SB162 Alabama 2016 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
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 competitive bid nationwide cooperative purchasing program, Secs. 16-13B-2, 16-13B-7 am'd.
Summary: SB162 updates Alabama's Competitive Bid Law to set contract lengths, authorize purchases through GSA and nationwide cooperative programs, and tighten sole-source rules with life-cycle cost provisions.
What This Bill Does
It allows certain contracts for goods and services to be let for up to 3 years, and lease-purchase agreements for capital improvements or repairs to be let for up to 10 years. It authorizes purchases from vendors under General Services Administration contracts and from national cooperative purchasing programs, under specified price and approval conditions. It strengthens sole-source purchase requirements, requiring a written, documented justification and approval by relevant authorities, and directs consideration of life-cycle costs for some bids. It preserves existing bidding exemptions and adds procedures for bid awards, including reassigning contracts to the second lowest bidder if the lowest bidder defaults, with public disclosure of bids and award reasons.

Who It Affects
Local boards of education, counties, and city governments in Alabama that procure goods and services and manage contracts, who would face new contract length rules, sole-source criteria, and opportunities to use GSA or cooperative purchasing programs.
Vendors and suppliers, including Alabama-based firms and those with GSA or nationwide cooperative purchasing contracts, who may gain access to more purchasing options but must meet price, documentation, and eligibility requirements.

Key Provisions
Contracts for the purchase of personal property or contractual services shall be let for periods not greater than three years; lease-purchase contracts for capital improvements and repairs to real property shall be for up to 10 years; all other lease-purchase contracts shall be up to 10 years.
Purchases may be made from vendors under a General Services Administration contract and from purchasers through nationwide cooperative purchasing programs, with prices not exceeding the lowest competitive bid price or state purchasing program price, and only if certain conditions are met (competitive bid approval, availability, and Alabama vendor eligibility).
Sole-source purchases are allowed only if the product or service is indispensable, no viable alternatives exist, and a sole-source justification is documented in writing and filed in the project file; an architect or engineer must certify no substitute is available and justify necessity.
A preference is given to Alabama-produced goods or Alabama vendors when prices and quality are equal; however, sole-source purchases for construction-related materials or services may be restricted unless documented justification is provided.
The lowest bid may be determined using life-cycle costs for certain personal property, with bid notices specifying this option and the Department of Examiners of Public Accounts establishing procedures for life-cycle cost evaluations.
Awards may be terminated and reawarded to the second lowest responsible bidder without rebidding if the lowest bidder defaults, provided terms and pricing remain the same or better, and all bid records remain publicly accessible.

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