Texas law on any date › Attorney General opinions
Attorney General Opinion JM-1220
Issued September 13, 1990
Later treatment: JM-0497 ( 1986 ) Modified by LO-93-80 (from the Attorney General's list of opinions overruled, modified, superseded or withdrawn)
Re: Competitive bidding for Suite 208 a county vehicle maintenance San Marcos, Texas 78666 building
Cites: LG §271.024, LG §271.021, GV §271.025, GV §271.027, GV §271.024, GV §4, GV §at, LG §262.032
The Attorney General's page · official PDF
TEE
ATTORNEY
GENERAL
OF TEXAS
September
13, 1990
Honorable
Charles W. Chapman
Opinion NO. JM-1220
Criminal
District
Attorney
Hays County Courthouse
Re:
Competitive
bidding
for
Suite 208
a county vehicle
maintenance
San Marcos,
Texas
78666
building
(RQ-1746)
Dear Mr. Chapman:
You inform
us
that in
the
fall of
1988,
a
county
vehicle maintenance
building
was
constructed
at the
direc-
tion of a county commissioner
who made verbal
contracts
with
vendors
on the project.
You add that the vendors
were
paid
by the county auditor with
funds from the maintenance
line
item of
the commissioner's
precinct
budget
following
the
commissioner's
approval
of
the
claims.
The
cost
of
construction
was in excess of $10,000.
You ask whether
a county must award a contract
for
the
construction
of a vehicle maintenance
building
on the
basis
of competitive
bids
when
no statute
other
than
section
271.024 of
the Local
Government
Code appears
to
require
competitive
bidding.
You also ask as a preliminary
question
whether
section
271.024
itself requires
competitive
bidding
on the contract.
You
do not ask, and
we therefore
do
not
consider,
whether
under
the facts you
describe
the
county
commissioner,
acting alone,
was authorized
to execute
the
contract
or contracts
in question.
See aenerally
Attorney
General
Opinion
m-892
(1988) and authorities
cited therein.
Neither
do you question
the payment
of
the vendors
on
the
apparent
approval
of only the commissioner
who ordered
that
the construction
take place, rather than on the approval
of
the entire
commissioners
court.
This opinion
accordingly
will address
only your specific
questions
concerning
section
271.024 of the Local Government
Code.
I. Does Local Government
Code section 271.024
require
counties
to
award
contracta
for
the
construction
of
public worka on the
basis of aompetitive
bidding?
Chapter
271 of the Local Government
Code is a
revision
and
compilation
of
several
former
civil
statutes
that
prescribe
the
purchasing
and
contracting
authority
of
P- 6448
Honorable
Charles W. Chapman
- Page 2
(JM-1220)
municipalities,
counties,
and
certain
other
local
governments.
Subchapter
A of
chapter
271 is
the
Public
Property
Finance
Act,
V.T.C.S.
The
subchapter
is
formerly
article
2368a.2,
by
its
terms
acquisitions
of
personal
property.
applicable
only
w
Local
Gov't
Co::
08 271.004,
271.005.
Subchapter
B, of which section
271.024
is a
pa*,
governs
works contracts.
competitive
bidding
on certain
public
Subchapter
C was formerly
V.T.C.S.
article
2368a.l and is known as the Certificate
of Obligation
Act of
1971.
Local Gov't Code 8 271.041.
Subchapter
D
authorizes
local
governments
to
purchase
items
through
the
State
Purchasing
and General
Services
Commission.
J&
5 271.082.
Subchapter
Z contains
purchasing
and the
miscellaneous
provisions
relating
to
awarding
of contracts
by local
govern-
ments that are not pertinent
to this opinion.
A. Local Government
Code section 271.024
and its
relationship
to competitive
bidding
Section
271.024,
the
provision
that
prompts
question,
provides
the following:
your
If a
governmental
entity
is required
by
statute to award a contract
for the construc-
tion, repair,
or
renovation
of a
structure,
road,
highway,
or
other
addition
to
improvement
real property
on the
basis
zg
competitive
bids,
and
if the
contract
re-
quires the expenditure
of more than
~10,000
from the funds of the entity, the bidding
on
the contract
must
be
accomplished
in
the
manner
provided
by
this
subchapter
[sub-
chapter
B of chapter
2711.
*lGovernmental entity"
is defined
to
include a
municipality,
a
county,
a
special district
common or
independent
school
district,
a
or authority
created under
article
section
52, or article XVI, section
59,
III,
of the constitution,
a hospital
district
or authority,
a housing
authority,
or an
agency of
the aforementioned
entities.
Local
Gov't
Code
§ 271.021.
Subchapter
B, entitled
"Competitive
Bidding
on
Certain
Public
Works
Contracts,"
is
the
descendant
of
former
V.T.C.S.
article
2368a.3.
Originally
enacted
in 1979,
that
statute
also provided
that the
competitive
bidding
proce-
dures described
in the act were applicable
to contracts
for
the enumerated
public
works
if
the
governmental
entity
awarding
the
contract
was
required
by
another
statute
to
award the contract
on the
basis of competitive
bids.
Acts
p. 6449
Honorable
Charles W. Chapman
- Page 3
(JM-1220)
1979, 66th Leg., ch. 770, at 1901.
procedures
for the
Subchapter
B
prescribes
advertisement
for bids,
the opening
of
bids, and the
award of the
resulting
contract.
a
Local
Gov't Code §§ 271.025
- 271.027.
It
also stipulates
that
its provisions
do not affect a contract
awarded pursuant
to
the Professional
Services
Procurement
Act,
V.T.C.S.
art.
664-4.
a
S 271.022.
A home rule charter
in conflict
with
the terms of the subchapter
prevails
over subchapter
B,
and
contracts
awarded
in violation
void.
J&
55 271.023,
271.028.
of the subchapter
are
You conclude
that the
competitive
bidding
procedures
prescribed
by subchapter
B of chapter
271 are triggered
only
when a
statute
other
than section
271.024
requires
the
governmental
entity
to
award
a
contract
for
described
in
section
271.024
projects
bidding,
on the
basis of
competitive
and the contract
involves the expenditure
of
more
than $10,000 of
the entity's
funds.
section provides
The
language
of
the
clear
opinion
of
this
office,
support
to
your
conclusion.
An
however,
suggests
that
section
271.024 may
itself
be sufficient
to
require
competitive
bidding
on
a
construction
contract.
A
review
of
that
opinion
is necessary.
m
8.
Attorney
General Opinion JM-505
and publio
works
construation
contracta
Attorney
General
Opinion
JW-505
(1986)
concluded
in
part that the competitive
bidding
requirements
of the County
Purchasing
Act, then codified
as article
2368a.5,
V.T.C.S.,
did not apply
to contracts
for
public works
construction.
In reaching
this
conclusion,
it
was
said
that
article
2368a.3,
the
predecessor
to
subchapter
B
"expressly
governs
of chapter
271,
competitive
bidding
on
public
works
contracts."
Attorney
General
Opinion JW-505,
at 2.
This
statement,
though
technically
correct,
was
made
without
elaboration
and without
specific
of
section
reference
to the
language
271.024.
More
importantly,
the
mistakenly
suggests
that
section 271.024
opinion
itself
mandates
competitive
bidding
on public
works contracts.
To
avoid
further
confusion,
we
should
here
emphasize
that
the
procedures
described
in
subchapter
B are,
terms,
by
its
plain
applicable
only when a separate
statute
requires
the
P. 6450
Honorable
Charles W. Chapman
- Page 4
(JM-1220)
contracts
for the enumerated
projects
to be awarded
on
the
basis of competitive
bids.1
Your reading
of section
recently
enacted
provision
of
271.024
is buttressed
by
a
section 271.029,
the Local
Government
Code,
which states that an officer
or employee
of
a governmentalm~;~ty
commits
an offense
if he intentionally
or knowingly
or authorizes
separate
purchases
"to
avoid the competitive
bidding
requirements
of the
statute
that requires
a contract
described
by Section
271.024
to
be
awarded
on the basis of competitive
bids."
threshold
question,
h,
Accordingly,
the
whether
section
271.024
alone
requires
a county to award
a contract
for the
construction
of a county
vehicle
maintenance
building
on
the basis
of
competitive
bids, may be answered
in the negative.
To
the
extent Attorney
General
it should be disregarded.
Opinion JW-505 suggests
otherwise,
Attorney
General
Opinion
JW-505
is relevant
to your
question
for
other reasons
as
well,
1.
Attorney
General
authority
which,
Opinion JW-505
is not
the
only
if read
without
reference
to the
language
of section
271.024,
specific
might generate
confusion
about
the nature of
the provision.
In his treatise
on the
law
governing
counties
and special
districts,
Brooks makes
the
following
observations
about section
271.024:
The first modern
acted in 1917, was
competitive
bidding
statute,
en-
amended
in 1931
to apply only
to
public works projects:
this limitation
was dropped
in
1947.
