SB 290 — Relating to public works contracts; to amend Sections 39-1-1, 39-2-1, 39-2-2, and 39-2-6, Code of Alabama 1975, to increase the threshold dollar amount for which competitive bidding is generally required; to further provide for certain notice procedures; to authorize the publication of notice by electronic means; to authorize the use of electronic sealed bids; to authorize certain statutory dollar amounts to be increased based on increases in the Consumer Price Index; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Section 111.05 of the Constitution of Alabama of 2022.
Last action — Reported Favorably (State Government)
-
1Introduced
-
2In Committee
-
3Passed Senate
-
4Passed House
-
5To Executive
-
6Enacted
This bill died with 2023 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
Summary
Public works contracts, threshold dollar amount for which competitive bidding required, increased, notice requirements, further provided to include electronic notifications, use of electronic sealed bids, authorized
Bill Text
What changed in the latest version
590 added · 603 removedPlain-language change summary
The bill SB 290 has been amended to raise the threshold for competitive bidding on public works contracts from $50,000 to $100,000. This change is important because it may reduce the number of contracts that need to go through the bidding process, potentially speeding up project timelines and reducing administrative burdens for local governments. Additionally, the bill allows for electronic notices and sealed bids, which could streamline communication and bidding processes in the construction sector.
SB290 INTRODUCEDENGROSSED 4S0M3I-14S0M3I-2 By Senator Givhan RFD:
03-May-23 2023 Regular Session Page 0 4S0M3I-1SB290 04/12/2023Engrossed CMH2 (L)bm4 2023-10616 2A 4BILL SYNOPSIS:TO BE ENTITLED AN ACT Relating to public works contracts;
Under existing law, contracts for public works involving an amount in excess of $50,000 are subject to the public works competitive bid procedures.
This bill would increase the threshold amount to $100,000 and would authorize an additional increase to the amount based on increases in the Consumer Price Index.
This bill would authorize the use of electronic means to provide certain required notices.
This bill would also authorize the use of electronic sealed bids.
Section 111.05 of the Constitution of Alabama of 2022, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless:
it comes within one of a number of specified exceptions;
it is approved by the affected entity;
or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.
The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment.
However, the bill Page 1 SB290 INTRODUCED does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.
A BILL TO BE ENTITLED AN ACT Relating to public works contracts;
"§39-1-1 (a) Any person entering into a contract with an awarding authority in this state for the prosecution of any Page 2 SB290 INTRODUCED public works shall, before commencing the work, shall execute Page 1 SB290 Engrossed a performance bond, with penalty equal to 100 percent of the amount of the contract price.
In the event the surety or contractor fails to pay the claim in full within 45 days from the mailing of the notice, then the person or persons may recover from the Page 3 SB290 INTRODUCED contractor and surety, in addition to the amount of the claim, Page 2 SB290 Engrossed a reasonable attorney'sattorney fee based on the result, together with interest on the claim from the date of the notice.
(c) Every person having a right of action on the last described bond as provided in this section shall, upon written application to the authority under the direction of whom the work has been prosecuted, indicating that labor, material, foodstuffs, or supplies for the work have been supplied and that payment has not been made, shall be promptly furnished a 95 certified copy of the additional bond and contract.
If the judgment finally obtained by Page 4 SB290 INTRODUCED the offeree is less favorable than the offer, the offeree Page 3 SB290 Engrossed shall pay the reasonable attorney'sattorney fees and costs incurred by the offeror after the making of the offer.
When the liability of one party to another party has been determined by verdict, order, or judgment, but the amount or extent of the liability remains to be determined by further proceedings, any party may make an offer of judgment, which shall have the same effect as an offer made before trial if the offer is made no less than 10 days prior to the commencement of hearings to determine the amount or 95 extent of liability.
Page 5 SB290 INTRODUCED c.
On a website utilized by the awarding authority for Page 4 SB290 Engrossed publishing notices.
(2) If no newspaper is published in the county in which the work was done, and if the awarding authority does not utilize a website for the purpose of publishing notices, the notice may be given by posting at the courthouse for 30 days, and proof of the posting of the notice shall be given by the judgeawarding ofauthority probate, the sheriff, and the contractor.
(g) Subsection (f) shall not apply to contractors performing contracts of less than fifty thousand dollars Page 6 SB290 INTRODUCED ($50,000)one hundred thousand dollars ($100,000) in amount.
In Page 5 SB290 Engrossed such cases, the governing body of the contracting agency, to expedite final payment, shall cause notice of final completion of the contract to be published one time in a newspaper of general circulation, published in the county of the contracting agency and shall post notice of final completion on the agency's bulletin board for one week, and shall require the contractor to certify under oath that all bills have been paid in full.
Work paid for by reimbursing for the actual costs for labor, materials, and equipment usage incurred in the performance of the work, as directed, including a percentage for overhead and profit, where Page 7 SB290 INTRODUCED appropriate.
Page 6 SB290 Engrossed (3) LIFE CYCLE COSTS.
The construction, installation, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, curbs, gutters, side walls, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, installed, repaired, renovated, or maintained on public property and to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise." "§39-2-2 Page 8 SB290 INTRODUCED (a)(1) Before entering into any contract for a public Page 7 SB290 Engrossed works involving an amount in excess of fifty thousand dollars ($50,000) one hundred thousand dollars ($100,000), the awarding authority shall advertise for sealed bids, except as provided in subsection (j).
If the awarding authority is the state, or a county, or municipality, or an instrumentality thereof, it shall advertise for sealed bids at least once each week for three consecutive weeks in a newspaper of general circulation in the county or counties in which the improvement, or some part thereof, is to be made.
for a minimum of three weeks prior to any submission deadline using one or more of the following methods:
1.
Publication in a newspaper of general publication in the county or counties in which the work is to be done.
2.
Publication on a website that is maintained by a newspaper of general circulation in the county or counties in which the work is to be done.
3.
Publication on a website utilized by the awarding authority for publishing notices.
If no newspaper is published in the municipality, the awarding authority shall advertise by posting notice thereof on a bulletin board maintained outside the purchasing office and in any other manner and for the length of time as may be Page 9 SB290 INTRODUCED determined.
If(3) noWith newspaperthe isexception publishedof in the countyDepartment inof whichTransportation, thefor workall ispublic done,works andcontracts ifinvolving thean awardingPage authority8 doesSB290 notEngrossed utilizeestimated aamount websitein forexcess the purposes of publishingfive thehundred notices,thousand thedollars notice($500,000), mayawarding beauthorities givenshall byalso postingadvertise at the courthouse for 30sealed days,bids andat proofleast ofonce thein samethree shallnewspapers be made by the judge of probate,general sheriff,circulation andthroughout the awardingstate. authority.
(3) With the exception of the Department of Transportation, for all public works contracts involving an estimated amount in excess of five hundred thousand dollars ($500,000), awarding authorities shall also advertise for sealed bids at least once in three newspapers of general circulation throughout the state.
Page 10 SB290 INTRODUCED (5)(4) All bids shall be opened publicly at the advertised time and place.
(2) An awarding authority may enter into a contract for public works if an advertisement for sealed bids for the contract was submitted by the awarding authority to a newspaper and the newspaper only published the advertisement Page 9 SB290 Engrossed for two weeks if the authority can provide proof that it, in good faith, submitted the advertisement to the newspaper with instructions to publish the notice in accordance with the provisions of this section.
(d)(1) Excluded from the operation of this title shall be contracts with persons who shall perform only architectural, engineering, construction management, program management, or project management services in support of the Page 11 SB290 INTRODUCED public works and who shall not engage in actual construction, repair, renovation, or maintenance of the public works with their own forces, by contract, subcontract, purchase order, lease, or otherwise.
