The bill SB108 amends the Code of Alabama 1975 to increase the competitive bidding threshold for public contracts from $15,000 to $30,000, impacting various state and local public awarding authorities, including school districts and county commissions. It introduces a legislative method for future adjustments to this threshold and mandates that any new or increased local fund expenditures comply with Section 111.05 of the Alabama Constitution of 2022. The bill also establishes local preference zones, allowing awarding authorities to favor local bidders whose bids are within 5% of the lowest bid, and includes provisions to prevent the splitting of expenditures to bypass bidding requirements. Additionally, it outlines conditions under which competitive bidding may be bypassed based on reasonable beliefs about expenditure thresholds.

Moreover, SB108 clarifies and expands exceptions to competitive bidding requirements, allowing purchases from vendors with existing contracts and between governmental entities, while raising the threshold for certain expenditures related to heavy-duty off-highway construction equipment. The bill introduces emergency contracting provisions, enabling public authorities to bypass standard bidding in urgent situations, and establishes penalties for violations, categorizing collusion among bidders as a Class A misdemeanor or Class C felony depending on the bid amount. Overall, the bill aims to streamline procurement processes, enhance transparency, and ensure accountability in public contracting.

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