SB225 Alabama 2011 Session

Summary

Primary Sponsor

Gerald O. Dial

Republican

Session

Regular Session 2011

Title

Competitive bids, contracts of higher education institutions, minimum amount increased, Sec. 41-16-20 am'd.

Summary

SB225 raises the bidding threshold for state contracts and higher education purchases from $7,500 to $15,000, expanding when competitive bids are required.

What This Bill Does

Raises the bidding threshold for contracts by state departments, boards, bureaus, commissions, and higher education institutions from $7,500 to $15,000 (public works contracts remain governed by Title 39). For contracts at or above $15,000, the bill requires free and open competitive bidding with sealed bids awarded to the lowest responsible bidder. It preserves a preferred vendor framework that lets a qualified in-state vendor win if their bid is within 5% of the lowest bid, using in-state production, assembly, or presence criteria.

Who It Affects

• State agencies and higher education institutions: must use sealed-bid competitive bidding for contracts of $15,000 or more (with certain exceptions).
• Vendors and suppliers: may benefit from the preferred vendor provisions if they meet in-state priority criteria and their bid is within 5% of the lowest bid.

Key Provisions

• Section amends Section 41-16-20 to raise the competitive bidding threshold from $7,500 to $15,000 for contracts by state departments, boards, bureaus, commissions, committees, institutions, corporations, authorities, or offices, with public works contracts exempt; contracts of $15,000 or more must be let by free and open competitive bidding on sealed bids to the lowest responsible bidder.
• Maintains the 'preferred vendor' framework with in-state priority criteria (Priority #1: in-state production; Priority #2: in-state assembly/distribution; Priority #3: in-state business presence) and a rule allowing awarding to a preferred vendor if their bid is within 5% of the lowest bid; becomes effective 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