SB76 Alabama 2014 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2014

Title

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

Summary

SB76 would let state agencies give preference to defined 'preferred vendors' by allowing awards within 5% of the lowest bid when the vendor meets state criteria.

What This Bill Does

It allows a state awarding authority to award a contract to a preferred vendor if that vendor's bid is no more than five percent higher than the lowest bid from a responsible bidder. It defines a 'preferred vendor' using three state-focused criteria: product made in Alabama, an in-state assembly plant or distribution facility, or an Alabama-based business with a retail outlet or service center for at least one year before the bid deadline. If multiple preferred vendors are within the 5% range, the award goes to the preferred vendor with the lowest bid. The general competitive bidding rules remain for contracts at or above $15,000, with certain exceptions for public works and other provisions.

Who It Affects

• Preferred vendors that meet the state priority criteria could win contracts even if their bid is up to 5% higher than the lowest bid.
• State awarding authorities (e.g., state departments and higher education institutions) and other bidders would need to apply the 5% preference rule and the tie-breaker when selecting contracts.

Key Provisions

• Definition of 'preferred vendor' and Priority criteria: Priority #1—produces or manufactures the product within Alabama; Priority #2—has an assembly plant or distribution facility for the product within Alabama; Priority #3—organized in Alabama and has at least one retail outlet or service center for the product or service within the state for at least one year prior to the bid deadline.
• 5% rule and tie-breaker: If a preferred vendor's bid is no more than five percent greater than the lowest responsible bid, the awarding authority may award the contract to the preferred vendor; if multiple preferred vendors meet the threshold, the award goes to the preferred vendor with the lowest bid. Applies to contracts let by state higher education institutions and related agencies; existing bidding rules (e.g., $15,000 threshold) continue to apply.

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