SB161 Alabama 2016 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Gerald O. Dial
Republican
Session: Regular Session 2016
Title: Competitive bidding, preferred vendor status given to businesses owned by veterans who were deployed for Operation Enduring Freedom (Afghanistan) or Operation Iraqi Freedom (Iraq), Sec. 41-16-20 am'd.
Summary: SB161 would extend preferred vendor status in Alabama's competitive bidding to veteran-owned businesses located in the state whose owners deployed to Afghanistan or Iraq.
What This Bill Does
The bill adds a new Priority #4 for in-state, veteran-owned businesses whose owners were deployed to Afghanistan or Iraq. When awarding bids, a preferred vendor can win if their bid is no more than 5% higher than the lowest bid. Eligibility requires the business to be in Alabama and owned by a veteran who served (Army, Air Force, Navy, Marine Corps, or Coast Guard) and was discharged honorably or generally. It keeps existing bidding rules and priorities in place, but adds this veteran-owned option as an additional consideration.

Who It Affects
In-state veteran-owned businesses whose owners were deployed to Afghanistan (OEF) or Iraq (OIF) and who are located in Alabama; they may receive preferred vendor status and be eligible for awards if within 5% of the lowest bid.
State contracting authorities and other awarding entities; they may award contracts to a qualifying veteran-owned preferred vendor within 5% of the lowest bid under the revised priority system.

Key Provisions
Amends Section 41-16-20 to include Priority #4 for in-state, veteran-owned businesses whose owners were deployed to Afghanistan or Iraq (OEF/OIF).
Defines eligibility: the veteran must have served in the Army, Air Force, Navy, Marine Corps, or Coast Guard and must have been discharged honorably or generally; the business must be physically located in Alabama and owned by that veteran.
Retains existing bidding framework: contracts $15,000 or more must be let by free and open competitive bidding with lowest responsible bidder as the baseline.
Allows the awarding authority to select a preferred veteran-owned vendor if the bid is no more than 5% greater than the lowest bid submitted.
Effective date: becomes law 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: Contracts