SB14 Alabama 2012 1st Special Session

Summary

Primary Sponsor

Phillip W. Williams

Republican

Session

First Special Session 2012

Title

Bonds, general obligation bonds issued by state, aggregate principal amount limitations specified, not subject to certain other const. limitations, const. amend.

Summary

SB14 would raise the competitive bidding threshold for higher education contracts from $7,500 to $15,000.

What This Bill Does

It changes the law so that contracts of 15,000 dollars or more must go through free and open competitive bidding with sealed bids to the lowest responsible bidder. It keeps the requirement that bids are awarded to the lowest responsible bidder, unless a preferred vendor is involved. It adds a preferred vendor system that prioritizes in-state production, in-state assembly/distribution, and in-state business presence, and allows awarding to a preferred vendor if their bid is within 5% of the lowest bid. It becomes effective on the first day of the third month after passage and governor’s approval.

Who It Affects

• Higher education institutions and their departments/offices: subject to the updated bidding threshold and bidding rules for contracts and purchases.
• Vendors and suppliers bidding on higher education contracts: may benefit from in-state preferences and the 5% rule for preferred vendors.
• In-state manufacturers, assemblers, distributors, and service providers: prioritized under the preferred vendor framework.
• Public works projects: not affected by this change, as their bidding is governed by Title 39.

Key Provisions

• Raises the minimum contract amount requiring competitive bidding from 7,500 to 15,000 dollars for contracts by state departments, boards, and higher education institutions.
• Covers contracts for labor, services, work, or for the purchase/lease of materials, equipment, supplies, or other nonprofessional services (with public works contracts governed separately by Title 39).
• Requires free and open competitive bidding, with sealed bids awarded to the lowest responsible bidder.
• Creates a preferred vendor framework with priorities: Priority #1 in-state production, Priority #2 in-state assembly or distribution facilities, Priority #3 in-state business presence with at least one retail outlet or service center for the product or service.
• If a preferred vendor’s bid is within 5% of the lowest bid from a responsible bidder, the awarding authority may award the contract to the preferred vendor.
• Effective date: the first day of the third month after passage and governor’s approval (or becoming law otherwise).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Bonds