A 1979 statute
[former V.T.C.S.
art.
2368a.3,
now subch. B
of Local Gov't
Code ch. 2711,
cally applicable
to
public works contracts,
specifi-
that counties
. . .
requires
follow
specified
bidding
pro-
cedures
in connection
with the construction
or
of any 'structure,
repair
roadway,
or any 'other improvement
or addition
to real property.'
(Footnotes
omitted.)
35 D. Brooks,
County and Special
District
Law 5 18.24
(Texas
Practice
1989).
In isolation,
this passage
might lead
the
reader to erroneously
conclude
that section
271.024
is
the
sole authority
to consult
when considering
not merely
what
competitive
bidding
procedures
are
to
be
followed,
but
whether
competitive
bidding
contract
is required
at all.
for a
particular
public
works
As this opinion
demonstrates,
the express
language
of
section
271.024
precludes
this
result.
P. 6451
.
P
P
Honorable
Charles W. Chapman
- Page 5
(JM-1220)
which will
be discussed
in greater
detail later
in
this
opinion.
II. Does
a aeparate
atatute require publia
worka
construction
contracta
to be awarded
by counties
on the
basia of competitive
bidding?
Our answer to
your preliminary
question
does not
end
our inquiry.
Under section 271.024
a separate
statute
must
impose a competitive
bidding
requirement
on the awarding
of
a contract
for the construction
of public works
by a county.
Otherwise
the procedures
outlined
in subchapter
B of chapter
271 are not triggered.
You contend that no statute
imposes
a competitive
bidding
requirement
on county
public
works
construction
contracts
in
general.
However,
as
the
remainder
of
this opinion
will explain,
we believe,
con-
trary to Attorney
General Opinion JM-505,
that the
County
Purchasing
Act applies to
such contracts
and requires
that
they be awarded pursuant
to the competitive
bidding
proce-
dures prescribed
by
that act
rather than
subchapter
B
of
chapter
271.
A. The absence of a general
statutory
competitive
bidding
requirement
expressly
applicable
to county public works
construction
contracts
You argue that no statute other than the Certificate
of
Obligation
Act of 1971 currently
requires
a county to
award
a contract
for the construction
of public works on the basis
of competitive
bids, and
that statute
requires
competitive
bidding
only
in the
event certificates
of obligation
are
issued to
fund contracts
of more
than $5000.
See
Local
Gov't Code 8s 271.045(a)(l)
(certificates
of obligaon
may
be issued for the construction
of any public work),
271.054
(competitive
bidding
requirement).
The
provisions
of
the
Public Property
Finance Act, subchapter
A of chapter
271, do
not apply to a contract
for the construction
of improvements
to
real
property,
even
though
such
structures
may
be
characterized
in
the
contract
as
"personal
property."
Attorney
General
Opinion JW-800
(1987).
Thus, you
conclude
that unless a
county issues certificates
of obligation
on
the construction
project,
the bidding procedures
described
in subchapter
B are inapplicable.
You attribute
this deficiency
to an amendment
to former
V.T.C.S.
article
2368a, relevant
portions
of which are
now
codified
as chapter
252 of the Local Government
Code.
Prior
to 1985,
section
2
of
article
2368a,
also known
as
the
Bond and Warrant
Law
of 1931, provided
that no county
was
authorized
to make any contract
calling
for the
expenditure
p. 6452
Honorable
Charles W. Chapman, - Page 6
(JM-1220)
of more than $5000 in county funds without
first
submitting
the proposed
contract
to competitive
bids.
This requirement
was deleted
in 1985.
Acts 1985, 69th beg., ch. 505, 5 2, at
2091-92
(Senate Bill
802).
The
contracting
provisions
of
the statute
thereafter
were applicable
only to cities.
YOU
conclude
that this action resulted
in the repeal of the only
general
statutory
provision
that requires
county
construc-
tion contracts
to
be awarded
on the
basis of
competitive
bids.
Our
research
has
revealed
no other
statute
that,
prior to
1985, would
have generally
required
competitive
bidding
on county construction
contracts.
B. The enactment
of
the County Purahaaing
Aat
and its
efieat on the award of construction
contra&a
During the same
legislative
session
in which
article
2368a was amended,
the County Purchasing
Act was enacted
as
article
2368a.5,
V.T.C.S.
Acts 1985, 69th beg., ch. 641, at
2377 (Senate Bill 807).
It is now codified
as subchapter
C
of chapter
262
of
the
Local
Government
Code,
sections
262.021 through
262.035.
