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 Chief Examiner of the Department of Examiners of Public Accounts responsible for recommendations. 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 authorities to award contracts to local bidders within 5% of the lowest bid and includes provisions for joint purchasing agreements and bid bonds.

Moreover, SB108 clarifies exceptions to competitive bidding, allowing purchases from vendors with valid Government Services Administration contracts and statewide contracts listed on the Alabama Buys e-procurement system. It raises the threshold for certain heavy-duty off-highway construction equipment purchases from $22,500 to $40,000 and for leasing from $5,000 to $10,000 per month. The bill also introduces emergency contracting provisions, allowing contracts to be awarded without public advertisement in urgent situations, provided that the awarding authority documents the circumstances. Additionally, it addresses collusion among bidders, establishing penalties for violations based on the bid amount. Overall, SB108 aims to modernize procurement processes, enhance transparency, and ensure local businesses have opportunities to compete for public contracts.

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