Alabama Attorney General Opinion 1979-0088

TWE ATTORNEY GENERAL / XBA STATE OF ALABAMA • MONTGOMERY, ALABAMA 36130 1761_ ©cow CHARLES A. GRAOOICK % ATTORNEY GENERAL Mr. Wayne Love Director George S. Houston Memorial Library 212 West Burdeshaw Street P. 0. Box 1369 Dothan, Alabama 36301 Dear Sir: February 22, 1979 3-7 79 Contracts-Competitive Bids Competitive bids must be taken for the purchase of an elevator car. In a recent letter addressed to this office, you re- quested our opinion regarding the purchase of an elevator car. Your letter read, in pertinent part, as follows: "On July 6, 1978, the George S. Houston Memorial Library Board received bids for an addition and alterations to the Central Library building in Dothan. The low bid exceeded the funds available by approximately $86,000.00, making it necessary for the Library Board to make substantial changes and deletions in order to award a contract. "Anelevator manufactured by Otis, Mont- gamery, Dover, Westinghouse, Elevator Service Company or Albany Elevator Service with no equal was specified in the base bid. The bid received from the General Contractor July 6 included a bid of $17,661.00 on an elevator from Dover EleVator Company. Included in the items deleted from the contract was this ele- vator. Mr. Wayne Love February 22, 1979 Page Two "Bids for bookstacks, opened December 21, 1978, were approximately $14,000.00 less than anticipated, thus enabling the Library Board to again consider in- stalling the elevator. "A local hospital owner, Dr. Paul Flowers, has offered to the Library as a gift, a pump and tank manufactured by Bagby for use with an elevator car by Bagby. A Bagby elevator car and equipment for use with the proposed gift can be secured and installed by the General Contractor for $16,350.00. "Having the General Contractor secure and install an elevator and equipment including a pump and tank from the Dover Elevator Company will now cost $19,150.00. The $17,661.00 submitted in the General Contractor's initial bid is no longer valid, because the time for which the Contractor was required to hold the bid firm ended August 6, 1978. "The Library Board needs to ascertain the following: "1. Will the Library Board be in violation of the requirements of the Alabama Bid Law in accepting this proposed gift and acquiring the additional elevator equipment as manu- factured by Bagby necessary for a complete elevator in- stallation? ..." In addition to the information provided in your request letter, it is my understanding that you have had the gift from Dr. Flowers appraised at $2900.00 and it is your belief that the tank and pump would only be compatible with an elevator car manufactured by Bagby. It is obvious from Mr. Wayne Love February 22, 1979 Page Three your request letter that requiring the George S. Houston Memorial Library to take competitive bids an an elevator car (including the tank and pump) would work a financial hardship on the library. Code of Alaba-ma 1975, Section 41-16-51, lists those contracts for which competitive bidding is not generally required. However, Section 41- 16-51, supra, does not provide an exception to the require- ment of competitive bids for the situation which is outlined in your request letter. The purpose of the competitive bid law is not merely to save public agencies money. It is also the purpose of the competitive bid law to give all prospective bidders an equal opportunity to do business with the public agency. Therefore, it is my opinion that under the facts presented by you in your request letter that the George S. Houston Memorial Library must take counetitive bids on the purchase of a new elevator car. To hold otherwise would mean that in the future a public entity could solicit a gift of minor parts of an item and thus alleviate the necessity of taking competitive bids ci the complete item. In my opinion, the George S. Houston Memorial Library must solicit competitive bids but may, if such is prac- ticable, solicit bids alternatively on an elevator car excluding the tank and pump. The alternative specifications could specify that the elevator car must be compatible with a Bagby tank and pump. Such a procedure would entitle other elevator manufacturers an opportunity to alter their elevator car in order to do business with your public agency. In the probable event that Bagby is the only manu- facturer to submit a bid, then, of course, you may proceed in the manner outlined in your request letter. This opinion applies only to those facts as delineated in your request letter. This opinion shall not be used in the future by other public agencies as a means of alleviating the necessity of soliciting bids for items which cost in excess of $2000.00. Mr. Wayne Love February 22, 1979 Page Four If I may be of any further assistance to you regarding this matter, please do not hesitate to contact me. Very truly yours, CHARLES A. GRADDICK Attorney General By- RaTz-40--.) PATRICK L. ROBINSON Assistant Attorney General PLR:dc If