HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No.  HB 1071

Creating a limited public works process

Brief Title                             Hearing Date:  1/26/99

Reps.  Romero and D. Schmidt              Staff:  Steve Lundin

Sponsor(s)                          State Government Committee

                                              Phone:  786-7127

BACKGROUND:

Differing procedures are established for state agencies and various local governments to award contracts for public works projects.

Frequently, three different sets of procedural requirements have been established for state agencies and local governments to award public works contracts, depending on the estimated cost of the project and with varying requirements, as follows:

     oAn agency or local government may award contracts for public works projects of a relatively small estimated cost in any manner it chooses.

     oAn agency or local government may award contracts using a small works roster bidding process to award contracts on projects of up to a medium estimated cost.  Under this process a limited number of contractors are contacted and asked to submit bids.  The contract is awarded to the lowest responsible bidder.

oAn agency or local government may award contracts using a formal competitive bidding process normally to award contracts of a higher estimated value, where a notice is published requesting sealed bids and the sealed bids are opened at a designated time and place.  The contract is awarded to the lowest responsible bidder.

In addition, several different state agencies and local governments have been authorized to use alternative public works contracting procedures to award contracts on certain public works contracts of a very large dollar value.  One alternative procedure is the Adesign-build@ procedure.  Another alternative procedure is the Ageneral contractor/construction manager@ procedure.  Authority to use these alternative procedures terminates on July 1, 2001.

In most instances, the general contractor on a public works project is required to post a performance bond to faithfully perform all work under the contract and to pay laborers, materialmen, and subcontractors.  In most instances retainage is required on public works contracts where the public entity retains up to 5% of the contract amount from the general contractor for 45 days after completion of the project as a trust fund for payment of laborers, subcontractors, materialmen and excise taxes that are imposed on the project.

SUMMARY:

The Alimited public works@ procedure is authorized for the Department of General Administration, the Department of Fish and Wildlife, the Department of Natural Resources, the State Parks and Recreation Commission, and most local governments to award any contract for a public works project with an estimated cost of less than $35,000.

Under this new procedure the government entity solicits electronic or written quotations for public works projects from at least three contractors, including a certified minority or women-owned contractor.  The government entity may be award the contract to the lowest quotation, even if only one quotation is received, or may reject all quotations.  An attempt must be made to equitably distribute opportunities for these contracts among contractors willing to perform in the geographic area of the work.  A list must be maintained of the contracts awarded under this process.

The government entity using the limited public works process may waive performance bond requirements and retainage requirements, but the government shall have a right of recovery against the contractor for any payments it makes on behalf of the contractor.

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.