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Bill — Second Substitute Senate Bill 5268, Public Works Procurement (Washington, 2023)

Summary

Second Substitute Senate Bill 5268 of the 68th Legislature, 2023 Regular Session, State of Washington, by Senate Ways & Means (originally sponsored by Senators Hasegawa, Warnick, Hunt, Keiser and Kuderer, among others), read first time February 22, 2023. The bill relates to equity and efficiencies in public works procurement including modifying small works roster requirements. Its title lists amendments to RCW 39.04.010 and 39.19.030 among other sections and repeals RCW 39.04.155 and 39.04.156. Section 39 states that the listed sections take effect July 1, 2024, and Section 40 states that Sections 31 and 35 take effect July 1, 2023.

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Full text

     S-1705.1

                      SECOND SUBSTITUTE SENATE BILL 5268


     State of Washington         68th Legislature     2023 Regular Session

     By Senate Ways & Means (originally sponsored by Senators Hasegawa,
     Warnick, Hunt, Keiser, Kuderer, Nguyen, Nobles, Saldaña, Valdez,
     Wagoner, and C. Wilson)

     READ FIRST TIME 02/22/23.




 1       AN ACT Relating to equity and efficiencies in public works
 2   procurement including modifying small works roster requirements;
 3   amending RCW 39.04.010, 39.19.030, 39.10.200, 39.10.210, 39.10.220,
 4   39.10.230, 39.10.240, 39.10.330, 39.10.360, 39.10.380, 39.10.385,
 5   39.10.908, 28A.335.190, 28B.10.350, 28B.50.330, 35.22.620, 35.23.352,
 6   35.61.135, 35.82.076, 36.32.235, 36.32.250, 36.77.075, 39.04.200,
 7   39.04.380, 39.12.040, 52.14.110, 53.08.120, 54.04.070, 57.08.050,
 8   70.44.140, 87.03.436, and 43.131.408; adding new sections to chapter
 9   39.04 RCW; creating a new section; repealing RCW 39.04.155 and
10   39.04.156; providing effective dates; and declaring an emergency.

11   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


12       NEW SECTION. Sec. 1. The legislature finds the need to increase
13   equity and efficiencies in public works procurement. The legislature
14   further finds that small, minority, women, and veteran-owned
15   businesses are essential to a robust and high-functioning economy,
16   which provides high quality living wage jobs throughout the state.
17   The legislature further finds that public works contracting agencies
18   need a streamlined and effective method for delivering small public
19   works projects while protecting worker rights. Therefore, the
20   legislature intends to provide a small business definition, best
21   practices to be included in inclusion plans, and to update and revise
                                       p. 1                         2SSB 5268
 1   the small and limited works roster process to increase administrative
 2   efficiency, to encourage greater participation and utilization by
 3   small, minority, women, and veteran-owned businesses, and continue to
 4   protect the rights of workers engaging in public works projects.


 5       Sec. 2.   RCW 39.04.010 and 2008 c 130 s 16 are each amended to
 6   read as follows:
 7       The definitions in this section apply throughout this chapter
 8   unless the context clearly requires otherwise.
 9       (1) "Authorized local government" means a political subdivision
10   of the state, school district, or special purpose district with
11   public works authority.
12       (2) "Award" means the formal decision by the state or
13   municipality   notifying  a   responsible  bidder   with  the  lowest
14   responsive bid of the state's or municipality's acceptance of the bid
15   and intent to enter into a contract with the bidder.
16       (((2))) (3) "Contract" means a contract in writing for the
17   execution of public work for a fixed or determinable amount duly
18   awarded after advertisement and competitive bid, or a contract
19   awarded under the small works roster process in ((RCW 39.04.155))
20   sections 14 through 16 of this act.
21       (((3))) (4) "Municipality" means every city, county, town, port
22   district, district, or other public agency authorized by law to
23   require the execution of public work, except drainage districts,
24   diking districts, diking and drainage improvement districts, drainage
25   improvement districts, diking improvement districts, consolidated
26   diking and drainage improvement districts, consolidated drainage
27   improvement districts, consolidated diking improvement districts,
28   irrigation districts, or other districts authorized by law for the
29   reclamation or development of waste or undeveloped lands.
30       (((4)))   (5)  "Public   work"  means   all  work,   construction,
31   alteration, repair, or improvement other than ordinary maintenance,
32   executed at the cost of the state or of any municipality, or which is
33   by law a lien or charge on any property therein. All public works,
34   including maintenance when performed by contract shall comply with
35   chapter 39.12 RCW. "Public work" does not include work, construction,
36   alteration, repair, or improvement performed under contracts entered
37   into under RCW 36.102.060(4) or under development agreements entered
38   into under RCW 36.102.060(7) or leases entered into under RCW
39   36.102.060(8).
                                     p. 2                        2SSB 5268
 1       (((5))) (6) "Responsible bidder" means a contractor who meets the
 2   criteria in RCW 39.04.350.
 3       (((6)))   (7)   "Small   business"  means   a   business  meeting
 4   certification criteria for size, ownership, control, and personal net
 5   worth adopted by the office of minority and women's business
 6   enterprises in accordance with RCW 39.19.030.
 7       (8) "State" means the state of Washington and all departments,
 8   supervisors, commissioners, and agencies of the state.
 9       (9) "State agency" means the department of enterprise services,
10   the state parks and recreation commission, the department of natural
11   resources, the department of fish and wildlife, the department of
12   transportation, any institution of higher education as defined under
13   RCW 28B.10.016, and any other state agency delegated authority by the
14   department of enterprise services to engage in construction,
15   building, renovation, remodeling, alteration, improvement, or repair
16   activities.


17       Sec. 3. RCW 39.19.030 and 1996 c 69 s 5 are each amended to read
18   as follows:
19       There is hereby created the office of minority and women's
20   business enterprises. The governor shall appoint a director for the
21   office, subject to confirmation by the senate. The director may
22   employ a deputy director and a confidential secretary, both of which
23   shall be exempt under chapter 41.06 RCW, and such staff as are
24   necessary to carry out the purposes of this chapter.
25       The office shall consult with the minority and women's business
26   enterprises advisory committee to:
27       (1) Develop, plan, and implement programs to provide an
28   opportunity for participation by qualified minority and women-owned
29   and controlled businesses in public works and the process by which
30   goods and services are procured by state agencies and educational
31   institutions from the private sector;
32       (2) Develop a comprehensive plan insuring that qualified minority
33   and women-owned and controlled businesses are provided an opportunity
34   to participate in public contracts for public works and goods and
35   services;
36       (3) Identify barriers to equal participation by qualified
37   minority and women-owned and controlled businesses in all state
38   agency and educational institution contracts;


                                     p. 3                        2SSB 5268
 1       (4) Establish annual overall goals for participation by qualified
 2   minority and women-owned and controlled businesses for each state
 3   agency and educational institution to be administered on a contract-
 4   by-contract basis or on a class-of-contracts basis;
 5       (5) Develop and maintain a central minority and women's business
 6   enterprise certification list for all state agencies and educational
 7   institutions. No business is entitled to certification under this
 8   chapter unless it meets the definition of small business concern as
 9   established by the office. All applications for certification under
10   this chapter shall be sworn under oath;
11       (6) Develop, implement, and operate a system of monitoring
12   compliance with this chapter;
13       (7) Adopt rules under chapter 34.05 RCW, the Administrative
14   Procedure Act, governing: (a) Establishment of agency goals; (b)
15   development and maintenance of a central minority and women's
16   business enterprise certification program and a public works small
17   business certification program, including a definition of "small
18   business concern" which shall be consistent with the small business
19   requirements defined under section 3 of the Small Business Act, 15
20   U.S.C. Sec. 632, and its implementing regulations as guidance; (c)
21   procedures for monitoring and enforcing compliance with goals,
22   regulations, contract provisions, and this chapter; (d) utilization
23   of standard clauses by state agencies and educational institutions,
24   as specified in RCW 39.19.050; and (e) determination of an agency's
25   or educational institution's goal attainment consistent with the
26   limitations of RCW 39.19.075;
27       (8) Submit an annual report to the governor and the legislature
28   outlining the progress in implementing this chapter;
29       (9) Investigate complaints of violations of this chapter with the
30   assistance of the involved agency or educational institution; and
31       (10) Cooperate and act jointly or by division of labor with the
32   United States or other states, and with political subdivisions of the
33   state of Washington and their respective minority, socially and
34   economically disadvantaged and women business enterprise programs to
35   carry out the purposes of this chapter. However, the power which may
36   be   exercised  by   the   office   under  this   subsection   permits
37   investigation and imposition of sanctions only if the investigation
38   relates to a possible violation of chapter 39.19 RCW, and not to
39   violation   of   local   ordinances,   rules,   regulations,   however
40   denominated, adopted by political subdivisions of the state.
                                     p. 4                        2SSB 5268
 1       Sec. 4.   RCW 39.10.200 and 2010 1st sp.s. c 21 s 2 are each
 2   amended to read as follows:
 3       The legislature finds that the traditional process of awarding
 4   public works contracts in lump sum to the lowest responsible bidder
 5   is a fair and objective method of selecting a contractor. However,
 6   under certain circumstances, alternative public works contracting
 7   procedures may best serve the public interest if such procedures are
 8   implemented in an open and fair process based on objective and
 9   equitable criteria. In addition, alternative public works contracting
10   can provide increased access to contracting opportunities for small,
11   minority, women, and veteran-owned businesses. The purpose of this
12   chapter is to authorize the use of certain supplemental alternative
13   public works contracting procedures, to prescribe appropriate
14   requirements to ensure that such contracting procedures serve the
15   public interest and advance contracting opportunities for small,
16   minority, women, and veteran-owned businesses to the extent permitted
17   by law, and to establish a process for evaluation of such contracting
18   procedures. It is the intent of the legislature to establish that,
19   unless otherwise specifically provided for in law, public bodies may
20   use only those alternative public works contracting procedures
21   specifically authorized in this chapter, subject to the requirements
22   of this chapter. It is also the intent of the legislature that
23   inclusion plans required by this chapter may include, with public
24   body approval and to the extent permitted by law, features to improve
25   access to opportunities, including outreach and mentorship, capital
26   including, modified payment provisions, training, and other features
27   intended to maximize the participation and success of small,
28   minority, women, and veteran-owned businesses.

29       Sec. 5.   RCW 39.10.210 and 2021 c 230 s 1 are each amended to
30   read as follows:
31       Unless the context clearly requires otherwise, the definitions in
32   this section apply throughout this chapter.
33       (1) "Alternative public works contracting procedure" means the
34   design-build, general contractor/construction manager, and job order
35   contracting procedures authorized in RCW 39.10.300, 39.10.340, and
36   39.10.420, respectively.
37       (2) "Board" means the capital projects advisory review board.
38       (3) "Budget contingencies" means contingencies established by a
39   public body outside of the design-build or general contractor/
                                     p. 5                        2SSB 5268
 1   construction manager contract for payment of project costs that are
 2   not the responsibility of the design-builder or general contractor/
 3   construction manager under the respective contract.
 4       (4) "Certified public body" means a public body certified to use
 5   design-build or general contractor/construction manager contracting
 6   procedures, or both, under RCW 39.10.270.
 7       (5) "Coefficient" means the job order contractor's competitively
 8   bid numerical factor applied to the public body's prices as published
 9   in the unit price book.
10       (6) "Committee," unless otherwise noted, means the project review
11   committee.
12       (7) "Design-build procedure" means a contract between a public
13   body and another party in which the party agrees to both design and
14   build the facility, portion of the facility, or other item specified
15   in the contract.
16       (8) (("Disadvantaged business enterprise" means any business
17   entity certified with the office of minority and women's business
18   enterprises under chapter 39.19 RCW.
19       (9))) "General contractor/construction manager" means a firm with
20   which a public body has selected to provide services during the
21   design phase and negotiated a maximum allowable construction cost to
22   act as construction manager and general contractor during the
23   construction phase.
24       (((10))) (9) "Heavy civil construction project" means a civil
25   engineering   project,  the    predominant   features   of   which   are
26   infrastructure improvements.
27       (((11))) (10) "Job order contract" means a contract in which the
28   contractor agrees to a fixed period, indefinite quantity delivery
29   order contract which provides for the use of work orders for public
30   works as defined in RCW 39.04.010.
31       (((12))) (11) "Job order contractor" means a registered or
32   licensed contractor awarded a job order contract.
33       (((13))) (12) "Maximum allowable construction cost" means the
34   maximum cost of the work to construct the project including a
35   percentage for risk contingency, negotiated support services, and
36   approved change orders.
37       (((14))) (13) "Negotiated support services" means items a general
38   contractor would normally manage or perform on a construction project
39   including,   but   not   limited   to   surveying,    hoisting,   safety
40   enforcement, provision of toilet facilities, temporary heat, cleanup,
                                      p. 6                         2SSB 5268
 1   and trash removal, and that are negotiated as part of the maximum
 2   allowable construction cost.
 3       (((15))) (14) "Percent fee" means the percentage amount to be
 4   earned by the general contractor/construction manager as overhead and
 5   profit.
 6       (((16))) (15) "Price-related factor" means an evaluation factor
 7   that impacts costs which may include, but is not limited to overhead
 8   and profit, lump sum or guaranteed maximum price for the entire or a
 9   portion of the project, operating costs, or other similar factors
10   that may apply to the project.
11       (((17))) (16) "Public body" means any general or special purpose
12   government in the state of Washington, including but not limited to
13   state agencies, institutions of higher education, counties, cities,
14   towns, ports, school districts, and special purpose districts.
15       (((18))) (17) "Public works project" means any work for a public
16   body within the definition of "public work" in RCW 39.04.010.
17       (((19))) (18) "Risk contingency" means a contingency for use as
18   defined in the contract and established as part of the maximum
19   allowable construction cost for unexpected cost of work items that
20   have not otherwise been included or addressed in the maximum
21   allowable construction cost.
22       (((20))) (19) "Small business ((entity))" means a small business
23   as defined in RCW ((39.26.010)) 39.04.010.
24       (((21))) (20) "Total contract cost" means the fixed amount for
25   the detailed specified general conditions work, the negotiated
26   maximum allowable construction cost, and the percent fee on the
27   negotiated maximum allowable construction cost.
28       (((22))) (21) "Total project cost" means the cost of the project
29   less financing and land acquisition costs.
30       (((23))) (22) "Unit price book" means a book containing specific
31   prices,   based  on   generally   accepted  industry   standards and
32   information, where available, for various items of work to be
33   performed by the job order contractor.
34       (((24))) (23) "Work order" means an order issued for a definite
35   scope of work to be performed pursuant to a job order contract.


36       Sec. 6.   RCW 39.10.220 and 2021 c 230 s 2 are each amended to
37   read as follows:
38       (1) The board is created in the department of enterprise services
39   to provide an evaluation of public capital projects construction
                                     p. 7                        2SSB 5268
 1   processes, including the impact of contracting methods on project
 2   outcomes, and to advise the legislature on policies related to public
 3   works delivery methods.
 4       (2) Members of the board identified in (a) through (f) of this
 5   subsection must be knowledgeable or have experience in public works
 6   procurement and contracting, including state and federal laws, rules,
 7   and best practices concerning public contracting for small, minority,
 8   women, and veteran-owned businesses ((and small businesses)), and are
 9   appointed as follows:
10       (a) Two representatives from construction general contracting;
11   one    representative   from   the   architectural  profession;   one
12   representative from the engineering profession; two representatives
13   from construction specialty subcontracting; two representatives from
14   construction trades labor organizations; one representative from the
15   office    of   minority   and  women's   business  enterprises;   one
16   representative     from   a   higher   education   institution;   one
17   representative from the department of enterprise services; one
18   individual representing Washington cities; two representatives from
19   private industry; one individual from the private sector representing
20   the interests of the ((disadvantaged business enterprises)) small,
21   minority, women, or veteran-owned businesses community; and one
22   representative of a domestic insurer authorized to write surety bonds
23   for contractors in Washington state, each appointed by the governor.
24   The board must reflect the gender, racial, ethnic, and geographic
25   diversity of the state, including the interests of persons with
26   disabilities. If a vacancy occurs, the governor shall fill the
27   vacancy for the unexpired term;
28       (b) One member representing counties, selected by the Washington
29   state association of counties;
30       (c) One member representing public ports, selected by the
31   Washington public ports association;
32       (d) One member representing public hospital districts, selected
33   by the association of Washington public hospital districts;
34       (e) One member representing school districts, selected by the
35   Washington state school directors' association;
36       (f) One member representing transit, selected by the Washington
37   state transit association; and
38       (g) Two members of the house of representatives, one from each
39   major   caucus,   appointed  by   the   speaker   of  the   house  of
40   representatives, and two members of the senate, one from each major
                                     p. 8                        2SSB 5268
 1   caucus, appointed by the president of the senate. Legislative members
 2   are nonvoting.
 3       (3) Members selected under subsection (2)(a) of this section
 4   shall serve for terms of four years, with the terms expiring on June
 5   30th on the fourth year of the term.
 6       (4) The board chair is selected from among the appointed members
 7   by the majority vote of the voting members.
 8       (5) Legislative members of the board shall be reimbursed for
 9   travel expenses in accordance with RCW 44.04.120. Nonlegislative
10   members of the board, project review committee members, and committee
11   chairs shall be reimbursed for travel expenses as provided in RCW
12   43.03.050 and 43.03.060.
13       (6) Vacancies are filled in the same manner as appointed. Members
14   of the board may be removed for malfeasance or misfeasance in office,
15   upon specific written charges by the governor, under chapter 34.05
16   RCW.
17       (7) The board shall meet as often as necessary.
18       (8) Board members are expected to consistently attend board
19   meetings. The chair of the board may ask the governor to remove any
20   member who misses more than two meetings in any calendar year without
21   cause.
22       (9) The department of enterprise services shall provide staff
23   support as may be required for the proper discharge of the function
24   of the board.
25       (10) The board may establish committees as it desires and may
26   invite nonmembers of the board to serve as committee members.
27       (11) The board shall provide opportunities for persons and
28   entities not represented on the board to participate and provide
29   insights on matters of interest to the board, particularly with
30   respect to the experiences of small, minority, women, and veteran-
31   owned businesses ((and small businesses)).


