SB 5220
In CommitteeSenate
City small works rosters
Modifying small works roster requirements for cities.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill updates how Washington’s cities and towns can perform public works (like road repairs, utilities, and infrastructure) using city employees or contractors. It raises dollar thresholds for using day labor, tightens oversight for first-class cities, and expands use of streamlined procurement tools like the small works roster and unit-priced contracts—while requiring more transparency and outreach to minority- and women-owned businesses.
- Raises the dollar thresholds for allowing cities/towns to perform public works with city employees (day labor) without bidding: from $150,000 to $300,000 for multi-craft projects and from $75,500 to $151,000 for single-craft or signal/lighting projects.
- For first-class cities, caps employee-performed public works at 10% of the annual/biennial public works construction budget, with penalties (withholding 20% of motor vehicle fuel tax distributions) if limits are exceeded and not corrected.
- Allows first- and second-class cities—and towns—to use the small works roster process (a streamlined bidding method for smaller projects) instead of full competitive bidding, and requires cities to invite at least one certified minority or women contractor to bid when possible.
- Permits unit-priced contracts (fixed hourly or per-unit rates for recurring work) for up to 3 years, with one 1-year extension, for both city and town use—provided contractors pay prevailing wages and meet responsibility standards.
- Clarifies that cities may not divide a single project into smaller parts to avoid bidding thresholds, and sets new rules for selecting the lowest responsible bidder—including allowing cities to choose the second-lowest bidder if the lowest has a history of poor performance.
- Requires second-class cities and towns to report annually to the department of commerce on how many bids were awarded to certified minority or women contractors and how outreach was conducted.
Who is affected
- First-class cities (e.g., Seattle, Spokane, Tacoma, Vancouver) — First-class cities (those with population over 150,000) must follow new rules limiting how much public works they can do with city employees, including a 10% cap of their public works construction budget and stricter project cost limits. They also face financial penalties if they exceed limits and fail to correct the overages.
- Second-class cities and towns (most cities and towns in Washington) — Second-class cities and towns can do more public works with city employees before needing to bid, but still face new cost caps per project and reporting requirements. They also gain access to the small works roster process and must report annually on minority/women contractor participation.
- Small and certified minority/women-owned contractors — Contractors—especially certified minority- and women-owned businesses—gain more opportunities to bid on public works through the small works roster process and unit-priced contracts, and cities must try to invite at least one such contractor per procurement.
- City employees and public sector unions — City employees and unions may see changes in how public works projects are assigned, as the bill explicitly states that project assignments to city employees are not subject to collective bargaining agreements.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Raising the day labor thresholds from $75.5K/$150K to $151K/$300K allows cities and towns to complete smaller infrastructure projects faster and more cost-effectively using existing staff—reducing delays and overhead from formal bidding, which is especially beneficial for smaller municipalities with limited staff to manage complex procurement processes.
Local GovernmentPeopleRef: Sec. 1(3), Sec. 2(1)Mandating that cities invite at least one certified minority- or women-owned contractor to bid—and expanding access to the small works roster and unit-priced contracts—creates a more inclusive procurement pipeline, potentially increasing contract opportunities for historically underrepresented firms and helping close racial and gender wealth gaps.
Business & EmploymentPeopleRef: Sec. 1(7), Sec. 2(4), Sec. 1(11), Sec. 2(13)Requiring unit-priced contractors to pay prevailing wages and submit annual affidavits strengthens wage enforcement and ensures public infrastructure work supports family-sustaining jobs—protecting against race- and gender-based wage disparities that can occur when prevailing wage rules are poorly enforced.
Business & EmploymentPeopleRef: Sec. 1(11)(e), Sec. 2(13)(e)The revised “lowest responsible bidder” rule—allowing cities to select the second-low bidder if the lowest has a history of poor performance—improves accountability and project outcomes, reducing costly delays and rework from underperforming contractors, which benefits taxpayers and public services.
Local GovernmentLean peopleRef: Sec. 1(12), Sec. 2(2)Annual reporting to the Department of Commerce on outreach and awards to certified minority- and women-owned contractors creates transparency and data-driven accountability, enabling the state to identify barriers to participation and target technical assistance—potentially leading to more equitable contract distribution over time.
Local GovernmentPeopleRef: Sec. 2(14)
Potential Concerns (5)
The 10% cap on employee-performed public works for first-class cities and the $300K/$151K project thresholds may increase administrative burden and reduce operational flexibility for local governments, especially for cities already managing tight budgets and aging infrastructure; cities must now track and report compliance closely or risk penalties (e.g., 20% withholding of fuel tax distributions), diverting staff time and resources from core services.
Local GovernmentRef: Sec. 1(2), Sec. 2(1)While the bill creates opportunities for certified minority- and women-owned contractors, the requirement to invite at least one such contractor “whenever possible” is not mandatory and lacks enforcement mechanisms—meaning outreach may be symbolic rather than substantive, especially in markets where such firms are underrepresented or lack capacity to bid on larger projects.
Business & EmploymentPeopleRef: Sec. 1(2), Sec. 1(7), Sec. 2(4), Sec. 2(14)The explicit exclusion of public works assignments to city employees from collective bargaining agreements may weaken union negotiating power over job assignments and work distribution, potentially eroding job security and seniority protections for city workers—especially in unions that have historically relied on such clauses to prevent favoritism or political patronage.
Business & EmploymentLean peopleRef: Sec. 1(8), Sec. 2(3)The prohibition against splitting projects to avoid bidding thresholds is necessary for integrity, but the new thresholds ($300K/$151K) may still be too high for smaller towns to manage safely without competitive bidding—increasing risk of cost overruns, quality issues, or corruption in towns with limited procurement expertise.
Local GovernmentRef: Sec. 1(2), Sec. 1(3), Sec. 2(1)Unit-priced contracts (up to 3+1 years) may reduce short-term procurement costs for cities, but long-term fixed pricing may expose cities to inflation risk—especially if prevailing wage rates are only updated annually—potentially leading to cost overruns if actual work volume exceeds estimates, forcing cities to absorb unexpected costs or cut other services.
Business & EmploymentRef: Sec. 1(11), Sec. 2(13)
Who Is Most Affected
First-class cities (e.g., Seattle) face a new 10% cap on employee-performed work and potential penalties, increasing administrative burden and potentially limiting their ability to respond quickly to infrastructure needs—though they gain access to streamlined procurement tools that may offset some costs.
Second-class cities and towns gain more flexibility to use day labor for smaller projects and access streamlined procurement tools, but must comply with new reporting requirements and may face challenges in identifying and outreach to certified minority/women contractors—especially in rural areas with limited contractor pools.
Certified minority- and women-owned contractors gain more formal opportunities to bid on public works, especially through the small works roster and unit-priced contracts—but success depends on whether cities follow through on outreach and whether these firms have the capacity to meet project requirements.
City employees and public sector unions lose the ability to negotiate over project assignments through collective bargaining, potentially weakening job security and seniority protections—though prevailing wage enforcement and use of day labor may increase work volume for some union members.