HB518 Alabama 2014 Session

Summary

Primary Sponsor

Phil Williams

Republican

Session

Regular Session 2014

Title

Contracts, expand ability of state to award multiple contracts pursuant to a single invitation-to-bid, Sec. 41-16-27 am'd.

Summary

HB518 expands how Alabama state agencies can award multiple contracts from a single invitation-to-bid and adds new cost and bidder rules, including life-cycle cost considerations and HUBZone secondary awards.

What This Bill Does

It allows agencies to award more than one contract from one bid when items require technical compatibility or specific operation, with the bid noting this possibility. It adds a negotiation option within 30 days of bid opening for a contract offered at least 5% under the low acceptable bid, subject to state approvals. It introduces life-cycle cost analysis to determine the lowest bid for certain purchases (including vehicles) and requires notices and recognized sources in the bid. It creates a HUBZone secondary award option allowing up to 20% of the contract value to Alabama HUBZone-certified businesses within 5% of the lowest bid, and adds various carve-outs and special rules for Medicaid, colleges, and certain equipment or services.

Who It Affects

• State agencies and other requisitioning entities: gain flexibility to award multiple contracts from a single invitation-to-bid when warranted by technical or operational requirements.
• Alabama HUBZone-certified businesses: may receive secondary awards up to 20% of a contract’s value if their bid is within 5% of the lowest bid.
• Alabama-based suppliers and Alabama-made goods: receive a preference in procurement when price and quality are not sacrificed.
• Two-year and four-year colleges/universities: face specific bidding and approval rules, with some services potentially negotiated without bidding under certain conditions and with public notice requirements.
• Alabama Medicaid Agency and service providers: bidding for Medicaid-related services may use a most advantageous-measure approach (not just lowest price) with weightings and oversight.

Key Provisions

• Allows multiple purchase contracts from a single invitation-to-bid when item specifications require technical compatibility or operational requirements; the invitation must state that multiple awards may be made and specify the compatibility/requirements.
• Permits negotiation within 30 days after bids are opened to award a contract to a bidder offering at least 5% under the low acceptable bid, subject to approval by the Director of Finance and the Governor (except for certain colleges).
• Requires bid records and the reasons for awards (if not to the lowest bidder) to be available for public inspection after award.
• Gives preference to commodities produced in Alabama or sold by Alabama businesses, provided price and quality are not sacrificed.
• Introduces life-cycle cost evaluation for certain purchases (including motor vehicles) to determine the lowest responsible bid; notices and industry-recognized sources must be identified in the invitation, with rules for sources adopted if applicable.
• Creates a HUBZone secondary award option: up to 20% of the contract value can be awarded to Alabama HUBZone-certified businesses within 5% of the lowest bid, with the invitation-to-bid noting that a secondary award may be made.
• For Medicaid-related services, allows awards to the most advantageous bidder based on weighted criteria rather than solely the lowest price, with oversight and appeal provisions for non-lowest bids.
• Establishes carve-outs where certain purchases (and services) must follow separate competitive bidding processes or specific negotiation rules, including items like Integrated Digital Enhanced Network equipment and push-to-talk services.
• Sets contract term guidelines: most personal property or contractual service contracts are let for up to five years, with certain extensions up to 10 years under defined conditions and without altering terms during extensions.

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

Subjects

Contracts