HB95 Alabama 2011 Session

Summary

Primary Sponsor

Thad McClammy

Democrat

Session

Regular Session 2011

Title

Competitive bids, contracts awarded to preferred vendors under certain conditions, Sec. 41-16-20 am'd.

Summary

HB95 would require Alabama state agencies to award contracts to a preferred vendor when the bid is within 5% of the lowest responsible bid and the vendor is considered a preferred vendor.

What This Bill Does

It amends Section 41-16-20 to make awarding to a preferred vendor mandatory (not optional) when the bidder is responsible and qualifies as preferred, for most contracts subject to competitive bidding. It defines who qualifies as a preferred vendor based on in-state production, in-state facilities, and in-state business presence. If the conditions are met and the bid is within 5% of the lowest bid, the awarding authority must award to the preferred vendor.

Who It Affects

• State departments, boards, bureaus, commissions, committees, institutions, corporations, authorities, or offices that award contracts—now required to award to a preferred vendor if within 5% of the lowest bid and the vendor is deemed responsible and preferred.
• Preferred vendors (as defined by the bill) who produce in-state, have in-state facilities, or are Alabama-based businesses with a retail or service presence—these vendors gain eligibility and potential contracts when their bid is within 5% of the lowest bid.

Key Provisions

• Contracts for labor, services, work, materials, equipment, supplies, or other personal property valued at $7,500 or more must be let by free and open competitive bidding, with an exception for title 39 public works.
• A 'preferred vendor' is defined by three priorities: (1) product produced or manufactured in Alabama; (2) assembly plant or distribution facility in Alabama; (3) Alabama-registered business with at least one retail outlet or service center in Alabama for at least one year prior to the bid deadline.
• If a bid is from a responsible and preferred vendor and is no more than 5% higher than the lowest responsible bid, the awarding authority must award the contract to the preferred vendor.

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