118133-1:n:02/10/2010:LLR/tan LRS2010-1026
| SYNOPSIS: | Under existing law, competitive bidding is required on contracts involving $7,500 or more made by or on behalf of certain state departments, boards, bureaus, commissions, committees, and institutions. |
| This bill would increase the minimum amount for which competitive bidding is required from $7,500 to $15,000. |
To amend Section 41-16-20, Code of Alabama 1975, as last amended by Act 2009-763, 2009 Regular Session (Acts 2009, p. 2310), relating to competitive bidding on contracts of certain state departments, boards, bureaus, commissions, committees, and institutions to increase the minimum amount of contracts subject to competitive bid from $7,500 to $15,000.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 41-16-20 of the Code of Alabama 1975, as last amended by Act 2009-763, 2009 Regular Session (Acts 2009, p. 2310), is amended to read as follows:§41-16-20.
"(a) With the exception of contracts for public works whose competitive bidding requirements are governed exclusively by Title 39, all contracts of whatever nature for labor, services, work, or for the purchase or lease of materials, equipment, supplies, other personal property or other nonprofessional services, involving seven thousand five hundred dollars ($7,500) fifteen thousand dollars ($15,000) or more, made by or on behalf of any state department, board, bureau, commission, committee, institution, corporation, authority, or office shall, except as otherwise provided in this article, be let by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.
"(b) A "preferred vendor" shall be a person, firm, or corporation which is granted preference priority according to the following:
"(1) PRIORITY #1. Produces or manufactures the product within the state.
"(2) PRIORITY #2. Has an assembly plant or distribution facility for the product within the state.
"(3) PRIORITY #3. Is organized for business under the applicable laws of the state as a corporation, partnership, or professional association and has maintained at least one retail outlet or service center for the product or service within the state for not less than one year prior to the deadline date for the competitive bid.
"(c) In the event a bid is received for the product or service from a person, firm, or corporation deemed to be a responsible bidder and a preferred vendor where any state department, board, bureau, commission, committee, institution, corporation, authority, or office is the awarding authority and the bid is no more than five percent greater than the bid of the lowest responsible bidder, the awarding authority may award the contract to the preferred vendor."
Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.