32       Sec. 7.   RCW 39.10.230 and 2021 c 230 s 3 are each amended to
33   read as follows:
34       The board has the following powers and duties:
35       (1) Develop and recommend to the legislature policies to
36   encourage competition and to further enhance the quality, efficiency,
37   and accountability of and equitable participation by ((disadvantaged
38   business enterprises)) small, minority, women, or veteran-owned
39   businesses in capital construction projects through the use of
                                     p. 9                        2SSB 5268
 1   traditional and alternative delivery methods in Washington, and make
 2   recommendations regarding best practices, expansion, continuation,
 3   elimination, or modification of the alternative public works
 4   contracting methods, including specific recommendations for reducing
 5   barriers for and increasing participation by ((disadvantaged business
 6   enterprises)) small, minority, women, or veteran-owned businesses;
 7       (2) Evaluate the use of existing contracting procedures and the
 8   potential future use of other alternative contracting procedures
 9   including competitive negotiation contracts;
10       (3) Submit recommendations to the appropriate committees of the
11   legislature evaluating alternative contracting procedures that are
12   not authorized under this chapter;
13       (4) Appoint members of committees; and
14       (5) Direct the department of enterprise services to collect
15   quantitative and qualitative data on alternative public works
16   contracting procedures to support the board's work in meeting the
17   purpose established in RCW 39.10.220(1).


18       Sec. 8.    RCW 39.10.240 and 2021 c 230 s 4 are each amended to
19   read as follows:
20       (1) The board shall establish a project review committee to
21   review and approve public works projects using the design-build and
22   general   contractor/construction   manager  contracting   procedures
23   authorized in RCW 39.10.300 and 39.10.340 and to certify public
24   bodies as provided in RCW 39.10.270.
25       (2) The board shall, by a majority vote of the board, appoint
26   persons to the committee who are knowledgeable in the use of the
27   design-build and general contractor/construction manager contracting
28   procedures. Appointments must represent a balance of public and
29   private sector representatives of the board listed in RCW 39.10.220,
30   and must include at least one member representing the interests of
31   ((disadvantaged business enterprises)) small, minority, women, or
32   veteran-owned businesses.
33       (a) Each member of the committee shall be appointed for a term of
34   three years. However, for initial appointments, the board shall
35   stagger the appointment of committee members so that the first
36   members are appointed to serve terms of one, two, or three years from
37   the date of appointment. Appointees may be reappointed to serve more
38   than one term.


                                     p. 10                       2SSB 5268
 1       (b) The committee shall, by a majority vote, elect a chair and
 2   vice chair for the committee.
 3       (c) The committee chair may select a person or persons on a
 4   temporary basis as a nonvoting member if project specific expertise
 5   is needed to assist in a review.
 6       (3) The chair of the committee, in consultation with the vice
 7   chair, may appoint one or more panels of at least six committee
 8   members to carry out the duties of the committee. Each panel shall
 9   have balanced representation of the private and public sector
10   representatives serving on the committee, and shall include a member
11   representing the interests of ((disadvantaged business enterprises))
12   small, minority, women, or veteran-owned businesses.
13       (4) Any member of the committee directly or indirectly affiliated
14   with a submittal before the committee must recuse himself or herself
15   from the committee consideration of that submittal.
16       (5) Any person who sits on the committee or panel is not
17   precluded from subsequently bidding on or participating in projects
18   that have been reviewed by the committee.
19       (6) The committee shall meet as often as necessary to ensure that
20   certification and approvals are completed in a timely manner.


21       Sec. 9.   RCW 39.10.330 and 2021 c 230 s 7 are each amended to
22   read as follows:
23       (1) Contracts for design-build services shall be awarded through
24   a competitive process using public solicitation of proposals for
25   design-build services. At a minimum, the public body shall publish at
26   least once in a legal newspaper of general circulation published in,
27   or as near as possible to, that part of the county in which the
28   public work will be done, a notice of its request for qualifications
29   from proposers for design-build services, and the availability and
30   location of the request for proposal documents. The public body is
31   encouraged to post the design-build opportunity in additional areas,
32   such as websites for business associations or the office of minority
33   and   women's  business   enterprises,   to  further   publicize  the
34   opportunity for qualified design-build teams. The request for
35   qualifications documents shall include:
36       (a) A description of the project including the estimated design-
37   build contract value and the intended use of the project;
38       (b) The reasons for using the design-build procedure;


                                     p. 11                       2SSB 5268
 1       (c) A description of the qualifications to be required of the
 2   proposer;
 3       (d) A description of the process the public body will use to
 4   evaluate    qualifications   and    finalists'   proposals,   including
 5   evaluation factors and the relative weight of factors and any
 6   specific forms to be used by the proposers;
 7       (i) Evaluation factors for qualifications shall include technical
 8   qualifications,   such   as   specialized   experience   and  technical
 9   competence of the firms and the key design and construction
10   personnel; capacity to perform; the proposer's past performance in
11   utilization   of   ((disadvantaged   business   enterprises))  business
12   entities certified with the office of minority and women's business
13   enterprises, including small businesses and business entities
14   certified with the department of veterans affairs, to the extent
15   permitted by law; ability to provide a performance and payment bond
16   for the project; and other appropriate factors. ((Evaluation factors
17   must also include, but are not limited to, the proposer's past
18   performance in utilization of small business entities.)) Cost or
19   price-related factors are not permitted in the request for
20   qualifications phase;
21       (ii) Evaluation factors for finalists' proposals shall include
22   the management plan to meet time and budget requirements and one or
23   more price-related factors. Evaluation factors must include a
24   proposer's   inclusion  plan   for  ((small   business  entities   and
25   disadvantaged business enterprises)) business entities certified with
26   the office of minority and women's business enterprises, including
27   small businesses and business entities certified with the department
28   of veterans affairs as subconsultants, subcontractors, and suppliers
29   for the project, to the extent permitted by law. Evaluation factors
30   may also include, but not be limited to, the technical approach or
31   the design concept;
32       (e) Protest procedures including time limits for filing a
33   protest, which in no event may limit the time to file a protest to
34   fewer than four business days from the date the proposer was notified
35   of the selection decision;
36       (f) The proposed contract;
37       (g) The honorarium to be paid to finalists submitting responsive
38   proposals and who are not awarded a design-build contract;
39       (h) The schedule for the procurement process and the project; and
40       (i) Other information relevant to the project.
                                      p. 12                       2SSB 5268
 1       (2) The public body shall establish an evaluation committee to
 2   evaluate the responses to the request for qualifications based solely
 3   on the factors, weighting, and process identified in the request for
 4   qualifications and any addenda issued by the public body. Based on
 5   the evaluation committee's findings, the public body shall select not
 6   more than five responsive and responsible finalists to submit
 7   proposals. The public body may, in its sole discretion, reject all
 8   proposals and shall provide its reasons for rejection in writing to
 9   all proposers.
10       (3) The public body must notify all proposers of the finalists
11   selected to move to the next phase of the selection process. The
12   process may not proceed to the next phase until two business days
13   after all proposers are notified of the committee's selection
14   decision. At the request of a proposer not selected as a finalist,
15   the public body must provide the requesting proposer with a scoring
16   summary of the evaluation factors for its proposal. Proposers filing
17   a protest on the selection of the finalists must file the protest in
18   accordance with the published protest procedures. The selection
19   process may not advance to the next phase of selection until two
20   business days after the final protest decision is transmitted to the
21   protestor.
22       (4) Upon selection of the finalists, the public body shall issue
23   a request for proposals to the finalists. The request for proposal
24   documents shall include:
25       (a) Any specific forms to be used by the finalists; and
26       (b) Submission of a summary of the finalist's accident prevention
27   program and an overview of its implementation.
28       (5) The public body shall establish an evaluation committee to
29   evaluate the proposals submitted by the finalists. The finalists'
30   proposals shall be evaluated and scored based solely on the factors,
31   weighting, and process identified in the request for qualifications,
32   the request for proposals, and in any addenda published by the public
33   body. Public bodies may request best and final proposals from
34   finalists. The public body may initiate negotiations with the
35   finalist submitting the highest scored proposal. If the public body
36   is unable to execute a contract with the finalist submitting the
37   highest scored proposal, negotiations with that finalist may be
38   suspended or terminated and the public body may proceed to negotiate
39   with the next highest scored finalist. Public bodies shall continue


                                     p. 13                       2SSB 5268
 1   in accordance with this procedure until a contract agreement is
 2   reached or the selection process is terminated.
 3       (6) The public body shall notify all finalists of the selection
 4   decision and make a selection summary of the final proposals
 5   available to all proposers within two business days of such
 6   notification. If the public body receives a timely written protest
 7   from a finalist firm, the public body may not execute a contract
 8   until two business days after the final protest decision is
 9   transmitted to the protestor. The protestor must submit its protest
10   in accordance with the published protest procedures.
11       (7) The firm awarded the contract shall provide a performance and
12   payment bond for the contracted amount.
13       (8) Any contract must require the firm awarded the contract to
14   track and report to the public body and to the office of minority and
15   women's business enterprises its utilization of the office of
16   minority and women's business enterprises certified businesses and
17   veteran certified businesses.
18       (9) The public body shall provide appropriate honorarium payments
19   to finalists submitting responsive proposals that are not awarded a
20   design-build contract. Honorarium payments shall be sufficient to
21   generate meaningful competition among potential proposers on design-
22   build projects. In determining the amount of the honorarium, the
23   public body shall recognize the level of effort required to meet the
24   selection criteria.


25       Sec. 10.   RCW 39.10.360 and 2021 c 230 s 9 are each amended to
26   read as follows:
27       (1) Public bodies should select general contractor/construction
28   managers at a time in the project when the general contractor/
29   construction manager's participation provides value.
30       (2) Contracts for the services of a general contractor/
31   construction manager under this section shall be awarded through a
32   competitive process requiring the public solicitation of proposals
33   for general contractor/construction manager services. At a minimum,
34   the public body shall publish at least once in a legal newspaper of
35   general circulation published in, or as near as possible to, that
36   part of the county in which the public work will be performed, a
37   notice of its request for qualifications from proposers for general
38   contractor/construction manager services, and the availability and
39   location of the request for proposal documents. The public body is
                                     p. 14                       2SSB 5268
 1   encouraged to post the general contractor/construction manager
 2   opportunity in additional areas, such as websites for business
 3   associations or the office of minority and women's business
 4   enterprises, to further publicize the opportunity for qualified
 5   general contractors/construction managers. The public solicitation of
 6   proposals shall include:
 7       (a) A description of the project, including programmatic,
 8   performance, and technical requirements and specifications when
 9   available;
10       (b) The reasons for using the general contractor/construction
11   manager procedure;
12       (c) A description of the qualifications to be required of the
13   firm, including submission of the firm's accident prevention program;
14       (d) A description of the process the public body will use to
15   evaluate qualifications and proposals, including evaluation factors,
16   the relative weight of factors, and protest procedures including time
17   limits for filing a protest, which in no event may limit the time to
18   file a protest to fewer than four business days from the date the
19   proposer was notified of the selection decision;
20       (e) The form of the contract, including any contract for
21   preconstruction services, to be awarded;
22       (f) The estimated maximum allowable construction cost; and
23       (g) The bid instructions to be used by the general contractor/
24   construction manager finalists.
25       (3) Evaluation factors for qualifications of the general
26   contractor/construction manager shall include, but not be limited to:
27       (a) Experience and technical competence of key personnel;
28       (b) The proposer's past performance with negotiated or similarly
29   complex projects;
30       (c) The proposer's capacity to perform the work;
31       (d) The scope of work the firm proposes to self-perform and its
32   past performance of that scope of work;
33       (e) The proposer's approach to executing the project, including
34   ability to meet the project time and budget requirements; and
35       (f)   The   proposer's   past  performance   in   utilization   of
36   ((disadvantaged business enterprises and small business entities))
37   business entities certified with the office of minority and women's
38   business enterprises, including small businesses and business
39   entities certified with the department of veterans affairs and the
40   inclusion plan for ((small business entities and disadvantaged
                                     p. 15                       2SSB 5268
 1   business enterprises)) business entities certified with the office of
 2   minority and women's business enterprises, including small businesses
 3   and business entities certified with the department of veterans
 4   affairs as subconsultants, subcontractors, and suppliers for the
 5   project, to the extent permitted by law.
 6       (4) A public body shall establish a committee to evaluate the
 7   proposals. After the committee has selected the most qualified
 8   finalists, at the time specified by the public body, these finalists
 9   shall submit final proposals, which must include sealed bids for the
10   percent fee on the estimated maximum allowable construction cost and
11   which may include other price-related factors identified in the
12   request for proposal. In no event shall a price-related factor
13   include a request for overall project budget, estimate, or bid. The
14   public body shall establish a time and place for the opening of
15   sealed bids. At the time and place named, these bids must be publicly
16   opened and read and the public body shall make all previous scoring
17   available to the public. The public body shall select the firm
18   submitting the highest scored final proposal using the evaluation
19   factors and the relative weight of factors published in the public
20   solicitation of proposals. A public body shall not evaluate or
21   disqualify a proposal based on the terms of a collective bargaining
22   agreement.
23       (5) The public body shall notify all finalists of the selection
24   decision and make a selection summary of the final proposals
25   available to all proposers within two business days of such
26   notification. If the public body receives a timely written protest
27   from a proposer, the public body may not execute a contract until two
28   business days after the final protest decision is transmitted to the
29   protestor. The protestor must submit its protest in accordance with
30   the published protest procedures.
31       (6) Public bodies may contract with the selected firm to provide
32   services during the design phase that may include life-cycle cost
33   design   considerations,    value   engineering,   scheduling,   cost
34   estimating, constructability, alternative construction options for
35   cost savings, and sequencing of work, and to act as the construction
36   manager and general contractor during the construction phase.


