ENGROSSED SENATE BILL 6167
State of Washington 68th Legislature 2024 Regular Session
By Senator Hasegawa
1 AN ACT Relating to adopting the recommendations of the capital
2 projects advisory review board regarding local government procurement
3 rules among special purpose districts, first-class and second-class
4 cities, and public utility districts; reenacting and amending RCW
5 54.04.070, 35.23.352, 35.22.620, 57.08.050, and 52.14.110; creating a
6 new section; and providing an effective date.
7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
8 Sec. 1. RCW 54.04.070 and 2023 c 395 s 32 and 2023 c 255 s 1 are
9 each reenacted and amended to read as follows:
10 (1) Any item, or items of the same kind of materials, equipment,
11 or supplies purchased, the estimated cost of which is in excess of
12 $30,000, exclusive of sales tax, shall be by contract. However, a
13 district may make purchases of the same kind of items of materials,
14 equipment, and supplies not exceeding $12,000 in any calendar month
15 without a contract, purchasing any excess thereof over $12,000 by
16 contract.
17 (2)(a) Any work ordered by a district commission, the estimated
18 cost of which is in excess of $150,000 exclusive of sales tax if more
19 than a single craft or trade is involved with the public works
20 project, or a public works project in excess of $75,500 exclusive of
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 1 sales tax if only a single craft or trade is involved with the public
2 works project, shall be by contract. ((However, a))
3 (b) A district commission may have its own regularly employed
4 personnel perform work which is an accepted industry practice under
5 prudent utility management without a contract. For purposes of this
6 section, "prudent utility management" means performing work with
7 regularly employed personnel utilizing material of a worth not
8 exceeding $300,000 in value without a contract. This limit on the
9 value of material being utilized in work being performed by regularly
10 employed personnel shall not include the value of individual items of
11 equipment. For the purposes of this section, the term "equipment"
12 includes but is not limited to conductor, cabling, wire, pipe, or
13 lines used for electrical, water, fiber optic, or telecommunications.
14 (3) Before awarding a contract required under subsection (1) or
15 (2) of this section, the commission shall publish a notice once or
16 more in a newspaper of general circulation in the district at least
17 13 days before the last date upon which bids will be received,
18 inviting sealed proposals for the work or materials. Plans and
19 specifications for the work or materials shall at the time of
20 publication be on file at the office of the district and subject to
21 public inspection. Any published notice ordering work to be performed
22 for the district shall be mailed at the time of publication to any
23 established trade association which files a written request with the
24 district to receive such notices. The commission may, at the same
25 time and as part of the same notice, invite tenders for the work or
26 materials upon plans and specifications to be submitted by the
27 bidders.
28 (4) As an alternative to the competitive bidding requirements of
29 this section and RCW 54.04.080, a district may let contracts using
30 the small works roster process under RCW 39.04.151 through 39.04.154.
31 (5) Whenever equipment or materials required by a district are
32 held by a governmental agency and are available for sale but such
33 agency is unwilling to submit a proposal, the commission may
34 ascertain the price of such items and file a statement of such price
35 supported by the sworn affidavit of one member of the commission, and
36 may consider such price as a bid without a deposit or bond.
37 (6) Pursuant to RCW 39.04.280, the commission may waive the
38 competitive bidding requirements of this section and RCW 54.04.080 if
39 an exemption contained within RCW 39.04.280 applies to the purchase
40 or public work.
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 1 (7)(a) A district may procure public works with a unit priced
2 contract under this section, RCW 54.04.080, or 54.04.085 for the
3 purpose of completing anticipated types of work based on hourly rates
4 or unit pricing for one or more categories of work or trades.
5 (b) For the purposes of this section, unit priced contract means
6 a competitively bid contract in which public works are anticipated on
7 a recurring basis to meet the business or operational needs of a
8 district, under which the contractor agrees to a fixed period
9 indefinite quantity delivery of work, at a defined unit price, for
10 each category of work.
11 (c) Unit priced contracts must be executed for an initial
12 contract term not to exceed three years, with the district having the
13 option of extending or renewing the unit priced contract for one
14 additional year.
15 (d) Invitations for unit price bids shall include, for purposes
16 of the bid evaluation, estimated quantities of the anticipated types
17 of work or trades, and specify how the district will issue or release
18 work assignments, work orders, or task authorizations pursuant to a
19 unit priced contract for projects, tasks, or other work based on the
20 hourly rates or unit prices bid by the contractor. Where electrical
21 facility construction or improvement work is anticipated, contractors
22 on a unit priced contract shall comply with the requirements under
23 RCW 54.04.085 (1) through (5). Contracts must be awarded to the
24 lowest responsible bidder as per RCW 39.04.010.
