ESSB 5418, a bill impacting city public works project bid limits, is scheduled for a public hearing this week in the House Local Government Committee. The bill includes several provisions, including changes to public works bid limits.

Currently a second-class city or town may contract for public works without a competitive bidding process if the estimated cost is $65,000 or less and involves more than one craft or trade; or the estimated cost is $40,000 or less and involves a single craft or trade; or the public works is street signalization or street lighting.

A first-class city must currently contract for public works with a competitive bidding process if the estimated cost is more than $90,000 and involves more than one craft or trade; or the estimated cost is more than $45,000 and involves a single craft or trade; or the public works is street signalization or street lighting.

ESSB 5418 updates the city biding thresholds for when competitive bidding is required. Under the bill, competitive bidding for first class cities, second class cities and towns will be required when projects are:

• $116,155 or more and involve more than one craft or trade; or
• $75,500 or more and involve a single craft or trade; or
• The public works is street signalization or street lighting.

Additionally, under ESSB 5418 second-class cities may award competitive public works contracts to the lowest responsible bidder or a responsive bid that meets responsible bidder criteria and is within five percent of the lowest bid. The bidder must have delivered at least one project of similar size and scope within the last five years for the city on time, within budget, and according to required specifications; and not have delivered a project to the city within the last five years that was late, over budget, or did not meet specifications.

The bill also increases the limit for using the small works roster alternative bid process from $300,000 to $500,000.

ESSB 5418 was amended on the Senate floor to include a sunset provision which expires the entire bill on March 31, 2021. AWC supports efforts to remove this sunset provision as it is unnecessary and could create confusion.

Dates to remember

ESSB 5418 is scheduled for public hearing in the House Local Government Committee on March 26 at 10 am.