SB317 Alabama 2020 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2020

Title

Public contracts, threshold amount increased that subjects a public contract to competitive bidding requirements, Sec. 41-16-50 am'd.

Summary

SB317 raises the competitive bidding threshold for most Alabama public contracts from $15,000 to $25,000, excluding public works.

What This Bill Does

If passed, the bill requires competitive bidding for expenditures of labor, services, or for the purchase of materials, equipment, or other personal property totaling $25,000 or more, and for lease payments of $25,000 or more. Public works contracts remain governed by their own bidding rules under Title 39. The bill keeps existing bidding procedures (free and open bidding, sealed bids, and awarding to the lowest responsible bidder) and maintains local preference rules that can favor resident bidders within a local zone, along with related negotiation and joint-purchasing provisions.

Who It Affects

• State and local government entities (e.g., state colleges, universities, school districts, counties, municipalities, and instrumentalities) and their contractors who must bid on purchases or leases when $25,000 or more.
• Bidders and suppliers/contractors who bid on public contracts, including those seeking work for public schools, local governments, and utility boards, who may benefit from local preference allowances and must compete under sealed bidding when thresholds are met.

Key Provisions

• Raises the bidding threshold for expenditures and lease payments to $25,000 or more (from $15,000) for non-public-works contracts.
• Public works contracts remain governed by their own bidding requirements and are not affected by the new threshold.
• Purchases must use free and open competitive bidding, with sealed bids, and be awarded to the lowest responsible bidder.
• Local preference zones may be established to favor resident bidders if bids are within 5% of the lowest bid, and the awarding authority may award to a resident bidder under specified conditions.
• If only one bid is received, the awarding authority may reject and negotiate a lower price.
• Two or more contracting agencies may jointly purchase or bid, following the article’s terms, including the use of a joint purchasing or bidding agent.
• If a foreign entity submits the lowest bid, a local or state-based bidder may be awarded the contract if they are within 10% of the foreign bid and meet local preference criteria.
• Bid bonds may be required if stated in the bid specifications and bonding is available for the services, equipment, or materials.
• The act becomes effective on the first day of the third month after its passage and approval.

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

Subjects

Public Contracts