25 (e) Unit price contractors shall pay prevailing wages for all
26 work that would otherwise be subject to the requirements of chapter
27 39.12 RCW. Prevailing wages for all work performed pursuant to each
28 work order must be the prevailing wage rates in effect at the
29 beginning date for each contract year. Unit priced contracts must
30 have prevailing wage rates updated annually. Intents and affidavits
31 for prevailing wages paid must be submitted annually for all work
32 completed within the previous 12-month period of the unit priced
33 contract.
34 (8)(a) For the purposes of this section, "lowest responsible
35 bidder" means a bid that meets the criteria under RCW 39.04.350 and
36 has the lowest bid; provided, that if the district commission issues
37 a written finding that the lowest bidder has delivered a project to
38 the district within the last three years which was late, over budget,
39 or did not meet specifications, and the commission does not find in
40 writing that such bidder has shown how they would improve performance
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1 to be likely to meet project specifications then the commission may
2 choose the second lowest bidder whose bid is within five percent of
3 the lowest bid and meets the same criteria as the lowest bidder.
4 (b) This subsection (8) does not apply until July 1, 2025.
5 Sec. 2. RCW 35.23.352 and 2023 c 395 s 21 and 2023 c 255 s 2 are
6 each reenacted and amended to read as follows:
7 (1)(a) Any second-class city or any town may construct any public
8 works, as defined in RCW 39.04.010, by contract or day labor without
9 calling for bids therefor whenever the estimated cost of the work or
10 improvement, including cost of materials, supplies and equipment will
11 not exceed the sum of $150,000 if more than one craft or trade is
12 involved with the public works, or $75,500 if a single craft or trade
13 is involved with the public works or the public works project is
14 street signalization or street lighting. A public works project means
15 a complete project. The restrictions in this subsection do not permit
16 the division of the project into units of work or classes of work to
17 avoid the restriction on work that may be performed by day labor on a
18 single project. ((However))
19 (b) Beginning July 1, 2025, a second-class city or any town may
20 have its own regularly employed personnel perform work which is an
21 accepted industry practice under prudent utility management without a
22 contract. For purposes of this section, "prudent utility management"
23 means performing work with regularly employed personnel utilizing
24 material of a worth not exceeding $300,000 in value without a
25 contract. This limit on value of material being utilized in work
26 being performed by regularly employed personnel shall not include the
27 value of individual items of equipment. For purposes of this section,
28 "equipment" includes, but is not limited to, conductor, cabling,
29 wire, pipe, or lines used for electrical, water, fiber optic, or
30 telecommunications.
31 Whenever the cost of the public work or improvement, including
32 materials, supplies and equipment, will exceed these figures, the
33 same shall be done by contract. All such contracts shall be let at
34 public bidding upon publication of notice calling for sealed bids
35 upon the work. The notice shall be published in the official
36 newspaper, or a newspaper of general circulation most likely to bring
37 responsive bids, at least 13 days prior to the last date upon which
38 bids will be received. The notice shall generally state the nature of
39 the work to be done that plans and specifications therefor shall then
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 1 be on file in the city or town hall for public inspections, and
2 require that bids be sealed and filed with the council or commission
3 within the time specified therein. Each bid shall be accompanied by a
4 bid proposal deposit in the form of a cashier's check, postal money
5 order, or surety bond to the council or commission for a sum of not
6 less than five percent of the amount of the bid, and no bid shall be
7 considered unless accompanied by such bid proposal deposit. The
8 council or commission of the city or town shall let the contract to
9 the lowest responsible bidder or shall have power by resolution to
10 reject any or all bids and to make further calls for bids in the same
11 manner as the original call.
12 When the contract is let then all bid proposal deposits shall be
13 returned to the bidders except that of the successful bidder which
14 shall be retained until a contract is entered into and a bond to
15 perform the work furnished, with surety satisfactory to the council
16 or commission, in accordance with RCW 39.08.030. If the bidder fails
17 to enter into the contract in accordance with his or her bid and
18 furnish a bond within 10 days from the date at which he or she is
19 notified that he or she is the successful bidder, the check or postal
20 money order and the amount thereof shall be forfeited to the council
21 or commission or the council or commission shall recover the amount
22 of the surety bond. A low bidder who claims error and fails to enter
23 into a contract is prohibited from bidding on the same project if a
24 second or subsequent call for bids is made for the project.
25 If no bid is received on the first call the council or commission
26 may readvertise and make a second call, or may enter into a contract
27 without any further call or may purchase the supplies, material or
28 equipment and perform the work or improvement by day labor.
