitted to maintain a small works roster of contractors requesting to be on the roster and which are licensed to perform work in this state.  Whenever construction is done by contract for which the cost is $100,000 or less, and the county uses a small works roster, the county invites proposals from appropriate contractors on the roster.  Whenever possible not less than five separate appropriate contractors shall be requested to submit proposals on any individual contact.  Whenever possible at least one proposal from a qualified minority or woman contractor shall be invited.

When awarding such a contract, the managing official shall give weight to the contractor submitting the lowest responsible bid. Whenever it would not violate the public interest, such contract shall be distributed equally among the contractors, including minority or women contractors, on the small works roster.

EFFECT OF SENATE AMENDMENTS:   All the language concerning women and minority contractors that was contained in the House version is deleted and replaced with a statement that whenever possible, a county shall solicit actively participation by women and minority contractors.

The small works roster procedure is clarified by specifying that once a contractor has been offered an opportunity to submit a proposal, that contractor shall not be offered another opportunity to submit a proposal on any other contract until all other appropriate contractors have been afforded an opportunity to submit a proposal on a contract.

The minimum value of a non-road related contract, lease, or purchase that a county with a purchasing department may award or make, without using a formal competitive bidding process, is increased from $3500 to $10,000.  The maximum value of a non-road related contract, lease, or purchase that a county with a purchasing department may make of award, using a less formal telephone or written solicitation process, is increased from less than $3500 to less than $10,000.  Annually such a county must establish an array of categories for such contracts, leases, and purchases.  A roster may be developed for each category.  A county using such a process must invite proposals from all vendors listed on the appropriate roster.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Ron Main, King County; Ernie Geissler, County Road Administration Board; and Dick Ducharme, Utility Contractors Association of Washington.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    This is agreed upon language.  With these changes, contractors can support the bill.  Small works rosters are appropriate toward medium-sized contracts.  This procedure is less costly, but fair.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 95; Absent 2; Excused 1

Absent:     Representatives Prentice and Vekich

Excused:    Representative Appelwick