HB117 Alabama 2010 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2010

Title

State contracts, competitive bids, awarding authority required to purchase certain amount of products and services from preferred vendors, Sec. 41-16-20 am'd.

Summary

HB117 would require state awarding authorities to buy at least 20% of purchases from in-state 'preferred vendors' and allow awards within 5% of the lowest bid to those vendors, strengthening in-state purchasing preferences.

What This Bill Does

The bill defines 'preferred vendors' and sets a three-tier in-state priority: products produced in the state, products with an assembly plant or distribution facility in the state, and in-state-based firms with a retail or service presence. If a preferred vendor's bid is within 5% of the lowest bid from a responsible bidder, the awarding authority may award the contract to that preferred vendor. It requires awarding authorities to spend at least 20% of their annual purchases with preferred vendors. It preserves the current open bidding process for contracts of $7,500 or more, with these in-state preference rules acting as an exception or addition to existing rules.

Who It Affects

• State departments and other awarding authorities: must apply the preferred vendor rules, consider them in bid decisions, and meet the annual 20% purchasing target from preferred vendors.
• Vendors and bidders: those who qualify as preferred vendors (state-produced, in-state facilities, or in-state retail/service presence) may have a better chance to win contracts, especially if their bid is close to the lowest bid; non-preferred vendors may face stronger competition.

Key Provisions

• Section 41-16-20 is amended to require awarding authorities to purchase at least 20% of the aggregate value of purchases from preferred vendors each year.
• Defines 'preferred vendor' with Priority #1: products produced in-state; Priority #2: has an in-state assembly plant or distribution facility; Priority #3: is organized under state laws and has at least one in-state retail outlet or service center for at least one year prior to the bid deadline.
• Allows awarding authorities to award to a preferred vendor if their bid is within 5% of the lowest bid from a responsible bidder.
• Maintains open competitive bidding for contracts ($7,500 or more) except as otherwise provided by the act, including the preferred vendor provisions.
• Effective date: the act takes effect on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids