1. Discussion of the Differences Public Works Law and Bid Law
Presented by Mr. James Hall, Director County Audit Division Examiners of Public Accounts

2. DISCLAIMER
This information was presented during the ACCA Legislative Conference training sessions on December 8, 2016.
This presentation represents the audit position of the Department of Examiners of Public Accounts as of that date.

3. Objectives Legal Authority To what each applies
Requirements and Exceptions
Miscellaneous items
Road Material Annual Bids

4. Legal Authority

5. Legal Authority – Bid Law
Code through (Article 3)
Applies to County Commissions, Municipalities, and others governed by Code of Alabama 1975, Section

6. Legal Authority – Public Works
Code et seq.
Applies to any governmental board, commission, agency, body, authority, instrumentality, department, or subdivision of the state, its counties and municipalities.

7. To What It Applies…

8. To What It Applies…Bid Law
Applies to the expenditure of funds for labor, services and work involving $15,000 or more
Applies to the purchase or lease of materials, equipment, supplies or other personal property involving $15,000 or more

9. To What It Applies (cont.)…
Applies to expenditures for repair parts and repair of heavy duty off-highway construction equipment exceeding $15,000 per incident of repair.

10. To What It Applies (cont.)…
Applies to expenditures for the leasing of heavy duty off-highway construction equipment exceeding $5,000/month per piece of equipment or $15,000/month for all such equipment.

11. To What it Applies…Public Works
Applies to any construction, repair, renovation, or maintenance of public buildings, structures, sewers, waterworks, roads, bridges, docks, underpasses, and viaducts as well as any other improvement to be constructed, repaired, renovated, or maintained on public property and to be paid, in whole or part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise.

12. Expenditure Threshold – Public Works
$50,000

13. Legal Requirements

14. Legal Requirement – Bid Law
Requires a contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible bidder.

15. Length of Contract Terms – Bid Law
Purchase or Service Contracts - limited to 3 years
Lease-Purchase Contracts for capital improvements, repairs to real property and other lease-purchase contracts - limited to 10 years

16. Length of Contract Terms-Public Works
No term limits

17. Advertising Requirements-Bid Law
Post notice on bulletin board outside purchasing department
Can do more…but not required!

18. Advertising Requirements-Pubic Works
Advertise in a newspaper of general circulation in the county - once each week for three consecutive weeks
Additional requirement for contracts over $500,000 - once in 3 newspapers of general circulation throughout the state

19. Sealed Bids and Documentation-Bid Law & Public Works
Must be sealed when received
Opened in public at the hour stated in the notice
All original bids and documents pertaining to the award of the contract shall be retained for a period of seven years from the date the bids are opened and shall be open to public inspection

20. Items Exempt from Requirements – Bid Law
Code of Alabama provides for numerous exceptions to bidding requirements.

21. Items Exempt from Requirements (cont.)
Purchases of dirt, sand, or gravel by a county governing body from in-county property owners. Material to be delivered by county employees using county equipment for projects conducted exclusively by county employees.

22. Professional Services-Public Works
Architects, Engineering, Project Management Services - exempted from the bid process

23. Bid Lists – Bid Law & Public Works
Sealed bids shall also be solicited by sending notice to all vendors who have filed a request in writing that they be listed on the bid list for the particular items being bid.
If a vendor fails to respond to any solicitation after the receipt of three, the vendor may be removed from the bid listing.

24. Items to be considered when determining the lowest RESPONSIBLE bidder…
Qualities of the goods proposed to be supplied
Conformity with specifications
Purposes for which required
Terms of delivery
Transportation charges
Dates of delivery

25. Documentation of Results-Bid Law and Public Works
To whom bid was awarded
Reasons for not awarding to the lowest bidder
Bid file shall be open for public inspection

26. Emergencies-Bid Law
Must affect public health, safety or convenience, be declared in writing by the awarding authority, and such action and reasons should be immediately made public by the awarding authority.
No advertising required
Must still follow other bid law requirements - per ruling by the State Supreme Court (General Electric Co vs. City of Mobile 1991)

27. Emergencies-Public Works
No advertising required
Must still follow other requirements - per Code (e)

28. Only One Bid Received-Bid Law & Public Works
May accept bid or
May reject the bid and negotiate the purchase or contract, provided the negotiated price is lower than the bid price.

29. Splitting of Contracts-Bid Law
No purchase or contract in excess of $15,000 shall be divided into parts involving amounts of $15,000 or less for the purpose of avoiding the requirements of the competitive bid law

30. Provisions for Mistakes by Vendors-Bid Law
There are no provisions in the law for mathematical mistakes by vendors.

31. Provisions for Mistakes by Vendors-Public Works Law
Clerical or calculation errors - low bidder must provide written notice of withdrawals within 3 days
County has 10 days after receipt to reach decision
Withdrawing bidder cannot work on project in any way

32. Force Account-Public Works
If County uses own labor and equipment, materials and supplies fall under regular bid law.

33. Road Materials

34. Questions?
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