Senate Bill 802, the bill amending
the Bond and Warrant
Law to make its contracting
provisions
applicable
only
to
cities, contained
a
separate
section
tentatively
restoring
coverage
of
its competitive
bidding
provisions
to counties.
Acts 1985, 69th Leg., ch. 505, § 4,
at 2094.
This provision
was expressly
made contingent
upon
Senate Bill
807, the
County Purchasing
Act, not
becoming
law.
&
Because
Senate
Bill 807 was ultimately
enacted,
section
4 of Senate Bill 802 never took effect,
and counties
were therefore
not made
subject to the competitive
bidding
requirements
imposed by
section
2 of
the Bond and
Warrant
Law.
Senate
Bill
807,
meanwhile,
contained
a
provision
tentatively
removinq
counties
from the scope of section
2 of
the Bond and Warrant
Law.
Acts 1987,
69th Leg., ch.
641,
.6 2, at 2379.
The amendment
to the Bond and Warrant
Law was
expressly
made contingent
upon
the failure of the
legisla-
ture to
enact Senate
Bill 802.
Id. 0 12,
at 2384.
The
continuing
applicability
of
the
competitive
bidding
re-
quirement
of the
Bond and
Warrant
Law
to counties
hinged
upon the success
or failure
of Senate Bill
807.
The
two
bills thus
were
carefully
and deliberately
tied
to
one
another,
and it therefore
clearly
appears that the
legisla-
ture intended
the provisions
of the County Purchasing
Act to
replace the repealed
portions
of the Bond and Warrant
Law.
The legislative
history
of the
County Purchasing
Act
indicates
that the overriding
goal of the legislature
was to
provide
uniformity
and certainty
in the laws governing
the
p, 6453
Honorable
Charles W. Chapman
- Page 7
(JM-1220)
acquisition
of
supplies,
materials,
equipment,
and
stationery
by counties.
There
apparently
was no
intention
to make changes
in
the laws governing
the award of
public
works construction
contracts,
However,
by the amendment
of
the Bond
and
Warrant
Law
the
legislature
inadvertently
removed the only general
competitive
bidding
requirement
for
county public works construction
contracts.
This action
by
default presented
the unlikely
prospect
that
construction
contracts
could
be awarded
without
resort
to
bidding.2
competitive
As we will
explain
shortly,
we
think the language
of
the County Purchasing
Act
supports
the conclusion
that
its
provisions
were intended to replace the repealed
portions
of
article
2368a.
Attorney
General
Opinion JW-505,
however,
concluded
that the terms of the County Purchasing
Act do not
apply to
public
works
contracts
except
insofar
as
the
acquisition
of "high
technology
items," separately
defined
in the
act,
may be
considered
public works
under
other
statutes.
Given
the
far
reaching
implications
of
this
conclusion
coupled
with
a
determination
that
county
construction
contracts
are
not
otherwise
subject
to
a
general
competitive
bidding
requirement,
it is
appropriate
-
to reevaluate
Attorney
General
Opinion JW-505.3
2.
By comparison,
the Certificate
of Obligation
Act of
1971
still
requires
counties
to
award
public
works
construction
contracts
financed
with bonds or
certificates
of obligation
on the basis of competitive
bids.
Local Gov't
Code 5 271.054.
Thus, the amendment
of the Bond and Warrant
Law should
not be
viewed as
a departure
from the
strong
public policy favoring
competitive
bidding.
3.
This is not the first time we have had occasion
to
reconsider
Attorney
General
Opinion JW-505.
A brief
sub-
mitted
in connection
with
Attorney
General
Opinion
JW-1027
(1989) urged us to overrule
the earlier
opinion.
The latter
opinion
dealt with the purchase
of road emul~~~c;~
a county
engineer
appointed
pursuant
to
V.T.C.S.
6702-l.
Because the purchase
was determined
not to be a public works
contract,
we declined
to
reconsider
the ruling of
Attorney
General
Opinion
JW-505.
Since
your
statement
of
facts
stipulates
that
a
contract
for
the
construction
of
a
structure
on real property
is involved,
M
Local Gov't Code
8 271.024,
we must now confront
the issue left unanswered
by
/?
Attorney
General
Opinion JW-1027.
p. 6454
Honorable
Charles W. Chapman
- Page 8
(JM-1220)
III. Attorney
General Opinion JH-505 and ita oonatruction
of
the County Purchasing
Act
Attorney
General
Opinion
JW-505 was
generated
by
a
perceived
conflict
between
the
bonding
provisions
of
the
County
Purchasing
Act
and
V.T.C.S.
article
5160.