Show all 68 changed lines (28 more)
(2) Excluded from operation of the bidding requirements in this title are contracts for the purchase of any heating or air conditioning units or systems by any awarding authority subject to Chapter 13B of Title 16, or Article 3, commencing with Section 41-16-50, of Chapter 16 of Title 41, or Article 5, commencing with Section 41-4-110, of Chapter 4 of Title 41, provided the contract is entered into with an Alabama vendor who has been granted approved vendor status for the sale of heating or air conditioning units or systems as a part of a purchasing cooperative, and each of the following occur:
The heating or air conditioning unit or system being purchased is available as a result of a competitive bid Page 10 SB290 Engrossed process conducted by a governmental entity which has been approved by the Department of Examiners of Public Accounts.
Page 12 SB290 INTRODUCED d.
Page 11 SB290 Engrossed (e)(1) In case of an emergency affecting public health, safety, or convenience, as declared in writing by the awarding authority, setting forth the nature of the danger to the public health, safety, or convenience which would result from delay, contracts may be let to the extent necessary to meet the emergency without public advertisement.
In case of an emergency for which a delay in remedying would cause additionalimmediate harm to a person or public property, contracts may be let to the extent necessary to meet the emergency without public advertisement or bidding.
(2) In case of an emergency affecting public health, Page 13 SB290 INTRODUCED safety, or convenience, as declared in writing by the awarding authority, setting forth the nature of the danger to the public health, safety, or convenience which would result from delay, contracts may be let to the extent necessary to meet the emergency without public advertisement.
(3) Any action taken under subdivision (1) or (2), and the reasons for the action taken, shall immediately be made public by the awarding authority uponand request.published in writing.
(1) Except for contracts involving the construction, reconstruction, renovation, or replacement of public roads, bridges, and water and sewer facilities, the awarding Page 12 SB290 Engrossed authority can document to the satisfaction of the Division of Construction Management Division of Real Property Management of the Department of Finance, or in the case of an educational institution or state educational institution as provided pursuant to Sections 41-4-353 and 41-4-400, to the satisfaction of its governing board, that the sole source product, material, system, or service is of an indispensable nature for the improvement, that there are no other viable alternatives, and that only this particular product, material, system, or service fulfills the function for which it is needed.
(2) The sole source specification has been recommended by the architect or engineer of record as an indispensable Page 14 SB290 INTRODUCED item for which there is no other viable alternative.
Records of bidding and award Page 13 SB290 Engrossed shall not be disclosed to the public and shall remain confidential.
(j) Notwithstanding subsection (a), the Department of Transportation may enter into contracts for road construction or road maintenance projects that do not involve more than two Page 15 SB290 INTRODUCED hundred fifty thousand dollars ($250,000) without advertising for sealed bids, provided the project is listed on the department website for at least seven calendar days before entering into the contract.
(l)(1) Notwithstanding any other provision of law, aany countyPage or14 municipality,SB290 orEngrossed instrumentalityentity thereof,subject to this chapter that is an awarding authority of a contract for public works, by resolution,resolution or board action, may purchase materials or equipment pursuant to subdivisions (14), (16), 17), (18), or (19) of Section 41-16-51(a), even when those materials or equipment are otherwise part of the contract for public works subject to the requirements of this title.
(2) Except for those materials or equipment described in subdivision (1), the remaining portion of the public works project shall be subject to the requirements of this title, even if the remaining portion would involve an amount less than one hundred thousand dollars ($100,000) as a result of the exclusion of the purchase of the materials or equipment as Page 16 SB290 INTRODUCED described in subdivision (1).
(m) TheBeginning October 1, 2027, and every five years thereafter, all dollar amounts specifiedused in this chapterarticle shall be adjustedsubject beginningto Octobera 1,cost 2027,adjustment andbased everyon threethe yearsfollowing thereafter.procedure:
The adjustmentChief Examiner of the Department of Examiners of Public Accounts may submit to the dollarChair amountsof shallthe Legislative Council a recommendation that the amount be madeincreased based on the percentage increase in the Consumer Price Index for allthe urbanimmediately consumers,preceding asfive-year publishedperiod, byrounded to the U.S.nearest thousand dollars.
