2815-S.E AAS 3/4/94
ESHB 2815 - S COMM AMD
By Committee on Government Operations
ADOPTED AS AMENDED 3/4/94
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 43.19.1906 and 1993 c 379 s 103 are each amended to read as follows:
Insofar as practicable, all purchases and sales shall be based on competitive bids, and a formal sealed bid procedure shall be used as standard procedure for all purchases and contracts for purchases and sales executed by the state purchasing and material control director and under the powers granted by RCW 43.19.190 through 43.19.1939. This requirement also applies to purchases and contracts for purchases and sales executed by agencies, including educational institutions, under delegated authority granted in accordance with provisions of RCW 43.19.190 or under RCW 28B.10.029. However, formal sealed bidding is not necessary for:
(1) Emergency purchases made pursuant to RCW 43.19.200 if the sealed bidding procedure would prevent or hinder the emergency from being met appropriately;
(2) Purchases not
exceeding ((five)) one hundred thousand dollars, or subsequent
limits as calculated by the office of financial management: PROVIDED, That the
state director of general administration shall establish procedures to assure
that purchases made by or on behalf of the various state agencies shall not be
made so as to avoid the ((five)) one hundred thousand dollar bid
limitation, or subsequent bid limitations as calculated by the office of
financial management: PROVIDED FURTHER, That the state purchasing and material
control director is authorized to reduce the formal sealed bid limits of ((five))
one hundred thousand dollars, or subsequent limits as calculated by the
office of financial management, to a lower dollar amount for purchases by
individual state agencies if considered necessary to maintain full disclosure
of competitive procurement or otherwise to achieve overall state efficiency and
economy in purchasing and material control. Quotations from four hundred
dollars to ((five)) one hundred thousand dollars, or subsequent
limits as calculated by the office of financial management, shall be secured
from ((enough)) at least three vendors to assure establishment of
a competitive price and may be obtained by telephone or written quotations, or
both. The agency shall invite at least one quotation each from a certified
minority and a certified women-owned vendor who shall otherwise qualify to
perform such work. Immediately after the award is made, the bid quotations
obtained shall be recorded and open to public inspection and shall be available
by telephone inquiry. A record of competition for all such purchases from four
hundred dollars to ((five)) one hundred thousand dollars, or
subsequent limits as calculated by the office of financial management, shall be
documented for audit purposes ((on a standard state form approved by the
forms management center under the provisions of RCW 43.19.510)). Purchases
up to four hundred dollars may be made without competitive bids based on buyer
experience and knowledge of the market in achieving maximum quality at minimum
cost: PROVIDED, That this four hundred dollar direct buy limit without
competitive bids may be increased incrementally as required to a maximum of
eight hundred dollars with the approval of at least ten of the members of the
state supply management advisory board, if warranted by increases in purchasing
costs due to inflationary trends;
(3) Purchases which are clearly and legitimately limited to a single source of supply and purchases involving special facilities, services, or market conditions, in which instances the purchase price may be best established by direct negotiation;
(4) Purchases of insurance and bonds by the risk management office under RCW 43.19.1935;
(5) Purchases and contracts for vocational rehabilitation clients of the department of social and health services: PROVIDED, That this exemption is effective only when the state purchasing and material control director, after consultation with the director of the division of vocational rehabilitation and appropriate department of social and health services procurement personnel, declares that such purchases may be best executed through direct negotiation with one or more suppliers in order to expeditiously meet the special needs of the state's vocational rehabilitation clients;
(6) Purchases by universities for hospital operation or biomedical teaching or research purposes and by the state purchasing and material control director, as the agent for state hospitals as defined in RCW 72.23.010, and for health care programs provided in state correctional institutions as defined in RCW 72.65.010(3) and veterans' institutions as defined in RCW 72.36.010 and 72.36.070, made by participating in contracts for materials, supplies, and equipment entered into by nonprofit cooperative hospital group purchasing organizations;
(7) Purchases by
institutions of higher education not exceeding ((fifteen)) one
hundred thousand dollars: PROVIDED, That for purchases between two
thousand five hundred dollars and ((fifteen)) one hundred
thousand dollars quotations shall be secured from ((enough)) at least
three vendors to assure establishment of a competitive price and may be
obtained by telephone or written quotations, or both. For purchases between
two thousand five hundred dollars and one hundred thousand dollars, each
institution of higher education shall invite at least one quotation each from a
certified minority and a certified women-owned vendor who shall otherwise
qualify to perform such work. A record of competition for all such
purchases made from two thousand five hundred to ((fifteen)) one
hundred thousand dollars shall be documented for audit purposes; and
(8) Beginning on July 1, 1995, and on July 1 of each succeeding odd-numbered year, the dollar limits specified in this section shall be adjusted as follows: The office of financial management shall calculate such limits by adjusting the previous biennium's limits by the appropriate federal inflationary index reflecting the rate of inflation for the previous biennium. Such amounts shall be rounded to the nearest one hundred dollars.
Sec. 2. RCW 43.19.1908 and 1965 c 8 s 43.19.1908 are each amended to read as follows:
Competitive bidding required by RCW 43.19.190 through 43.19.1939 shall be solicited by public notice, and through the sending of notices by mail, electronic transmission, or other means to bidders on the appropriate list of bidders who shall have qualified by application to the division of purchasing. Bids may be solicited by the purchasing division from any source thought to be of advantage to the state. All bids shall be in writing and conform to rules of the division of purchasing."
ESHB 2815 - S COMM AMD
By Committee on Government Operations
ADOPTED 3/4/94
On page 1, line 1 of the title, after "practices;" strike the remainder of the title and insert "and amending RCW 43.19.1906 and 43.19.1908."
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