The
primary
concern was not with the competitive
bidding
aspects
of public works construction
contracts,
or the ramifications
the opinion would have on competitive
bidding.
Article
5160
requires
prime
contractors
on
public works
contracts
for
more than $25,000 awarded by
the state, a county,
or
other
political
unit to execute
statutory
performance
and
payment
bonds.
The statute
prohibited
a
governmental
entity
from
requiring
a bond on contracts
for less than $25,000.
Sec-
tion 12 of the County
Purchasing
Act, now Local
Government
Code section
262.032,
authorized
a county
to
require
a
bidder to furnish a
bid bond in a
specified
form and
sum.
It also
required
a
successful
bidder
or
offeror
on
a
contract
exceeding
$50,000
to provide
The bid bond
requirement
of section
a performance
bond.
applicable
to
12 was expressly
made
contracts
"for the
construction
of
works,"
regardless
of the amount of the contract.
public
V.T.C.S.
art. 2368a15,
5 12(a) (repealed,
now codified
as Local Gov't
Code § 262.032).
The apparent
conflict
between
the
two
statutes
was
resolved
by concluding
that the County
Purchasing
Act
did
not apply to public works contracts
generally,
the
language
of section
12 notwithstanding.
support
of this conclusion.
Two grounds were offered
in
We have already
examined
one of
the arguments
in
support
of the
conclusion,
b,
that
article
2368a.3 governs
competitive
bidding
for public works
construction
contracts.
Apparently,
this
conclusion
was
based on
the
assumption
that article
2368a.3
alone
was
sufficient
to require
competitive
bidding
on such contracts.
A review of the language
of the statute
as it existed
at the
time Attorney
General
Opinion JW-505
was written
and as
it
now exists as Section
271.024
of the Local Government
Code
discloses
the error of that assumption.
The other argument
offered
in support
of the conclusion
was that the term
I1item,ll employed
throughout
the
did
not
encompass
construction
contracts.
statute,
llItemtl
was
defined
as "any service,
equipment,
good, or other
or intangible
personal
property,11
tangible
including
insurance
and
"high technology
items."
V.T.C.S.
art. 2368a.5,
5 2(3) (m
see
Local
Gov't
Code
S 262.022(5)).
The
acknowledged
that construction
opinion
work could be
characterized
as a wservice11 in some circumstances,
but concluded
that
in
p. 6455
.
P
Honorable
Charles W. Chapman
- Page 9
(JM-1220)
ordinary
usage, the
term was
not applied
to public
works
construction
contracts.
In order for the bid bond language
of section
12 of the
County Purchasing
Act
to
have
complete
effect,
it
was
necessary
to give meaning
to the phrase "contract
. . .
for
the construction
of public works.n
Attorney
General
Opinion
JM-505 resolved
this dilemma by referring
once again to
the
definition
of l'item.ll It was
noted that the term
included
"high
technology
items."
"High
technology
item"
was
separately
defined
as
a service,
equipment,
or
good of
a
highly
technical
nature,
including:
data processing
equipment
and software
and firmware
used
in
conjunction
with
data processing
equipment;
telecommunications,
radio,
and
microwave
systems:
electronic
distributed
control
systems
(including
building
energy management
systems):
and technical
services
related
to
these items.
V.T.C.S.
art.
2368a.5,
5 2(4) (pow see
Local
Gov't
Code
P
5 262.022(4)).
The
opinion
surmised
that the
legislature
included
such work and articles
in the definition
of
11item11
to avoid the possibility
that such matters
would be excluded
from the scope of the act.
The opinion also gave meaning
to
the "public worksn
language
by observing
that some of
the
work described
in the
definition
of "high technology
item"
could be
considered
"public
works" under
other
statutes.
Hence,
the
opinion
concluded
that
the
"public
works"
language
in section
12 referred
only
to "high
technology11
installations
that might be classified
as public works under
other statutes.
Attorney
General
Opinion JM-505 also attempted
to
give
meaning
to the
1985 enactments
that resulted
in both
the
removal
of counties
from the purview
of the Bond and Warrant
Law and the addition
of the County Purchasing
Act.
However,
rather than viewing
the enactment
of
Senate Bills 802
and
807 as
evidence
of
the comprehensiveness
of
the
County
Purchasing
Act, it accepted
the legislation
as support
for
its conclusion
that the
act did not
apply to public
works
construction
contracts.
It noted that the amendment
to
the
Bond and
Warrant
Law
required
successful
bidders
on
city
public works
contracts
to
execute
performance
bonds
in
accordance
with article
5160, whereas
the County
Purchasing
Act contained
no similar requirement.
The opinion
concluded
that a narrow interpretation
of the llpublic worksl'
language
p. 6456
Honorable
Charles W. Chapman
- Page 10
(JM-1220)
in section
12
direct
of the County
Purchasing
Act would
minimize
conflict
between
the two statutes.
Once again, however,
this reading
of
the County
Pur-
chasing Act
depended
heavily
on the
incorrect
assumption
that article
2368a.3
(now
subchapter
B of Local
Government
Code
chapter
271)
imposed
an
independent
public
works
competitive
bidding
requirement
on counties
and all
other
governmental
entities
subject to the statute.
The interpretation
given the
County Purchasing
Act
in
Attorney
General
Opinion JW-505 was probably
consistent
with
legislative
intent, at
least as it
related to county
pur-
chases.
However,
since it appears that the legislature
have been unaware
of the complete
effect of the amendmentmtz
the Bond and Warrant
Law, it would have been appropriate
to
consider
whether
the legislature
intended
to free
counties
from the obligation
to comply with competitive
bidding
when
awarding
construction
contracts.
It seems
clear that
the
legislature
did
not
intend
enactment
of
the
to
accomplish
this
by
the
County
Purchasing
Act.
Had
Attorney
General
Opinion
JW-505 taken
this fully
into account,
we
think it would
have given
the purchasing
act a
different
reading.
A. Applicability
of the County Purchasing
Act to
construction
aontracts
Upon further
inspection,
we believe
it was erroneous
to
place so
much
reliance
on the
definition
of
'1item11 in
Attorney
General
Opinion
JW-505.
We also
think
it
was
incorrect
to
conclude
that
the application
of the
Purchasing
Act
is
County
solely
contingent
upon
whether
the
particular
acquisition
is
for an
V'item11 as
specifically
defined
in the
act.
A
review of other
provisions
of
the
County Purchasing
Act reveals that while the term aitem11
is
specially
defined
in the act, it is not a rigid,
inflexible
concept.
The
definition
therefore
should
not
limit
the
reach of
the County
Purchasing
Act where
there is a
clear
indication
in the language
of
to particular
procurements.
the act that it should
apply
other provisions
of the act.
This point is made manifest
by
1. Section
262.024 of the Local Government
Code
Section
262.024 provides,
in part, that a llcontract for
the purchase
of any of the following
items"
is exempted
from
the competitive
bidding
requirement
established
by
section
262.023
if the commissioners
court grants the exemption:
P. 6457
.
P
Honorable
Charles W. Chapman
- Page 11 (JW-1220)
(1)
an item that must
be purchased
in
a
case of public calamity
if it is necessary
to
make the
purchase
promptly
to
relieve
the
necessity
of the citizens
or to preserve
the
property
of the county:
(2)
an item necessary
to preserve
or pro-
tect the public health or safety of the resi-
dents of the county:
(3)
an item necessary
because
of
unfore-
seen damage to public property:
(4)
a personal
or professional
service;
(5)
any work
performed
and
paid for
by
the day, as the work progresses:
(6)
any land or right-of-way;
(7)
an item
that
can be
obtained
from
only one source,
including:
(A)
items for
which competition
is
precluded
because
of
the
existence
of
patents,
copyrights,
secret processes,
or
monopolies;
(B)
films, manuscripts,
or books;
(c)
electric
power, gas, water,
and
other utility
services;
and
(D)
captive
replacement
parts
or
components
for equipment.
In the absence
of an exemption
granted
by the
commissioners
court, the acquisition
of each of the enumerated
articles
or
services
would be subject to the competitive
bidding
proce-
dures of the
County Purchasing
Act,
despite
the fact
that
they do
not fall
neatly within
the definition
of
11item'1
provided
in section
262.022.
2. Se&ion
262.0275
of the Looal Government
Code
Further proof is found in section
262.0275
of the Local
Government
Code, originally
enacted
in 1987 as an
amendment
to article
2368a.5.
See Acts 1987, 70th Leg., ch. 722, § 5,
at 2598.
It authorizes
a
governmental
entity to take
into
C
account
the
safety
record
of
a
bidder
under
certain
p. 6458
Honorable
Charles W. Chapman
- page 12 (JM-1220)
specified
conditions.
the issues
of notice
Those conditions
relate primarily
to
and fairness
to bidders.
&?
