SENATE BILL REPORT

                                   SHB 1212

           AS REPORTED BY COMMITTEE ON EDUCATION, FEBRUARY 25, 1992

Brief Description:  Changing the dollar amounts for school district competitive bidding.

SPONSORS: House Committee on Education (originally sponsored by Representatives Peery, Brough, Ebersole, Vance, Winsley, Betrozoff, Pruitt and Orr)

HOUSE COMMITTEE ON EDUCATION

SENATE COMMITTEE ON EDUCATION

Majority Report:  Do pass as amended. 

      Signed by Senators Bailey, Chairman; Erwin, Vice Chairman; Anderson, Craswell, Metcalf, Murray, Oke, Pelz, Rinehart, and A. Smith.

Staff:  Leslie Goldstein (786‑7424)

Hearing Dates: February 25, 1992

BACKGROUND:

State law requires school districts to engage in a competitive bid process for purchases, excluding the purchases of books, and for building improvement, repair or other projects costing or estimated to cost more than $7,500.  The competitive bid limit for school districts was last raised in 1985. 

SUMMARY:

School districts' bid limits are raised. 

For purchases of furniture, equipment and supplies, (other than the purchase of books), quotations or telephone bids must be requested for purchases between $15,000 and $20,000. (Current law requires quotes or bids to be required for purchases between $7,500 and $20,000.)  The requirement that competitive bids be used for purchases over $20,000 is not changed.

For buildings, improvements, repairs or other public works projects, districts may do the projects through the district's repair or shop department if the total cost of the project does not exceed $15,000.  (Current law sets the limit at $7,500.)

For buildings, improvements, repairs or other public works projects under $50,000, districts may use contractors on a small works roster, seeking telephone or written quotations from those contractors.  (Current law sets the limit at $20,000.)

For buildings, improvements, repairs or other public works projects over $50,000, districts must use competitive bids.  (Current law sets the limit at $20,000.)

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

The limits for doing repairs, building projects or other public works projects in-house are reduced from $15,000 to $12,500.  The limits for requesting bids from a small works roster for repairs, building projects or other public works projects are reduced from $15,000 to $12,500.

TESTIMONY FOR:

This bill will bring bid limits for school districts in line with bid limits for state agencies.  The higher limit for in-house projects will help school districts be more flexible and responsive and save money.

TESTIMONY AGAINST:

The 100 percent increase in limits for in-house projects hurts small contractors.

TESTIFIED:  PRO:  John Hemlinger, Tacoma School District #10; Dean Crawford, North Kitsap School District; Peter Keithley, South Kitsap School District; Rudolph Rylie, South Kitsap School District; Martin Casteneda, Seattle Public Schools; Merle Kirkley, contractor; Carol Hetrick, School Public Schools, Gary Nelson, Franklin Pierce School District, Glenn Gorton, Lynn McKinnon, Public School Employees; CON:  Larry Stevens, United Subcontractors Association