SB109 Alabama 2021 Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

Regular Session 2021

Title

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

Summary

Allows certain local education authorities to negotiate with the lowest responsible and responsive bidder when all bids exceed available funding for a public works project.

What This Bill Does

If two or more bids are received and none fit the budget, the awarding authority (local board of education or public college/university) may negotiate with the lowest responsible and responsive bidder to try to bring the project within funding limits, as long as funding shortfall is documented, time is of the essence, and negotiated changes do not materially alter the project scope. If the lowest bidder refuses to sign the contract, provide the required bond, or show proof of insurance, the awarding authority may award the contract to the second lowest bidder, and similarly to the third lowest if needed. If there are no bids or only one bid, the authority may seek additional bids or proceed with force account or informal bidding; the existing rules and options otherwise remain in effect.

Who It Affects

• Local boards of education and public two-year or four-year higher education awarding authorities: gain the option to negotiate with the lowest bidder when funding is insufficient, potentially allowing a project to proceed within budget.
• Bidders/contractors bidding on Alabama public works projects: the lowest responsible and responsive bidder may be offered negotiated terms to reduce costs to fit the budget, affecting bidding strategy and potential award.

Key Provisions

• Adds a negotiation option with the lowest responsible and responsive bidder when two or more bids are received and all bids exceed available funding.
• Conditions for negotiation: the awarding authority must document the funding shortage, show time is of the essence, and ensure negotiated changes do not materially alter the project scope or nature.
• If the lowest bidder cannot or will not sign the contract, provide bond, or supply required insurance, the contract may be awarded to the next lowest bidder, continuing as needed.
• If no bids or only one bid is received, the awarding authority may seek additional bids or proceed with force account or informal bids (with exceptions as stated).
• Not intended to affect regular maintenance, routine repairs, or road/bridge work performed by the awarding authority’s regular employees, nor convicts labor provisions.
• For projects proceeding by force account or negotiation, plans, cost estimates, and informal bids must be reviewed by the Department of Examiners of Public Accounts, with final costs and changes made public upon request.

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