HB170 Alabama 2016 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Jim Patterson
Republican
Session: Regular Session 2016
Title: Competitive bid law, providing for length of time contracts for goods or services, excepting voice or wireless communications services, may be let, specify requirements for purchases from a sole source, permit purchases from vendor under general services administration contract and services from a competitve bid nationwide cooperative purchasing program, Secs. 16-13B-2, 16-13B-7, 41-16-51, 41-16-57 am'd.
Summary: HB170 updates Alabama's Competitive Bid Law to set contract length limits, clarify sole-source rules, and allow buying from GSA contracts and nationwide cooperative purchasing programs.
What This Bill Does
It limits how long contracts for personal property or contractual services can run (no more than 3 years) and lease-purchase arrangements (no more than 10 years). It allows purchases from vendors under a General Services Administration contract and from nationwide cooperative purchasing programs, but only under conditions such as an approved competitive bid process and prices not exceeding state purchasing program prices (with preference for Alabama vendors when possible). It strengthens sole-source exemptions with strict justification—indispensable nature, architect/engineer recommendation, and written documentation filed in the project file. It also introduces life-cycle cost analysis to identify the lowest responsible bid and requires procedures from the Department of Examiners of Public Accounts, while maintaining public bid records and a preference for Alabama-made or Alabama-sold goods when appropriate.

Who It Affects
Local school boards, counties, and city governments (public purchasing authorities) — face new contract-term limits and new options to purchase via GSA or national cooperative programs under specific conditions.
Vendors and suppliers (including Alabama-based vendors) — can participate in GSA and cooperative program purchases, with new requirements on price, documentation, and life-cycle cost considerations, and potential Alabama-preference rules where applicable.

Key Provisions
Maximum contract terms established: three years for purchase of personal property or contractual services; up to ten years for lease-purchase contracts for capital improvements and repairs and for other lease-purchase contracts.
Allows purchases from vendors under General Services Administration contracts and through nationwide cooperative purchasing programs, with conditions that the goods/services come via an approved competitive bid process and are priced not higher than the state purchasing program; preference for Alabama vendors when possible.
Sole-source purchases may be made only when an indispensable need exists, supported by an architect/engineer, and documented in writing in the project file with no substantially equivalent alternatives.
Life-cycle cost analysis allowed to determine the lowest responsible bid; the Department of Examiners of Public Accounts will establish procedures for using life-cycle costs.
Purchasing transparency maintained: bid records and the reasons for awards are open to public inspection.
Alabama preference provision requires consideration of goods produced in Alabama or sold by Alabama firms, with limitations on sole-source use for certain public works and energy-related purchases.
Effective immediately upon the Governor's 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