The bill SB108 amends the Code of Alabama 1975 to increase the competitive bidding threshold for public contracts from $15,000 to $30,000, affecting various state and local awarding authorities such as school districts and county commissions. It introduces a mechanism for future adjustments to this threshold based on the Consumer Price Index, with the first adjustment scheduled for October 1, 2027. The bill also prohibits splitting expenditures of $30,000 or more into smaller parts to avoid competitive bidding requirements. Additionally, it establishes local preference zones, allowing awarding authorities to favor local bidders whose bids are within 5% of the lowest bid, and includes provisions for negotiations when no bids or only one bid is received.

Moreover, SB108 updates procurement laws by modifying exceptions to competitive bidding, including the addition of purchases from vendors with statewide contracts and intergovernmental purchases. It raises the threshold for certain expenditures, such as repair parts for heavy-duty equipment, and allows for emergency contracts without public advertisement under specific circumstances. The bill also addresses collusion among bidders, categorizing violations based on bid amounts and establishing penalties for collusive practices. Overall, SB108 aims to streamline procurement processes, enhance transparency, and ensure accountability in public contracting while providing opportunities for local businesses.

Statutes affected:
Introduced: 41-16-50, 41-16-51, 41-16-52, 41-16-53, 41-16-54, 41-16-55
Enrolled: 41-16-50, 41-16-51, 41-16-52, 41-16-53, 41-16-54, 41-16-55