Text: HF00259 Text: HF00261 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 72.3, Code 1995, is amended to read as 1 2 follows: 1 3 72.3 DIVULGING CONTENTS OF SEALED BIDS OR COMPETITIVE 1 4 PROPOSALS. 1 5NoA public officer or deputy thereof, if any, shall not 1 6 directly or indirectly or in any manner whatsoever, at any 1 7 other time or in any other manner than as provided by law, 1 8 open any sealed bid or competitive proposal, or convey or 1 9 divulge to any person any part of the contents of a sealed bid 1 10 or competitive proposal, on any proposed contract concerning 1 11 which a sealed bid or competitive proposal is required or 1 12 permitted by law. 1 13 Sec. 2. Section 73A.18, Code 1995, is amended by adding 1 14 the following new unnumbered paragraph: 1 15 NEW UNNUMBERED PARAGRAPH. In lieu of receiving sealed 1 16 bids pursuant to this section, a municipality may request 1 17 competitive proposals in accordance with the procedures 1 18 provided in chapter 384, division VI. 1 19 Sec. 3. Section 384.95, Code 1995, is amended by adding 1 20 the following new subsections: 1 21 NEW SUBSECTION. 3. "Bidder" means a person responding to 1 22 a request for sealed bids or competitive proposals. 1 23 NEW SUBSECTION. 4. "Competitive proposal" means a 1 24 response by a bidder to a solicitation for proposals by a 1 25 governing body, in the nature of a sealed bid, except that the 1 26 proposal includes cost or pricing data and the proposal 1 27 remains subject to discussion and negotiation with the 1 28 governing body up to the time a contract is awarded. 1 29 NEW SUBSECTION. 5. "Cost or pricing data" means all 1 30 verifiable facts that a prudent buyer or seller would 1 31 reasonably expect to significantly affect price negotiations, 1 32 including facts forming the basis of the offeror's judgment 1 33 about estimated future costs or projections, and facts that 1 34 can be reasonably expected to contribute to the soundness of 1 35 estimates of future costs and to the validity of 2 1 determinations of costs already incurred. 2 2 NEW SUBSECTION. 6. "Responsible" means a bidder that 2 3 possesses the ability, including the financial ability, to 2 4 adequately comply with and perform the requirements of a 2 5 contract and that has a satisfactory record of integrity, 2 6 business ethics, and performance. A bidder that has a current 2 7 certificate of competency from the United States small 2 8 business administration is deemed to be responsible. 2 9 NEW SUBSECTION. 7. "Responsive" means that a bid or 2 10 proposal meets the technical and contractual requirements of 2 11 the solicitation by the governing body for sealed bids or 2 12 competitive proposals. 2 13 Sec. 4. Section 384.96, Code 1995, is amended to read as 2 14 follows: 2 15 384.96 SEALED BIDS OR COMPETITIVE PROPOSALS. 2 16 When the estimated total cost to a city of a public 2 17 improvement exceeds the sum of twenty-five thousand dollars, 2 18 the governing body shall advertise for sealed bids or 2 19 competitive proposals for the proposed improvement by 2 20 publishing a notice to bidders as provided in section 362.3, 2 21 except that the notice to biddersmaymust be published more 2 22 than twenty daysbut not more than forty-five daysbefore the 2 23 date for filing bids or competitive proposals with the 2 24 governing body. 2 25 Sec. 5. Section 384.97, Code 1995, is amended to read as 2 26 follows: 2 27 384.97 NOTICE TO BIDDERS. 2 28 The notice to bidders must state the following items: 2 29 1. The time and place for filing sealed bids or 2 30 competitive proposals. 2 31 2. The time and place sealedproposalsbids will be opened 2 32 and considered on behalf of the governing body. 2 33 3. The general nature of the public improvement on which 2 34 sealed bids or competitive proposals are requested. 2 35 4. In general terms when the work must be commenced and 3 1 when it must be completed. 3 2 5. That each bidder shall accompany the sealed bid or 3 3 competitive proposal with a bid security as defined in this 3 4 subsection and as specified by the governing body, as security 3 5 that the successful bidder will enter into a contract for the 3 6 workbid uponrequested and will furnish after the award of 3 7 contract a corporate surety bond, acceptable to the governing 3 8 body, for the faithful performance of the contract, in an 3 9 amount equal to one hundred percent of the amount of the 3 10 contract. The bidder's security shall be in an amount fixed 3 11 by the governing body, and shall be in the form of a cashier's 3 12 or certified check drawn on a bank in Iowa or a bank chartered 3 13 under the laws of the United States, or a certified share 3 14 draft drawn on a credit union in Iowa or chartered under the 3 15 law of the United States, or the governing body may provide 3 16 for a bidder's bond with corporate surety satisfactory to the 3 17 governing body. The bid bond shall contain no condition 3 18 except as provided in this section. 