HB324 Alabama 2014 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2014

Title

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

Summary

HB324 would let a state agency award a bid to a 'preferred vendor' if that vendor's bid is within 5% of the lowest bid, giving in-state vendors priority in competitive contracts.

What This Bill Does

It defines a 'preferred vendor' and outlines state-based priorities for awarding contracts. If a preferred vendor's bid is within 5% of the lowest bid from a responsible bidder, the awarding authority must award the contract to that preferred vendor. If multiple preferred vendors are within 5%, the contract goes to the lowest bid among them. The bill keeps the existing competitive bidding framework for most contracts (over $15,000) and preserves the public works exceptions.

Who It Affects

• State departments, boards, and universities that award contracts: must award to a qualified preferred vendor if within 5% of the lowest bid
• In-state businesses that meet the 'preferred vendor' criteria (produces in-state, has an in-state assembly/distribution facility, or maintains an in-state retail/service presence for at least a year): gain preferential consideration and could win even when not the absolute lowest bid
• Other bidders, including out-of-state vendors or those not meeting the preferred criteria: may be passed over if a qualified preferred vendor's bid falls within 5% of the lowest bid

Key Provisions

• Amends 41-16-20 to allow a preferred vendor’s bid to be accepted if it is no more than 5% higher than the lowest bid from a responsible bidder.
• Defines a 'preferred vendor' with three state-based priorities: Priority 1—produces the product in Alabama; Priority 2—has an Alabama-based assembly plant or distribution facility; Priority 3—has an Alabama-based business with at least one retail outlet or service center in the state for at least one year before the bid deadline.
• If a bid from a responsible bidder and a preferred vendor is within 5%, the awarding authority shall award the contract to the preferred vendor; if multiple preferred vendors are within 5%, award goes to the lowest bid among them.
• Maintains existing bidding rules for contracts of $15,000 or more and the public works exceptions; the act 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 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids