HB 88

Sponsor
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.
Description

To amend Sections 41-16-20, 41-16-21.1, 41-16-27, and 41-4-110 of the Code of Alabama 1975 relating to purchasing; to grant preferred vendor status to any business located in the state that is owned by a veteran; to allow the Division of Purchasing to enter into joint purchase agreements for the purchase of services and to award multiple purchase contracts for the purchase of services; and to allow cities and counties to utilize the fleet fuel card program administered by the Division of Purchasing.

Subjects
Competitive Bids
View Original PDF: HB 88 - Enrolled - PDF

To amend Sections 41-16-20, 41-16-21.1, 41-16-27, and 41-4-110 of the Code of Alabama 1975 relating to purchasing; to grant preferred vendor status to any business located in the state that is owned by a veteran; to allow the Division of Purchasing to enter into joint purchase agreements for the purchase of services and to award multiple purchase contracts for the purchase of services; and to allow cities and counties to utilize the fleet fuel card program administered by the Division of Purchasing

Section 1

Sections 41-16-20, 41-16-21.1, 41-16-27, and 41-4-110 of the Code of Alabama 1975 are amended to read as follows: "§41-16-20. "(a) With the exception of contracts for public works whose competitive bidding requirements are governed exclusively by Title 39, all contracts of whatever nature for labor, services, work, or for the purchase or lease of materials, equipment, supplies, other personal property or other nonprofessional services, involving fifteen thousand dollars ($15,000) or more, made by or on behalf of any state department, board, bureau, commission, committee, institution, corporation, authority, or office shall, except as otherwise HB88 provided in this article, be let by free and open competitive bidding, on sealed bids, to the lowest responsible bidder. "(b) A "preferred vendor" shall be a person, firm, or corporation which is granted preference priority according to the following: "(1) PRIORITY #1. Produces or manufactures the product within the state. "(2) PRIORITY #2. Has an assembly plant or distribution facility for the product within the state. "(3) PRIORITY #3. Is organized for business under the applicable laws of the state as a corporation, partnership, or professional association and has maintained at least one retail outlet or service center for the product or service within the state for not less than one year prior to the deadline date for the competitive bid. "(4) PRIORITY #4. A business that is physically located in the state and that is more than 50 percent owned by a person who was discharged or released under conditions other than dishonorable and who has at least 24 months' active service in the United States' military, naval, or air service, or who has less than 24 months of active service in any of the foregoing and was separated with a service-connected disability, or a national guardsman or reservist who completed active federal service for purposes other than training or who HB88 served at least 180 days of continuous service for purposes other than training. "(c) In the event a bid is received for the product or service from a person, firm, or corporation deemed to be a responsible bidder and a preferred vendor where any state higher education institution, department, board, bureau, commission, committee, institution, corporation, authority, or office is the awarding authority and the bid is no more than five percent greater than the bid of the lowest responsible bidder, the awarding authority may award the contract to the preferred vendor." "§41-16-21.1. "(a) In the event that utility services are no longer exempt from competitive bidding under this article, non-adjoining counties may not purchase utility services by joint agreement under authority granted by this section. "(b) The Division of Purchasing, Department of Finance, is hereby authorized to enter into joint purchasing agreements to purchase, lease, or lease-purchase child support services, materials, equipment, supplies, or other personal property or services, including child support services, which have been let by competitive bid or competitive solicitation process by any group or consortium of governmental entities within or without the State of Alabama upon a finding by the Purchasing Agent that such joint purchasing agreements are in HB88 the best interests of the State of Alabama. Joint purchasing agreements entered into by the Division of Purchasing may be utilized by any governmental entity subject to the requirements of Title 41, Chapter 16, Articles 2 or 3A. This subsection shall not apply to the purchase, lease, or lease-purchase of materials, equipment, supplies, or other personal property which can only be utilized in conjunction with a service or service contract, whether subject to competitive bidding under this article or not, for the materials, equipment, supplies, or other personal property that must remain in effect to utilize the materials, equipment, supplies, or other personal property. "Nothing in this subsection prohibits or limits public four-year institutions from entering into joint purchasing agreements to purchase, lease, or lease-purchase materials, equipment, supplies, other personal property and services which have been let by competitive bid or competitive solicitation process by any group or consortium of governmental entities or through a group purchasing organization within or without the State of Alabama upon a finding by the institution that such purchasing agreements are in the best interests of the institution; provided, however, this sentence shall not permit agreements to purchase, lease, or lease-purchase wireless communications equipment or HB88 services through any group or consortium of governmental entities or through any group purchasing organization." "§41-16-27. "(a) When purchases are required to be made through competitive bidding, award shall, except as provided in subsection (f), be made to the lowest responsible bidder taking into consideration the qualities of the commodities proposed to be supplied, their conformity with specifications, the purposes for which required, the terms of delivery, transportation charges and the dates of delivery provided, that the awarding authority may at any time within 30 days after the bids are opened negotiate and award the contract to anyone, provided he secures a price at least five percent under the low acceptable bid. The award of such a negotiated contract shall be subject to approval by the Director of Finance and the Governor, except in cases where the awarding authority is a two-year or four-year college or university governed by a board. The awarding authority or requisitioning agency shall have the right to reject any bid if the price is deemed excessive or quality of product inferior. Awards are final only after approval of the Purchasing Agent. "(b) The awarding authority may award multiple purchase contracts resulting from a single invitation-to-bid where the specifications of the items of personal property or services intended to be purchased by a requisitioning agency HB88 or agencies are determined, in whole or in part, by technical compatibility and operational requirements. In order to make multiple awards under this provision, the awarding authority must include in the invitation-to-bid a notice that multiple awards may be made and the specific technical compatibility or operational requirements necessitating multiple awards. Multiple awards of purchase contracts with unique technical compatibility or operational specifications shall be made to the lowest responsible bidder complying with the unique technical compatibility or operational specifications. The requisitioning agency shall provide the awarding authority with the information necessary for it to determine the necessity for the award of multiple purchase contracts under this provision. "This subsection (b) shall not apply to contracts for the purchase or use of push to talk services, which shall be purchased through a separate competitive bid process. "(c) Each bid, with the name of the bidder, shall be entered on a record. Each record, with the successful bid indicated thereon and with the reasons for the award if not awarded to the lowest bidder shall, after award of the order or contract, be open to public inspection. "(d) The Purchasing Agent in the purchase of or contract for personal property or contractual services shall give preference, provided there is no sacrifice or loss in HB88 price or quality, to commodities produced in Alabama or sold by Alabama persons, firms, or corporations. "(e)(1) Contracts for the purchase of personal property or contractual services other than personal services shall be let by competitive bid for periods not greater than five years and current contracts existing on February 28, 2006, may be extended or renewed for an additional two years with a 90-day notice of such extension or renewal given to the Legislative Council, however, any contract that generates funds or will reduce annual costs by awarding the contract for a longer term than a period of three years which is let by or on behalf of a state two-year or four-year college or university may be let for periods not greater than 10 years. Any contract awarded pursuant to this section for terms of less than 10 years may be extended for a period not to exceed ears from the initial awarding of the contract provided that the terms of the contract shall not be altered or renegotiated during the period for which the contract is extended. "(2) For purchases of personal property made on or after January 1, 2010, in instances in which the awarding authority determines that the total cost of ownership over the expected life of the item or items, including acquisition costs plus sustaining costs, and including specifically life cycle costs, can be reasonably ascertained from industry HB88 recognized and accepted sources, the lowest responsible bid may be determined to be the bid offering the lowest life cycle costs and otherwise meeting all of the conditions and specifications contained in the invitation to bid. To utilize this provision to determine the lowest responsible bidder, the awarding authority must include a notice in the invitation to bid that the lowest responsible bid may be determined by using life cycle costs and identify the industry recognized and accepted sources that will be applicable to such an evaluation. "(3) Industry recognized and accepted sources may be provided by rules adopted pursuant to the Alabama Administrative Procedure Act by the Green Fleets Review Committee if the review committee is established and enacted at the 2009 Regular Session. If the Green Fleets Review Committee is not enacted at the 2009 Regular Session, the Permanent Joint Legislative Committee on Energy Policy may adopt rules providing industry recognized and accepted sources, pursuant to the Alabama Administrative Procedure Act. "(f) Contracts for the purchase of services for receiving, processing, and paying claims for services rendered recipients of the Alabama Medicaid program authorized under Section 22-6-7 which are required to be competitively bid may be awarded to the bidder whose proposal is most advantageous to the state, taking into consideration cost factors, program HB88 suitability factors (technical factors) including understanding of program requirements, management plan, excellence of program design, key personnel, corporate or company resources and designated location, and other factors including financial condition and capability of the bidder, corporate experience and past performance and priority of the business to insure the contract awarded is the best for the purposes required. Each of these criteria shall be given relative weight value as designated in the invitation to bid, with price retaining the most significant weight. Responsiveness to the bid shall be scored for each designated criteria. If, for reasons cited above, the bid selected is not from the lowest bidding contractor, the Alabama Medicaid Agency shall present its reasons for not recommending award to the low bidder to the Medicaid Interim Committee. The committee shall evaluate the findings of the Alabama Medicaid Agency and must, by resolution, approve the action of the awarding authority before final awarding of any such contract. The committee shall also hear any valid appeals against the recommendation of the Alabama Medicaid Agency from the low bid contractor(s) whose bid was not selected. "(g) Notwithstanding the requirements under Sections 41-16-20, 41-16-21, and this section, contractual services and purchases of personal property regarding the athletic department, food services, and transit services negotiated on HB88 behalf of two-year and four-year colleges and universities may be awarded without competitive bidding provided that no state revenues, appropriations, or other state funds are expended or committed and when it is deemed by the respective board that financial benefits will accrue to the institution, except that in the cases where an Alabama business entity as defined by this section is available to supply the product or service they will have preference unless the product or service supplied by a foreign corporation is substantially different or superior to the product or service supplied by the Alabama business entity. However, the terms and conditions of any of the services or purchases which are contracted through negotiation without being competitively bid and the name and address of the recipient of such a contract shall be advertised in a newspaper of general circulation in the municipality in which the college or university is located once a week for two consecutive weeks commencing no later than ays after the date of the contract. For the purposes of this section, the term Alabama business entity shall mean any sole proprietorship, partnership, or corporation organized in the State of Alabama. "(h)(1) For purchases of motor vehicles by the state made on or after January 1, 2010, the lowest responsible bid may be determined to be a bid offering the lowest life cycle costs, if it is determined that the total cost of ownership HB88 over the expected life of a motor vehicle, including acquisition costs plus maintenance costs, including specifically life cycle costs, can be reasonably ascertained from industry recognized and accepted sources. The lowest responsible bid shall otherwise meet all of the conditions and specifications contained in the invitation to bid. To utilize this provision to determine the lowest responsible bidder, the state must include a notice in the invitation to bid that the lowest responsible bid may be determined by using life cycle costs and identify the industry recognized and accepted sources that will be applicable to such an evaluation. "(2) Industry recognized and accepted sources may be provided by rules adopted pursuant to the Alabama Administrative Procedure Act by the Green Fleets Review Committee if the review committee is established and enacted at the 2009 Regular Session. If the Green Fleets Review Committee is not enacted at the 2009 Regular Session, the Permanent Joint Legislative Committee on Energy Policy may adopt rules providing industry recognized and accepted sources pursuant to the Alabama Administrative Procedure Act. "(i) When a single invitation-to-bid specifies a set of deliverables that would be capable of division into separate, independent contracts, the awarding authority, at its discretion, may award a secondary contract for any subset of such deliverables, not to exceed 20 percent of the original HB88 contract value, to any Alabama business certified under the Federal HUBZone program whose properly submitted responsible bid does not exceed five percent of the lowest responsible bid. In order to make a secondary award under this provision, the awarding authority shall include in the invitation-to-bid a notice that a secondary award may be made." "§41-4-110. "(a) There shall be in the Department of Finance the Division of Purchasing. The functions and duties of the Division of Purchasing shall be as follows: "(1) To purchase all personal property and nonprofessional services, except alcoholic beverages, which shall be purchased by the Alcoholic Beverage Control Board and except as otherwise provided by law, for the state and each department, board, bureau, commission, agency, office, and institution thereof, except as provided in subsection (e). "(2) To make and supervise the execution of all contracts and leases for the use or acquisition of any personal property and nonprofessional services unless otherwise provided by law. "(3) To fix standards of quality and quantity and to develop standard specifications for all personal property and nonprofessional services acquired by the state or any department, board, bureau, commission, agency, office, or institution thereof. HB88 "(4) To maintain records as to prices and sources of supply of such personal property and nonprofessional services, such records to be open to the inspection of any state, county, municipal, or other public officer or employee charged with the duty of acquiring any such property and nonprofessional services or article for his or her department, board, bureau, commission, agency, office, institution, county, municipal corporation, or local public body. "(5) To manage, supervise, and control all printing and binding for the state and for each department, board, bureau, commission, agency, office, and institution thereof and the distribution of all printed matter and to make and supervise the execution of all contracts with respect thereto, unless otherwise provided by law. "(6) To require the periodic reporting of all purchases of furniture, fixtures, supplies, material, equipment, and other personal property, except printing, and all contracts and leases for the use or acquisition thereof by or for counties, the purchase, contract or lease price of which is $100.00 or more, and to require information in connection therewith, to prescribe forms and fix the time for submitting such reports, and, when requested by any county, municipal corporation, and other local public body (including any board of education) to make such purchases, contracts, or leases for it. It shall be the duty of every county to make HB88 such report on forms furnished by the Department of Finance, whenever requested so to do, but not more than once every 30 days. "(7) To perform such other functions and duties of the Department of Finance as may from time to time be assigned by the Director of Finance. "(b) As long as the constitution so requires, all stationery, printing, paper, and fuel used in the legislative and other departments of the government shall be furnished, and the printing, binding, and distribution of the laws, journals, departmental reports, and all other printing, binding, and repairing and furnishing the halls and rooms used for the meetings of the Legislature and its committees shall be performed under contract, to be given to the lowest responsible bidder below a maximum price, under such regulations as have been or may be prescribed by law and as may be promulgated by the Director of Finance. No member or officer of any department of the government shall be in any way interested in such contracts, and all such contracts shall be subject to the approval of the Governor, the Auditor and the Treasurer. All contracts not required to be approved by a named officer or officers by the Constitution shall be subject to the approval of the Director of Finance, who may, however, provide for the automatic approval thereof by compliance with the general rules or regulations promulgated by him or her. HB88 "(c) The Purchasing Agent is further authorized to establish and maintain a system for the purchase of personal property and nonprofessional services by state departments, agencies, boards, and institutions that conduct their purchasing activities through the Division of Purchasing, through the utilization of approved credit cards. County and municipal governments and instrumentalities or public corporations thereof may participate in the state fleet fuel card program subject to the terms and conditions of the program related to the utilization of the fleet fuel card; provided, however, that county and municipal governments and instrumentalities or public corporations thereof shall not otherwise be subject to the provisions of this subsection. The Purchasing Agent shall establish by administrative rule a process for the competitive solicitation of credit card providers. The state Comptroller and the Purchasing Agent shall promulgate fiscal procedures governing the payment of charges incurred by credit card users and the utilization of credit cards. The use of approved credit cards shall be established by the state Comptroller and the State Purchasing Agent, with the approval of the Director of Finance, and be published through the Alabama fiscal procedures, in which each purchase made using approved credit cards is required to have prior approval by the department head or his or her designee and a record of such purchases and approvals is to be HB88 maintained. The Purchasing Agent may select the provider or providers offering the highest fees to the division for the use of its credit card or credit cards. Fees received by the division for the use of credit cards shall be placed in a special fund entitled the State Procurement Fund in the State Treasury for the use of the division and such funds shall be appropriated, budgeted, and allotted in accordance with Sections 41-4-80 to 41-4-96, inclusive, and 41-19-1 to 41-19-12, inclusive, and only in amounts stipulated in general appropriations bills and other appropriation bills. Approved credit cards may be issued to requisitioning agencies upon the recommendation of the Purchasing Agent and the approval of the Director of Finance. Approved credit cards will be assigned to the department and will be in limited number. Such credit cards may be utilized to purchase items of personal property and