37       Sec. 11. RCW 39.10.380 and 2021 c 230 s 11 are each amended to
38   read as follows:


                                     p. 16                       2SSB 5268
 1       (1) All subcontract work and equipment and material purchases
 2   shall be competitively bid with public bid openings and require the
 3   public solicitation of the bid documents. At a minimum, the general
 4   contractor/construction manager shall publish at least once in a
 5   legal newspaper of general circulation published in, or as near as
 6   possible to, that part of the county in which the subcontract work
 7   will be performed, a notice of its request for bid, and the
 8   availability and location of the bid documents. The general
 9   contractor/construction manager is encouraged to post the subcontract
10   opportunity in additional areas beyond the legal newspaper as
11   required by this subsection, such as websites for business
12   associations,   the   office  of   minority   and  women's   business
13   enterprises, and other locations and mediums that will further
14   publicize the opportunity for qualified subcontractors. Subcontract
15   bid packages and equipment and materials purchases shall be awarded
16   to the responsible bidder submitting the lowest responsive bid. In
17   preparing   subcontract   bid  packages,   the   general   contractor/
18   construction manager shall not be required to violate or waive terms
19   of a collective bargaining agreement. Individual bid packages are to
20   be prepared with trades separated in the manner consistent with
21   industry practice to maximize participation and competition across
22   all trades. Bundling of trades not normally combined into one bid
23   package is not allowed without justification and specific approval by
24   the public body. Bid packages must be prepared to reduce barriers for
25   and increase participation by ((disadvantaged business enterprises))
26   business entities certified with the office of minority and women's
27   business enterprises, including small businesses and business
28   entities certified with the department of veterans affairs.
29       (2) All subcontract bid packages in which bidder eligibility was
30   not determined in advance shall include the specific objective
31   criteria that will be used by the general contractor/construction
32   manager and the public body to evaluate bidder responsibility. If the
33   lowest bidder submitting a responsive bid is determined by the
34   general contractor/construction manager and the public body not to be
35   responsible, the general contractor/construction manager and the
36   public body must provide written documentation to that bidder
37   explaining their intent to reject the bidder as not responsible and
38   afford the bidder the opportunity to establish that it is a
39   responsible bidder. Responsibility shall be determined in accordance
40   with criteria listed in the bid documents. Protests concerning bidder
                                     p. 17                       2SSB 5268
 1   responsibility determination by the general contractor/construction
 2   manager and the public body shall be in accordance with subsection
 3   (4) of this section.
 4       (3) All subcontractors who bid work over $300,000 shall post a
 5   bid bond. All subcontractors who are awarded a contract over $300,000
 6   shall provide a performance and payment bond for the contract amount.
 7   All other subcontractors shall provide a performance and payment bond
 8   if required by the general contractor/construction manager.
 9       (4) If the general contractor/construction manager receives a
10   written protest from a subcontractor bidder or an equipment or
11   material supplier, the general contractor/construction manager shall
12   not execute a contract for the subcontract bid package or equipment
13   or material purchase order with anyone other than the protesting
14   bidder without first providing at least two full business days'
15   written notice to all bidders of the intent to execute a contract for
16   the subcontract bid package. The protesting bidder must submit
17   written notice of its protest no later than two full business days
18   following the bid opening. Intermediate Saturdays, Sundays, and legal
19   holidays are not counted.
20       (5) A low bidder who claims error and fails to enter into a
21   contract is prohibited from bidding on the same project if a second
22   or subsequent call for bids is made for the project.
23       (6) The general contractor/construction manager may negotiate
24   with the lowest responsible and responsive bidder to negotiate an
25   adjustment to the lowest bid or proposal price to reduce cost based
26   upon agreed changes to the contract plans and specifications under
27   the following conditions:
28       (a) All responsive bids or proposal prices exceed the published
29   bid package estimates; and
30       (b) The apparent low responsive bid or proposal does not exceed
31   the published bid package estimates by more than 10 percent.
32       (7) If the negotiation is unsuccessful, the subcontract work or
33   equipment or material purchases must be rebid.
34       (8) The general contractor/construction manager must provide a
35   written explanation to the public body if all bids are rejected.


36       Sec. 12. RCW 39.10.385 and 2021 c 230 s 12 are each amended to
37   read as follows:
38       The selection process in this section may be used by public
39   bodies certified under RCW 39.10.270. It may also be used by
                                     p. 18                       2SSB 5268
 1   noncertified public bodies if this selection process has been
 2   approved for the project by the project review committee. As an
 3   alternative to the subcontractor selection process outlined in RCW
 4   39.10.380, a general contractor/construction manager may, with the
 5   approval of the public body, select one or more subcontractors using
 6   the process outlined in this section. This alternative selection
 7   process may only be used when the anticipated value of the
 8   subcontract will exceed ((three million dollars)) $3,000,000. When
 9   using the alternative selection process, the general contractor/
10   construction manager should select the subcontractor early in the
11   life of the public works project.
12       (1) In order to use this alternative selection process, the
13   general contractor/construction manager and the public body must
14   determine that it is in the best interest of the public. In making
15   this determination the general contractor/construction manager and
16   the public body must:
17       (a) Publish a notice of intent to use this alternative selection
18   process in the same legal newspaper where the public solicitation of
19   proposals is published. The general contractor/construction manager
20   and public body are encouraged to post the notice in additional areas
21   beyond the legal newspaper as required under this subsection, such as
22   websites for business associations, the office of minority and
23   women's business enterprises, and other locations and mediums that
24   will further publicize the intent to use this alternative selection
25   process. Notice must be published at least ((fourteen)) 14 calendar
26   days before conducting a public hearing. The notice must include the
27   date, time, and location of the hearing; a statement justifying the
28   basis and need for the alternative selection process; (([and])) and
29   how interested parties may, prior to the hearing, obtain the
30   following: (i) The evaluation criteria and applicable weight given to
31   each criteria that will be used for evaluation, including clear
32   definitions of what should be considered specified general conditions
33   work and what should be considered the fee; and (ii) protest
34   procedures including time limits for filing a protest, which may, in
35   no event, limit the time to file a protest to fewer than four
36   business days from the date the proposer was notified of the
37   selection decision. The evaluation criteria, weights assigned to each
38   criteria, and justification for using this selection process must be
39   made available upon request at least seven calendar days before the
40   public hearing;
                                     p. 19                       2SSB 5268
 1       (b) Conduct a hearing and provide an opportunity for any
 2   interested party to submit written and verbal comments regarding the
 3   justification for using this selection process, the evaluation
 4   criteria, weights for each criteria, and protest procedures;
 5       (c) After the public hearing, consider the written and verbal
 6   comments received and determine if using this alternative selection
 7   process is in the best interests of the public; and
 8       (d) Issue a written final determination to all interested
 9   parties. The final determination shall state the reasons the
10   alternative selection process is determined to be in the best
11   interests of the public and shall reasonably address the comments
12   received regarding the criteria and weights for each criterion. Any
13   modifications to the criteria, weights, and protest procedures based
14   on comments received during the public hearing process must be
15   included in the final determination. All protests of the decision to
16   use the alternative selection process must be in writing and
17   submitted to the public body within seven calendar days of the final
18   determination. The public body shall not proceed with the selection
19   process until after responding in writing to the protest.
20       (2) Contracts for the services of a subcontractor under this
21   section must be awarded through a competitive process requiring a
22   public solicitation of proposals. Notice of the public solicitation
23   of proposals must be provided to the office of minority and women's
24   business enterprises. The public solicitation of proposals must
25   include:
26       (a) A description of the project, including programmatic,
27   performance, and technical requirements and specifications when
28   available, along with a description of the project's unique aspects,
29   complexities, and challenges;
30       (b) The reasons for using the alternative selection process;
31       (c) A description of the minimum qualifications required of the
32   firm;
33       (d) A description of the process used to evaluate qualifications
34   and proposals, including evaluation factors and the relative weight
35   of factors;
36       (e) Protest procedures;
37       (f) The form of the contract, including any contract for
38   preconstruction services, to be awarded;
39       (g) The estimated maximum allowable subcontract cost; and
40       (h) The bid instructions to be used by the finalists.
                                     p. 20                      2SSB 5268
 1       (3) Evaluation factors for selection of the subcontractor must
 2   include, but not be limited to:
 3       (a) Ability of the firm's professional personnel to deliver
 4   projects similar in size, scope, or complexity;
 5       (b) The firm's past performance on projects similar in size,
 6   scope, or complexity;
 7       (c) The firm's ability to meet time and budget requirements on
 8   projects similar in size, scope, or complexity;
 9       (d) The scope of work the firm proposes to perform with its own
10   forces and its ability to perform that work;
11       (e) The firm's plan for inclusion of ((disadvantaged business
12   enterprises)) business entities certified with the office of minority
13   and women's business enterprises, including small businesses and
14   business entities certified with the department of veterans affairs,
15   to the extent permitted by law;
16       (f) The firm's proximity to the project location;
17       (g) The firm's approach to executing the project based on its
18   delivery of other projects similar in size, scope, or complexity;
19       (h) The firm's approach to safety on the project;
20       (i) The firm's safety history;
21       (j) If interviews are part of the selection process, the
22   solicitation shall describe how interviews will be scored or
23   evaluated, and evaluations shall be included in the written selection
24   summary; and
25       (k) If the firm is selected as one of the most qualified
26   finalists, the firm's fee and cost proposal.
27       (4) The general contractor/construction manager shall establish a
28   committee to evaluate the proposals. At least one representative from
29   the public body shall serve on the committee. Final proposals,
30   including sealed bids for the percent fee on the estimated maximum
31   allowable subcontract cost, and the fixed amount for the subcontract
32   general conditions work specified in the request for proposal, will
33   be requested from the most qualified firms.
34       (5) The general contractor/construction manager must notify all
35   proposers of the most qualified firms that will move to the next
36   phase of the selection process. The process may not proceed to the
37   next phase until two business days after all proposers are notified
38   of the committee's selection decision. At the request of a proposer,
39   the   general  contractor/construction   manager   must  provide  the
40   requesting proposer with a scoring summary of the evaluation factors
                                     p. 21                       2SSB 5268
 1   for its proposal. Proposers filing a protest on the selection of the
 2   most qualified finalists must file the protest with the public body
 3   in accordance with the published protest procedures. The selection
 4   process may not advance to the next phase of selection until two
 5   business days after the final protest decision issued by the public
 6   body is transmitted to the protestor.
 7       (6) The general contractor/construction manager and the public
 8   body shall select the firm submitting the highest scored final
 9   proposal using the evaluation factors and the relative weight of
10   factors identified in the solicitation of proposals. Scoring of the
11   nonprice factors shall be added to the scoring of the fee and cost
12   proposals to determine the highest scored firm. The scoring of the
13   nonprice factors must be made available at the public opening of the
14   fee and cost proposals. The general contractor/construction manager
15   shall notify all proposers of the selection decision and make a
16   selection summary of the final proposals, which shall be available to
17   all proposers within two business days of such notification. The
18   general   contractor/construction   manager  may   not  evaluate   or
19   disqualify a proposal based on the terms of a collective bargaining
20   agreement.
21       (7) If the public body receives a timely written protest from a
22   "most qualified firm," the general contractor/construction manager
23   may not execute a contract for the protested subcontract work until
24   two business days after the final protest decision issued by the
25   public body is transmitted to the protestor. The protestor must
26   submit its protest in accordance with the published protest
27   procedures.
28       (8) If the general contractor/construction manager is unable to
29   negotiate a satisfactory maximum allowable subcontract cost with the
30   firm selected deemed by public body and the general contractor/
31   construction manager to be fair, reasonable, and within the available
32   funds, negotiations with that firm must be formally terminated and
33   the general contractor/construction manager may negotiate with the
34   next highest scored firm until an agreement is reached or the process
35   is terminated.
36       (9) With the approval of the public body, the general contractor/
37   construction manager may contract with the selected firm to provide
38   preconstruction services during the design phase that may include
39   life-cycle cost design considerations, value engineering, scheduling,
40   cost estimating, constructability, alternative construction options
                                     p. 22                       2SSB 5268
 1   for cost savings, and sequencing of work; and to act as the
 2   subcontractor during the construction phase.
 3       (10) The maximum allowable subcontract cost must be used to
 4   establish a total subcontract cost for purposes of a performance and
 5   payment bond. Total subcontract cost means the fixed amount for the
 6   detailed specified general conditions work, the negotiated maximum
 7   allowable subcontract cost, and the percent fee on the negotiated
 8   maximum allowable subcontract cost. Maximum allowable subcontract
 9   cost means the maximum cost to complete the work specified for the
10   subcontract, including the estimated cost of work to be performed by
11   the subcontractor's own forces, a percentage for risk contingency,
12   negotiated support services, and approved change orders. The maximum
13   allowable subcontract cost must be negotiated between the general
14   contractor/construction manager and the selected firm when the
15   construction documents and specifications are at least ninety percent
16   complete. Final agreement on the maximum allowable subcontract cost
17   is subject to the approval of the public body.
18       (11) If the work of the subcontractor is completed for less than
19   the maximum allowable subcontract cost, any savings not otherwise
20   negotiated as part of an incentive clause becomes part of the risk
21   contingency included in the general contractor/construction manager's
22   maximum allowable construction cost. If the work of the subcontractor
23   is completed for more than the maximum allowable subcontract cost,
24   the additional cost is the responsibility of that subcontractor. An
25   independent audit, paid for by the public body, must be conducted to
26   confirm the proper accrual of costs. The public body or general
27   contractor/construction manager shall define the scope of the audit
28   in the contract.
29       (12) A subcontractor selected under this section may perform work
30   with its own forces. In the event it elects to subcontract some of
31   its work, it must select a subcontractor utilizing the procedure
32   outlined in RCW 39.10.380.


33       Sec. 13. RCW 39.10.908 and 2021 c 230 s 19 are each amended to
34   read as follows:
35       In addition to the general contractor/construction manager
36   requirements established in this chapter, public bodies utilizing the
37   general contractor/construction manager method for a heavy civil
38   construction   project   must   also  comply   with   the   following
39   requirements:
                                     p. 23                       2SSB 5268
 1       (1) The heavy civil construction general contractor/construction
 2   manager contract solicitation must:
 3       (a) Provide the reasons for using the general contractor/
 4   construction manager procedure, including a clear statement that the
 5   public body is electing to procure the project as a heavy civil
 6   construction project;
 7       (b) Indicate the minimum percentage of the cost of the work to
 8   construct the project that will constitute the negotiated self-
 9   perform portion of the project;
10       (c) Indicate whether the public body will allow the price to be
11   paid for the negotiated self-perform portion of the project to be
12   deemed a cost of the work to which the general contractor/
13   construction manager's percent fee applies; and
14       (d) Require proposals to indicate the proposer's fee for the
15   negotiated self-perform portion of the project;
16       (2) As part of the negotiation of the maximum allowable
17   construction cost established in RCW 39.10.370(1), the general
18   contractor/construction manager shall submit a proposed construction
19   management and contracting plan, which must include, at a minimum:
20       (a) The scope of work and cost estimates for each bid package;
21       (b) A proposed price and scope of work for the negotiated self-
22   perform portion of the project;
23       (c) The bases used by the general contractor/construction manager
24   to develop all cost estimates, including the negotiated self-perform
25   portion of the project; and
26       (d)   The   general  contractor/construction   manager's   updated
27   inclusion plan for ((small business entities, disadvantaged business
28   enterprises)) business entities certified with the office of minority
29   and women's business enterprises, including small businesses and
30   business entities certified with the department of veterans affairs,
31   and any other ((disadvantaged or)) underutilized businesses as the
32   public body may designate in the public solicitation of proposals, as
33   subcontractors and suppliers for the project;
34       (3) The public body and general contractor/construction manager
35   may negotiate the scopes of work to be procured by bid and the price
36   and scope of work for the negotiated self-perform portion of the
37   project, if any;
38       (4) The negotiated self-perform portion of the project must not
39   exceed 50 percent of the cost of the work to construct the project;


                                     p. 24                       2SSB 5268
 1       (5) Notwithstanding any contrary provision of this chapter, for a
 2   project that a public body has elected to procure as a heavy civil
 3   construction project under this chapter, at least 30 percent of the
 4   cost of the work to construct the project included in the negotiated
 5   maximum allowable construction cost must be procured through
 6   competitive sealed bidding in which bidding by the general
 7   contractor/construction manager or its subsidiaries is prohibited;
 8       (6) Subject to the limitation of subsection (5) of this section,
 9   the public body may additionally negotiate with the general
10   contractor/construction manager to determine on which scopes of work
11   the general contractor/construction manager will be permitted to bid,
12   if any;
13       (7) The public body and general contractor/construction manager
14   shall negotiate, to the public body's satisfaction, a fair and
15   reasonable inclusion plan;
16       (8) If the public body is unable to negotiate to its reasonable
17   satisfaction a component of this section, negotiations with the firm
18   must be terminated and the public body shall negotiate with the next
19   highest scored firm and continue until an agreement is reached or the
20   process is terminated; and
21       (9) For a project procured as a heavy civil construction project,
22   an independent audit, paid for by the public body, must be conducted
23   to confirm the proper accrual of costs as outlined in the contract.
24   The public body shall define the scope of the audit in the contract.


25       NEW SECTION. Sec. 14. (1) A state agency or an authorized local
26   government may utilize a statewide small works roster in accordance
27   with subsection (2) of this section or create and maintain one or
28   more small works rosters for different specialties, categories of
29   anticipated work, or geographic areas served by contractors on the
30   roster that have registered for inclusion on that particular roster.
31       (a) The small works roster shall consist of all responsible
32   contractors who have requested to be on the list, and where required
33   by law, are properly licensed or registered to perform such work in
34   this state in accordance with RCW 39.04.350.
35       (b) A state agency or authorized local government establishing a
36   small works roster must require contractors desiring to be placed on
37   the roster to indicate if they meet the definition of women and
38   minority-owned business as described in RCW 39.19.030(7)(b), veteran-
39   owned business as defined in RCW 43.60A.010, or small business as
                                     p. 25                       2SSB 5268
 1   defined in RCW 39.04.010, and to keep current records of any
 2   applicable    licenses,    certifications,    registrations,   bonding,
 3   insurance, or other appropriate matters on file with the appropriate
 4   agency as a condition of being placed on the roster and award of
 5   contract.
 6       (c) At least once a year, the state agency or local government
 7   must publish in a newspaper of general circulation and provide the
 8   office of minority and women's business enterprises' directory of
 9   certified firms a notice of the existence of the roster and solicit
10   contractors for the roster.
11       (d) Responsible contractors must be added to an appropriate
12   roster at any time they submit a written request and the necessary
13   records.
14       (e)   The   contractor   must  agree   and   be  able   to  receive
15   notifications and other communications via email.
16       (f) State agencies or authorized local governments using a small
17   works roster may not break a project into units or construct a
18   project by phases if done for the purposes of avoiding maximum dollar
19   amounts set by this act.
20       (2) The department of commerce though the municipal research and
21   services center shall develop a statewide small works roster in
22   compliance with subsection (1) of this section by June 30, 2024. The
23   municipal research and services center must develop criteria for the
24   statewide roster with collaboration from affected state and local
25   agencies. The statewide roster must have features to filter the
26   roster by different specialties, categories of anticipated work, or
27   geographic areas served by contractors. The roster must also indicate
28   if the contractor is designated as a small business as defined in RCW
29   39.04.010.
30       (3) The department of commerce shall provide funding to the
31   municipal research and services center as appropriated to maintain
32   and publicize a small works roster and work with the municipal
33   research and services center to notify state and local governments
34   authorized to use small works rosters of the statewide roster
35   authority and to provide guidance on how to use the authority. The
36   guidance may take the form of a manual provided to local governments.
37       (4) A state agency establishing a small works roster shall adopt
38   rules implementing this section. A local government establishing a
39   small   works  roster   shall  adopt   an   ordinance  or   resolution
40   implementing this section. Procedures included in rules adopted by
                                      p. 26                       2SSB 5268
 1   the department of enterprise services in implementing this section
 2   must be included in any rules providing for a small works roster that
 3   is adopted by another state agency, if the authority for that state
 4   agency to engage in these activities has been delegated to it by the
 5   department of enterprise services under chapter 43.19 RCW. An
 6   interlocal contract or agreement between two or more state agencies
 7   or local governments establishing a small works roster to be used by
 8   the parties to the agreement or contract must clearly identify the
 9   lead entity that is responsible for implementing the provisions of
10   this subsection.

11       NEW SECTION.  Sec. 15.   (1) This section provides uniform small
12   works roster provisions to award contracts for construction,
13   building, renovation, remodeling, alteration, repair, or improvement
14   of real property that may be used by state agencies and by any local
15   government that is expressly authorized to use these provisions.
16   These provisions may be used in lieu of other procedures to award
17   contracts for such work with an estimated cost of $350,000 or less
18   excluding state sales tax. The small works roster process includes
19   the direct contract provisions authorized under this section and any
20   local government authorized to award contracts using the small works
21   roster process under this section may award contracts using the
22   direct contract provisions of this section. State agencies and
23   authorized local governments using small works rosters must establish
24   procedures for implementing this act.
25       (2) State agencies and authorized local governments must document
26   good faith efforts annually implementing subsections (6) and (7) of
27   this section.
28       (3) Invitations for bids or direct contract negotiation must
29   include, at a minimum, an estimate for the scope of work including
30   the nature of the work to be performed as well as the materials and
31   equipment to be furnished. Detailed plans and specifications need not
32   be included.
33       (4) The department of enterprise services must develop and make
34   available on its public-facing website templates for bid invitations,
35   bidding, and contracting that may be used by state agencies,
36   authorized local governments, and contractors.
37       (a)(i) For small works roster projects with an estimated cost
38   less than $350,000, not including sales tax, state agencies and
39   authorized local governments may contract by securing written or
                                     p. 27                       2SSB 5268
 1   electronic quotations to assure that a competitive price is
 2   established and to award contracts to the responsible bidder with the
 3   lowest responsive bid.
 4       (ii) A state agency or authorized local government contracting
 5   through a small works roster shall invite bids notifying all
 6   contractors on the applicable roster that have indicated interest in
 7   performing work in the applicable geographical area.
 8       (b) For small public works projects with an estimated cost less
 9   than $150,000, not including sales tax, to increase the utilization
10   of small businesses, state agencies and local governments are
11   encouraged to and may direct contract with small businesses as
12   defined in this act, before direct contracting with other contractors
13   on the appropriate small works roster without a competitive process
14   as follows:
15       (i) If there are six or more contractors meeting the definition
16   of small business on the applicable roster, the state agency or
17   authorized local government must direct contract with one of those
18   small businesses on the applicable roster that have indicated
19   interest in performing work in the applicable geographical area.
20       (ii) If there are five or less contractors meeting the definition
21   of small business on the applicable roster, the state agency or
22   authorized local government may direct contract with any contractor
23   on the applicable roster.
24       (iii) It is the intent of the legislature to increase utilization
25   of small, minority, women, and veteran-owned businesses. Each state
26   agency and authorized local government shall establish a small,
27   minority, women, and veteran-owned business utilization plan. A state
28   agency or authorized local government engaging in direct contracting
29   may not favor certain contractors on the appropriate small works
30   roster by repeatedly awarding contracts without documented attempts
31   to direct contract with other contractors on the appropriate small
32   works roster.
33       (iv) If the state agency or authorized local government elects
34   not to use the methods outlined in this subsection, it may not use
35   direct contracting and must invite bids by electronically notifying
36   all contractors on the applicable roster that have indicated interest
37   in performing work in the applicable geographical area as described
38   in this section.
39       (5) For small public works contracts under $5,000, there is no
40   requirement for retainage or performance bonds. Small public works
                                     p. 28                       2SSB 5268
 1   contracts valued at more than $5,000 shall be subject to performance
 2   bond requirements set forth in chapter 39.08 RCW and retainage
 3   requirements set forth in chapter 60.28 RCW, provided, however, that
 4   the awarding state agency or authorized local government may reduce
 5   or waive retainage requirements set forth in RCW 60.28.011(1)(a),
 6   thereby assuming the liability for the contractor's nonpayment of:
 7   (a)   Laborers,   mechanics,  subcontractors,   materialpersons,  and
 8   suppliers; and (b) taxes, increases, and penalties pursuant to Titles
 9   50, 51, and 82 RCW that may be due from the contractor for the
10   project. Any such waiver will not affect the rights of the state
11   agency or local government to recover against the contractor for any
12   payments made on the contractor's behalf. For small public works
13   contracts awarded through a bid solicitation, notice of any retainage
14   reduction or waiver must be provided in bid solicitations.
15       (6) After an award is made, the bid quotations obtained shall be
16   recorded, publicly available, and available by request.
17       (7) Annually, a state agency or authorized local government must
18   publish a list of small works contracts awarded and contractors
19   contacted for direct negotiation pursuant to RCW 39.04.200.


20       NEW SECTION.   Sec. 16.   Beginning in 2025 and every five years
21   thereafter, the capital projects advisory review board must review
22   construction cost escalation data for Washington state, readily
23   available in industry publications, roster utilization, and other
24   appropriate data and metrics, and make recommendations to the
25   appropriate committees of the legislature on adjustments to the
26   contracting thresholds described in section 15 of this act.

27       Sec. 17. RCW 28A.335.190 and 2013 c 223 s 1 are each amended to
28   read as follows:
29       (1) When, in the opinion of the board of directors of any school
30   district, the cost of any furniture, supplies, equipment, building,
31   improvements, or repairs, or other work or purchases, except books,
32   will equal or exceed the threshold levels specified in subsections
33   (2) and (4) of this section, complete plans and specifications for
34   such work or purchases shall be prepared and notice by publication
35   given in at least one newspaper of general circulation within the
36   district, once each week for two consecutive weeks, of the intention
37   to receive bids and that specifications and other information may be
38   examined at the office of the board or any other officially
                                     p. 29                       2SSB 5268
 1   designated location. The cost of any public work, improvement, or
 2   repair for the purposes of this section shall be the aggregate of all
 3   amounts to be paid for labor, material, and equipment on one
 4   continuous or interrelated project where work is to be performed
 5   simultaneously or in close sequence. The bids shall be in writing and
 6   shall be opened and read in public on the date and in the place named
 7   in the notice and after being opened shall be filed for public
 8   inspection.
 9       (2) Every purchase of furniture, equipment, or supplies, except
10   books, the cost of which is estimated to be in excess of ((forty
11   thousand dollars)) $40,000, shall be on a competitive basis. The
12   board of directors shall establish a procedure for securing telephone
13   and/or written quotations for such purchases. Whenever the estimated
14   cost is from ((forty thousand dollars)) $40,000 up to ((seventy-five
15   thousand dollars)) $75,000, the procedure shall require quotations
16   from at least three different sources to be obtained in writing or by
17   telephone, and recorded for public perusal. Whenever the estimated
18   cost is in excess of ((seventy-five thousand dollars)) $75,000, the
19   public bidding process provided in subsection (1) of this section
20   shall be followed.
21       (3) Any school district may purchase goods produced or provided
22   in whole or in part from class II inmate work programs operated by
23   the department of corrections pursuant to RCW 72.09.100, including
24   but not limited to furniture, equipment, or supplies. School
25   districts are encouraged to set as a target to contract, beginning
26   after June 30, 2006, to purchase up to one percent of the total goods
27   required by the school districts each year, goods produced or
28   provided in whole or in part from class II inmate work programs
29   operated by the department of corrections.
30       (4) The board may make improvements or repairs to the property of
31   the district through a department within the district without
32   following the public bidding process provided in subsection (1) of
33   this section when the total of such improvements or repairs does not
34   exceed the sum of ((seventy-five thousand dollars)) $75,000. Whenever
35   the estimated cost of a building, improvement, repair, or other
36   public works project is one hundred thousand dollars or more, the
37   public bidding process provided in subsection (1) of this section
38   shall be followed unless the contract is let using the small works
39   roster process in ((RCW 39.04.155)) sections 14 through 16 of this
40   act or under any other procedure authorized for school districts. One
                                     p. 30                       2SSB 5268
 1   or more school districts may authorize an educational service
 2   district to establish and operate a small works roster for the school
 3   district under the provisions of ((RCW 39.04.155)) sections 14
 4   through 16 of this act.
 5       (5) The contract for the work or purchase shall be awarded to the
 6   lowest responsible bidder as described in RCW 39.26.160(2) but the
 7   board may by resolution reject any and all bids and make further
 8   calls for bids in the same manner as the original call. On any work
 9   or purchase the board shall provide bidding information to any
10   qualified bidder or the bidder's agent, requesting it in person.
11       (6) In the event of any emergency when the public interest or
12   property of the district would suffer material injury or damage by
13   delay, upon resolution of the board declaring the existence of such
14   an emergency and reciting the facts constituting the same, the board
15   may waive the requirements of this section with reference to any
16   purchase or contract: PROVIDED, That an "emergency," for the purposes
17   of this section, means a condition likely to result in immediate
18   physical injury to persons or to property of the school district in
19   the absence of prompt remedial action.
20       (7) This section does not apply to the direct purchase of school
21   buses by school districts and educational services in accordance with
22   RCW 28A.160.195.
23       (8) This section does not apply to the purchase of Washington
24   grown food.
25       (9) At the discretion of the board, a school district may develop
26   and implement policies and procedures to facilitate and maximize to
27   the extent practicable, purchases of Washington grown food including,
28   but not limited to, policies that permit a percentage price
29   preference for the purpose of procuring Washington grown food.
30       (10) As used in this section, "Washington grown" has the
31   definition in RCW 15.64.060.
32       (11) As used in this section, "price percentage preference" means
33   the percent by which a responsive bid from a responsible bidder whose
34   product is a Washington grown food may exceed the lowest responsive
35   bid submitted by a responsible bidder whose product is not a
36   Washington grown food.


37       Sec. 18. RCW 28B.10.350 and 2009 c 229 s 2 are each amended to
38   read as follows:


                                     p. 31                       2SSB 5268
 1       (1) When the cost to The Evergreen State College or any regional
 2   or state university of any building, construction, renovation,
 3   remodeling, or demolition, other than maintenance or repairs, will
 4   equal or exceed the sum of ((ninety thousand dollars)) $90,000, or
 5   ((forty-five thousand dollars)) $45,000 if the work involves one
 6   trade or craft area, complete plans and specifications for the work
 7   shall be prepared, the work shall be put out for public bid, and the
 8   contract shall be awarded to the responsible bidder who submits the
 9   lowest responsive bid.
10       (2) Any building, construction, renovation, remodeling, or
11   demolition project that exceeds the dollar amounts in subsection (1)
12   of this section is subject to the provisions of chapter 39.12 RCW.
13       (3) The Evergreen State College or any regional or state
14   university may require a project to be put to public bid even when it
15   is not required to do so under subsection (1) of this section. Any
16   project publicly bid under this subsection is subject to the
17   provisions of chapter 39.12 RCW.
18       (4) Where the estimated cost of any building, construction,
19   renovation, remodeling, or demolition is less than ((ninety thousand
20   dollars)) $90,000 or the contract is awarded by the small works
21   roster procedure authorized in ((RCW 39.04.155)) sections 14 through
22   16 of this act, the publication requirements of RCW 39.04.020 do not
23   apply.
24       (5) In the event of any emergency when the public interest or
25   property of The Evergreen State College or a regional or state
26   university would suffer material injury or damage by delay, the
27   president of such college or university may declare the existence of
28   an emergency and, reciting the facts constituting the same, may waive
29   the requirements of this section with reference to any contract in
30   order to correct the condition causing the emergency. For the
31   purposes of this section, "emergency" means a condition likely to
32   result in immediate physical injury to persons or to property of the
33   college or university in the absence of prompt remedial action or a
34   condition which immediately impairs the institution's ability to
35   perform its educational obligations.
36       (6) This section does not apply when a contract is awarded by the
37   small works roster procedure authorized in ((RCW 39.04.155)) sections
38   14 through 16 of this act or under any other procedure authorized for
39   an institution of higher education.


                                     p. 32                       2SSB 5268
 1       Sec. 19. RCW 28B.50.330 and 2009 c 229 s 1 are each amended to
 2   read as follows:
 3       (1) The boards of trustees of college districts are empowered in
 4   accordance with the provisions of this chapter to provide for the
 5   construction, reconstruction, erection, equipping, demolition, and
 6   major alterations of buildings and other capital assets, and the
 7   acquisition of sites, rights-of-way, easements, improvements, or
 8   appurtenances for the use of the aforementioned colleges as
 9   authorized by the college board in accordance with RCW 28B.50.140; to
10   be financed by bonds payable out of special funds from revenues
11   hereafter derived from income received from such facilities, gifts,
12   bequests, or grants, and such additional funds as the legislature may
13   provide, and payable out of a bond retirement fund to be established
14   by the respective district boards in accordance with rules of the
15   state board. With respect to building, improvements, or repairs, or
16   other work, where the estimated cost exceeds ((ninety thousand
17   dollars)) $90,000, or ((forty-five thousand dollars)) $45,000 if the
18   work involves one trade or craft area, complete plans and
19   specifications for the work shall be prepared, the work shall be put
20   out for a public bid, and the contract shall be awarded to the
21   responsible bidder who submits the lowest responsive bid. Any project
22   regardless of dollar amount may be put to public bid.
23       (2) This section does not apply when a contract is awarded by the
24   small works roster procedure authorized in ((RCW 39.04.155)) sections
25   14 through 16 of this act.
26       (3) Where the estimated cost to any college of any building,
27   improvements, or repairs, or other work, is less than ((ninety
28   thousand dollars)) $90,000, or ((forty-five thousand dollars))
29   $45,000 if the work involves one trade or craft area, the publication
30   requirements of RCW 39.04.020 do not apply.