3 19 6. Any further information which the governing body deems 3 20 pertinent. 3 21 The notice to bidders may provide that sealed bids or 3 22 competitive proposals will be received for the furnishing of 3 23 all labor and materials and furnishing or installing equipment 3 24 under one contract, or for parts thereof in separate sections. 3 25 On public improvements to be financed wholly or partially 3 26 by special assessments against benefited property, the 3 27 governing body, in the notice to bidders, may request 3 28 aggregate sealed bids or competitive proposals for all 3 29 projects included in any resolution of necessity, 3 30 notwithstanding variations in the sizes of the improvements 3 31 and notwithstanding that some parts of the improvements are 3 32 assessable and some nonassessable, and may award the contract 3 33 to the lowest evaluated, responsive, responsible bidder 3 34 submitting the lowest evaluated aggregate bid or proposal. 3 35 7. The sealed bid or competitive proposal must provide for 4 1 a minimum period of time of not less than thirty days, for the 4 2 governing body to accept the bid or proposal. 4 3 Sec. 6. Section 384.98, Code 1995, is amended to read as 4 4 follows: 4 5 384.98 BID SECURITY. 4 6 The amount of bid security for the sealed bid or 4 7 competitive proposal must be fixed by the governing body prior 4 8 to ordering publication of the notice to bidders and must 4 9 equal at least five percent, but may not exceed ten percent of 4 10 either the estimated total contract cost of the public 4 11 improvement, or the amount of each bid or proposal. 4 12 Sec. 7. Section 384.99, Code 1995, is amended to read as 4 13 follows: 4 14 384.99 AWARD OF CONTRACT. 4 15 The contract for the public improvement must be awarded to 4 16 the lowest evaluated, responsive, responsible bidder, 4 17 provided, however, that contracts relating to public utilities 4 18 or extensions or improvements thereof, as described in 4 19 division V of this chapter, may be awarded by the governing 4 20 body as it deems to be in the best interests of the city. 4 21 Sec. 8. Section 384.100, Code 1995, is amended to read as 4 22 follows: 4 23 384.100OPENING ANDCONSIDERING SEALED BIDS AND 4 24 COMPETITIVE PROPOSALS. 4 25 1. SEALED BIDS. The governing body shall publicly open, 4 26 announce the amount of the sealed bids, and file allproposals4 27 bids received, at the time and place specified in the notice 4 28 to bidders. The governing body may, by resolution, award the 4 29 contract for the public improvement to the bidder submitting 4 30 the best bid, determined as provided in section 384.99, or it 4 31 may reject all bids received, fix a new date for receiving 4 32 sealed bids or competitive proposals, and order publication of 4 33 a new notice to bidders. The bid security furnished by the 4 34 successful bidder must be retained by the governing body until 4 35 the approved contract form has been executed, and a bond filed 5 1 by the bidder guaranteeing the performance of the contract and 5 2 payment of all subcontractors, and the contract and bond,have 5 3 been approved by the governing body. The provisions of 5 4 chapter 573, where applicable, apply to contracts awarded 5 5 under this division. 5 6 The checks or bidder's bonds of the unsuccessful bidder 5 7 must be promptly returned to the bidders by the governing body 5 8 as soon as the successful bidder is determined or within 5 9 thirty days whichever is sooner. 5 10 2. COMPETITIVE PROPOSALS. The governing body shall open 5 11 and negotiate competitive proposals in private. Each proposal 5 12 submitted, including cost or pricing data, is to be considered 5 13 a confidential record. The designees of the governing body 5 14 shall conduct negotiations with all responsive and responsible 5 15 bidders prior to recommending an award of the contract to the 5 16 bidder making the best proposal as provided in section 384.99. 5 17 The governing body may, by resolution, award the contract for 5 18 the public improvement to the bidder submitting the best 5 19 proposal, determined as provided in section 384.99, or it may 5 20 reject all proposals received, fix a new date for receiving 5 21 sealed bids or competitive proposals, and order publication of 5 22 a new notice to bidders. In awarding the contract, the 5 23 governing body shall disclose only the total aggregate cost to 5 24 the governing body to enter into the contract and not the cost 5 25 or pricing data. All proposals submitted shall remain 5 26 confidential and be retained by the governing body for three 5 27 years after completion of the project at which time all 5 28 unsuccessful proposals shall be destroyed. The bid security 5 29 furnished by the successful bidder must be retained by the 5 30 governing body until the approved contract form has been 5 31 executed, and a bond filed by the bidder guaranteeing the 5 32 performance of the contract and payment of all subcontractors, 5 33 and the contract and bond have been approved by the governing 5 34 body. The provisions of chapter 573, where applicable, apply 5 35 to contracts awarded under this division. 6 1 The checks or bidder's bonds of the unsuccessful bidder 6 2 must be promptly returned to the bidders by the governing body 6 3 as soon as the successful bidder is determined or within 6 4 thirty days, whichever is sooner. 6 5 Sec. 9. Section 384.101, Code 1995, is amended to read as 6 6 follows: 6 7 384.101 DELEGATION OF AUTHORITY. 6 8 When sealed bids or competitive proposals are required to 6 9 be taken in connection with any public improvement, the 6 10 governing body may delegate, by ordinance or resolution, to 6 11 the city manager, clerk, engineer, chief of purchasing, 6 12 finance officer, or other public officer, thedutyduties set 6 13 forth in section 384.100 of receiving and opening sealed bids 6 14and announcing the resultsor opening and negotiating 6 15 competitive proposals. The officer shall report the results 6 16of the biddingwith the officer's recommendations thereon to 6 17 the governing body at its next meeting. 6 18 Sec. 10. Section 384.102, Code 1995, is amended to read as 6 19 follows: 6 20 384.102 WHEN HEARING NECESSARY. 6 21 When the estimated total cost of a public improvement 6 22exceedsmight exceed the sum of twenty-five thousand dollars, 6 23 the governing body shall not enter into a contract for the 6 24 improvement until it has held a public hearing on the proposed 6 25 plans, specifications, and form of contract, and estimated6 26costfor the improvement. Notice of the hearing must be 6 27 published as provided in section 362.3. At the hearing any 6 28 interested person may appear and file objections to the 6 29 proposed plans, specifications, or contract, or estimated cost6 30offor the improvement. After hearing objections, the 6 31 governing body shall by resolution enter its decision on the 6 32 plans, specifications, and contract, and estimated cost. 6 33 EXPLANATION 6 34 This bill provides for an alternative procedure for cities 6 35 and municipalities, defined as townships, school corporations, 7 1 the state fair board, and the state board of regents, to award 7 2 contracts for public improvements that exceed $25,000. The 7 3 bill permits an award of a contract pursuant to a request for 7 4 competitive proposals in addition to the current sealed bids 7 5 procedure. 7 6 The bill defines competitive proposals as a proposal that 7 7 includes detailed cost or pricing data outlining the cost for 7 8 performing the contract. Proposals requested under this 7 9 procedure are subject to discussion and negotiation up until 7 10 the time the contract is awarded. The bill also defines what 7 11 a responsive bid or proposal is and what constitutes a 7 12 responsible bidder. The bill also provides that the cost or 7 13 pricing data included in the proposal is confidential and not 7 14 disclosable to the public; only the total aggregate cost of 7 15 the proposal awarded the contract is disclosed. Most of the 7 16 procedures and protections applied to the current sealed bid 7 17 procedure also apply to the competitive proposals procedure. 7 18 The bill also makes some changes to the city contract 7 19 letting procedure as it applies to both sealed bids and 7 20 competitive proposals by eliminating the consideration of the 7 21 estimated cost of a public improvement at the public hearing 7 22 prior to solicitation of bids or proposals, by eliminating the 7 23 maximum time period for publishing a notice of a request for 7 24 bids or proposals, and by requiring at least 30 days for 7 25 consideration by the governing body of a bid or proposal. 7 26 LSB 2288HH 76 7 27 ec/jj/8
Text: HF00259 Text: HF00261 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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