Joint
purchases

RAISE

threshold

(800) 562.0601

Statement of support

AlabamaSchoolBoards.org

Alabama Association of School Boards

COMPETITIVE BID LAW

Local School Boards support Rep. Jeremy Oden’s H.442 & Sen. Parker Griffith’s S.364, which would:

Raise competitive bid threshold from $7,500 to $15,000

Exempt purchases through certain joint agreements

· Modernizes local government purchasing options to allow Internet, online bidding

Clarify language & intent of reverse auction option

Make the bid bond discretionary

· Increases participation from vendors

· Optional costing method to allow better quality products

Allow life cycle costing in determining bid price

CONTACT

Allows boards to contract with certain joint purchase agreements for   products & services. Expands that capability to include joint purchasing agreements not contiguous with board desiring to join. Especially beneficial to small, rural systems with few options for products & services.

·  No change since 1994; Inflation alone drives the threshold near $15,000

·  Southeastern states already between $15,000 and $25,000

·  Current law inhibits true competition; difficult to obtain enough bids

·  Certain health & safety services better served by a Request for Proposal (RFP) process where service quality can more easily be guaranteed