HOUSE BILL REPORT

HB 2992

BYRepresentatives Cooper, Ferguson, Haugen, Nealey, Phillips and Raiter

Changing local government bidding practices.

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, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Wolfe and Zellinsky.

House Staff:Bill Lynch (786-7092)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT

FEBRUARY 1, 1990

BACKGROUND:

There is little consistency among local government statutes for establishing small works rosters and soliciting bids for public works contracts.

A county may dispense with formal competitive bidding procedures in letting any contract or purchase between $1,000 and $10,000.  The county must, however, invite proposals from every vendor on the appropriate roster.

Although some units of local government may buy materials, equipment, or supplies at a public auction, there is no authorization for these entities to buy these items at private auctions.  It is suggested that considerable costs could be saved if local governments could purchase at private auctions.

SUMMARY:

SUBSTITUTE BILL:  A standardized procedure for establishing small works rosters is established for local governments.  Local governments are authorized to create a single small works roster or a small works roster for different categories of work.  The small works roster must contain all responsible contractors who have requested to be on the list.  A contractor must be properly licensed or registered to perform the work as required by state law.  At least once each year, the local government must publish a notice of the existence of the rosters and solicit the names of contractors for inclusion on the rosters.

Procedures for securing telephone or written quotations must be established by the local government governing body in order to ensure that a competitive price is established. Contracts must be awarded to the lowest responsible bidder.  If a local government has only one small works roster, the local government must make a good faith effort to request quotations from all contractors on the small works roster capable of performing the work being contracted.

Invitations for bids must include an estimate of the scope and nature of the work to be performed as well as materials and equipment to be furnished.  At least five contractors must be invited to submit bids whenever possible.  If a contractor has been afforded an opportunity to submit a proposal, then the contractor shall not be offered another opportunity to submit a proposal until all other appropriate contractors have been given an opportunity to submit a proposal on a contract.  Contracts awarded from a small works roster need not be advertised.

After a contract has been awarded from a small works roster, the bid quotations must be recorded and made open to public inspection and telephone inquiry.

If a county purchases materials, equipment, or services in an amount between $1,000 and $10,000, then the county must invite proposals from at least five vendors listed on the appropriate roster whenever possible.  A vendor may not be offered another opportunity to bid on a contract until all vendors on the roster have been provided an opportunity to bid.

Any municipality may purchase materials, equipment, or supplies at a public or private auction without utilizing the bidding process if these items can be obtained at a competitive price.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Prequalification language is deleted. A provision is added to allow counties to purchase without inviting proposals from every vendor on the roster.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    (Original Bill)  Representative Cooper, Prime Sponsor; Joe Daniels, Washington Sewer and Wastewater Districts.

House Committee - Testified Against:      (Original Bill)  Duke Schaub, Associated General Contractors.

House Committee - Testimony For:    This measure helps standardize the current small works roster process and provide needed flexibility.

House Committee - Testimony Against:      Prequalification creates too many opportunities for abuse in awarding contracts.