HF 2013 (LSB 5178YH (2) 86)

HOUSE FILE 2013

BY  WILLS

A BILL FOR

An Act relating to procurement procedures for state agencies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 8A.311, subsection 10, Code 2016, is amended to read as follows:
   10.  a.  The director shall adopt rules providing that any state agency may, upon request and approval by the department, purchase directly from a vendor if the direct purchasing is more economical than purchasing through the department, if the agency shows that direct purchasing by the state agency would be in the best interests of the state due to an immediate or emergency need, or if the purchase will not exceed ten thousand dollars and the purchase would contribute to the agency complying with the targeted small business procurement goals under sections 73.15 through 73.21.  A state agency that makes such a purchase shall promptly notify the department that the agency has done so. The notification shall include documentation demonstrating that the purchase met the criteria for a direct purchase provided in this subsection. Prior notification of or approval by the department for such purchases shall not be required. Competitive bidding shall not be required for such purchases.
   b.  Any member of the executive council may bring before the executive council for review a decision of the director granting a state agency request for direct purchasing. The executive council shall hear and review the director’s decision in the same manner as an appeal filed by an aggrieved bidder, except that the three-day period for filing for review shall not apply.
    Sec. 2.  Section 8A.311A, subsection 3, paragraph a, Code 2016, is amended to read as follows:
   a.  The department determines, upon a request by the agency, that the agency can satisfy satisfies the requirements for purchase of the good or service directly from a vendor as provided in section 8A.311, subsection 10, paragraph “a”.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   Current law permits a state agency, upon request and approval by the department of administrative services, to make a purchase of goods or services directly from a vendor, rather than purchasing through the department, if one of certain conditions is met. One of the conditions is if the purchase will not exceed $10,000 and the purchase would contribute to the agency complying with targeted small business procurement goals.
   This bill modifies that condition to permit a state agency to engage in direct purchasing for any purchase that will not exceed $10,000. The bill strikes the requirement for a prior request and approval by the department for direct purchasing. The bill requires a state agency that makes such a purchase to promptly notify the department that it has done so. The bill provides that the notification must include documentation demonstrating that the purchase met the criteria for a direct purchase provided in the bill. The bill provides that prior notification of or approval by the department for such purchases shall not be required. The bill provides that competitive bidding shall not be required for such purchases.
   The bill also provides that a state agency that meets the requirements for direct purchasing provided in the bill may engage in direct purchasing instead of purchasing pursuant to a master contract established by the department.