Acts
1989, 71st
beg.,
ch.
1,
f 58,
at
66
(conforming
1987
amendment
to Local Gov't Code
format).
bill enacting
what
is
now section
The caption
to
the
262.0275
reveals
the
legislature's
understandins
of
the
scope
of
the
County
purchasing
Act:
An
act
relating
to
construction
projects
safety
records
when
construction
projects.
Acts 1987, 70th Leg., ch. 722,
safety
standards
and
consideration
awarding
bids
at 2597.
for
of
on
Significantly,
the amendment
was accomplished
without
changing
the definition
of llitem.n This indicates
that
the
legislature
believed
both
that the
definition
was
broad
enough to
include construction
services
and
that the
act
applied generally
to construction
contracts.
If it had
not
held these beliefs,
we doubt
it would have amended
the
act
to allow consideration
of a contractor's
safety record.
The
addition
of section
262.0275
therefore
should not be
viewed
as an expansion
of the
County purchasing
Act, but merely
a
clarification
of its scope.
Accordingly,
we believe
construction
work may
reason-
ably be characterized
as a
%ervicel*
for
purposes
of
the
County purchasing
Act, thereby
bringing
such work within the
definition
of llitemll and preserving
a general
competitive
bidding
requirement
for
construction
contracts.4
We
also
conclude
that Attorney
General
Opinion JW-505 was in
error
when it determined
that the
not
apply to public works
County purchasing
Act does
construction
contracts;
it is
hereby
overruled
to the extent it conflicts
with this opinion.
In answer to your
specific
question,
we conclude
that
the County
purchasing
Act requires
a
county to
award
a
contract
for
the
construction
of
a
vehicle
maintenance
building
on
the basis
of competitive
bids.
This
however,
raises
an
additional
issue.
answer,
Because
both
the
County purchasing
Act and subchapter
B prescribe
competitive
4.
The bill
enacting
section
262.0275
also
amended
subchapter
B
of
chapter
271
to
allow
for
the
same
consideration
of safety records
under its provisions.
&
Local Gov't Code S 271.0275.
P- 6459
.
Honorable
Charles W. Chapman - Page 13 (JM-1220)
bidding
procedures,
it
becomes
necessary
to
determine
whether
a
county
must award
a
public works
contract
in
accordance
with the
terms of either
the County
Purchasing
Act or subchapter
B, or whether
the County Purchasing
Act
simply triggers
the procedures
set forth in subchapter
B.
V.
Does
the County Purohaeing
Act
or subchapter
B of
chapter
271 govern competitive
bidding
for
public
works
oomtruation
contracts7
Two provisions
of the
Code Construction
Act
resolve
this issue.
Section
311.025(a)
of
the
Government
Code
provides
that in the event two statutes
enacted
at the
same
or different
sessions
of the legislature
are irreconcilable,
the statute
latest in
date of enactment
prevails.
Section
311.026,
meanwhile,
admonishes
us to construe
a general
code
provision
and a conflicting
special provision
so that
both
may be
given
effect,
if possible.
If
the
conflict
is
irreconcilable,
the
special
provision
is
treated
as
an
exception
to
the
general
provision
unless
the
general
provision
is the later enactment
and the manifest
intent
is
that the general
provision
prevail.
The County Purchasing
Act
and subchapter
B both
apply
to
contracts
exceeding
$10,000,
subchapter
B
applying
specifically
to
public
works
contracts.
The
two
acts
differ,
however,
in several
important
respects,
such as
in
terms of
the
timing
and content
of
competitive
bidding
notices.
Comoare
Local
Gov*t
Code
5 262.025
wd
id,
5 271.025.
The acts
also impose
different
procedures
for
the opening
and modification
of
bids prior to award of
the
contract.
Comoare
A
5 262.026
l&h
&
6 271.026.
Of
course, the County
Purchasing
Act contains
a bid bond
and
performance
bond requirement
while subchapter
B does
not.
See id, 8 262.032.
The
County Purchasing
Act authorizes
a
property
tax paying
citizen
of
the county
to enjoin
per-
formance
of
a
contract
made
in
violation
of
the
act:
subchapter
B,
though,
provides
that a
contract
made
in
violation
of
its
provisions
is
void.
Id.
§S 262.033,
271.028.
These
differences
cannot,
in
cur
opinion,
be
readily
reconciled,
and we must therefore
determine
which of
the statutes
shall govern
county public works
construction
contracts.
The County Purchasing
Act was enacted
in
1985; V.T.C.S.
article
2368a.3 was enacted
in 1979.
