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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2858: state contracting; businesses
Sponsor: Representative Blackman, LD 7
Committee on Government
Overview
Establishes and outlines procedures for a bid preference framework for in-state procurement.
History
The Arizona Procurement Code and procurement process is overseen by the Arizona Department of Administration (ADOA) whose Director serves as the central procurement officer of Arizona. The Director is required to: 1) procure or supervise the procurement of all materials, services and construction needed by the state; 2) establish guidelines for the management of all state material inventories; 3) sell, trade or otherwise dispose of surplus state materials; 4) establish programs for the inspection, testing and acceptance of materials, services and construction; and 5) employ staff, adopt rules and provide consultation as necessary to effectuate the Arizona Procurement Code (A.R.S. § 41-2511).
Provisions
1. Requires an Arizona bidder for contracts issued for competitive sealed bidding to be given a one percent increase over an out-of-state bidder if there are two or more low responsible and responsive bids from qualified bidders that are identical in all material respects, including price, quality, delivery terms, warranties, past performance and compliance with specifications. (Sec. 1)
2. Directs a purchasing agency to add a percentage increase to the bid of an out-of-state bidder equal to the percentage, if any, of the preference given to the bidder in the state where they reside. (Sec. 1)
3. Instructs ADOA to annually publish a list of states that give preference to in-state bidders with the percentage increase applied in each state by January 1. (Sec. 1)
4. Allows a purchasing agency to rely on the names of states and percentages published by ADOA in determining the lowest responsible bidder without incurring any liability to any bidder. (Sec. 1)
5. Stipulates the percentage increase authorized by this legislation:
a. applies solely for the purposes of bid evaluation and does not require the award of a purchase order to any bidder; and
b. cannot be applied if it would result in a higher actual price when determining the true value paid by Arizona for a contract. (Sec. 1)
6. States that this legislation does not apply to purchase orders issued by a purchasing agency that, in the aggregate, exceed $1,500,000 in a fiscal year. (Sec. 1)
7. Defines pertinent terms. (Sec. 1)
8. Contains legislative findings. (Sec. 2)
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12. Initials ML HB 2858
13. 2/6/2026 Page 0 Government
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