31       Sec. 20. RCW 35.22.620 and 2019 c 434 s 11 are each amended to
32   read as follows:
33       (1) As used in this section, the term "public works" means as
34   defined in RCW 39.04.010.
35       (2) A first-class city may have public works performed by
36   contract pursuant to public notice and call for competitive bids. As
37   limited by subsection (3) of this section, a first-class city may
38   have public works performed by city employees in any annual or
39   biennial budget period equal to a dollar value not exceeding ((ten))
                                     p. 33                       2SSB 5268
 1   10 percent of the public works construction budget, including any
 2   amount in a supplemental public works construction budget, over the
 3   budget period. The amount of public works that a first-class city has
 4   a county perform for it under RCW 35.77.020 shall be included within
 5   this ((ten)) 10 percent limitation.
 6       If a first-class city has public works performed by public
 7   employees in any budget period that are in excess of this ((ten)) 10
 8   percent limitation, the amount in excess of the permitted amount
 9   shall be reduced from the otherwise permitted amount of public works
10   that may be performed by public employees for that city in its next
11   budget period. Twenty percent of the motor vehicle fuel tax
12   distributions to that city shall be withheld if two years after the
13   year in which the excess amount of work occurred, the city has failed
14   to so reduce the amount of public works that it has performed by
15   public employees. The amount so withheld shall be distributed to the
16   city when it has demonstrated in its reports to the state auditor
17   that the amount of public works it has performed by public employees
18   has been so reduced.
19       Whenever a first-class city has had public works performed in any
20   budget period up to the maximum permitted amount for that budget
21   period, all remaining public works within that budget period shall be
22   done by contract pursuant to public notice and call for competitive
23   bids.
24       The state auditor shall report to the state treasurer any
25   first-class city that exceeds this amount and the extent to which the
26   city has or has not reduced the amount of public works it has
27   performed by public employees in subsequent years.
28       (3) In addition to the percentage limitation provided in
29   subsection (2) of this section, a first-class city shall not have
30   public employees perform a public works project in excess of ((one
31   hundred fifty thousand dollars)) $150,000 if more than a single craft
32   or trade is involved with the public works project, or a public works
33   project in excess of ((seventy-five thousand five hundred dollars))
34   $75,500 if only a single craft or trade is involved with the public
35   works project or the public works project is street signalization or
36   street lighting. A public works project means a complete project. The
37   restrictions in this subsection do not permit the division of the
38   project into units of work or classes of work to avoid the
39   restriction on work that may be performed by day labor on a single
40   project.
                                     p. 34                       2SSB 5268
 1       (4) In addition to the accounting and recordkeeping requirements
 2   contained in RCW 39.04.070, every first-class city annually may
 3   prepare a report for the state auditor indicating the total public
 4   works construction budget and supplemental public works construction
 5   budget for that year, the total construction costs of public works
 6   performed by public employees for that year, and the amount of public
 7   works that is performed by public employees above or below ten
 8   percent of the total construction budget. However, if a city budgets
 9   on a biennial basis, this annual report may indicate the amount of
10   public works that is performed by public employees within the current
11   biennial period that is above or below ten percent of the total
12   biennial construction budget.
13       Each first-class city with a population of ((one hundred fifty
14   thousand)) 150,000 or less shall use the form required by RCW
15   43.09.205 to account and record costs of public works in excess of
16   ((five thousand dollars)) $5,000 that are not let by contract.
17        (5) The cost of a separate public works project shall be the
18   costs    of  materials,  supplies,  equipment,   and   labor   on the
19   construction of that project. The value of the public works budget
20   shall be the value of all the separate public works projects within
21   the budget.
22       (6) The competitive bidding requirements of this section may be
23   waived by the city legislative authority pursuant to RCW 39.04.280 if
24   an exemption contained within that section applies to the work or
25   contract.
26       (7) In lieu of the procedures of subsections (2) and (6) of this
27   section, a first-class city may let contracts using the small works
28   roster process in ((RCW 39.04.155)) sections 14 through 16 of this
29   act.
30        Whenever possible, the city shall invite at least one proposal
31   from a certified minority or woman contractor who shall otherwise
32   qualify under this section.
33        (8) The allocation of public works projects to be performed by
34   city employees shall not be subject to a collective bargaining
35   agreement.
36       (9) This section does not apply to performance-based contracts,
37   as defined in RCW 39.35A.020(((4))) (6), that are negotiated under
38   chapter 39.35A RCW.



                                     p. 35                       2SSB 5268
 1       (10) Nothing in this section shall prohibit any first-class city
 2   from allowing for preferential purchase of products made from
 3   recycled materials or products that may be recycled or reused.
 4       (11)(a) Any first-class city may procure public works with a unit
 5   priced contract under this section for the purpose of completing
 6   anticipated types of work based on hourly rates or unit pricing for
 7   one or more categories of work or trades.
 8       (b) For the purposes of this section, "unit priced contract"
 9   means a competitively bid contract in which public works are
10   anticipated on a recurring basis to meet the business or operational
11   needs of the city, under which the contractor agrees to a fixed
12   period indefinite quantity delivery of work, at a defined unit price
13   for each category of work.
14       (c) Unit priced contracts must be executed for an initial
15   contract term not to exceed three years, with the city having the
16   option of extending or renewing the unit priced contract for one
17   additional year.
18       (d) Invitations for unit price bids shall include, for purposes
19   of the bid evaluation, estimated quantities of the anticipated types
20   of work or trades, and specify how the city will issue or release
21   work assignments, work orders, or task authorizations pursuant to a
22   unit priced contract for projects, tasks, or other work based on the
23   hourly rates or unit prices bid by the contractor. Contracts must be
24   awarded to the lowest responsible bidder as per RCW 39.04.010.
25   Whenever possible, the city must invite at least one proposal from a
26   certified minority or woman contractor who otherwise qualifies under
27   this section.
28       (e) Unit price contractors shall pay prevailing wages for all
29   work that would otherwise be subject to the requirements of chapter
30   39.12 RCW. Prevailing wages for all work performed pursuant to each
31   work order must be the prevailing wage rates in effect at the
32   beginning date for each contract year. Unit priced contracts must
33   have prevailing wage rates updated annually. Intents and affidavits
34   for prevailing wages paid must be submitted annually for all work
35   completed within the previous ((twelve-month)) 12-month period of the
36   unit priced contract.


37       Sec. 21.   RCW 35.23.352 and 2019 c 434 s 1 are each amended to
38   read as follows:


                                     p. 36                       2SSB 5268
 1       (1) Any second-class city or any town may construct any public
 2   works, as defined in RCW 39.04.010, by contract or day labor without
 3   calling for bids therefor whenever the estimated cost of the work or
 4   improvement, including cost of materials, supplies and equipment will
 5   not exceed the sum of ((one hundred sixteen thousand one hundred
 6   fifty-five dollars)) $116,155 if more than one craft or trade is
 7   involved with the public works, or ((seventy-five thousand five
 8   hundred dollars)) $75,500 if a single craft or trade is involved with
 9   the public works or the public works project is street signalization
10   or street lighting. A public works project means a complete project.
11   The restrictions in this subsection do not permit the division of the
12   project into units of work or classes of work to avoid the
13   restriction on work that may be performed by day labor on a single
14   project.
15       Whenever the cost of the public work or improvement, including
16   materials, supplies and equipment, will exceed these figures, the
17   same shall be done by contract. All such contracts shall be let at
18   public bidding upon publication of notice calling for sealed bids
19   upon the work. The notice shall be published in the official
20   newspaper, or a newspaper of general circulation most likely to bring
21   responsive bids, at least thirteen days prior to the last date upon
22   which bids will be received. The notice shall generally state the
23   nature of the work to be done that plans and specifications therefor
24   shall then be on file in the city or town hall for public
25   inspections, and require that bids be sealed and filed with the
26   council or commission within the time specified therein. Each bid
27   shall be accompanied by a bid proposal deposit in the form of a
28   cashier's check, postal money order, or surety bond to the council or
29   commission for a sum of not less than five percent of the amount of
30   the bid, and no bid shall be considered unless accompanied by such
31   bid proposal deposit. The council or commission of the city or town
32   shall let the contract to the lowest responsible bidder or shall have
33   power by resolution to reject any or all bids and to make further
34   calls for bids in the same manner as the original call.
35       When the contract is let then all bid proposal deposits shall be
36   returned to the bidders except that of the successful bidder which
37   shall be retained until a contract is entered into and a bond to
38   perform the work furnished, with surety satisfactory to the council
39   or commission, in accordance with RCW 39.08.030. If the bidder fails
40   to enter into the contract in accordance with his or her bid and
                                     p. 37                       2SSB 5268
 1   furnish a bond within ((ten)) 10 days from the date at which he or
 2   she is notified that he or she is the successful bidder, the check or
 3   postal money order and the amount thereof shall be forfeited to the
 4   council or commission or the council or commission shall recover the
 5   amount of the surety bond. A low bidder who claims error and fails to
 6   enter into a contract is prohibited from bidding on the same project
 7   if a second or subsequent call for bids is made for the project.
 8       If no bid is received on the first call the council or commission
 9   may readvertise and make a second call, or may enter into a contract
10   without any further call or may purchase the supplies, material or
11   equipment and perform the work or improvement by day labor.
12       (2) For the purposes of this section, "lowest responsible bidder"
13   means a bid that meets the criteria under RCW 39.04.350 and has the
14   lowest bid; provided, that if the city issues a written finding that
15   the lowest bidder has delivered a project to the city within the last
16   three years which was late, over budget, or did not meet
17   specifications, and the city does not find in writing that such
18   bidder has shown how they would improve performance to be likely to
19   meet project specifications then the city may choose the second
20   lowest bidder whose bid is within five percent of the lowest bid and
21   meets the same criteria as the lowest bidder.
22       (3) The allocation of public works projects to be performed by
23   city or town employees shall not be subject to a collective
24   bargaining agreement.
25       (4) In lieu of the procedures of subsection (1) of this section,
26   a second-class city or a town may let contracts using the small works
27   roster process provided in ((RCW 39.04.155)) sections 14 through 16
28   of this act.
29       Whenever possible, the city or town shall invite at least one
30   proposal from a certified minority or woman contractor who shall
31   otherwise qualify under this section.
32       (5) The form required by RCW 43.09.205 shall be to account and
33   record costs of public works in excess of ((five thousand dollars))
34   $5,000 that are not let by contract.
35       (6) The cost of a separate public works project shall be the
36   costs of the materials, equipment, supplies, and labor on that
37   construction project.
38       (7) Any purchase of supplies, material, or equipment, except for
39   public work or improvement, where the cost thereof exceeds seven
40   thousand five hundred dollars shall be made upon call for bids.
                                     p. 38                       2SSB 5268
 1       (8) Bids shall be called annually and at a time and in the manner
 2   prescribed by ordinance for the publication in a newspaper of general
 3   circulation in the city or town of all notices or newspaper
 4   publications required by law. The contract shall be awarded to the
 5   lowest responsible bidder.
 6       (9) For advertisement and formal sealed bidding to be dispensed
 7   with as to purchases with an estimated value of ((fifteen thousand
 8   dollars)) $15,000 or less, the council or commission must authorize
 9   by resolution, use of the uniform procedure provided in RCW
10   39.04.190.
11       (10) The city or town legislative authority may waive the
12   competitive bidding requirements of this section pursuant to RCW
13   39.04.280 if an exemption contained within that section applies to
14   the purchase or public work.
15       (11) This section does not apply to performance-based contracts,
16   as defined in RCW 39.35A.020(((4))) (6), that are negotiated under
17   chapter 39.35A RCW.
18       (12) Nothing in this section shall prohibit any second-class city
19   or any town from allowing for preferential purchase of products made
20   from recycled materials or products that may be recycled or reused.
21       (13)(a) Any second-class city or any town may procure public
22   works with a unit priced contract under this section for the purpose
23   of completing anticipated types of work based on hourly rates or unit
24   pricing for one or more categories of work or trades.
25       (b) For the purposes of this section, "unit priced contract"
26   means a competitively bid contract in which public works are
27   anticipated on a recurring basis to meet the business or operational
28   needs of the city or town, under which the contractor agrees to a
29   fixed period indefinite quantity delivery of work, at a defined unit
30   price for each category of work.
31       (c) Unit priced contracts must be executed for an initial
32   contract term not to exceed three years, with the city or town having
33   the option of extending or renewing the unit priced contract for one
34   additional year.
35       (d) Invitations for unit price bids shall include, for purposes
36   of the bid evaluation, estimated quantities of the anticipated types
37   of work or trades, and specify how the city or town will issue or
38   release work assignments, work orders, or task authorizations
39   pursuant to a unit priced contract for projects, tasks, or other work
40   based on the hourly rates or unit prices bid by the contractor.
                                     p. 39                       2SSB 5268
 1   Contracts must be awarded to the lowest responsible bidder as per RCW
 2   39.04.010. Whenever possible, the city or town must invite at least
 3   one proposal from a certified minority or woman contractor who
 4   otherwise qualifies under this section.
 5       (e) Unit price contractors shall pay prevailing wages for all
 6   work that would otherwise be subject to the requirements of chapter
 7   39.12 RCW. Prevailing wages for all work performed pursuant to each
 8   work order must be the prevailing wage rates in effect at the
 9   beginning date for each contract year. Unit priced contracts must
10   have prevailing wage rates updated annually. Intents and affidavits
11   for prevailing wages paid must be submitted annually for all work
12   completed within the previous ((twelve-month)) 12-month period of the
13   unit priced contract.
14       (14) Any second-class city or town that awards a project to a
15   bidder under the criteria described in subsection (2) of this section
16   must make an annual report to the department of commerce that
17   includes the total number of bids awarded to certified minority or
18   women contractors and describing how notice was provided to potential
19   certified minority or women contractors.


20       Sec. 22. RCW 35.61.135 and 2009 c 229 s 10 are each amended to
21   read as follows:
22       (1) All work ordered, the estimated cost of which is in excess of
23   ((twenty thousand dollars)) $20,000, shall be let by contract and
24   competitive bidding. Before awarding any such contract the board of
25   park commissioners shall publish a notice in a newspaper of general
26   circulation where the district is located at least once ((thirteen))
27   13 days before the last date upon which bids will be received,
28   inviting sealed proposals for such work, plans, and specifications
29   which must at the time of publication of such notice be on file in
30   the office of the board of park commissioners subject to the public
31   inspection. The notice shall state generally the work to be done and
32   shall call for proposals for doing the same to be sealed and filed
33   with the board of park commissioners on or before the day and hour
34   named therein.
35       Each bid shall be accompanied by a certified or cashier's check
36   or postal money order payable to the order of the metropolitan park
37   district for a sum not less than five percent of the amount of the
38   bid, or accompanied by a bid bond in an amount not less than five
39   percent of the bid with a corporate surety licensed to do business in
                                     p. 40                       2SSB 5268
 1   the state, conditioned that the bidder will pay the metropolitan park
 2   district as liquidated damages the amount specified in the bond,
 3   unless the bidder enters into a contract in accordance with the
 4   bidder's bid, and no bid shall be considered unless accompanied by
 5   such check, cash, or bid bond. At the time and place named such bids
 6   shall be publicly opened and read and the board of park commissioners
 7   shall proceed to canvass the bids and may let such contract to the
 8   lowest responsible bidder upon plans and specifications on file or to
 9   the best bidder submitting the bidder's own plans and specifications.
10   The board of park commissioners may reject all bids for good cause
11   and readvertise and in such case all checks, cash, or bid bonds shall
12   be returned to the bidders. If the contract is let, then all checks,
13   cash, or bid bonds shall be returned to the bidders, except that of
14   the successful bidder, which shall be retained until a contract is
15   entered into for doing the work, and a bond to perform such work
16   furnished   with  sureties   satisfactory  to   the  board   of  park
17   commissioners in the full amount of the contract price between the
18   bidder and the metropolitan park district in accordance with the bid.
19   If the bidder fails to enter into the contract in accordance with the
20   bid and furnish the bond within ten days from the date at which the
21   bidder is notified that the bidder is the successful bidder, the
22   check, cash, or bid bonds and the amount thereof shall be forfeited
23   to the metropolitan park district. If the bidder fails to enter into
24   a contract in accordance with the bidder's bid, and the board of park
25   commissioners deems it necessary to take legal action to collect on
26   any bid bond required by this section, then the metropolitan park
27   district is entitled to collect from the bidder any legal expenses,
28   including reasonable attorneys' fees occasioned thereby. A low bidder
29   who claims error and fails to enter into a contract is prohibited
30   from bidding on the same project if a second or subsequent call for
31   bids is made for the project.
32       (2) As an alternative to requirements under subsection (1) of
33   this section, a metropolitan park district may let contracts using
34   the small works roster process under ((RCW 39.04.155)) sections 14
35   through 16 of this act.
36       (3) Any purchase of materials, supplies, or equipment, with an
37   estimated cost in excess of ((forty thousand dollars)) $40,000, shall
38   be by contract. Any purchase of materials, supplies, or equipment,
39   with an estimated cost of less than ((fifty thousand dollars))
40   $50,000 shall be made using the process provided in RCW 39.04.190.
                                     p. 41                       2SSB 5268
 1   Any purchase of materials, supplies, or equipment with an estimated
 2   cost of ((fifty thousand dollars)) $50,000 or more shall be made by
 3   competitive bidding following the procedure for letting contracts for
 4   projects under subsection (1) of this section.
 5       (4) As an alternative to requirements under subsection (3) of
 6   this section, a metropolitan park district may let contracts for
 7   purchase of materials, supplies, or equipment with the suppliers
 8   designated on current state agency, county, city, or town purchasing
 9   rosters for the materials, supplies, or equipment, when the roster
10   has been established in accordance with the competitive bidding law
11   for purchases applicable to the state agency, county, city, or town.
12   The price and terms for purchases shall be as described on the
13   applicable roster.
14       (5) The park board may waive the competitive bidding requirements
15   of this section pursuant to RCW 39.04.280 if an exemption contained
16   within RCW 39.04.280 applies to the purchase or public work.


