Sole Source, Convenience, and Emergency Contracts. The Department of Enterprise Services (DES) is responsible for the development and oversight of policy for the procurement of goods and services by all state agencies, and adopts uniform policies and procedures for the effective and efficient management of contracts by all state agencies. All contracts for purchases of goods and services must be based on a competitive solicitation process. DES may grant exemptions from competitive solicitation, including for emergency contracts, sole source contracts, and direct buy purchases.
 
Sole source refers to a contractor providing goods or services of such a unique nature or sole availability at the location required that the contractor is clearly and justifiably the only practicable source to provide the goods or services. Agencies must submit sole source contracts to DES, and make the contracts available for public inspection at least ten working days before the proposed start date of the contract.
 
A convenience contract is a contract for specific goods, services, or both, solicited and established in accordance with procurement laws and rules for use by a specific agency or a specified group of agencies as needed from time to time. A convenience contract is not available for general use, and may only be used as specified by DES. Convenience contracts are not intended to replace nor supersede master contracts, which are solicited and established by DES in accordance with procurement laws and rules on behalf of and for general use by agencies specified by DES.
 
Agencies may make emergency purchases under a set of unforeseen circumstances beyond the control of the agency that either present a real, immediate, and extreme threat to the proper performance of essential functions, or may reasonably be expected to result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken. When an emergency purchase is made, the agency head must submit written notification of the purchase within three business days of the purchase to the director of DES. This notification must contain a description of the purchase, a description of the emergency and the circumstances leading up to the emergency, and an explanation of why the circumstances require an emergency purchase. Emergency contracts must be submitted to DES and made available for public inspection within three working days following the commencement of work or execution of the contract, whichever occurs first.
 
In-State Preferences. In-state preferences for state contracting generally require that when purchasing goods and services, agencies must give preference to supplies, materials, and equipment produced, assembled, or manufactured in the state, as well as services originating and provided in the state. Washington law does not require that preference be given to in-state bidders, however the director of DES must compile a list of statutes and regulations of each state which grants preferences to vendors located within that state or goods manufactured within that state, as it relates to state purchasing. DES is required to establish rules creating a reciprocity increase on bids from states granting in-state preference by law. For competitive solicitations, when evaluating bids for awards, state agencies must add the appropriate percentage increase to each bid originating from another state with in-state preference laws, rather than subtracting that amount from a bid originating in Washington.

Sole Source, Convenience, and Emergency Contracts.  Goods or services must be of sole availability, rather than be of sole availability at the location required, to qualify for sole source contracting. The amount of time before the proposed starting date of the contract that an agency must file the contract with DES and make the contract available for public inspection is extended to no less than 15 business days before the proposed starting date of the contract.
 
The definition of a convenience contract is modified to remove language that a convenience contract may be established for use by a specific agency. Specified groups of agencies may only use a convenience contract with the approval of DES, rather than be used as needed from time to time.
 
The time for an agency that makes an emergency purchase to submit its emergency contract to DES is extended to ten business days. DES may authorize exceptions for filing requirements due to exigent circumstances.
 
In-State Preference—Washington's Reciprocity Increase.  The following requirements are repealed:

• requiring the director of DES to compile a list of statutes and regulations of each state which grants preferences to vendors located within that state, or goods manufactured within that state, as it relates to state purchasing; and
• requiring DES to establish rules creating a reciprocity increase on bids from states granting in-state preference by law.

PRO: This bill is identical to the senate companion bill and will improve state procurement by increasing competition, transparency, and compliance. The goal is to increase equity and diversity in contracting, especially for veterans. It intends to end a trade war style provision in our law that encourages other states to retaliate. It will eliminate agencies’ ability to rely on location-based sole source contracting which will make the industry more fair.