SB14 Summary

• Amends Section 41-16-20 of the Alabama Code to increase the minimum contract threshold requiring competitive bidding from $7,500 to $15,000 for state agencies and higher education institutions.

• Applies to all contracts for labor, services, work, materials, equipment, supplies, and nonprofessional services exceeding $15,000, which must be awarded through free and open competitive bidding to the lowest responsible bidder.

• Establishes "preferred vendor" status with three priority levels: in-state producers/manufacturers (Priority #1), entities with in-state assembly or distribution facilities (Priority #2), and state-organized businesses with at least one year of in-state retail or service presence (Priority #3).

• Allows awarding authorities to award contracts to preferred vendors when bids are no more than five percent greater than the lowest responsible bidder's bid.

• Became effective on the first day of the third month following passage and approval by the Governor.