HB88 Alabama 2018 Session

Summary

Primary Sponsor

Dickie Drake

Republican

Session

Regular Session 2018

Title

Competitive bids on public contracts by state agencies and institutions, preference for vendors owned by veterans of wars in Iraq and Afghanistan, joint purchasing agreements further provided for, cities and counties authorized to use fleet fuel cards, Secs. 41-16-20, 41-16-21.1, 41-16-27, 41-4-110 am'd.

Summary

HB 88 updates Alabama’s buying rules to favor veteran-owned Alabama businesses, expand joint purchasing and fleet card use, and widen cost-based and multiple-award options for state contracts.

What This Bill Does

The bill adds veteran-owned, Alabama-based businesses as a preferred vendor option and lets bids be awarded to them if they are within 5% of the lowest bid. It authorizes the Division of Purchasing to form joint purchasing agreements for services and to award multiple service contracts, with some limits. It also lets counties and cities participate in the state’s fleet fuel card program and introduces life-cycle cost analysis and other flexible bidding tools (including multiple awards) for certain purchases, while preserving Alabama-made preferences when possible. Additionally, it allows small, below-market purchases from Alabama vendors (up to $15,000) under specific conditions and strengthens reporting, oversight, and IT-related controls.

Who It Affects

• State and local government entities (state agencies, public colleges and universities, and counties/cities) by changing bidding rules, enabling joint purchasing, allowing fleet card use, and expanding cost-based decision tools.
• Alabama-based vendors, especially veteran-owned businesses and HUBZone-certified firms, who gain new or enhanced opportunities to win contracts or receive secondary awards and preferential treatment when bidding.

Key Provisions

• Creates a veteran-owned in-state business preference (Priority #4) in bidding, with a potential award if the veteran-owned bidder is no more than 5% higher than the lowest bid.
• Authorizes the Division of Purchasing to enter into joint purchasing agreements for services and to award multiple purchase contracts; allows other governmental entities to use these agreements, with some exclusions (e.g., certain materials tied to service contracts and wireless equipment).
• Allows counties and municipalities to participate in the state fleet fuel card program; establishes rules for credit card use, including reporting, approvals, and potential fees credited to the State Procurement Fund.
• Permits life-cycle cost analysis to determine the lowest bid for certain purchases (including motor vehicles) and requires notice in bid invitations about this evaluation method and the sources used.
• .authorizes multiple awards where appropriate due to technical or operational compatibility, with requirements in the bid invitation and limitation on certain services (e.g., push-to-talk).
• Adds Alabama-made and Alabama-owned preference when price and quality are comparable, ensuring in-state goods or firms are favored if not sacrificing price/quality.
• Allows up to 20% of a contract value to be awarded as secondary contracts to Alabama HUBZone-certified bidders under specified conditions.
• Permits limited below-market purchases from vendors offering at least 10% savings below statewide contract prices for purchases up to $15,000, with conditions to match statewide terms, require in-state vendor possession, exclude IT network-related purchases, and require IT approval for IT-related items.

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