House File 321 - Introduced



                                       HOUSE FILE       
                                       BY  HUTTER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act changing the bid threshold requirement for certain public
  2    improvement contracts.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2004HH 81
  5 eg/cf/24

PAG LIN



  1  1    Section 1.  Section 8A.311, subsection 9, paragraph a, Code
  1  2 2005, is amended to read as follows:
  1  3    a.  When the estimated total cost of construction,
  1  4 erection, demolition, alteration, or repair of a public
  1  5 improvement exceeds twenty=five fifty thousand dollars, the
  1  6 department shall solicit bids on the proposed improvement by
  1  7 publishing an advertisement in a print format.  The
  1  8 advertisement shall appear in two publications in a newspaper
  1  9 published in the county in which the work is to be done.  The
  1 10 first advertisement for bids appearing in a newspaper shall be
  1 11 not less than fifteen days prior to the date set for receiving
  1 12 bids.  The department may publish an advertisement in an
  1 13 electronic format as an additional method of soliciting bids
  1 14 under this paragraph.
  1 15    Sec. 2.  Section 8A.311, subsection 16, Code 2005, is
  1 16 amended to read as follows:
  1 17    16.  The department shall not award a contract to a bidder
  1 18 for a construction, reconstruction, demolition, or repair
  1 19 project or improvement with an estimated cost that exceeds
  1 20 twenty=five fifty thousand dollars in which the bid requires
  1 21 the use of inmate labor supplied by the department of
  1 22 corrections, but not employed by private industry pursuant to
  1 23 section 904.809, to perform the project or improvement.
  1 24    Sec. 3.  Section 35A.10, subsection 2, Code 2005, is
  1 25 amended to read as follows:
  1 26    2.  The commandant and the commission shall have plans and
  1 27 specifications prepared by the department of administrative
  1 28 services for authorized construction, repair, or improvement
  1 29 projects in excess of twenty=five fifty thousand dollars.  An
  1 30 appropriation for a project shall not be expended until the
  1 31 department of administrative services has adopted plans and
  1 32 specifications and has completed a detailed estimate of the
  1 33 cost of the project, prepared under the supervision of a
  1 34 registered architect or registered professional engineer.
  1 35    Sec. 4.  Section 35A.10, subsection 3, Code 2005, is
  2  1 amended to read as follows:
  2  2    3.  The director of the department of administrative
  2  3 services shall, in writing, let all contracts for authorized
  2  4 improvements in excess of twenty=five fifty thousand dollars
  2  5 in accordance with chapter 8A, subchapter III.  The director
  2  6 of the department of administrative services shall not
  2  7 authorize payment for construction purposes until satisfactory
  2  8 proof has been furnished by the proper officer or supervising
  2  9 architect that the parties have complied with the contract.
  2 10    Sec. 5.  Section 73A.2, Code 2005, is amended to read as
  2 11 follows:
  2 12    73A.2  NOTICE OF HEARING.
  2 13    Before any municipality shall enter into any contract for
  2 14 any public improvement to cost twenty=five fifty thousand
  2 15 dollars or more, the governing body proposing to make the
  2 16 contract shall adopt proposed plans and specifications and
  2 17 proposed form of contract, fix a time and place for hearing at
  2 18 the municipality affected or other nearby convenient place,
  2 19 and give notice by publication in at least one newspaper of
  2 20 general circulation in the municipality at least ten days
  2 21 before the hearing.
  2 22    Sec. 6.  Section 73A.18, Code 2005, is amended to read as
  2 23 follows:
  2 24    73A.18  WHEN BIDS REQUIRED == ADVERTISEMENT == DEPOSIT.
  2 25    When the estimated total cost of construction, erection,
  2 26 demolition, alteration or repair of a public improvement
  2 27 exceeds twenty=five fifty thousand dollars, the municipality
  2 28 shall advertise for bids on the proposed improvement by two
  2 29 publications in a newspaper published in the county in which
  2 30 the work is to be done.  The first advertisement for bids
  2 31 shall be not less than fifteen days prior to the date set for
  2 32 receiving bids.  The municipality shall let the work to the
  2 33 lowest responsible bidder submitting a sealed proposal.
  2 34 However, if in the judgment of the municipality bids received
  2 35 are not acceptable, all bids may be rejected and new bids
  3  1 requested.  A bid shall be accompanied, in a separate
  3  2 envelope, by a deposit of money or a certified check or credit
  3  3 union certified share draft in an amount to be named in the
  3  4 advertisement for bids as security that the bidder will enter
  3  5 into a contract for the doing of the work.  The municipality
  3  6 shall fix the bid security in an amount equal to at least five
  3  7 percent, but not more than ten percent of the estimated total
  3  8 cost of the work.  The checks, share drafts or deposits of
  3  9 money of the unsuccessful bidders shall be returned as soon as
  3 10 the successful bidder is determined, and the check, share
  3 11 draft or deposit of money of the successful bidder shall be
  3 12 returned upon execution of the contract documents.  This
  3 13 section  does not apply to the construction, erection,
  3 14 demolition, alteration or repair of a public improvement when
