SF 465 (LSB 2621XS (2) 88)

SENATE FILE 465

BY  QUIRMBACH

A BILL FOR

An Act relating to the awarding of contracts for public improvement projects.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 26.7, subsection 2, Code 2019, is amended to read as follows:
   2.  The notice to bidders may provide that bids will be received for the furnishing of all labor and materials and furnishing or installing equipment under one contract, or for parts thereof in separate sections.  If the notice provides for bids for separate parts of a project, the notice shall also provide that bids shall be accepted for any combination of parts, including for the whole project.
    Sec. 2.  Section 26.9, subsection 1, Code 2019, is amended to read as follows:
   1.  The contract or contracts for the public improvement must be awarded to the lowest responsive, responsible bidder or combination of responsible bidders whose bid or bids minimize the total cost of the award. However, contracts relating to public utilities or extensions or improvements thereof, as described in sections 384.80 through 384.94, may be awarded by the city as it deems to be in the best interests of the city. This section shall not be construed to prohibit a governmental entity in the award of a contract for a public improvement or a governing body of a city utility from providing, in the award of a contract for a public improvement, an enhancement of payments upon early completion of the public improvement if the availability of the enhancement payments is included in the notice to bidders, the enhancement payments are competitively neutral to potential bidders, the enhancement payments are considered as a separate item in the public hearing on the award of contract, and the total value of the enhancement payments does not exceed ten percent of the value of the contract.
    Sec. 3.  Section 26.10, subsection 1, Code 2019, is amended to read as follows:
   1.  The date and time that each bid is received by the governmental entity, together with the name of the person receiving the bid, shall be recorded on the envelope containing the bid. All bids received after the deadlines for submission of bids as stated in the project specifications shall not be considered and shall be returned to the late bidder unopened. The governmental entity shall open, announce the amount of the bids, and file all proposals received, at the time and place specified in the notice to bidders. The governmental entity may, by resolution, award the contract or contracts for the public improvement to the bidder or combination of responsible bidders submitting the lowest responsive, total responsible bid or bids to minimize the total cost of the award, determined as provided in section 26.9, or the governmental entity may reject all bids received, fix a new date for receiving bids, and order publication of a new notice to bidders. The governmental entity shall retain the bid security furnished by the successful bidder until the approved contract form has been executed, a bond has been filed by the bidder guaranteeing the performance of the contract, and the contract and bond have been approved by the governmental entity. The provisions of chapter 573, where applicable, apply to contracts awarded under this chapter.
    Sec. 4.  Section 26.14, subsection 3, paragraphs a and b, Code 2019, are amended to read as follows:
   a.  When a competitive quotation is required, the governmental entity shall make a good faith effort to obtain quotations for the work from at least two contractors regularly engaged in such work prior to letting a contract. Good faith effort shall include advising all contractors who have filed with the governmental entity a request for notice of projects. The governmental entity shall provide such notice in a timely manner so that a requesting contractor will have a reasonable opportunity to submit a competitive quotation.  If the notice provides for quotations for separate parts of a project, the notice shall also provide that quotations shall be accepted for any combination of parts, including for the whole project. Quotations may be obtained from contractors after the governmental entity provides a description of the work to be performed, including the plans and specifications prepared by an architect, landscape architect, or engineer, if required under chapter 542B, 544B, or 544A, and an opportunity to inspect the work site. The contractor shall include in the quotation the price for labor, materials, equipment, and supplies required to perform the work. If the work can be performed by an employee or employees of the governmental entity, the governmental entity may file a quotation for the work to be performed in the same manner as a contractor. If the governmental entity receives no quotations after making a good faith effort to obtain quotations from at least two contractors regularly engaged in such work, the governmental entity may negotiate a contract with a contractor regularly engaged in such work.
   b.  The governmental entity shall designate the time, place, and manner for filing quotations, which may be received by mail, facsimile, or electronic mail. The governmental entity shall award the contract or contracts to the contractor or contractors submitting the lowest responsive, total responsible quotation or quotations to minimize the total cost of the award subject to section 26.9, or the governmental entity may reject all of the quotations. The unconditional acceptance and approval of the lowest responsive, responsible quotation shall constitute the award of a contract. The governmental entity shall record the approved quotation in its meeting minutes. The contractor awarded the contract shall not commence work until the contractor’s performance and payment bond has been approved by the governmental entity. A governmental entity may delegate the authority to award a contract, to execute a contract, to authorize work to proceed under a contract, or to approve the contractor’s performance and payment bond to an officer or employee of the governmental entity. A quotation approved outside a meeting of the governing body of a governmental entity shall be included in the minutes of the next regular or special meeting of the governing body.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the awarding of contracts for public improvement projects.
   The bill provides that if a governmental entity states in a notice that the governmental entity is accepting bids or quotations for multiple parts of a project for public improvement, then the entity shall accept bids or quotations for any combination of parts of the project, including bids or quotations for the whole project. Under the bill, the governmental entity shall award a contract or multiple contracts to the combination of bidders or contractors that minimizes the total cost of the award.