SB107 Alabama 2011 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Co-Sponsors

Del MarshLinda Coleman-MadisonPriscilla Dunn

Session

Regular Session 2011

Title

Public contracts, awarding authority to issue secondary award to certain companies owned and operated by individuals certified under federal HUBZone Program or small business enterprise, not to exceed certain percent of original contract value, exceptions, Sec. 41-16-57 am'd.

Summary

SB107 would let Alabama public agencies award a secondary portion of a contract to HUBZone-certified or Alabama-based small businesses up to 20% of the original contract value, if their bid is within 5% of the lowest bid.

What This Bill Does

It would amend the bidding law to add a provision allowing a secondary award to HUBZone-certified firms or state-based small businesses up to 20% of the original contract value. The secondary award must come from a bid no more than 5% higher than the lowest responsible bidder. Eligible businesses include those owned by socially and economically disadvantaged individuals, HUBZone-certified firms, or Alabama-based small businesses. The act would take effect on the first day of the third month after passage and governor approval.

Who It Affects

• Alabama-based HUBZone-certified businesses or small in-state businesses, who could receive a secondary award up to 20% of a contract if their bid is within 5% of the lowest bid.
• Public contracting authorities and agencies in Alabama, which would gain a new option and set of rules for awarding secondary shares on contracts while maintaining existing competitive bidding and Alabama preferences.

Key Provisions

• Adds a new provision (Section 41-16-57(g)) authorizing awarding authorities to issue a secondary award up to 20% of the original contract value to companies owned and operated by socially and economically disadvantaged individuals, HUBZone-certified firms, or Alabama-based small businesses, provided the bid is within 5% of the lowest responsible bidder.
• Maintains existing bidding principles and preferences in Section 41-16-57, integrating the secondary award option with current requirements.
• Section 3 sets the act’s effective date as the first day of the third month following its 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