Added punch for your bid? Washington contractors would get boost from bill
The Washington state senate has approved a bill that sets the preliminary stage for the creation of an in-state bidder preference law. The bill would create a survey of other state bidder preference laws, providing a reciprocal preference for Washington contractors.
The bill is referred to as SB 5662 and will soon move on to the House. The bill will show for public hearing in the House Committee on State Government & Tribal Affairs on March 16, 2011.
In short, the bill requires the State of Washington Department of General Administration to initiate a survey of other of the in-state bidder preference laws of other states, to be completed by January 2013. Using that survey, Washington woud provide a reciprocal bidder preference (to the same amount permitted in the bidding contractor’s home state) to Washington contractors bidding for public projects.
The Department of General Administration would have to have its proposed legislation drafted and submitted by December 2011. So, this is a bill to make a bill. We will not know the precise language until the end of the year.
Mike Purdy, a name which should be household around this blog by now, recently published a great article pointing out some of the concerns raised by the legislation. Mike lists four major issues created by preference legislation:
- Complexity of Defining Resident Contractors: Defining, and identifying what contractors are resident Washington State contractors will impose a costly administrative burden on GA and/or all public agencies performing public works. The language included in the original version of this bill SB 5662 had a complicated and questionable formula for determining what contractors would qualify as a resident contractor.
- What Contractors Will Be at a Disadvantage? Depending on how the requirements are drafted, it may put many contractors with a significant and historical presence in Washington at a disadvantage.
- More Costly Public Works Projects: A bidding preference statute will also cost state and local governments additional money in awarding public works projects in the amount of the bidding preference percentage authorized by other states. At a time when government agencies are increasingly strapped financially, providing the bidding preference will mean that the public’s money will not go as far for capital improvements and new construction.
- Increased Bid Protests: Bidding preferences may result in an increase in bid protests, resulting in project delays and additional costs.
We will continue to follow this legislation as it moves through the House, and if it passes, as it develops into a permanent law later this year.
