FINAL BILL REPORT

2SHB 2100

C 72 L 02

Synopsis as Enacted

Brief Description:  Increasing bid limits for PUDs using the alternative bid procedure under RCW 39.04.190.

Sponsors:  By House Committee on State Government (originally sponsored by Representatives Dunshee, Mulliken and Berkey).

House Committee on State Government

Senate Committee on State & Local Government

Background:

Local governments generally are allowed to purchase materials, supplies, and equipment below a certain dollar value without following a competitive bidding procedure.  Formal competitive bidding procedures must be followed for purchases above a certain dollar value, with exceptions for emergency purchases and sole source purchases.

Legislation was enacted in 1993 establishing a uniform vendor list procedure for a number of different types of local governments to award medium dollar valued contracts for purchasing materials, supplies, equipment, or services.

A vendor list is established by publishing a notice, at least twice a year, soliciting vendors for inclusion on the list and initiating procedures for securing telephone or written quotations from at least three different vendors on the list whenever possible to assure that a competitive price is established and the award is made to the lowest responsible bidder. 

Public utility districts may use criteria adopted by the Department of General Administration to determine the lowest responsible bidder.  Criteria include bid price, ability to perform, experience, ability to perform within timelines, quality of past performance, and previous and past compliance with laws relating to the contract.  Immediately after the award is made, the bid quotations are open for public inspection and are available by telephone inquiry.

The statute authorizing each local government to use the vendor list procedure establishes a range of dollar values of purchases that may be made using this procedure.  Generally, purchases below that range of dollar values may be made without any competitive solicitation and purchases above that range must be made using formal competitive bidding procedures. 

Summary:

The maximum dollar value of a purchase of materials, supplies, and equipment that a public utility district may make using the vendor list process is increased from $35,000 to $50,000, not including sales tax.

The minimum dollar value of a purchase of materials, supplies, and equipment that a public utility district may make using the vendor list process is increased from $5,000 to $10,000, not including sales tax.

The maximum cost of materials, supplies, and equipment that may be purchased by a public utility district without bidding is increased from $5,000 to $10,000, not including sales tax.

Votes on Final Passage:

House970

Senate424

Effective:  June 13, 2002