WashingtonSB 61702025-2026 Regular SessionSenate

Adjusting monetary limits regarding contracting rules for state highway construction work and procurement.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Higher highway contract limits for small businesses

Beginning June 11, 2026, Washington's transportation department may set small-contract bidding rules for estimates of $160,000 or less, up from $100,000. These rules cover highway work, equipment, materials, supplies, and services, aiming to expand small-business, veteran-, minority-, and women-owned contractor participation. The department may waive bid deposits and performance bonds. Without a performance bond, it may make progress payments when paid invoices show earlier payments reached workers, suppliers, and subcontractors. It may also use alternative contractor qualification rules while keeping standards adequate, and must follow state minority- and women-owned business goals and rules. The law allows these bidding rules but does not require their adoption or guarantee contracts.

Higher ferry work limits, new contractor rules

Beginning June 11, 2026, Washington's transportation department can use state crews for ferry vessel and terminal work below $400,000 during the 2025–2027 budget period. The usual limit is below $100,000, so outside contractors may have fewer opportunities during this period. For estimates from $400,000 to $500,000, the department must contact contractors on its small-project contractor list. An interested, available contractor's response within 72 hours triggers the list's bidding procedures; without one, regular contracting procedures may apply. Outside that budget period, the contractor-contact range is $100,000 to $200,000. Emergency procedures take priority when the transportation secretary determines the work is an emergency. The law also requires an independent study and a proposed maintenance program to reduce ferry downtime, retaining a December 1, 2010 reporting deadline. The study must compare state crews with contractors and examine combining shipyard work and shortening shipyard stays. The program must include a budgeting method, a 16-year cost forecast, planned downtime limits, and alignment with route service needs. Planning must consider Eagle Harbor operations, staff deployment, standard tasks, faster delivery, Coast Guard dry-docking rules, and ongoing operating costs.

State highway crews get higher work limits

Beginning June 11, 2026, Washington's transportation department can use state crews for highway work estimated below $100,000, up from $60,000. When delay threatens a highway or traveler safety, the limit is below $160,000 until January 1, 2027. Starting January 1, 2027, the department must adjust that limit annually using the national highway construction cost index. It must post the updated limit online and record its reasons whenever it chooses state crews over contractors. These higher limits allow more work by state crews and may leave fewer projects for outside contractors.

Sponsors & Cosponsors

Sponsor

Curtis King
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 144 • No: 0

House vote • 3/12/2026

3rd Reading & Final Passage

Yes: 95 • No: 0 • Other: 3

Senate vote • 2/28/2026