SB81 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: William “Bill” M. BeasleySenator
Democrat
Co-Sponsors: Del Marsh Linda Coleman-Madison
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. 41-16-27 am'd.
Summary: SB81 amends Alabama's public contracting rules to allow a limited secondary award to HUBZone-certified or Alabama small businesses up to 20% of the contract value, with related changes to bidding, costs, and oversight.
What This Bill Does
It lets awarding authorities grant a secondary award to HUBZone-certified or Alabama small businesses located in the state for up to 20% of the original contract value, as long as the deliverables can be split, the secondary bid is within 5% of the lowest bid, and the invitation to bid notes this possibility. It adds life-cycle cost analysis to determine the lowest bid for certain purchases (including personal property and motor vehicles) when reliable life-cycle data are available, with bid notices indicating this method. It preserves Alabama-based preferences, allows some non-competitive awards for colleges under specific conditions with advertising requirements, and adds Medicaid procurement oversight and an appeals process if the lowest bid is not selected.

Who It Affects
HUBZone-certified individuals and Alabama small businesses located in the state, who could receive a secondary award up to 20% of a contract value if their bid is within 5% of the lowest bid and the bid invitation allows it.
State and public buyers in Alabama (including public colleges and universities and Medicaid-related procurements), who must implement the new secondary award option, life-cycle cost evaluations, Alabama-based preferences, and related transparency and oversight requirements.

Key Provisions
Allows a secondary award up to 20% of the original contract value to HUBZone-certified or Alabama small businesses for deliverables that can be separated, provided the bid is within 5% of the lowest responsible bid and the invitation to bid notes this possibility.
For certain purchases (personal property and motor vehicles), the lowest responsible bid may be determined by life-cycle costs using industry-recognized sources, with bid notices specifying this method.
Maintains Alabama-based preferences and requires advertising for certain non-competitive awards by colleges/universities, giving preference to Alabama entities unless a foreign product is substantially different or superior.
Medicaid procurements may use a most advantageous value approach (considering cost factors and program factors); if the bid is not the low bid, the agency must explain reasons to the Medicaid Interim Committee and obtain its approval, with an appeals process.

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