HB349 Alabama 2020 Session

Summary

Primary Sponsor

Connie C. Rowe

Republican

Session

Regular Session 2020

Title

Competitve bidding, awarding authority allowed to negotiate lowest bidder when all bids exceed available funding, Sec. 39-2-6 am'd.

Summary

HB349 would let Alabama awarding authorities negotiate with the lowest bidder when all bids exceed the project’s available funding.

What This Bill Does

Currently, contracts go to the lowest responsible and responsive bidder. The bill adds an option to negotiate with that lowest bidder when two or more bids exist and none fit the budget. Negotiations must show a funding shortfall, that time is of the essence, and that any changes are in the public interest and do not substantially change the project. If negotiations succeed, the contract can proceed with the lowest bidder under revised terms; if not, other bidding procedures continue as before.

Who It Affects

• State and local awarding authorities: gain authority to negotiate with the lowest bidder under funding shortfall conditions.
• Bidders/contractors (especially the lowest responsible and responsive bidder): may have terms or price adjusted through negotiation if budget constraints exist.

Key Provisions

• When two or more bids are received and all exceed available funding, the awarding authority may negotiate with the lowest responsible and responsive bidder.
• Conditions for negotiation: the awarding authority must document funding shortage, show that time is of the essence, and ensure negotiated changes are in the public interest and do not materially alter the project scope or nature.
• Existing bid rules remain in effect for other situations (e.g., if a bid is unresponsive or if time allows; procedures for signing, bonds, and insurance still apply).

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Competitive Bids