How to sell to Arizona counties

Arizona has 15 counties. County purchasing of supplies and services follows A.R.S. 11-254.01. Construction of county buildings and public works follows A.R.S. Title 34, which also sets bonds, retainage and payment terms. Arizona bars counties from requiring prevailing wages. Many larger counties, such as Maricopa, Pima and Pinal, also adopt their own procurement codes within these limits.

At a glance

Who buys

Each county is governed by an elected Board of Supervisors. The county purchasing agent solicits bids, determines qualified sources and awards contracts "with the approval of the board" (A.R.S. 11-254.01). For construction, the county acts as an "agent" under Title 34 (A.R.S. 34-201). Arizona allows charter counties, but we did not confirm any different procurement rule for them.

Goods and services

Source: A.R.S. 11-254.01. Ask each county which threshold it uses; the $100,000 option is common among larger counties.

Construction and public works

Building construction, repair and alteration and other public works fall under Title 34, not 11-254.01.

• Notice: a notice to bidders runs in a newspaper of general circulation in the county twice: in two consecutive weekly issues, or twice in a daily paper 6 to 10 days apart (A.R.S. 34-201(A)).
• Bid security: a certified check, cashier's check or surety bid bond for 10% of the bid (A.R.S. 34-201(A)(3)).
• Award: to the lowest responsible bidder. The board may use completion-time and value factors on up to five projects, with findings (A.R.S. 34-221(A)).
• Bonds: a performance bond and a payment bond, each for 100% of the contract, from a licensed corporate surety. The statute sets no dollar floor (A.R.S. 34-222).
• County crews: the county may do small jobs with its own forces without bidding. The base limits are $14,000 for buildings and $150,000 for streets, roads, bridges, water and sewer work, in fiscal 1994-95 dollars, adjusted each year for inflation (A.R.S. 34-201(C), (D)). Current adjusted figures were not confirmed.
• Alternative delivery: design-build, construction-manager-at-risk and job-order contracting follow Title 34, Chapter 6 (A.R.S. 34-103).

Notice and award

Covered above. In short: goods and services are advertised in a newspaper and awarded to the most advantageous responsible bidder (A.R.S. 11-254.01). Construction is advertised twice and awarded to the lowest responsible bidder (A.R.S. 34-201; 34-221). Awards go to the Board of Supervisors, so watch its agendas.

Prevailing wage

Arizona has no state prevailing wage law. Political subdivisions may not require prevailing wages, project labor agreements, neutrality agreements or registered apprenticeship participation on public works (A.R.S. 34-321(B), (C)). Federally funded projects may still carry Davis-Bacon wages.

Getting paid

On county construction contracts (A.R.S. 34-221):

• Progress payments are monthly on contracts of 90 days or more. An estimate is deemed approved after 7 days, and payment is due within 14 days after approval.
• Late interest is 1% per month.
• Subcontractors are paid within 7 days after the contractor is paid.
• Retainage is 10% until the job is 50% complete. After that, half is released on request and no more than 5% is held on later payments if progress is satisfactory. Final retention is paid within 60 days of completion. Securities may be substituted for retention.

We did not confirm a county prompt payment rule for goods and services; check the contract.

Cooperative purchasing and state contracts

Any public procurement unit may join, sponsor or run cooperative purchasing, and may buy under another unit's contract without separate competition, following the state director's cooperative purchasing rules. Construction and professional services must still follow A.R.S. 34-603 or 41-2578 (A.R.S. 41-2632). Whether counties fall within the "public procurement unit" definition in A.R.S. 41-2631 was not confirmed from the text, though counties widely use cooperative contracts. Counties may also make intergovernmental agreements for joint services (A.R.S. 11-952).

Preferences and required certifications

• Local preference: none found for counties.
• E-Verify: contractors with a government entity, including tax-receiving political subdivisions, must warrant compliance with federal immigration law and E-Verify (A.R.S. 41-4401).
• Israel boycott: public-entity contracts of $100,000 or more require a written certification that the company is not boycotting Israel (A.R.S. 35-393.01). The definitions, including company size, were not confirmed.
• Iran or Sudan divestment, debarment and non-collusion forms: not confirmed; check the solicitation.

Architects and engineers

Yes, Arizona requires qualifications-based selection for larger contracts. Counties must use the Title 34, Chapter 6 procedures for professional services contracts over $500,000. At or below $500,000 they may use Chapter 6, direct selection, public competition or annual qualification statements. Under Chapter 6, firms are ranked on qualifications only, with no fee or cost information, and the county negotiates with the top-ranked firm (A.R.S. 34-103).

Practical tips for Arizona

• Ask whether the county adopted the $100,000 amount. It changes which purchases need sealed bids (A.R.S. 11-254.01).
• Line up a 10% bid guarantee and 100% bonds before bidding construction (A.R.S. 34-201; 34-222).
• Have your E-Verify warranty ready. It applies to county contracts (A.R.S. 41-4401).
• Leave fees out of A&E qualification packages on Chapter 6 selections (A.R.S. 34-103).
• Check Arizona counties for each county's bid platform, contacts and agendas.