DepartmentThe ofrecommendation Labor,shall Bureaube ofsubject Laborto Statistics,the andapproval thenof rounded to the nearestLegislative thousandCouncil. dollars.
TheIn Department of Examiners of Public Accounts shall notify the publicevent of the adjustedrecommendation dollaris amountsnot disapproved by July 1 before the fiscalLegislative yearCouncil inby which the changesend shallof takeApril effect."following "§39-2-6 (a) The contract shall be awarded to the lowestsubmission responsibleof and responsive bidder, unless the awardingrecommendation, authority finds that all the bidsrecommendation areshall unreasonablebe ordeemed that it is not toin the interest of the awarding authority to acceptbe anyapproved. of the bids.
Upon approval, the Department of Examiners of Public Page 15 SB290 Engrossed Accounts shall notify the public of the adjusted dollar amounts by July 1 before the fiscal year in which the changes will take effect." "§39-2-6 (a) The contract shall be awarded to the lowest responsible and responsive bidder, unless the awarding authority finds that all the bids are unreasonable or that it is not toin the interest of the awarding authority to accept any of the bids.
If the successful bidder fails or refuses to sign the contract, to make bond as provided in this chapter, or to provide evidence of insurance as required by the bid documents, the awarding authority may award the Page 17 SB290 INTRODUCED contract to the second lowest responsible and responsive bidder.
(b) If no bids or only one bid is received at the time stated in the advertisement for bids, the awarding authority Page 16 SB290 Engrossed may advertise for and seek other competitive bids, or the awarding authority may direct that the work shall be done by force account under its direction and control or, with the exception of the Department of Transportation, the awarding authority may negotiate for the work through the receipt of informal bids not subject to the requirements of this section.
(c) When With the exception of the Department of Transportation, when two or more bids are received, and all bids exceed available funding for the contract, a local board of education or a public two-year or four-year institution of higher education the awarding authority may negotiate for the work with the lowest responsible and responsive bidder, provided that the local board of education or public two-year or four-year institution of higher education awarding authority can document the shortage of funding, that time is of the essence, and that the negotiated changes are in the public interest and do not materially alter the scope and Page 18 SB290 INTRODUCED nature of the project.
(e) On any construction project on which the awarding authority has prepared plans and specifications, has received Page 17 SB290 Engrossed bids, and has determined to do by force account or by negotiation, the awarding authority shall make available the plans and specifications, an itemized estimate of cost, and any informal bids for review by the Department of Examiners of Public Accounts and, upon completion of the project by an awarding authority, the final total costs together with an itemized list of cost of any and all changes made in the original plans and specifications shall also be made available for review by the Department of Examiners of Public Accounts.
This section shall not apply to routine maintenance and repair jobs done by maintenance personnel who are regular employees of the awarding authority, nor shall it apply to Page 19 SB290 INTRODUCED road or bridge construction work performed by an awarding authority's regular employees and own equipment.
Page 18 SB290 Engrossed (h) Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition to bid at a fixed price or to refrain from bidding or otherwise shall render the bids void and shall cause the bidders or prospective bidders to be disqualified from submitting further bids to the awarding authority on future lettings.
The lowest responsible Page 20 SB290 INTRODUCED and responsive bidder shall otherwise meet all of the conditions and specifications contained in the invitation to bid, except that a bidder may still be considered responsive if he or she responds with a bid using different construction materials than those specified in the invitation to bid if the materials' use would result in lower life cycle costs for the public works project.
To utilize this provision to determine the lowest responsible and responsive bidder, the awarding Page 19 SB290 Engrossed authority must include a notice in the invitation to bid that the lowest responsible and responsive bidder may be determined by using life cycle costs, and must also include in the invitation to bid the criteria under which it shall evaluate the life cycle costs." Section 2.
Page 20 SB290 Engrossed Senate Read for the first time and referred ................03-May-23 to the Senate committee on Fiscal Responsibility and Economic Development Read for the second time and placed ................11-May-23 on the calendar:
amendments Read for the third time and passed ................18-May-23 as amended Yeas 31 Nays 0 Abstains 0 Patrick Harris, Secretary.
