SB 5418, a bill impacting city public works project bid limits, was recently passed by the House after being amended on the floor.
Under the current version of the bill, contract thresholds for when competitive bidding is required for a first-class city, second-class city, code city or town are increased as follows:
- First-class cities:
- The estimated cost is $150,000 or more and involves more than one craft or trade; or
- The estimated cost is $75,500 or more and involves a single craft or trade, or the public works is street signalization or street lighting.
- Second-class cities, code cities or towns:
- The estimated cost is $116,155 or more and involves more than one craft or trade; or
- The estimated cost is $75,500 or more and involves a single craft or trade, or the public works is street signalization or street lighting.
The amended bill also includes the following components:
- State agencies and local governments may use the small works roster process for projects estimated to cost $350,000 or less-- this is an increase of $50,000. Governments may choose to solicit bids from less than all the appropriate contracts on an appropriate small works roster for projects estimated to cost between $250,000 and $350,000.
- As an alternative to awarding competitive public works contracts to the lowest responsible bidder, second-class and code cities may award the contract to a responsive bid that meets responsible bidder criteria and is within 5% of the lowest bid, if certain conditions are met.
- Requires that after a bid is awarded for a project, all bids received are open for public inspection and made available upon request.
- Authorizes state agencies and local governments to use the limited public works process to solicit and award small works roster contracts to minibusinesses and microbusinesses.
The Senate must now vote to adopt the changes made by the House before final passage of the legislation.