BILL REQ. #:  H-3561.2 

Read first time 01/15/2004.   Referred to Committee on State Government.

     AN ACT Relating to prohibiting rejection of all bids except for good cause; and adding a new section to chapter 39.30 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 39.30 RCW to read as follows:
     (1) The legislature recognizes that fair and open competition is a basic tenet of public works procurement. This competition reduces the appearance of and opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically. The preservation of the integrity of the competitive bid system dictates that after bids for a public work, as defined in RCW 39.04.010, have been opened by the state or municipalities, as defined in RCW 39.04.010, and institutions of higher education, as defined in RCW 28B.10.016, award must be made to the bidder who submitted the lowest responsive bid, unless there is a cogent and compelling reason to reject all bids and cancel the invitation.
     (2) Invitations for bids may be canceled after opening the bidding process, but prior to award where this action is consistent with subsection (1) of this section and the public owner determines in writing that cancellation is in the best interest of the government for specified reasons such as the following:
     (a) The invitation for bids included inadequate, ambiguous, or restrictive specifications.
     (b) The public work is no longer required.
     (c) The invitation for bids did not provide for consideration of all needs of the public owner.
     (d) All otherwise acceptable bids received are at unreasonable prices.
     (e) The bids were not independently arrived at in open competition, were collusive, or were submitted in bad faith.
     (f) The bids received did not provide competition which was adequate to ensure reasonable prices.
     (3) The requirements of this section apply to procurement of subcontract bid package work under RCW 39.10.061, except that both the public owner and the contractor must determine in writing that rejection of all bids and cancellation of the solicitation of bids is in the best interest of the government for specified reasons.