17       Sec. 23. RCW 35.82.076 and 2000 c 138 s 205 are each amended to
18   read as follows:
19       A housing authority may establish and use a small works roster
20   for awarding contracts under ((RCW 39.04.155)) sections 14 through 16
21   of this act.


22       Sec. 24.   RCW 36.32.235 and 2019 c 434 s 8 are each amended to
23   read as follows:
24       (1) In each county which by resolution establishes a county
25   purchasing department, the purchasing department shall enter into
26   leases of personal property on a competitive basis and purchase all
27   supplies, materials, and equipment on a competitive basis, for all
28   departments of the county, as provided in this chapter and chapter
29   39.04 RCW, except that the county purchasing department is not
30   required to make purchases that are paid from the county road fund or
31   equipment rental and revolving fund.
32       (2) As used in this section:
33       (a) "Public works" has the same definition as in RCW 39.04.010.
34       (b)   "Riverine  project"   means  a   project  of   construction,
35   alteration, repair, replacement, or improvement other than ordinary
36   maintenance, executed at the cost of the state or of any
37   municipality, or which is by law a lien or charge on any property,
38   carried out on a river or stream and its tributaries and associated
                                     p. 42                          2SSB 5268
 1   floodplains, beds, banks, and waters for the purpose of improving
 2   aquatic habitat, improving water quality, restoring floodplain
 3   function, or providing flood protection.
 4       (c) "Stormwater project" means a project of construction,
 5   alteration, repair, replacement, or improvement other than ordinary
 6   maintenance, executed at the cost of the state or of any
 7   municipality, or which is by law a lien or charge on any property,
 8   carried out on a municipal separate storm sewer system, and any
 9   connections to the system, that is regulated under a state-issued
10   national pollutant discharge elimination system general municipal
11   stormwater permit for the purpose of improving control of stormwater
12   runoff quantity and quality from developed land, safely conveying
13   stormwater runoff, or reducing erosion or other water quality impacts
14   caused by municipal separate storm sewer system discharges.
15       (3) Except as otherwise specified in this chapter or in chapter
16   36.77 RCW, all counties subject to these provisions shall contract on
17   a competitive basis for all public works after bids have been
18   submitted   to  the   county   upon  specifications   therefor.  Such
19   specifications shall be in writing and shall be filed with the clerk
20   of the county legislative authority for public inspection.
21       (4) An advertisement shall be published in the county official
22   newspaper stating the time and place where bids will be opened, the
23   time after which bids will not be received, the character of the work
24   to be done, the materials and equipment to be furnished, and that
25   specifications therefor may be seen at the office of the clerk of the
26   county legislative authority. An advertisement shall also be
27   published in a legal newspaper of general circulation in or as near
28   as possible to that part of the county in which such work is to be
29   done. If the county official newspaper is a newspaper of general
30   circulation covering at least ((forty)) 40 percent of the residences
31   in that part of the county in which such public works are to be done,
32   then the publication of an advertisement of the applicable
33   specifications in the county official newspaper is sufficient. Such
34   advertisements shall be published at least once at least ((thirteen))
35   13 days prior to the last date upon which bids will be received.
36       (5) The bids shall be in writing, may be in either hard copy or
37   electronic form as specified by the county, shall be filed with the
38   clerk, shall be opened and read in public at the time and place named
39   therefor in the advertisements, and, after being opened, shall be
40   filed for public inspection. No bid may be considered for public work
                                     p. 43                       2SSB 5268
 1   unless it is accompanied by a bid deposit in the form of a surety
 2   bond, postal money order, cash, cashier's check, or certified check
 3   in an amount equal to five percent of the amount of the bid proposed.
 4       (6) The contract for the public work shall be awarded to the
 5   lowest responsible bidder. Any or all bids may be rejected for good
 6   cause. The county legislative authority shall require from the
 7   successful bidder for such public work a contractor's bond in the
 8   amount and with the conditions imposed by law.
 9       (7) If the bidder to whom the contract is awarded fails to enter
10   into the contract and furnish the contractor's bond as required
11   within ((ten)) 10 days after notice of the award, exclusive of the
12   day of notice, the amount of the bid deposit shall be forfeited to
13   the county and the contract awarded to the next lowest and best
14   bidder. The bid deposit of all unsuccessful bidders shall be returned
15   after the contract is awarded and the required contractor's bond
16   given by the successful bidder is accepted by the county legislative
17   authority. Immediately after the award is made, the bid quotations
18   obtained shall be recorded and open to public inspection and shall be
19   available by telephone inquiry.
20       (8) As limited by subsection (11) of this section, a county
21   subject to these provisions may have public works performed by county
22   employees in any annual or biennial budget period equal to a dollar
23   value not exceeding ten percent of the public works construction
24   budget, including any amount in a supplemental public works
25   construction budget, over the budget period.
26       Whenever a county subject to these provisions has had public
27   works performed in any budget period up to the maximum permitted
28   amount for that budget period, all remaining public works except
29   emergency work under subsection (13) of this section within that
30   budget period shall be done by contract pursuant to public notice and
31   call for competitive bids as specified in subsection (3) of this
32   section. The state auditor shall report to the state treasurer any
33   county subject to these provisions that exceeds this amount and the
34   extent to which the county has or has not reduced the amount of
35   public works it has performed by public employees in subsequent
36   years.
37       (9) A county may procure public works with a unit priced contract
38   under this section for the purpose of completing anticipated types of
39   work based on hourly rates or unit pricing for one or more categories
40   of work or trades.
                                     p. 44                       2SSB 5268
 1       (a) For the purposes of this section, "unit priced contract"
 2   means a competitively bid contract in which public works are
 3   anticipated on a recurring basis to meet the business or operational
 4   needs of the county, under which the contractor agrees to a fixed
 5   period indefinite quantity delivery of work, at a defined unit price
 6   for each category of work.
 7       (b) Unit priced contracts must be executed for an initial
 8   contract term not to exceed one year, with the county having the
 9   option of extending or renewing the unit priced contract for one
10   additional year.
11       (c) Invitations for unit price bids shall include, for purposes
12   of the bid evaluation, estimated quantities of the anticipated types
13   of work or trades, and specify how the county will issue or release
14   work assignments, work orders, or task authorizations pursuant to a
15   unit priced contract for projects, tasks, or other work based on the
16   hourly rates or unit prices bid by the contractor. The contract must
17   be awarded to the lowest responsible bidder as defined under RCW
18   39.04.010. Whenever possible, the county must invite at least one bid
19   from a certified minority or woman contractor who otherwise qualifies
20   under this section.
21       (d) Unit price contractors shall pay prevailing wages for all
22   work that would otherwise be subject to the requirements of chapter
23   39.12 RCW. Prevailing wages for all work performed pursuant to each
24   work order must be the prevailing wage rates in effect at the
25   beginning date for each contract year. Unit priced contracts must
26   have prevailing wage rates updated annually. Intents and affidavits
27   for prevailing wages paid must be submitted annually for all work
28   completed within the previous ((twelve-month)) 12-month period of the
29   unit priced contract.
30       (10) If a county subject to these provisions has public works
31   performed by public employees in any budget period that are in excess
32   of this ten percent limitation, the amount in excess of the permitted
33   amount shall be reduced from the otherwise permitted amount of public
34   works that may be performed by public employees for that county in
35   its next budget period. Ten percent of the motor vehicle fuel tax
36   distributions to that county shall be withheld if two years after the
37   year in which the excess amount of work occurred, the county has
38   failed to so reduce the amount of public works that it has performed
39   by public employees. The amount withheld shall be distributed to the
40   county when it has demonstrated in its reports to the state auditor
                                     p. 45                       2SSB 5268
 1   that the amount of public works it has performed by public employees
 2   has been reduced as required.
 3       (11) In addition to the percentage limitation provided in
 4   subsection (8) of this section, counties subject to these provisions
 5   containing a population of ((four hundred thousand)) 400,000 or more
 6   shall not have public employees perform: A public works project in
 7   excess of ((ninety thousand dollars)) $90,000 if more than a single
 8   craft or trade is involved with the public works project, a riverine
 9   project or stormwater project in excess of ((two hundred fifty
10   thousand dollars)) $250,000 if more than a single craft or trade is
11   involved with the riverine project or stormwater project, a public
12   works project in excess of ((forty-five thousand dollars)) $45,000 if
13   only a single craft or trade is involved with the public works
14   project, or a riverine project or stormwater project in excess of
15   ((one hundred twenty-five thousand dollars)) $125,000 if only a
16   single craft or trade is involved with the riverine project or
17   stormwater project. A public works project, a riverine project, and a
18   stormwater project means a complete project. The restrictions in this
19   subsection do not permit the division of the project into units of
20   work or classes of work to avoid the restriction on work that may be
21   performed by public employees on a single project.
22       The cost of a separate public works project shall be the costs of
23   materials, supplies, equipment, and labor on the construction of that
24   project. The value of the public works budget shall be the value of
25   all the separate public works projects within the budget.
26       (12) In addition to the accounting and recordkeeping requirements
27   contained in chapter 39.04 RCW, any county which uses public
28   employees to perform public works projects under RCW 36.32.240(1)
29   shall prepare a year-end report to be submitted to the state auditor
30   indicating the total dollar amount of the county's public works
31   construction budget and the total dollar amount for public works
32   projects performed by public employees for that year.
33       The year-end report submitted pursuant to this subsection to the
34   state auditor shall be in accordance with the standard form required
35   by RCW 43.09.205.
36       (13) Notwithstanding any other provision in this section,
37   counties may use public employees without any limitation for
38   emergency work performed under an emergency declared pursuant to RCW
39   36.32.270, and any such emergency work shall not be subject to the
40   limitations of this section. Publication of the description and
                                     p. 46                       2SSB 5268
 1   estimate of costs relating to correcting the emergency may be made
 2   within seven days after the commencement of the work. Within two
 3   weeks of the finding that such an emergency existed, the county
 4   legislative authority shall adopt a resolution certifying the damage
 5   to public facilities and costs incurred or anticipated relating to
 6   correcting the emergency. Additionally this section shall not apply
 7   to architectural and engineering or other technical or professional
 8   services performed by public employees in connection with a public
 9   works project.
10       (14) In lieu of the procedures of subsections (3) through (12) of
11   this section, a county may let contracts using the small works roster
12   process provided in ((RCW 39.04.155)) sections 14 through 16 of this
13   act.
14        Whenever possible, the county shall invite at least one proposal
15   from a certified minority or woman contractor who shall otherwise
16   qualify under this section.
17       (15) The allocation of public works projects to be performed by
18   county employees shall not be subject to a collective bargaining
19   agreement.
20       (16) This section does not apply to performance-based contracts,
21   as defined in RCW 39.35A.020(((4))) (6), that are negotiated under
22   chapter 39.35A RCW.
23       (17) Nothing in this section prohibits any county from allowing
24   for preferential purchase of products made from recycled materials or
25   products that may be recycled or reused.
26       (18) This section does not apply to contracts between the public
27   stadium authority and a team affiliate under RCW 36.102.060(4), or
28   development agreements between the public stadium authority and a
29   team affiliate under RCW 36.102.060(7) or leases entered into under
30   RCW 36.102.060(8).


31       Sec. 25.   RCW 36.32.250 and 2009 c 229 s 8 are each amended to
32   read as follows:
33       No contract for public works may be entered into by the county
34   legislative authority or by any elected or appointed officer of the
35   county until after bids have been submitted to the county upon
36   specifications therefor. Such specifications shall be in writing and
37   shall be filed with the clerk of the county legislative authority for
38   public inspection. An advertisement shall be published in the county
39   official newspaper stating the time and place where bids will be
                                     p. 47                       2SSB 5268
 1   opened, the time after which bids will not be received, the character
 2   of the work to be done, the materials and equipment to be furnished,
 3   and that specifications therefor may be seen at the office of the
 4   clerk of the county legislative authority. An advertisement shall
 5   also be published in a legal newspaper of general circulation in or
 6   as near as possible to that part of the county in which such work is
 7   to be done. If the county official newspaper is a newspaper of
 8   general circulation covering at least forty percent of the residences
 9   in that part of the county in which such public works are to be done,
10   then the publication of an advertisement of the applicable
11   specifications in the county official newspaper shall be sufficient.
12   Such advertisements shall be published at least once at least
13   ((thirteen)) 13 days prior to the last date upon which bids will be
14   received. The bids shall be in writing, shall be filed with the
15   clerk, shall be opened and read in public at the time and place named
16   therefor in the advertisements, and after being opened, shall be
17   filed for public inspection. No bid may be considered for public work
18   unless it is accompanied by a bid deposit in the form of a surety
19   bond, postal money order, cash, cashier's check, or certified check
20   in an amount equal to five percent of the amount of the bid proposed.
21   The contract for the public work shall be awarded to the lowest
22   responsible bidder. Any or all bids may be rejected for good cause.
23   The county legislative authority shall require from the successful
24   bidder for such public work a contractor's bond in the amount and
25   with the conditions imposed by law. If the bidder to whom the
26   contract is awarded fails to enter into the contract and furnish the
27   contractor's bond as required within ten days after notice of the
28   award, exclusive of the day of notice, the amount of the bid deposit
29   shall be forfeited to the county and the contract awarded to the next
30   lowest and best bidder. A low bidder who claims error and fails to
31   enter into a contract is prohibited from bidding on the same project
32   if a second or subsequent call for bids is made for the project. The
33   bid deposit of all unsuccessful bidders shall be returned after the
34   contract is awarded and the required contractor's bond given by the
35   successful bidder is accepted by the county legislative authority. In
36   the letting of any contract for public works involving less than
37   forty thousand dollars, advertisement and competitive bidding may be
38   dispensed with on order of the county legislative authority.
39   Immediately after the award is made, the bid quotations obtained


                                     p. 48                       2SSB 5268
 1   shall be recorded and open to public inspection and shall be
 2   available by telephone inquiry.
 3       As an alternative to requirements under this section, a county
 4   may let contracts using the small works roster process under ((RCW
 5   39.04.155)) sections 14 through 16 of this act.
 6       This section does not apply to performance-based contracts, as
 7   defined in RCW 39.35A.020(((4))) (6), that are negotiated under
 8   chapter 39.35A RCW.


 9       Sec. 26. RCW 36.77.075 and 2000 c 138 s 208 are each amended to
10   read as follows:
11       In lieu of the procedure for awarding contracts that is provided
12   in RCW 36.77.020 through 36.77.040, a county may award contracts for
13   public works projects on county roads using the small works roster
14   process under ((RCW 39.04.155)) sections 14 through 16 of this act.


15       Sec. 27. RCW 39.04.200 and 2000 c 138 s 103 are each amended to
16   read as follows:
17       Any local government using the uniform process established in RCW
18   39.04.190 to award contracts for purchases must post a list of the
19   contracts awarded under that process at least once every two months.
20   Any state agency or local government using the small works roster
21   process established in ((RCW 39.04.155)) sections 14 through 16 of
22   this act to award contracts for construction, building, renovation,
23   remodeling, alteration, repair, or improvement of real property must
24   make available a list of the contracts awarded under that process at
25   least once every year. The list shall contain the name of the
26   contractor or vendor awarded the contract, the amount of the
27   contract, a brief description of the type of work performed or items
28   purchased under the contract, and the date it was awarded. The list
29   shall also state the location where the bid quotations for these
30   contracts are available for public inspection.