29 (2) For the purposes of this section, "lowest responsible bidder"
30 means a bid that meets the criteria under RCW 39.04.350 and has the
31 lowest bid; provided, that if the city issues a written finding that
32 the lowest bidder has delivered a project to the city within the last
33 three years which was late, over budget, or did not meet
34 specifications, and the city does not find in writing that such
35 bidder has shown how they would improve performance to be likely to
36 meet project specifications then the city may choose the second
37 lowest bidder whose bid is within five percent of the lowest bid and
38 meets the same criteria as the lowest bidder.
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 1 (3) The allocation of public works projects to be performed by
2 city or town employees shall not be subject to a collective
3 bargaining agreement.
4 (4) In lieu of the procedures of subsection (1) of this section,
5 a second-class city or a town may let contracts using the small works
6 roster process provided in RCW 39.04.151 through 39.04.154.
7 Whenever possible, the city or town shall invite at least one
8 proposal from a certified minority or woman contractor who shall
9 otherwise qualify under this section.
10 (5) The form required by RCW 43.09.205 shall be to account and
11 record costs of public works in excess of $5,000 that are not let by
12 contract.
13 (6) The cost of a separate public works project shall be the
14 costs of the materials, equipment, supplies, and labor on that
15 construction project.
16 (7) Any purchase of supplies, material, or equipment, except for
17 public work or improvement, with an estimated cost in excess of
18 $40,000, shall be by contract. Any purchase of materials, supplies,
19 or equipment with an estimated cost of less than $50,000 shall be
20 made using the process provided in RCW 39.04.190.
21 (8) Bids shall be called annually and at a time and in the manner
22 prescribed by ordinance for the publication in a newspaper of general
23 circulation in the city or town of all notices or newspaper
24 publications required by law. The contract shall be awarded to the
25 lowest responsible bidder.
26 (9) For advertisement and formal sealed bidding to be dispensed
27 with as to purchases with an estimated value of $15,000 or less, the
28 council or commission must authorize by resolution, use of the
29 uniform procedure provided in RCW 39.04.190.
30 (10) The city or town legislative authority may waive the
31 competitive bidding requirements of this section pursuant to RCW
32 39.04.280 if an exemption contained within that section applies to
33 the purchase or public work.
34 (11) This section does not apply to performance-based contracts,
35 as defined in RCW 39.35A.020(6), that are negotiated under chapter
36 39.35A RCW.
37 (12) Nothing in this section shall prohibit any second-class city
38 or any town from allowing for preferential purchase of products made
39 from recycled materials or products that may be recycled or reused.
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 1 (13)(a) Any second-class city or any town may procure public
2 works with a unit priced contract under this section for the purpose
3 of completing anticipated types of work based on hourly rates or unit
4 pricing for one or more categories of work or trades.
5 (b) For the purposes of this section, "unit priced contract"
6 means a competitively bid contract in which public works are
7 anticipated on a recurring basis to meet the business or operational
8 needs of the city or town, under which the contractor agrees to a
9 fixed period indefinite quantity delivery of work, at a defined unit
10 price for each category of work.
11 (c) Unit priced contracts must be executed for an initial
12 contract term not to exceed three years, with the city or town having
13 the option of extending or renewing the unit priced contract for one
14 additional year.
15 (d) Invitations for unit price bids shall include, for purposes
16 of the bid evaluation, estimated quantities of the anticipated types
17 of work or trades, and specify how the city or town will issue or
18 release work assignments, work orders, or task authorizations
19 pursuant to a unit priced contract for projects, tasks, or other work
20 based on the hourly rates or unit prices bid by the contractor.
21 Contracts must be awarded to the lowest responsible bidder as per RCW
22 39.04.010. Whenever possible, the city or town must invite at least
23 one proposal from a certified minority or woman contractor who
24 otherwise qualifies under this section.
25 (e) Unit price contractors shall pay prevailing wages for all
26 work that would otherwise be subject to the requirements of chapter
27 39.12 RCW. Prevailing wages for all work performed pursuant to each
28 work order must be the prevailing wage rates in effect at the
29 beginning date for each contract year. Unit priced contracts must
30 have prevailing wage rates updated annually. Intents and affidavits
31 for prevailing wages paid must be submitted annually for all work
32 completed within the previous 12-month period of the unit priced
33 contract.
34 (14) Any second-class city or town that awards a project to a
35 bidder under the criteria described in subsection (2) of this section
36 must make an annual report to the department of commerce that
37 includes the total number of bids awarded to certified minority or
38 women contractors and describing how notice was provided to potential
39 certified minority or women contractors.
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 1 Sec. 3. RCW 35.22.620 and 2023 c 395 s 20 and 2023 c 255 s 3 are
2 each reenacted and amended to read as follows:
3 (1) As used in this section, the term "public works" means as
4 defined in RCW 39.04.010.
5 (2) A first-class city may have public works performed by
6 contract pursuant to public notice and call for competitive bids. As
7 limited by subsection (3) of this section, a first-class city may