Show all 68 changed rows (28 more)
Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
-
Read Second Time in Second House
Sponsors
- Sam Givhan · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 139 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (139)
139 members have not signed on to this bill.
Show all 139 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 22 | 0 | 0 | 3 |
| D | 7 | 0 | 0 | 1 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 30 | 0 | 0 | 4 |
| % of votes cast | 88% | 0% | 0% | 12% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Yea |
| Kirk Hatcher | D | Yea |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Yea |
| Robert Stewart | D | Yea |
| Rodger M. Smitherman | D | Not Voting |
| Vivian Davis Figures | D | Yea |
| William M. Beasley | D | Yea |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Not Voting |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Yea |
| Gerald H. Allen | R | Not Voting |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Not Voting |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Yea |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 22 | 0 | 0 | 3 |
| D | 7 | 0 | 0 | 1 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 30 | 0 | 0 | 4 |
| % of votes cast | 88% | 0% | 0% | 12% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Yea |
| Kirk Hatcher | D | Yea |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Yea |
| Robert Stewart | D | Yea |
| Rodger M. Smitherman | D | Not Voting |
| Vivian Davis Figures | D | Yea |
| William M. Beasley | D | Yea |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Not Voting |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Yea |
| Gerald H. Allen | R | Not Voting |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Not Voting |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Yea |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| R | 22 | 0 | 0 | 3 |
| D | 7 | 0 | 0 | 1 |
| Unaffiliated | 1 | 0 | 0 | 0 |
| Total | 30 | 0 | 0 | 4 |
| % of votes cast | 88% | 0% | 0% | 12% |
How each member voted (34)
| Member | Party | Vote |
|---|---|---|
| Greg J. Reed | — | Yea |
| Bobby D. Singleton | D | Yea |
| Kirk Hatcher | D | Yea |
| Linda Coleman-Madison | D | Yea |
| Merika Coleman | D | Yea |
| Robert Stewart | D | Yea |
| Rodger M. Smitherman | D | Not Voting |
| Vivian Davis Figures | D | Yea |
| William M. Beasley | D | Yea |
| Andrew Jones | R | Yea |
| April Weaver | R | Yea |
| Arthur Orr | R | Yea |
| Chris Elliott | R | Yea |
| Clyde Chambliss | R | Yea |
| Dan Roberts | R | Not Voting |
| David Sessions | R | Yea |
| Donnie Chesteen | R | Yea |
| Garlan Gudger | R | Yea |
| Gerald H. Allen | R | Not Voting |
| Greg Albritton | R | Yea |
| J. T. 'Jabo' Waggoner | R | Yea |
| Jack W. Williams | R | Not Voting |
| Jay Hovey | R | Yea |
| Josh Carnley | R | Yea |
| Keith Kelley | R | Yea |
| Lance Bell | R | Yea |
| Larry Stutts | R | Yea |
| Randy Price | R | Yea |
| Sam Givhan | R | Yea |
| Shay Shelnutt | R | Yea |
| Steve Livingston | R | Yea |
| Tim Melson | R | Yea |
| Tom Butler | R | Yea |
| Will Barfoot | R | Yea |
Subjects
Frequently asked questions
- What does SB 290 do?
- Public works contracts, threshold dollar amount for which competitive bidding required, increased, notice requirements, further provided to include electronic notifications, use of electronic sealed bids, authorized
- Who sponsors SB 290?
- SB 290 is sponsored by Sam Givhan (R).
- What is the current status of SB 290?
- This bill died with 2023 Regular Session. It reached “Introduced” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track SB 290?
- Track SB 290 free on One Click Politics — get push/email alerts when it moves.
Make your voice heard on SB 290
Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.
Stay ahead of SB 290
Last checked for changes 3 months ago · updated continuously
One Click Politics tracks every bill in Congress and all 50 states.
Track this bill →