HB237 Alabama 2014 Session

Summary

Primary Sponsor

Mark Tuggle

Republican

Co-Sponsors

Mike HubbardMicky HammonBarry Moore

Session

Regular Session 2014

Title

Competitive bid, preference given to certain responsible bidders, Sec. 41-16-20 am'd.

Summary

HB237 would allow a defined 'preferred vendor' to win a state contract if its bid is within five percent of the lowest bid, and it clarifies who qualifies as a preferred vendor.

What This Bill Does

It adds a rule that if a preferred vendor's bid is no more than five percent higher than the lowest bid from a responsible bidder, the contract must be awarded to that preferred vendor. A preferred vendor is defined by state-focused criteria, including in-state production, in-state assembly/distribution facilities, or a state-based business with a retail or service presence for at least one year. If multiple preferred vendors are within five percent of the lowest bid, the contract goes to the preferred vendor with the lowest bid; the standard bidding rules still apply for other bidders.

Who It Affects

• State departments and other state contracting authorities: must award to a preferred vendor if their bid is within five percent of the lowest bid from a responsible bidder, when awarding contracts under the normal competitive bidding framework.
• Vendors considered 'preferred vendors': defined in-state producers, in-state assembly/distribution facilities, or state-based businesses with ongoing retail/service presence; these groups gain potential priority in winning contracts if within the five percent threshold.

Key Provisions

• Defines 'preferred vendor' with three state-focused priorities: in-state production, in-state assembly/distribution facilities, and state-based corporate/partnership structures with at least one retail/service outlet in-state for at least one year before the bid deadline.
• Maintains general competitive bidding requirements for contracts $15,000 or more (except public works), including sealed bids to the lowest responsible bidder.
• If a preferred vendor's bid is within five percent of the lowest bid by a responsible bidder, the awarding authority must award to that preferred vendor.
• If multiple preferred vendors are within five percent, the contract goes to the preferred vendor with the lowest bid among them.
• Effective date: becomes law on the first day of the third month after passage and governor approval; amends Section 41-16-20.

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

Subjects

Competitive Bids