31       Sec. 28. RCW 39.04.380 and 2015 c 225 s 39 are each amended to
32   read as follows:
33       (1) ((The department of enterprise services must conduct a survey
34   and compile the results into a list of which states provide a bidding
35   preference on public works contracts for their resident contractors.
36   The list must include details on the type of preference, the amount
37   of the preference, and how the preference is applied. The list must
                                     p. 49                       2SSB 5268
 1   be updated periodically as needed. The initial survey must be
 2   completed by November 1, 2011, and by December 1, 2011, the
 3   department must submit a report to the appropriate committees of the
 4   legislature on the results of the survey. The report must include the
 5   list and recommendations necessary to implement the intent of this
 6   section and section 2, chapter 345, Laws of 2011.
 7       (2) The department of enterprise services must distribute the
 8   report, along with the requirements of this section and section 2,
 9   chapter 345, Laws of 2011, to all state and local agencies with the
10   authority to procure public works. The department may adopt rules and
11   procedures to implement the reciprocity requirements in subsection
12   (3) of this section. However, subsection (3) of this section does not
13   take effect until the department of enterprise services has adopted
14   the rules and procedures for reciprocity under this subsection or
15   announced that it will not be issuing rules or procedures pursuant to
16   this section.
17       (3))) In any bidding process for public works in which a bid is
18   received from a nonresident contractor from a state that provides a
19   percentage bidding preference, a comparable percentage disadvantage
20   must be applied to the bid of that nonresident contractor. ((This
21   subsection does not apply until the department of enterprise services
22   has adopted the rules and procedures for reciprocity under subsection
23   (2) of this section, or has determined and announced that rules are
24   not necessary for implementation.
25       (4))) (2) A nonresident contractor from a state that provides a
26   percentage bid preference means a contractor that:
27       (a) Is from a state that provides a percentage bid preference to
28   its resident contractors bidding on public works contracts; and
29       (b) At the time of bidding on a public works project, does not
30   have a physical office located in Washington.
31       (((5))) (3) The state of residence for a nonresident contractor
32   is the state in which the contractor was incorporated or, if not a
33   corporation, the state where the contractor's business entity was
34   formed.
35       (((6))) (4) This section does not apply to public works procured
36   pursuant to RCW ((39.04.155,)) 39.04.280, sections 14 through 16 of
37   this act, or any other procurement exempt from competitive bidding.


38       Sec. 29.   RCW 39.12.040 and 2019 c 434 s 6 are each amended to
39   read as follows:
                                     p. 50                       2SSB 5268
 1       (1)(a) Except as provided in subsection (2) of this section,
 2   before payment is made by or on behalf of the state, or any county,
 3   municipality, or political subdivision created by its laws, of any
 4   sum or sums due on account of a public works contract, it is the duty
 5   of the officer or person charged with the custody and disbursement of
 6   public funds to require the contractor and each and every
 7   subcontractor from the contractor or a subcontractor to submit to
 8   such officer a "Statement of Intent to Pay Prevailing Wages". For a
 9   contract in excess of ten thousand dollars, the statement of intent
10   to pay prevailing wages must include:
11       (i) The contractor's registration certificate number; and
12       (ii) The prevailing rate of wage for each classification of
13   workers entitled to prevailing wages under RCW 39.12.020 and the
14   estimated number of workers in each classification.
15       (b) Each statement of intent to pay prevailing wages must be
16   approved by the industrial statistician of the department of labor
17   and industries before it is submitted to the disbursing officer.
18   Unless otherwise authorized by the department of labor and
19   industries, each voucher claim submitted by a contractor for payment
20   on a project estimate must state that the prevailing wages have been
21   paid in accordance with the prefiled statement or statements of
22   intent to pay prevailing wages on file with the public agency.
23   Following the final acceptance of a public works project, it is the
24   duty of the officer charged with the disbursement of public funds, to
25   require the contractor and each and every subcontractor from the
26   contractor or a subcontractor to submit to such officer an affidavit
27   of wages paid before the funds retained according to the provisions
28   of RCW 60.28.011 are released to the contractor. On a public works
29   project where no retainage is withheld, the affidavit of wages paid
30   must be submitted to the state, county, municipality, or other public
31   body charged with the duty of disbursing or authorizing disbursement
32   of public funds prior to final acceptance of the public works
33   project. If a subcontractor performing work on a public works project
34   fails to submit an affidavit of wages paid form, the contractor or
35   subcontractor  with   whom  the   subcontractor  had   a  contractual
36   relationship for the project may file the forms on behalf of the
37   nonresponsive subcontractor. Affidavit forms may only be filed on
38   behalf of a nonresponsive subcontractor who has ceased operations or
39   failed to file as required by this section. The contractor filing the
40   affidavit must accept responsibility for payment of prevailing wages
                                     p. 51                       2SSB 5268
 1   unpaid by the subcontractor on the project pursuant to RCW 39.12.020
 2   and 39.12.065. Intentionally filing a false affidavit on behalf of a
 3   subcontractor subjects the filer to the same penalties as are
 4   provided in RCW 39.12.050. Each affidavit of wages paid must be
 5   certified by the industrial statistician of the department of labor
 6   and industries before it is submitted to the disbursing officer.
 7       (2) As an alternate to the procedures provided for in subsection
 8   (1) of this section, for public works projects of ((two thousand five
 9   hundred dollars)) $5,000 or less ((and for projects where the limited
10   public works process)) as allowed under ((RCW 39.04.155(3))) section
11   15 of this act is followed:
12       (a) An awarding agency may authorize the contractor or
13   subcontractor to submit the statement of intent to pay prevailing
14   wages directly to the officer or person charged with the custody or
15   disbursement of public funds in the awarding agency without approval
16   by the industrial statistician of the department of labor and
17   industries. The awarding agency must retain such statement of intent
18   to pay prevailing wages for a period of not less than three years.
19       (b) Upon final acceptance of the public works project, the
20   awarding agency must require the contractor or subcontractor to
21   submit an affidavit of wages paid. Upon receipt of the affidavit of
22   wages paid, the awarding agency may pay the contractor or
23   subcontractor in full, including funds that would otherwise be
24   retained according to the provisions of RCW 60.28.011. Within thirty
25   days of receipt of the affidavit of wages paid, the awarding agency
26   must submit the affidavit of wages paid to the industrial
27   statistician of the department of labor and industries for approval.
28       (c) A statement of intent to pay prevailing wages and an
29   affidavit of wages paid must be on forms approved by the department
30   of labor and industries.
31       (d) In the event of a wage claim and a finding for the claimant
32   by the department of labor and industries where the awarding agency
33   has used the alternative process provided for in this subsection (2),
34   the awarding agency must pay the wages due directly to the claimant.
35   If the contractor or subcontractor did not pay the wages stated in
36   the affidavit of wages paid, the awarding agency may take action at
37   law to seek reimbursement from the contractor or subcontractor of
38   wages paid to the claimant, and may prohibit the contractor or
39   subcontractor from bidding on any public works contract of the
40   awarding agency for up to one year.
                                     p. 52                       2SSB 5268
1        (e) Nothing in this section may be interpreted to allow an
2    awarding agency to subdivide any public works project of more than
3    ((two thousand five hundred dollars)) $5,000 for the purpose of
4    circumventing the procedures required by subsection (1) of this
5    section.


 6       Sec. 30. RCW 52.14.110 and 2019 c 434 s 12 are each amended to
 7   read as follows:
 8       Insofar as practicable, purchases and any public works by the
 9   district shall be based on competitive bids. A formal sealed bid
10   procedure shall be used as standard procedure for purchases and
11   contracts for purchases executed by the board of commissioners.
12   Formal sealed bidding shall not be required for:
13       (1) The purchase of any materials, supplies, or equipment if the
14   cost will not exceed the sum of ((forty thousand dollars)) $40,000.
15   However, whenever the estimated cost does not exceed ((seventy-five
16   thousand dollars)) $75,000, the commissioners may by resolution use
17   the process provided in RCW 39.04.190 to award contracts;
18       (2) Contracting for work to be done involving the construction or
19   improvement of a fire station or other buildings where the estimated
20   cost will not exceed the sum of ((thirty thousand dollars)) $30,000,
21   which includes the costs of labor, material, and equipment;
22       (3) Contracts using the small works roster process under ((RCW
23   39.04.155)) sections 14 through 16 of this act; and
24       (4) Any contract for purchases or public work pursuant to RCW
25   39.04.280 if an exemption contained within that section applies to
26   the purchase or public work.

27       Sec. 31.   RCW 53.08.120 and 2018 c 149 s 2 are each amended to
28   read as follows:
29       (1) All material and work required by a port district not meeting
30   the definition of public work in RCW 39.04.010(((4))) may be procured
31   in the open market or by contract and all work ordered may be done by
32   contract or day labor.
33       (2)(a) All such contracts for work meeting the definition of
34   "public work" in RCW 39.04.010(((4), the estimated cost of which
35   exceeds three hundred thousand dollars,)) shall be awarded using a
36   competitive bid process. The contract must be awarded at public
37   bidding upon notice published in a newspaper of general circulation
38   in the district at least ((thirteen)) 13 days before the last date
                                     p. 53                       2SSB 5268
 1   upon which bids will be received, calling for bids upon the work,
 2   plans and specifications for which shall then be on file in the
 3   office of the commission for public inspection. The same notice may
 4   call for bids on such work or material based upon plans and
 5   specifications submitted by the bidder. The competitive bidding
 6   requirements for purchases or public works may be waived pursuant to
 7   RCW 39.04.280 if an exemption contained within that section applies
 8   to the purchase or public work.
 9       (b)(i) For all contracts related to work meeting the definition
10   of "public work" in RCW 39.04.010(((4) that are estimated at three
11   hundred thousand dollars or less)):
12       (A) Until July 1, 2024, a port district may let contracts using
13   the small works roster process under RCW 39.04.155 in lieu of
14   advertising for bids.
15       (B) Beginning July 1, 2024, a port district may let contracts
16   using the small works roster process under sections 14 through 16 of
17   this act in lieu of advertising for bids.
18       (ii) Whenever possible, the managing official shall invite at
19   least one proposal from a minority contractor who shall otherwise
20   qualify under this section.
21       (iii) When awarding such a contract for work, when utilizing
22   proposals from the small works roster, the managing official shall
23   give weight to the contractor submitting the lowest and best
24   proposal, and whenever it would not violate the public interest, such
25   contracts shall be distributed equally among contractors, including
26   minority contractors, on the small works roster.
27       (c) Any port district may construct any public work, as defined
28   in RCW 39.04.010, by contract without calling for bids whenever the
29   estimated cost of the work or improvement, including cost of
30   materials, supplies, and equipment, will not exceed the sum of
31   ((forty thousand dollars)) $40,000. A "public works project" means a
32   complete project. The restrictions in this subsection do not permit
33   the division of the project into units of work or classes of work to
34   avoid calling for bids. The port district managing official shall
35   make his or her best effort to reach out to qualified contractors,
36   including certified minority and woman-owned contractors.
37       (3)(a) A port district may procure public works with a unit
38   priced contract under this section or RCW 39.04.010(((2))) (3) for
39   the purpose of completing anticipated types of work based on hourly
40   rates or unit pricing for one or more categories of work or trades.
                                     p. 54                       2SSB 5268
 1       (b) For the purposes of this section, unit priced contract means
 2   a competitively bid contract in which public works are anticipated on
 3   a recurring basis to meet the business or operational needs of a port
 4   district, under which the contractor agrees to a fixed period
 5   indefinite quantity delivery of work, at a defined unit price, for
 6   each category of work.
 7       (c) Unit priced contracts must be executed for an initial
 8   contract term not to exceed three years, with the port district
 9   having the option of extending or renewing the unit priced contract
10   for one additional year.
11       (d) Invitations for unit priced bids shall include, for purposes
12   of the bid evaluation, estimated quantities of the anticipated types
13   of work or trades, and specify how the port district will issue or
14   release work assignments, work orders, or task authorizations
15   pursuant to a unit priced contract for projects, tasks, or other work
16   based on the hourly rates or unit prices bid by the contractor.
17   Contracts must be awarded to the lowest responsible bidder as per RCW
18   39.04.010. Whenever possible, the port district must invite at least
19   one proposal from a minority or woman contractor who otherwise
20   qualifies under this section.
21       (e) Unit priced contractors shall pay prevailing wages for all
22   work that would otherwise be subject to the requirements of chapter
23   39.12 RCW. Prevailing wages for all work performed pursuant to each
24   work order must be the prevailing wage rates in effect at the
25   beginning date for each contract year. Unit priced contracts shall
26   have prevailing wage rates updated annually. Intents and affidavits
27   for prevailing wages paid shall be submitted annually for all work
28   completed within the previous ((twelve-month)) 12-month period of the
29   unit priced contract.

30       Sec. 32.   RCW 54.04.070 and 2019 c 434 s 7 are each amended to
31   read as follows:
32       (1) Any item, or items of the same kind of materials, equipment,
33   or supplies purchased, the estimated cost of which is in excess of
34   thirty thousand dollars, exclusive of sales tax, shall be by
35   contract. However, a district may make purchases of the same kind of
36   items of materials, equipment, and supplies not exceeding ((twelve
37   thousand dollars)) $12,000 in any calendar month without a contract,
38   purchasing any excess thereof over ((twelve thousand dollars))
39   $12,000 by contract.
                                     p. 55                       2SSB 5268
 1       (2) Any work ordered by a district commission, the estimated cost
 2   of which is in excess of ((fifty thousand dollars)) $50,000,
 3   exclusive of sales tax, shall be by contract. However, a district
 4   commission may have its own regularly employed personnel perform work
 5   which is an accepted industry practice under prudent utility
 6   management without a contract. For purposes of this section, "prudent
 7   utility management" means performing work with regularly employed
 8   personnel utilizing material of a worth not exceeding ((three hundred
 9   thousand dollars)) $300,000 in value without a contract. This limit
10   on the value of material being utilized in work being performed by
11   regularly employed personnel shall not include the value of
12   individual items of equipment. For the purposes of this section, the
13   term "equipment" includes but is not limited to conductor, cabling,
14   wire, pipe, or lines used for electrical, water, fiber optic, or
15   telecommunications.
16       (3) Before awarding a contract required under subsection (1) or
17   (2) of this section, the commission shall publish a notice once or
18   more in a newspaper of general circulation in the district at least
19   ((thirteen)) 13 days before the last date upon which bids will be
20   received, inviting sealed proposals for the work or materials. Plans
21   and specifications for the work or materials shall at the time of
22   publication be on file at the office of the district and subject to
23   public inspection. Any published notice ordering work to be performed
24   for the district shall be mailed at the time of publication to any
25   established trade association which files a written request with the
26   district to receive such notices. The commission may, at the same
27   time and as part of the same notice, invite tenders for the work or
28   materials upon plans and specifications to be submitted by the
29   bidders.
30       (4) As an alternative to the competitive bidding requirements of
31   this section and RCW 54.04.080, a district may let contracts using
32   the small works roster process under ((RCW 39.04.155)) sections 14
33   through 16 of this act.
34       (5) Whenever equipment or materials required by a district are
35   held by a governmental agency and are available for sale but such
36   agency is unwilling to submit a proposal, the commission may
37   ascertain the price of such items and file a statement of such price
38   supported by the sworn affidavit of one member of the commission, and
39   may consider such price as a bid without a deposit or bond.


                                     p. 56                       2SSB 5268
 1       (6) Pursuant to RCW 39.04.280, the commission may waive the
 2   competitive bidding requirements of this section and RCW 54.04.080 if
 3   an exemption contained within RCW 39.04.280 applies to the purchase
 4   or public work.
 5       (7)(a) A district may procure public works with a unit priced
 6   contract under this section, RCW 54.04.080, or 54.04.085 for the
 7   purpose of completing anticipated types of work based on hourly rates
 8   or unit pricing for one or more categories of work or trades.
 9       (b) For the purposes of this section, unit priced contract means
10   a competitively bid contract in which public works are anticipated on
11   a recurring basis to meet the business or operational needs of a
12   district, under which the contractor agrees to a fixed period
13   indefinite quantity delivery of work, at a defined unit price, for
14   each category of work.
15       (c) Unit priced contracts must be executed for an initial
16   contract term not to exceed three years, with the district having the
17   option of extending or renewing the unit priced contract for one
18   additional year.
19       (d) Invitations for unit price bids shall include, for purposes
20   of the bid evaluation, estimated quantities of the anticipated types
21   of work or trades, and specify how the district will issue or release
22   work assignments, work orders, or task authorizations pursuant to a
23   unit priced contract for projects, tasks, or other work based on the
24   hourly rates or unit prices bid by the contractor. Where electrical
25   facility construction or improvement work is anticipated, contractors
26   on a unit priced contract shall comply with the requirements under
27   RCW 54.04.085 (1) through (5). Contracts must be awarded to the
28   lowest responsible bidder as per RCW 39.04.010.
29       (e) Unit price contractors shall pay prevailing wages for all
30   work that would otherwise be subject to the requirements of chapter
31   39.12 RCW. Prevailing wages for all work performed pursuant to each
32   work order must be the prevailing wage rates in effect at the
33   beginning date for each contract year. Unit priced contracts must
34   have prevailing wage rates updated annually. Intents and affidavits
35   for prevailing wages paid must be submitted annually for all work
36   completed within the previous ((twelve-month)) 12-month period of the
37   unit priced contract.