nonprofessional services, and shall not exceed the limitations set forth in subsection (a) of Section 41-16-24. The director of the governmental entity utilizing credit cards is responsible for the proper use of credit cards assigned to his or her agency, in accordance with rules established by Alabama fiscal procedures. The Purchasing Agent may collect any credit card from any agency at any time due to improper use. The Purchasing Agent shall submit an annual report and accounting regarding the use of credit cards by each HB88 governmental entity to the Director of Finance and the Governor. "(d) The Division of Purchasing is authorized to charge a biannual registration fee to vendors desiring to register with the division to receive invitations-to-bid for any goods or services solicited by the division and to charge departments, boards, bureaus, commissions, agencies, offices, and institutions for their proportionate share of operating costs of the division. Any fee must be set by administrative rule upon the approval of the Director of Finance. Any fees collected under this provision shall be deposited in the State Treasury to the credit of the State Procurement Fund and shall be appropriated, budgeted, and allotted in accordance with Sections 41-4-80 to 41-4-96, inclusive, and 41-19-1 to 41-19-12, inclusive, and only in amounts stipulated in general appropriations bills and other appropriation bills. "(e) Notwithstanding any law to the contrary, state departments, agencies, boards, and institutions may purchase personal property from any vendor that offers the item at a price at least ten percent below the price established on a statewide contract by the Division of Purchasing for the same item, provided that each acquisition of personal property pursuant to this subsection, whether for a single item or multiple items, does not exceed fifteen thousand dollars ($15,000). The Division of Purchasing shall confirm that the HB88 terms and conditions of such purchase are substantially similar to those of the statewide contract for the same item prior to the approval of any purchase pursuant to this subsection. This subsection shall not apply to construction or road-building materials, as identified by the Purchasing Agent. Any purchase that would be directly connected to any IT network used by the state shall require prior approval by the Secretary of Information Technology. "Any acquisition of personal property pursuant to this subsection shall be purchased solely from vendors physically located within the state, if the purchaser is to take possession of the purchased goods at the vendor's physical location. "The price of any goods or services purchased pursuant to this subsection shall be the market price readily available to the public at large. "Any acquisition of personal property pursuant to this subsection is not exempt from the supervision and administration of the Division of Purchasing."

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law. HB88 Speaker of the House of Representatives President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 16-JAN-18, as amended. Jeff Woodard Clerk Senate 15-FEB-18 Amended and Passed Passed, as amended House 01-MAR-18 by Conference Com- mittee Report Passed, as amended Senate 06-MAR-18 by Conference Com- mittee Report

No articles found.
Action Date Chamber Action
March 6, 2018HConference Committee on HB88 2018RS first Substitute Offered
March 6, 2018HAssigned Act No. 2018-195.
March 6, 2018HDelivered to Governor at 4:52 p.m. on March 6, 2018.
March 6, 2018HClerk of the House Certification
March 6, 2018SSignature Requested
March 6, 2018HEnrolled
March 6, 2018HConcurred in Conference Report
March 6, 2018SDial motion to Concur In and Adopt adopted Roll Call 596
March 6, 2018SConference Report Concurrence Requested
March 1, 2018HDrake motion to Concur In and Adopt adopted Roll Call 578
March 1, 2018HConference Report
February 22, 2018HConference Committee Appointed
February 22, 2018SDial motion to Accede adopted Roll Call 500 P&PO appoints Dial, Holtzclaw and Beasley
February 22, 2018SConference Committee Requested
February 22, 2018HDrake motion to Non Concur and Appoint Conference Committee adopted Roll Call 426 House appoints Drake, Clouse and McClammy
February 22, 2018HConcurrence Requested
February 15, 2018SMotion to Read a Third Time and Pass adopted Roll Call 415
February 15, 2018SHoltzclaw motion to Adopt adopted Roll Call 414
February 15, 2018SVeterans and Military Affairs Amendment Offered
February 15, 2018SThird Reading Passed
January 25, 2018SRead for the second time and placed on the calendar 1 amendment
January 16, 2018SRead for the first time and referred to the Senate committee on Veterans and Military Affairs
January 16, 2018HEngrossed
January 16, 2018HCosponsors Added
January 16, 2018HMotion to Read a Third Time and Pass adopted Roll Call 25
January 16, 2018HMotion to Adopt adopted Roll Call 24
January 16, 2018HMilitary and Veterans Affairs Amendment Offered
January 16, 2018HThird Reading Passed
January 11, 2018HRead for the second time and placed on the calendar 1 amendment
January 9, 2018HRead for the first time and referred to the House of Representatives committee on Military and Veterans Affairs
2018-03-06
Chamber: Senate
Result: Passed
2018-03-01
Chamber: House
Result: Passed
2018-02-22
Chamber: Senate
Result: Passed
2018-02-22
Chamber: House
Result: Passed
2018-02-15
Chamber: Senate
Result: Passed
2018-02-15
Chamber: Senate
Result: Passed
2018-01-16
Chamber: House
Result: Passed
2018-01-16
Chamber: House
Result: Passed