The County
Purchasing
Act is also the more
general provision.
However,
with
our
previous
discussion
of
the legislative
history
and
sub-
sequent amendment
of the
act in mind,
we believe
that
the
rc‘
manifest
intent
of
the
legislature
is
that
the
County
p. 6460
Honorable
Charles W. Chapman
- Page 14 (JM-1220)
Purchasing
Act govern the award of construction
contracts
by
a county to the exclusion
of subchapter
B.
Accordingly,
we
believe
the competitive
bidding procedures
prescribed
by the
County Purchasing
Act in sections
262.023 through
262.032
of
the Local
Government
Code
prevail
over
the provisions
of
subchapter
B of
chapter
271
of the
Local Government
Code
insofar as the latter provisions
relate to counties.5
Recent legislation
amended
subchapter
B
to
allow
a
county with a population
of 2.2 million
or more to require
a
successful
bidder to perform
at least 25 percent
of the work
under a
contract
and
to establish
financial
criteria
for
surety companies
that provide
payment
and
performance
bonds.
Local Gov't Code 5 271.025(e)
(as
added by Acts 1989,
71st
Leg., ch. 1019, § 2, at
4115).
The legislative
history
of
the amendment
indicates
that it was
directed
primarily
at
out-of-state
construction
contractors
who do business
with
Harris County.
&8
Public Hearing
on H.B. 1059, before
the
House Comm. on County Affairs
(March 7, 1989) (testimony
of
Mr.
Jack Watkins,
Assistant
County Engineer,
Harris
County)
(tape available
through
House
Technical
Services).
The
amendment
to subchapter
B would suggest that the legislature
believes
its
provisions
remain
However,
it must
applicable
to
counties.
also be
noted that
the same
legislation
amended both the County Purchasing
Act, w
Local Gov't Code
5 262.025(d),
and the Certificate
of Obligation
Act, see ~
g 271.055(e),
to
provide
identical
authority
to
a
county
with a population
of 2.2 million
or more.
Furthermore,
the
only
county
that
may
presently
take
advantage
of
the
provision
apparently
awards construction
contracts
pursuant
to
the
County
Purchasing
Act.
Watkins,
&8
Testimony
of
Jack
sunra.
The
amendment
of subchapter
B,
in
our
opinion,
represents
more
a
case
of
overly
precise
and
unnecessary
drafting
than
a
conscious
attempt
to
bring
county
construction
contracts
under
the
umbrella
of
subchapter
B.
We would also note that our conclusion
also applies
to
conflicts
between
the County
Purchasing
Act
and
V.T.C.S.
article
5160.
Since
the County
Purchasing
Act
contains
5.
Public
works
construction
contracts
awarded
pursuant
to the Certificate
of Obligation
Act of 1971, Local
Government
Code
sections
271.041
to
271.065,
are
not
affected
by cur answer because
such contracts
are
expressly
removed
from the scope of the County Purchasing
Act.
Local
Gov't Code 8 262.023(b).
p. 6461
Honorable
Charles W. Chapman
- Page 15 (JM-1220)
C
provisions
relating
to bid and performance
bonds, 88~
Local
Gov't Code
5 262.032(a),
should
prevail
(b), we
think
these
provisions
over
article
5160,
performance
bonds
but
not
bid bonds.
which
provides
for
Purchasing
Act
makes
Since
the
County
county
must
require
no
provision
for
payment
bonds,
a
contractors
to
provide
such
bonds
pursuant
to article
5160.
SUMMARX
A county is required
to award a
contract
for the
construction
of
a
county
vehicle
maintenance
building
and public
suant to the terms
works
pur-
of the County
Purchasing
Act, Local Government
Code sections
262.021
through
262.035.
The
provisions
of
sub-
chapter
B
of Local
Government
Code
271 do not apply to such contracts.
chapter
Attorney
General
Opinion JW-505
(1986) is overruled
to
the extent of conflict
with this opinion.
JIM
MATTOX
Attorney
General
of Texas
WARYKELLER
First Assistant
Attorney
General
LOU MCCRBARY
Executive
Assistant
Attorney
General
JUDGE ZOLLIE STBAELEY
Special Assistant
Attorney
General
RENEA HICKS
Special Assistant
Attorney
General
RICK GILPIN
Chairman,
Opinion
Committee
Prepared
by Steve Aragon
Assistant
Attorney
General
p. 6462
Attorney General opinions are persuasive, not binding on courts, and answer questions of law, not fact. Text extracted from the official PDF. Not legal advice.