38       Sec. 33. RCW 57.08.050 and 2019 c 434 s 10 are each amended to
39   read as follows:
                                     p. 57                       2SSB 5268
 1       (1) All work ordered, the estimated cost of which is in excess of
 2   ((fifty thousand dollars)) $50,000, shall be let by contract and
 3   competitive bidding. Before awarding any such contract the board of
 4   commissioners shall publish a notice in a newspaper of general
 5   circulation where the district is located at least once ((thirteen))
 6   13 days before the last date upon which bids will be received,
 7   inviting sealed proposals for such work, plans and specifications
 8   which must at the time of publication of such notice be on file in
 9   the office of the board of commissioners subject to the public
10   inspection. The notice shall state generally the work to be done and
11   shall call for proposals for doing the same to be sealed and filed
12   with the board of commissioners on or before the day and hour named
13   therein.
14       Each bid shall be accompanied by a certified or cashier's check
15   or postal money order payable to the order of the county treasurer
16   for a sum not less than five percent of the amount of the bid, or
17   accompanied by a bid bond in an amount not less than five percent of
18   the bid with a corporate surety licensed to do business in the state,
19   conditioned that the bidder will pay the district as liquidated
20   damages the amount specified in the bond, unless the bidder enters
21   into a contract in accordance with the bidder's bid, and no bid shall
22   be considered unless accompanied by such check, cash or bid bond. At
23   the time and place named such bids shall be publicly opened and read
24   and the board of commissioners shall proceed to canvass the bids and
25   may let such contract to the lowest responsible bidder upon plans and
26   specifications on file or to the best bidder submitting the bidder's
27   own plans and specifications. The board of commissioners may reject
28   all bids for good cause and readvertise and in such case all checks,
29   cash or bid bonds shall be returned to the bidders. If the contract
30   is let, then all checks, cash, or bid bonds shall be returned to the
31   bidders, except that of the successful bidder, which shall be
32   retained until a contract shall be entered into for doing the work,
33   and a bond to perform such work furnished with sureties satisfactory
34   to the board of commissioners in the full amount of the contract
35   price between the bidder and the commission in accordance with the
36   bid. If the bidder fails to enter into the contract in accordance
37   with the bid and furnish the bond within ((ten)) 10 days from the
38   date at which the bidder is notified that the bidder is the
39   successful bidder, the check, cash, or bid bonds and the amount
40   thereof shall be forfeited to the district. If the bidder fails to
                                     p. 58                       2SSB 5268
 1   enter into a contract in accordance with the bidder's bid, and the
 2   board of commissioners deems it necessary to take legal action to
 3   collect on any bid bond required by this section, then the district
 4   shall be entitled to collect from the bidder any legal expenses,
 5   including reasonable attorneys' fees occasioned thereby. A low bidder
 6   who claims error and fails to enter into a contract is prohibited
 7   from bidding on the same project if a second or subsequent call for
 8   bids is made for the project.
 9       (2) As an alternative to requirements under subsection (1) of
10   this section, a water-sewer district may let contracts using the
11   small works roster process under ((RCW 39.04.155)) sections 14
12   through 16 of this act.
13       (3) Any purchase of materials, supplies, or equipment, with an
14   estimated cost in excess of ((forty thousand dollars)) $40,000, shall
15   be by contract. Any purchase of materials, supplies, or equipment,
16   with an estimated cost of less than ((fifty thousand dollars))
17   $50,000 shall be made using the process provided in RCW 39.04.190.
18   Any purchase of materials, supplies, or equipment with an estimated
19   cost of ((fifty thousand dollars)) $50,000 or more shall be made by
20   competitive bidding following the procedure for letting contracts for
21   projects under subsection (1) of this section.
22       (4) As an alternative to requirements under subsection (3) of
23   this section, a water-sewer district may let contracts for purchase
24   of materials, supplies, or equipment with the suppliers designated on
25   current state agency, county, city, or town purchasing rosters for
26   the materials, supplies, or equipment, when the roster has been
27   established in accordance with the competitive bidding law for
28   purchases applicable to the state agency, county, city, or town. The
29   price and terms for purchases shall be as described on the applicable
30   roster.
31       (5) The board may waive the competitive bidding requirements of
32   this section pursuant to RCW 39.04.280 if an exemption contained
33   within that section applies to the purchase or public work.
34       (6)(a) A district may procure public works with a unit priced
35   contract under this section for the purpose of completing anticipated
36   types of work based on hourly rates or unit pricing for one or more
37   categories of work or trades.
38       (b) For the purposes of this section, "unit priced contract"
39   means a competitively bid contract in which public works are
40   anticipated on a recurring basis to meet the business or operational
                                     p. 59                       2SSB 5268
 1   needs of the district, under which the contractor agrees to a fixed
 2   period indefinite quantity delivery of work, at a defined unit price
 3   for each category of work.
 4       (c) Unit priced contracts must be executed for an initial
 5   contract term not to exceed one year, with the district having the
 6   option of extending or renewing the unit priced contract for one
 7   additional year.
 8       (d) Invitations for unit price bids must include, for purposes of
 9   the bid evaluation, estimated quantities of the anticipated types of
10   work or trades, and specify how the district will issue or release
11   work assignments, work orders, or task authorizations pursuant to a
12   unit priced contract for projects, tasks, or other work based on the
13   hourly rates or unit prices bid by the contractor. Contracts must be
14   awarded to the lowest responsible bidder as per RCW 39.04.010.
15   Whenever possible, the district must invite at least one proposal
16   from a certified minority or woman contractor who otherwise qualifies
17   under this section.
18       (e) Unit price contractors shall pay prevailing wages for all
19   work that would otherwise be subject to the requirements of chapter
20   39.12 RCW. Prevailing wages for all work performed pursuant to each
21   work order must be the prevailing wage rates in effect at the
22   beginning date for each contract year. Unit priced contracts must
23   have prevailing wage rates updated annually. Intents and affidavits
24   for prevailing wages paid must be submitted annually for all work
25   completed within the previous twelve-month period of the unit priced
26   contract.


27       Sec. 34.   RCW 70.44.140 and 2016 c 51 s 1 are each amended to
28   read as follows:
29       (1) All materials purchased and work ordered, the estimated cost
30   of which is in excess of ((seventy-five thousand dollars)) $75,000,
31   shall be by contract. Before awarding any such contract, the
32   commission shall publish a notice at least ((thirteen)) 13 days
33   before the last date upon which bids will be received, inviting
34   sealed proposals for such work. The plans and specifications must at
35   the time of the publication of such notice be on file at the office
36   of the public hospital district, subject to public inspection:
37   PROVIDED, HOWEVER, That the commission may at the same time, and as
38   part of the same notice, invite tenders for the work or materials
39   upon plans and specifications to be submitted by bidders. The notice
                                     p. 60                       2SSB 5268
 1   shall state generally the work to be done, and shall call for
 2   proposals for doing the same, to be sealed and filed with the
 3   commission on or before the day and hour named therein. Each bid
 4   shall be accompanied by bid proposal security in the form of a
 5   certified check, cashier's check, postal money order, or surety bond
 6   made payable to the order of the commission, for a sum not less than
 7   five percent of the amount of the bid, and no bid shall be considered
 8   unless accompanied by such bid proposal security. At the time and
 9   place named, such bids shall be publicly opened and read, and the
10   commission shall proceed to canvass the bids, and may let such
11   contract   to  the   lowest   responsible  bidder   upon  plans   and
12   specifications on file, or to the best bidder submitting his or her
13   own plans and specifications. If, in the opinion of the commission,
14   all bids are unsatisfactory, they may reject all of them and
15   readvertise, and in such case all bid proposal security shall be
16   returned to the bidders. If the contract is let, then all bid
17   proposal security shall be returned to the bidders, except that of
18   the successful bidder, which is retained until a contract shall be
19   entered into for the purchase of such materials for doing such work,
20   and a bond to perform such work furnished, with sureties satisfactory
21   to the commission, in an amount to be fixed by the commission, not
22   less than ((twenty-five)) 25 percent of contract price in any case,
23   between the bidder and commission, in accordance with the bid. If
24   such bidder fails to enter into the contract in accordance with the
25   bid and furnish such bond within ((ten)) 10 days from the date at
26   which the bidder is notified that he or she is the successful bidder,
27   the bid proposal security and the amount thereof shall be forfeited
28   to the public hospital district. A low bidder who claims error and
29   fails to enter into a contract is prohibited from bidding on the same
30   project if a second or subsequent call for bids is made for the
31   project.
32       (2) As an alternative to the requirements of subsection (1) of
33   this section, a public hospital district may let contracts using the
34   small works roster process under ((RCW 39.04.155)) sections 14
35   through 16 of this act.
36       (3) Any purchases with an estimated cost of up to ((fifteen
37   thousand dollars)) $15,000 may be made using the process provided in
38   RCW 39.04.190.



                                     p. 61                       2SSB 5268
 1       (4) The commission may waive the competitive bidding requirements
 2   of this section pursuant to RCW 39.04.280 if an exemption contained
 3   within that section applies to the purchase or public work.


 4       Sec. 35.   RCW 87.03.436 and 2010 c 201 s 2 are each amended to
 5   read as follows:
 6       ((All)) (1) Until July 1, 2024, all contract projects, the
 7   estimated cost of which is less than ((three hundred thousand
 8   dollars)) the amount authorized, may be awarded using the small works
 9   roster process under RCW 39.04.155.
10       (2) Beginning July 1, 2024, all contract projects, the estimated
11   cost of which is less than the amount authorized, may be awarded
12   using the small works roster process under sections 14 through 16 of
13   this act.


14       Sec. 36. RCW 43.131.408 and 2021 c 230 s 22 are each amended to
15   read as follows:
16       The following acts or parts of acts, as now existing or hereafter
17   amended, are each repealed, effective June 30, 2032:
18       (1) RCW 39.10.200 and 2023 c . . . s 4 (section 4 of this act),
19   2010 1st sp.s. c 21 s 2, 2007 c 494 s 1, & 1994 c 132 s 1;
20       (2) RCW 39.10.210 and 2023 c . . . s 5 (section 5 of this act),
21   2021 c 230 s 1, 2019 c 212 s 1, 2014 c 42 s 1, & 2013 c 222 s 1;
22       (3) RCW 39.10.220 and 2023 c . . . s 6 (section 6 of this act),
23   2021 c 230 s 2, 2013 c 222 s 2, 2007 c 494 s 102, & 2005 c 377 s 1;
24       (4) RCW 39.10.230 and 2023 c . . . s 7 (section 7 of this act),
25   2021 c 230 s 3, 2013 c 222 s 3, 2010 1st sp.s. c 21 s 3, 2009 c 75 s
26   1, 2007 c 494 s 103, & 2005 c 377 s 2;
27       (5) RCW 39.10.240 and 2023 c . . . s 8 (section 8 of this act),
28   2021 c 230 s 4, 2013 c 222 s 4, & 2007 c 494 s 104;
29       (6) RCW 39.10.250 and 2021 c 230 s 5, 2019 c 212 s 2, 2013 c 222
30   s 5, 2009 c 75 s 2, & 2007 c 494 s 105;
31       (7) RCW 39.10.260 and 2013 c 222 s 6 & 2007 c 494 s 106;
32       (8) RCW 39.10.270 and 2019 c 212 s 3, 2017 c 211 s 1, 2013 c 222
33   s 7, 2009 c 75 s 3, & 2007 c 494 s 107;
34       (9) RCW 39.10.280 and 2014 c 42 s 2, 2013 c 222 s 8, & 2007 c 494
35   s 108;
36       (10) RCW 39.10.290 and 2007 c 494 s 109;
37       (11) RCW 39.10.300 and 2021 c 230 s 6, 2019 c 212 s 4, 2013 c 222
38   s 9, 2009 c 75 s 4, & 2007 c 494 s 201;
                                     p. 62                       2SSB 5268
 1       (12) RCW 39.10.320 and 2019 c 212 s 5, 2013 c 222 s 10, 2007 c
 2   494 s 203, & 1994 c 132 s 7;
 3       (13) RCW 39.10.330 and 2023 c . . . s 9 (section 9 of this act),
 4   2021 c 230 s 7, 2019 c 212 s 6, 2014 c 19 s 1, 2013 c 222 s 11, 2009
 5   c 75 s 5, & 2007 c 494 s 204;
 6       (14) RCW 39.10.340 and 2014 c 42 s 3, 2013 c 222 s 12, & 2007 c
 7   494 s 301;
 8       (15) RCW 39.10.350 and 2021 c 230 s 8, 2014 c 42 s 4, & 2007 c
 9   494 s 302;
10       (16) RCW 39.10.360 and 2023 c . . . s 10 (section 10 of this
11   act), 2021 c 230 s 9, 2014 c 42 s 5, 2013 c 222 s 13, 2009 c 75 s 6,
12   & 2007 c 494 s 303;
13       (17) RCW 39.10.370 and 2021 c 230 s 10, 2014 c 42 s 6, & 2007 c
14   494 s 304;
15       (18) RCW 39.10.380 and 2023 c . . . s 11 (section 11 of this
16   act), 2021 c 230 s 11, 2013 c 222 s 14, & 2007 c 494 s 305;
17       (19) RCW 39.10.385 and 2023 c . . . s 12 (section 12 of this
18   act), 2021 c 230 s 12, 2013 c 222 s 15, & 2010 c 163 s 1;
19       (20) RCW 39.10.390 and 2021 c 230 s 13, 2014 c 42 s 7, 2013 c 222
20   s 16, & 2007 c 494 s 306;
21       (21) RCW 39.10.400 and 2021 c 230 s 14, 2013 c 222 s 17, & 2007 c
22   494 s 307;
23       (22) RCW 39.10.410 and 2007 c 494 s 308;
24       (23) RCW 39.10.420 and 2019 c 212 s 7, 2017 c 136 s 1, & 2016 c
25   52 s 1;
26       (24) RCW 39.10.430 and 2021 c 230 s 15, 2019 c 212 s 8, & 2007 c
27   494 s 402;
28       (25) RCW 39.10.440 and 2021 c 230 s 16, 2019 c 212 s 9, 2015 c
29   173 s 1, 2013 c 222 s 19, & 2007 c 494 s 403;
30       (26) RCW 39.10.450 and 2019 c 212 s 10, 2012 c 102 s 2, & 2007 c
31   494 s 404;
32       (27) RCW 39.10.460 and 2021 c 230 s 17, 2012 c 102 s 3, & 2007 c
33   494 s 405;
34       (28) RCW 39.10.470 and 2019 c 212 s 11, 2014 c 19 s 2, 2005 c 274
35   s 275, & 1994 c 132 s 10;
36       (29) RCW 39.10.480 and 1994 c 132 s 9;
37       (30) RCW 39.10.490 and 2021 c 230 s 18, 2013 c 222 s 20, 2007 c
38   494 s 501, & 2001 c 328 s 5;
39       (31) RCW 39.10.900 and 1994 c 132 s 13;
40       (32) RCW 39.10.901 and 1994 c 132 s 14;
                                     p. 63                       2SSB 5268
 1       (33) RCW 39.10.903 and 2007 c 494 s 510;
 2       (34) RCW 39.10.904 and 2007 c 494 s 512;
 3       (35) RCW 39.10.905 and 2007 c 494 s 513; and
 4       (36) RCW 39.10.908 and 2023 c . . . s 13 (section 13 of this act)
 5   and 2021 c 230 s 19.


 6       NEW SECTION.   Sec. 37.   The following acts or parts of acts are
 7   each repealed:
 8      (1) RCW 39.04.155 (Small works roster contract procedures—Limited
 9   public works process—Definitions) and 2019 c 434 s 5, 2015 c 225 s
10   33, 2009 c 74 s 1, & 2008 c 130 s 17; and
11       (2) RCW 39.04.156 (Small works roster     manual—Notification   to
12   local governments) and 2000 c 138 s 104.


13       NEW SECTION.   Sec. 38.   Sections 14 through 16 of this act are
14   each added to chapter 39.04 RCW.


15       NEW SECTION. Sec. 39. Sections 1 through 30, 32 through 34, 36,
16   and 37 of this act take effect July 1, 2024.


17       NEW SECTION.    Sec. 40.    Sections 31 and 35 of this act are
18   necessary for the immediate preservation of the public peace, health,
19   or safety, or support of the state government and its existing public
20   institutions, and take effect July 1, 2023.

                                   --- END ---




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