Modernization of government procurement update

An amended version of SSB 5418, sponsored by Sen. Dean Takko (D–Longview), passed out of committee. The amended version consolidates several proposed changes to public works bidding requirements into a single bill. The bill would modernize limits across all types of jurisdictions and requires Joint Legislative Audit & Review Committee (JLARC) to conduct a study of contracting processes.

The last time changes were made to some city bid limits was in 2009.

The bill now includes the following changes for cities:

• Small works roster limit would increase from $300,000 to $500,000;
• Limited public works projects would increase from $35,000 to $50,000;
• Protest period would increase by two days and cities are required to provide all bidders with copies of bids;
• Second class cities and towns until July 28, 2022 may award a bid contract to a bidder within five percent of the lowest bid if they provided a project in the prior five years on time and within budget and not delivered a project that was late, over budget or did not meet specifications;
• First class cites, second class cities, and towns will see a bid limit increase for:
  • Projects involving more than one trade or craft to $116,155;
  • Projects involving a single trade or craft to $75,500.

The JLARC study commissioned by SSB 5418 is intended to provide information to the Legislature on the contracting practices of local governments and the effects on minority and women owned businesses. The JLARC study is due by December 1, 2020. JLARC’s report must include:

• Identification of the most common contracting procedures used by local governments;
• Identification of the dollar amounts set for local government public works contracting processes;
• Analysis of whether the dollar amounts comport with estimated project costs within the relevant industries;
• An analysis of the potential application of an inflation-based increaser to the dollar amounts;
• Recommendations to increase uniformity and efficiency for local government public works contracting processes;
• Progress in the rates of participation of certain groups including, qualified minority- and women-owned and controlled businesses, minibusinesses, and microbusinesses in the small works roster and limited public works contracting processes; and
• Barriers to improving the participation rate of qualified minority- and women-owned and controlled businesses and the growth of minibusinesses and microbusinesses in the small works roster and limited public works contracting processes.