House File 2752 - Introduced
HOUSE FILE
BY COMMITTEE ON GOVERNMENT
OVERSIGHT
(SUCCESSOR TO HSB 508)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to state bidding requirements for purchases.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
3 TLSB 5442HV 81
4 jr/gg/14
PAG LIN
1 1 Section 1. Section 8.6, Code 2005, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 15. MASTER CONTRACT FILE. To maintain a
1 4 file, open to public inspection, containing the documentation
1 5 provided by state agencies to support the use of master
1 6 contracts with terms in excess of five years.
1 7 Sec. 2. Section 8A.311, subsection 1, paragraph a, Code
1 8 Supplement 2005, is amended to read as follows:
1 9 a. All equipment, supplies, or services procured by the
1 10 department and each state agency shall be purchased by a
1 11 competitive bidding procedure as established by rule.
1 12 However, the director may exempt by rule purchases of
1 13 noncompetitive items and purchases in lots or quantities too
1 14 small to be effectively purchased by competitive bidding. The
1 15 rules shall provide that architectural and engineering
1 16 services shall be procured on the basis of bidder competence
1 17 and reasonable price and shall not be based on competitive
1 18 bidding. The rules may include the use of a master contract;
1 19 however, the term of a master contract shall be no longer than
1 20 five years unless a longer term is determined, in the sole
1 21 discretion of the department, to provide a greater fiscal
1 22 savings. Documentation, as determined to be adequate by the
1 23 director, supporting that determination shall be provided to
1 24 the department of management, which shall maintain the
1 25 documentation in a master contract file. A master contract
1 26 shall not be extended beyond the specified term unless a
1 27 competitive bidding procedure is used. Any master contract in
1 28 effect on July 1, 2006, may be extended beyond the term of the
1 29 master contract as expressly provided by the terms of the
1 30 master contract; however, that extension may be for no longer
1 31 than three years unless the master contract generates revenue
1 32 for the state or a compelling reason justifies a longer
1 33 period. Preference shall be given to purchasing Iowa products
1 34 and purchases from Iowa=based businesses if the Iowa=based
1 35 business bids submitted are comparable in price to bids
2 1 submitted by out=of=state businesses and otherwise meet the
2 2 required specifications. If the laws of another state mandate
2 3 a percentage preference for businesses or products from that
2 4 state and the effect of the preference is that bids of Iowa
2 5 businesses or products that are otherwise low and responsive
2 6 are not selected in the other state, the same percentage
2 7 preference shall be applied to Iowa businesses and products
2 8 when businesses or products from that other state are bid to
2 9 supply Iowa requirements.
2 10 Sec. 3. Section 216B.3, subsection 12, unnumbered
2 11 paragraph 1, Code 2005, is amended to read as follows:
2 12 Manage and control the property, both real and personal,
2 13 belonging to the department. Equipment, supplies, or services
2 14 procured by the commission shall be purchased through a
2 15 competitive bidding procedure as established by rule.
2 16 However, the commission may exempt by rule purchases of
2 17 noncompetitive items and purchases in lots or quantities too
2 18 small to be effectively purchased by competitive bidding. The
2 19 rules shall provide that architectural and engineering
2 20 services shall be procured on the basis of bidder competence
2 21 and reasonable price and shall not be based on competitive
2 22 bidding. The rules may include the use of a master contract;
2 23 however, the term of a master contract shall be no longer than
2 24 five years unless a longer term is determined, in the sole
2 25 discretion of the commission, to provide a greater fiscal
2 26 savings. Documentation, as determined to be adequate by the
2 27 commission, supporting that determination shall be provided to
2 28 the department of management, which shall maintain that
2 29 documentation in a master contract file. A master contract
2 30 shall not be extended beyond the specified term unless a
2 31 competitive bidding process is used. Any master contract in
2 32 effect on July 1, 2006, may be extended beyond the term of the
2 33 master contract as expressly provided by the terms of the
2 34 master contract; however, that extension may be for no longer
2 35 than three years unless the master contract generates revenue
3 1 for the state or a compelling reason justifies a longer
3 2 period.
3 3 PARAGRAPH DIVIDED. The commission shall, according to the
3 4 schedule established in this subsection, when the price is
3 5 reasonably competitive and the quality as intended, purchase
3 6 soybean=based inks and plastic products with recycled content,
3 7 including but not limited to plastic garbage can liners. For
3 8 purposes of this subsection, "recycled content" means that the
3 9 content of the product contains a minimum of thirty percent
3 10 postconsumer material.
3 11 Sec. 4. Section 262.9, Code Supplement 2005, is amended by
3 12 adding the following new subsection:
3 13 NEW SUBSECTION. 31. Require, to the extent practicable,
3 14 that all equipment, supplies, or services procured by all
3 15 institutions under the jurisdiction of the board be purchased
3 16 through a competitive bidding procedure as established by
3 17 rule. However, the secretary may exempt by rule purchases of
3 18 noncompetitive items and purchases in lots or quantities too
3 19 small to be effectively purchased by competitive bidding. The
3 20 rules shall provide that architectural and engineering
3 21 services shall be procured on the basis of bidder competence
3 22 and reasonable price and shall not be based on competitive
3 23 bidding. The rules may include the use of a master contract;
3 24 however, the term of a master contract shall be no longer than
3 25 five years unless a longer term is determined, in the sole
3 26 discretion of the purchasing authority, to provide a greater
3 27 fiscal savings. Documentation, as determined to be adequate
3 28 by the purchasing authority, supporting that determination
3 29 shall be provided to the department of management, which shall
3 30 maintain that documentation in a master contract file. A
3 31 master contract shall not be extended beyond the specified
3 32 term unless a competitive bidding process is used. Any master
3 33 contract in effect on July 1, 2006, may be extended beyond the
3 34 term of the master contract as expressly provided by the terms
3 35 of the master contract; however, that extension may be for no
4 1 longer than three years unless the master contract generates
4 2 revenue for the state or a compelling reason justifies a
4 3 longer period.
4 4 Sec. 5. Section 307.21, subsection 4, paragraph a, Code
4 5 2005, is amended to read as follows:
4 6 a. Provide centralized purchasing services for the
4 7 department, in cooperation with the department of
4 8 administrative services. Equipment, supplies, or services
4 9 procured by the department shall be purchased through a
4 10 competitive bidding procedure as established by rule.
4 11 However, the administration may exempt by rule purchases of
4 12 noncompetitive items and purchases in lots or quantities too
4 13 small to be effectively purchased by competitive bidding. The
4 14 rules shall provide that architectural and engineering
4 15 services shall be procured on the basis of bidder competence
4 16 and reasonable price and shall not be based on competitive
4 17 bidding. The rules may include the use of a master contract;
4 18 however, the term of a master contract shall be no longer than
4 19 five years unless a longer term is determined, in the sole
4 20 discretion of the administrator, to provide a greater fiscal
4 21 savings. Documentation, as determined to be adequate by the
4 22 administrator, supporting that determination shall be provided
4 23 to the department of management, which shall maintain that
4 24 documentation in a master contract file. A master contract
4 25 shall not be extended beyond the specified term unless a
4 26 competitive bidding process is used. Any master contract in
4 27 effect on July 1, 2006, may be extended beyond the term of the
4 28 master contract as expressly provided by the terms of the
4 29 master contract; however, that extension may be for no longer
4 30 than three years unless the master contract generates revenue
4 31 for the state or a compelling reason justifies a longer
4 32 period.
4 33 PARAGRAPH DIVIDED. The administrator shall, when the price
4 34 is reasonably competitive and the quality as intended,
4 35 purchase soybean=based inks and plastic products with recycled
5 1 content, including but not limited to plastic garbage can
5 2 liners, and shall purchase these items in accordance with the
5 3 schedule established in section 8A.315. However, the
5 4 administrator need not purchase garbage can liners in
5 5 accordance with the schedule if the liners are utilized by a
5 6 facility approved by the environmental protection commission
5 7 created under section 455A.6, for purposes of recycling. For
5 8 purposes of this subsection, "recycled content" means that the
5 9 content of the product contains a minimum of thirty percent
5 10 postconsumer material.
5 11 Sec. 6. STATE MODEL PROCUREMENT CODE STUDY COMMITTEE. The
5 12 department of administrative services shall initiate and
5 13 coordinate the establishment of a model procurement code study
5 14 committee and provide staffing assistance to the committee.
5 15 It is the intent of the general assembly that the committee
5 16 shall include representatives of the department of
5 17 administrative services, state department of transportation,
5 18 institutions under the jurisdiction of the state board of
5 19 regents, and other stakeholders.
5 20 The procedures by which the state of Iowa purchases goods
5 21 and services is a significant issue for Iowa taxpayers and
5 22 Iowa business. The committee shall study and make legislative
5 23 and administrative recommendations relating to the feasibility
5 24 of implementing all or portions of the 2000 model procurement
5 25 code for state and local governments, as adopted by the
5 26 American bar association.
5 27 The committee shall submit a report to the general assembly
5 28 by December 31, 2007. The report shall contain the findings
5 29 and recommendations of the committee and may include a draft
5 30 of proposed legislation or proposed administrative rules
5 31 necessary to implement a model procurement code.
5 32 EXPLANATION
5 33 This bill provides, as a general principle, that a master
5 34 contract may be in effect for only five years. However, a
5 35 longer term may be provided for if the agency determines, in
6 1 its sole discretion, that it would provide greater savings.
6 2 Documentation that supports this determination must be
6 3 provided to the department of management, which shall maintain
6 4 that documentation in a central file available for public
6 5 inspection. The bill does not grant the department approval
6 6 authority over these contracts. Architectural and engineering
6 7 services shall be obtained on the basis of competence and
6 8 price instead of a competitive bid. The bill contains a
6 9 grandfather clause for master contracts in effect on July 1,
6 10 2006. These contracts may be extended as expressly provided
6 11 in the contract, but for no longer than three years beyond the
6 12 normal term of the master contract unless the master contract
6 13 generates revenue for the state or a compelling reason
6 14 justifies a longer period.
6 15 A master contract is generally an agreement with a vendor
6 16 to sell a good or a service at a specified price, and allows
6 17 any number of individual sales at that price, usually to any
6 18 state agency.
6 19 The bill requires the department of administrative services
6 20 to conduct a study concerning the possible adoption of all or
6 21 part of the 2000 model procurement code for state and local
6 22 governments.
6 23 LSB 5442HV 81
6 24 jr:rj/gg/14