SB14 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
Republican
Session: Regular Session 2012
Title: Competitive bids, contracts of higher education institutions, minimum amount increased, Sec. 41-16-20 am'd. (2012-20153)
Summary: SB14 raises the competitive bidding threshold for state higher education contracts from $7,500 to $15,000 and adds a state-based preferred-vendor bidding preference.
What This Bill Does
If enacted, contracts valued at $15,000 or more must be let by free and open competitive bidding on sealed bids to the lowest responsible bidder, with public works contracts under Title 39 exempt. The bill creates a 'preferred vendor' system that favors in-state producers, in-state assembly/distribution facilities, or in-state retailers/service centers. If a preferred vendor's bid is within 5% of the lowest bid, the awarding authority may award the contract to the preferred vendor. The new rules take effect on the first day of the third month after the bill becomes law.

Who It Affects
State departments, boards, bureaus, commissions, committees, institutions, corporations, authorities, or offices that award contracts: contracts $15,000 or more must be bid competitively.
Vendors and suppliers bidding on these contracts, especially in-state 'preferred vendors' who meet the state's in-state production/distribution/retail criteria and may receive a bid preference if within 5% of the lowest bid.

Key Provisions
Raises the contract bidding threshold from $7,500 to $15,000 for contracts subject to competitive bidding, with exceptions for public works contracts governed by Title 39.
All labor, services, work, or purchase/lease of materials, equipment, supplies, or other nonprofessional services valued at $15,000 or more must be let by free and open competitive bidding on sealed bids to the lowest responsible bidder.
Defines a 'preferred vendor' and sets three in-state priority categories: (1) product produced in-state, (2) in-state assembly plant or distribution facility, (3) in-state organization with a retail outlet or service center within the state for at least one year prior to the bid deadline.
If a bid from a preferred vendor is no more than 5% higher than the lowest bid from a non-preferred bidder, the awarding authority may award the contract to the preferred vendor.
The act becomes effective on the first day of the third month after its passage and approval by the Governor.

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