HB545 Alabama 2010 Session

Summary

Primary Sponsor

Mike Hill

Republican

Co-Sponsor

Jimmy Martin

Session

Regular Session 2010

Title

Competitive bids, state agencies, minimum amount increased, Sec. 41-16-20 am'd.; Act 2009-763, 2009 Reg. Sess. am'd.

Summary

HB545 would raise the bidding threshold to $15,000 for most state contracts and create a preferred-vendor bidding option.

What This Bill Does

If enacted, competitive bidding would be required for contracts worth $15,000 or more (up from $7,500) for many state departments and related entities, with public works contracts governed separately. Bids would be opened publicly and awarded to the lowest responsible bidder, unless a preferred vendor within 5% of the lowest bid is chosen. The bill creates a preferred-vendor system in which in-state producers, facilities, or state-registered vendors can receive priority in awarding contracts.

Who It Affects

• State departments, boards, bureaus, commissions, committees, and institutions that contract for labor, services, or goods (threshold changes how often they must use competitive bidding).
• Vendors and bidders seeking state contracts, who may win bids through open competition or via the preferred-vendor pathway.
• In-state producers and service providers who may gain priority under the preferred-vendor rules (prioritizing in-state production, facilities, and presence).

Key Provisions

• Raises the competitive bidding requirement threshold from $7,500 to $15,000 for contracts involving labor, services, materials, equipment, supplies, or other property, with exceptions for certain public works under Title 39.
• Contracts must be let by free and open competitive bidding, using sealed bids, to the lowest responsible bidder.
• Creates a 'preferred vendor' framework with Priority #1: products produced/manufactured in-state; Priority #2: assembly or distribution facility in-state; Priority #3: in-state organized business with at least one retail outlet or service center in-state for at least one year prior to the bid deadline.
• If a bid from a responsible bidder and a preferred vendor is within 5% of the lowest bid, the awarding authority may award the contract to the preferred vendor.
• Effective date: becomes law on the first day of the third month after passage and Governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids