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Code of Alabama 1975 - Article 2 - State Bid Laws
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Chapter 16 -Article 2 - Competitive Bidding on Public Contracts Generally
§ 41-16-20 - When required
All contracts of whatever nature for labor,
services, work, or for the purchase or
lease of materials, equipment, supplies, or other
personal property, involving seven
thousand five hundred dollars ($7,500) or more, made
by or on behalf of any state
department, board, bureau, commission, committee,
institution, corporation, authority, or
office shall, except as otherwise provided in this
article, be let by free and open
competitive bidding, on sealed bids, to the lowest
responsible bidder.
§ 41-16-21 Exemptions from retirement. Void contracts
(a) Competitive bids shall not be required for
utility services where no competition
exists or where rates are fixed by law or ordinance,
and the competitive bidding
requirements of this article shall not apply to: the
purchase of insurance by the state;
contracts for the securing of services of attorneys,
physicians, architects, teachers,
superintendents of construction, artists,
appraisers, engineers or other individuals
possessing a high degree of professional skill where
the personality of the individual
plays a decisive part; contracts of employment in
the regular civil service of the state;
tourist advertising by the State Bureau of Tourism
and Travel authorized under Section
4174 or advertising of the state parks by the
Department of Conservation and Natural
Resources; purchases of alcoholic beverages only by
the Alcoholic Beverage Control Board;
purchases for any hospital or campus medical
facility which has a total licensed bed
capacity of no less than 800 beds on May 29, 1985,
operated by any state department,
except the Department of Mental Health and Mental
Retardation, board, bureau, commission,
committee, institution, upon approval of the
governing board of the institution,
corporation, authority or office; purchases by the
Department of Transportation of local
materials from any property owners in the vicinity
of a project on which the local
materials shall be used or purchases and contracts
for repair of equipment used in the
construction and maintenance of highways by the
Department of Transportation; purchases of
products made or manufactured by the blind or
visually handicapped under the direction or
supervision of the Alabama Institute for Deaf and
Blind in accordance with Sections
2121 through 2124; purchases of maps or
photographs purchased from any federal
agency; purchases of manuscripts, maps, books,
pamphlets, or periodicals purchased for the
use of any state library or any other library in the
state supported in whole or in part
by state funds; contractual services and purchases
of commodities for which there is only
one vendor or supplier; contractual services and
purchases of personal property, which by
their very nature are impossible of award by
competitive bidding; barter transactions by
the Department of Corrections; and purchases,
contracts, or repairs by the State Docks
Department when it is deemed by the Director of
State Docks and the SecretaryTreasurer
of the State Docks Department that the purchases,
contracts, or repairs are impractical of
award by competitive bidding due to the exigencies
of time or interference with the flow
of commerce. The Director of State Docks and the
SecretaryTreasurer of the State Docks
Department shall place a sworn statement in writing
in the permanent file or records
setting out the emergency or exigency relied upon
and the necessity for negotiation
instead of proceeding by competitive bidding in that
particular instance, and the sworn
statement shall be open to public inspection. A copy
of the sworn statement shall be
furnished forthwith to the chief examiner of public
accounts.
(b) All educational and eleemosynary institutions
governed by a board of trustees or
other similar governing body and the State Docks
Department shall be exempt from this
article which relate to the powers, duties,
authority, restrictions, and limitations
conferred or imposed upon the Department of Finance,
Division of Purchases and Stores. The
educational and eleemosynary institutions, the State
Docks Department, and the other state
agencies exempted from this article shall let by
free and open competitive bidding on
sealed bids to the lowest responsible bidder all
contracts of whatever nature for labor,
services or work or for the purchase or lease of
materials, equipment, supplies, or other
personal property involving seven thousand five
hundred dollars ($7,500) or more. The
institutions, departments, and agencies shall
establish and maintain purchasing facilities
as may be necessary to carry out the intent and
purpose of this article by complying with
the requirements for competitive bidding in the
operation and management of each
institution, department, or agency.
(c) Contracts entered into in violation of this
article shall be void. </p>
(d) Nothing in this section shall be construed as
repealing Sections 92106 and
92107.
§ 41-16-21.1 Joint purchasing agreements
The governing authorities of two or more agencies
within the same county or adjoining
counties, whose contracts are required under this
article to be let by competitive
bidding, may provide by joint agreement for the
purchase of labor, services or work or for
the purchase or lease of materials, equipment,
supplies or other personal property for use
by their respective agencies. Such agreement shall
be entered into by similar executive
orders or resolutions issued or adopted by each of
the participating governing authorities
which shall set forth the categories of labor,
services or work or the materials,
equipment, supplies or other personal property to be
purchased or leased, the manner of
advertising for bids and of awarding of contracts,
the method of payment by each
participating contracting agency, and other matters
deemed necessary to carry out the
purposes of the agreement. Each contracting agency's
share of expenditures for purchases
under any such agreement shall be appropriated and
paid in the manner set forth in the
agreement and in the same manner as for other
expenses of the contracting agency. The
contracting agencies entering into a joint
agreement, as permitted by this section, may
designate a joint purchasing agent and such agent
shall have the responsibility to comply
with the provisions of this article. Purchases,
contracts or agreements made pursuant to a
joint purchasing agreement shall be subject to all
of the terms and conditions of this
article.
§ 41-16-21.2 Exemption of departments and
agencies whose principal business is
honorariums
All laws to the contrary notwithstanding, any state
department or agency whose
principal business is honorariums is hereby exempted
from the provisions of the state
competitive bid laws on purchases and contracts for
services made by such department or
agency.
§ 41-16-22 Exemption of purchases from
United States
The state may without advertisement or receiving
competitive bids purchase materials,
equipment, supplies or other personal property from
the United States government or any
agency, division or instrumentality thereof when
such purchase is deemed by the state
purchasing agent to be in the best interest of the
state of Alabama.
§ 41-16-23. Emergency exemptions
In case of emergency affecting public health, safety
or convenience, so declared in
writing by the head of the institution or state
agency involved, setting forth the nature
of the danger to public health, safety or
convenience involved in delay, contracts may be
let to the extent necessary to meet the emergency
without public advertisement. Such
action and the reasons therefor shall immediately be
made public by the awarding
authority.
§ 41-16-24. Advertisement for bids Opening of bids
Splitting of contracts
(a) The purchasing agent shall advertise for sealed
bids on all purchases in excess of
seven thousand five hundred dollars ($7,500) by
posting notice thereof on a bulletin board
maintained outside the office door or by publication
of notice thereof, one time, in a
newspaper published in Montgomery County, Alabama,
or in any other manner, for such
lengths of time as the purchasing agent may
determine. The purchasing agent shall also
solicit sealed bids by sending notice by mail to all
Alabama persons, firms, or
corporations who have filed a request in writing
that they be listed for solicitation on
bids for the particular items set forth in the
request and the other persons, firms, or
corporations the purchasing agent deems necessary to
insure competition. If any person,
firm, or corporation whose name is listed fails to
respond to any solicitation for bids
after the receipt of three solicitations, the
listing may be cancelled by the purchasing
agent.
(b) All bids shall be sealed when received, shall be
opened in public at the hour
stated in the notice, and all original bids together
with all documents pertaining to the
award of the contract shall be retained and made a
part of the permanent file or records
and shall be open to public inspection.
(c) If the purchase or contract will involve an
amount of seven thousand five hundred
dollars ($7,500) or less, the purchasing agent may
make the purchases or contracts either
upon the basis of sealed bids or in the open market.
(d) No purchase or contract involving an amount in
excess of seven thousand five
hundred dollars ($7,500) shall be divided into parts
involving amounts of seven thousand
five hundred dollars ($7,500) or less for the
purpose of avoiding the requirements of this
article. All such partial contracts involving seven
thousand five hundred dollars ($7,500)
or less shall be void.
§ 41-16-25. Pricefixing agreements or collusion
Any agreement or collusion among bidders or
prospective bidders in restraint of freedom
of competition by agreement to bid at a fixed price
or to refrain from bidding or
otherwise shall render the bids of such bidders
void. Each bidder shall accompany his bid
with a sworn statement that he has not been a party
to such an agreement.
§ 41-1626. Advance disclosure of terms of bid
Any disclosure in advance of the terms of a bid
submitted in response to an
advertisement for bids shall render the proceedings
void and require advertisement and
award anew.
§ 41-16-27. Award of contract Record of bids
Preference to Alabama commodities, firms, etc.
(a) When purchases are required to be made through
competitive bidding, award shall,
except as provided in subsection (e), be made to the
lowest responsible bidder taking into
consideration the qualities of the commodities
proposed to be supplied, their conformity
with specifications, the purposes for which
required, the terms of delivery,
transportation charges and the dates of delivery
provided, that the awarding authority may
at any time within five days after the bids are
opened negotiate and award the contract to
anyone, provided he secures a price at least five
percent under the low acceptable bid.
The award of such a negotiated contract shall be
subject to approval by the director of
finance and the governor. The awarding authority or
requisitioning agency shall have the
right to reject any bid if the price is deemed
excessive or quality of product inferior.
(b) Each bid, with the name of the bidder, shall be
entered on a record. Each record,
with the successful bid indicated thereon and with
the reasons for the award if not
awarded to the lowest bidder shall, after award of
the order or contract, be open to
public inspection.
(c) The purchasing agent in the purchase of or
contract for personal property or
contractual services shall give preference, provided
there is no sacrifice or loss in
price or quality, to commodities produced in Alabama
or sold by Alabama persons, firms or
corporations.
(d) Contracts for the purchase of personal property
or contractual services shall be
let for periods not greater than three years.
(e) Contracts for the purchase of services for
receiving, processing, and paying claims
for services rendered recipients of the Alabama
Medicaid program authorized under section
2267 which are required to be competitively bid
may be awarded to the bidder whose
proposal is most advantageous to the state, taking
into consideration cost factors,
program suitability factors (technical factors)
including understanding of program
requirements, management plan, excellence of program
design, key personnel, corporate or
company resources and designated location, and other
factors including financial condition
and capability of the bidder, corporate experience
and past performance and priority of
the business to insure the contract awarded is the
best for the purposes required. Each of
these criteria shall be given relative weight value
as designated in the invitation to
bid, with price retaining the most significant
weight. Responsiveness to the bid shall be
scored for each designated criteria. If, for reasons
cited above, the bid selected is not
from the lowest bidding contractor, the Alabama
Medicaid agency shall present its reasons
for not recommending award to the low bidder to the
Medicaid interim committee. The
committee shall evaluate the findings of the Alabama
Medicaid agency and must, by
resolution, approve the action of the awarding
authority before final awarding of any such
contract. The committee shall also hear any valid
appeals against the recommendation of
the Alabama Medicaid agency from the low bid
contractor(s) whose bid was not selected.
§ 41-16-28. Bond for faithful performance
Bond in a responsible sum for faithful performance
of the contract, with adequate
surety, shall be required in an amount specified in
the advertisement for bids.
§ 41-16-29. Assignment of contracts
No contract awarded to the lowest responsible bidder
shall be assignable by the
successful bidder without written consent of the
awarding authority and requisitioning
agency, and in no event shall a contract be assigned
to an unsuccessful bidder whose bid
was rejected because he was not a responsible
bidder.
§ 41-16-30. Criminal offenses
Neither the purchasing agent nor any assistant or
employee of his shall be financially
interested or have any personal beneficial interest,
either directly or indirectly, in the
purchase of or contract for any personal property or
contractual service, nor in any firm,
partnership, association or corporation furnishing
any such personal property or
contractual services to the state government or to
any of its departments, agencies or
institutions. Neither the purchasing agent nor any
assistant or employee of his shall
accept or receive, directly or indirectly, from any
person, firm, association or
corporation to whom any contract may be awarded, by
rebate, gifts or otherwise, any money
or thing of value whatsoever or any promise,
obligation or contract for future reward or
compensation, nor shall any person willfully make
any purchase or award any contract in
violation of the provisions of this article.
Any violation of this section shall be deemed a
misdemeanor, and any person who
violates this section shall, upon conviction, be
imprisoned for not more than 12 months or
fined not more than $500.00 or both. Upon conviction
thereof, any such purchasing agent,
assistant or employee of his or any person who
willfully makes any purchase or awards any
contract in violation of the provisions of this
article shall be removed from office.
§ 41-16-31. Injunctions
Any taxpayer of the area within the jurisdiction of
the awarding authority and any bona
fide unsuccessful bidder on a particular contract
shall be empowered to bring a civil
action in the appropriate court to enjoin execution
of any contract entered into in
violation of the provisions of this article.
§ 41-16-32. Cumulative nature of provisions
Conflict of laws
This article shall be cumulative in its nature.
All conflicting provisions of law are hereby
expressly repealed; however, this article
shall in no manner repeal any of the provisions of
chapter 36 of Title 16 of this Code or
chapters 2 and 5 of Title 39 of this Code or article
5 of chapter 4 of this title.
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