SB260 Alabama 2021 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2021

Title

Public contracts, competitive bids, further provided, local preference zone, further provided, Sec. 41-16-50 am'd.

Summary

SB260 raises the bidding threshold for public contracts to $25,000 and expands local preference zones for agencies located in multiple counties.

What This Bill Does

It increases the minimum amount that requires competitive bidding from $15,000 to $25,000 for expenditures on labor, services, equipment, and other personal property (with some exceptions). It lets awarding authorities located in multiple counties establish a local preference zone in the municipality where their headquarters are located. It notes constitutional exceptions and states the act becomes law according to the standard effective date. It also adds bidding flexibility, including resident bidder preference within the local zone and provisions for joint purchasing and adjustments for foreign bids.

Who It Affects

• Local governments and their awarding authorities (counties, municipalities, and instrumentalities) that must follow bidding rules and may establish local preference zones.
• Bidders and businesses within local preference zones (including resident bidders and those classified as woman-owned, small, minority-owned, veteran-owned, or disadvantaged-owned) who may receive preference if their bid is within 5% of the lowest bid.

Key Provisions

• Raises the competitive bidding threshold from $15,000 to $25,000 for expenditures on labor, services, materials, equipment, or other personal property (excluding certain public works contracts).
• Allows awarding authorities located in multiple counties to establish a local preference zone in the municipality where the authority's headquarters is located.
• If a bid from within the local preference zone is within 5% of the lowest bid, the authority may award to the resident responsible bidder; if only one bid is received, the authority may negotiate a lower price.
• Permits joint purchasing or bidding agreements among two or more contracting agencies and outlines how those agreements operate.
• Allows a domestic bidder within the local preference zone (or qualified local businesses) to be favored when a lower bid is from a foreign entity, under specific conditions.
• Effective date: the act becomes law on the first day of the third month after passage and governor's approval.
• The bill is described as exempt from Amend ment 621 requirements due to listed exceptions.

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