SB178 Alabama 2020 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Garlan GudgerSenator
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: The bill lets certain public colleges and universities negotiate with the lowest bidder when all bids exceed available funds.
What This Bill Does
It amends Section 39-2-6 to allow a public two-year or four-year institution awarding authority to negotiate with the lowest responsible and responsive bidder when two or more bids are received and all exceed available funding. Negotiation can occur only if the authority documents the funding shortage, Shows that time is of the essence, and ensures the negotiated changes do not materially alter the project's scope and nature. It still follows the general rule that contracts go to the lowest responsible bidder, with fallback to the next lowest if the first bidder signs or not.

Who It Affects
Public two-year or four-year institutions of higher education awarding authorities, who gain the new authority to negotiate with the lowest bidder when funding is insufficient.
Bidders on these projects (especially the lowest responsible and responsive bidder), who may have their bid price adjusted through negotiated changes if funding is short and conditions are met; other bidders may be affected by changes to the award process.

Key Provisions
Amendment to allow negotiation with the lowest responsible and responsive bidder when all bids exceed available funding for a contract, specifically for public two-year or four-year higher education awarding authorities.
Conditions for negotiation: document funding shortage, time is of the essence, and negotiated changes must not materially alter the scope and nature of the project.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Competitive Bids