  3 15 the contracting procedure for the doing of the work is
  3 16 provided for in another provision of law.
  3 17    Sec. 7.  Section 161C.2, subsection 1, paragraph b, Code
  3 18 2005, is amended to read as follows:
  3 19    b.  Any work project with an estimated cost of twenty=five
  3 20 fifty thousand dollars or more shall be undertaken as a public
  3 21 contract as provided in chapters 73A and 573.  The local
  3 22 contracting organization shall designate a contracting officer
  3 23 and shall establish procedures to manage the contract, approve
  3 24 bills for payment, and review proposed change orders or
  3 25 amendments to the contract.
  3 26    Sec. 8.  Section 218.58, subsections 2 and 4, Code 2005,
  3 27 are amended to read as follows:
  3 28    2.  The director shall have plans and specifications
  3 29 prepared by the department of administrative services for
  3 30 authorized construction, repair, or improvement projects
  3 31 costing over twenty=five fifty thousand dollars.  An
  3 32 appropriation for a project shall not be expended until the
  3 33 department of administrative services has adopted plans and
  3 34 specifications and has completed a detailed estimate of the
  3 35 cost of the project, prepared under the supervision of a
  4  1 registered architect or registered professional engineer.
  4  2 Plans and specifications shall not be adopted and a project
  4  3 shall not proceed if the project would require an expenditure
  4  4 of money in excess of the appropriation.
  4  5    4.  If the director of the department of human services and
  4  6 the director of the department of administrative services
  4  7 determine that emergency repairs or improvements estimated to
  4  8 cost more than twenty=five fifty thousand dollars are
  4  9 necessary to assure the continued operation of a departmental
  4 10 institution, the requirements of subsections 2 and 3 for
  4 11 preparation of plans and specifications and competitive
  4 12 procurement procedures are waived.  A determination of
  4 13 necessity for waiver by the director of the department of
  4 14 human services and the director of the department of
  4 15 administrative services shall be in writing and shall be
  4 16 entered in the project record for emergency repairs or
  4 17 improvements.  Emergency repairs or improvements shall be
  4 18 accomplished using plans and specifications and competitive
  4 19 procurement procedures to the greatest extent possible,
  4 20 considering the necessity for rapid completion of the project.
  4 21 A waiver of the requirements of subsections 2 and 3 does not
  4 22 authorize an expenditure in excess of an amount otherwise
  4 23 authorized for the repair or improvement.
  4 24    Sec. 9.  Section 262.34, unnumbered paragraph 1, Code 2005,
  4 25 is amended to read as follows:
  4 26    When the estimated cost of construction, repairs, or
  4 27 improvement of buildings or grounds under charge of the state
  4 28 board of regents exceeds twenty=five fifty thousand dollars,
  4 29 the board shall advertise for bids for the contemplated
  4 30 improvement or construction and shall let the work to the
  4 31 lowest responsible bidder.  However, if in the judgment of the
  4 32 board bids received are not acceptable, the board may reject
  4 33 all bids and proceed with the construction, repair, or
  4 34 improvement by a method as the board may determine.  All plans
  4 35 and specifications for repairs or construction, together with
  5  1 bids on the plans or specifications, shall be filed by the
  5  2 board and be open for public inspection.  All bids submitted
  5  3 under this section shall be accompanied by a deposit of money,
  5  4 a certified check or a credit union certified share draft in
  5  5 an amount as the board may prescribe.
  5  6    Sec. 10.  Section 297.8, Code 2005, is amended to read as
  5  7 follows:
  5  8    297.8  EMERGENCY REPAIRS.
  5  9    When emergency repairs costing more than twenty=five fifty
  5 10 thousand dollars are necessary in order to prevent the closing
  5 11 of any school, the provisions of the law with reference to
  5 12 advertising for bids shall not apply, and in that event the
  5 13 board may contract for such emergency repairs without
  5 14 advertising for bids.  However, before such emergency repairs
  5 15 can be made to any schoolhouse, it shall be necessary to
  5 16 procure a certificate from the area education agency
  5 17 administrator that such emergency repairs are necessary to
  5 18 prevent the closing of the school.
  5 19    Sec. 11.  Section 330A.12, Code 2005, is amended to read as
  5 20 follows:
  5 21    330A.12  AWARD OF CONTRACT.
  5 22    All contracts entered into by an authority for the
  5 23 construction, reconstruction, and improvement of aviation
  5 24 facilities shall be entered into pursuant to and shall comply
  5 25 with chapter 73A.  However, where an authority determines an
  5 26 emergency exists, it may enter into contracts obligating the
  5 27 authority for not in excess of twenty=five fifty thousand
  5 28 dollars per emergency without regard to the requirements of
  5 29 chapter 73A and the authority may proceed with the necessary
  5 30 action as expeditiously as possible to the extent necessary to
  5 31 resolve such emergency.
  5 32    Sec. 12.  Section 380.4, unnumbered paragraph 1, Code 2005,
  5 33 is amended to read as follows:
  5 34    Passage of an ordinance, amendment, or resolution requires
  5 35 a majority vote of all of the members of the council, except
  6  1 when the mayor may vote to break a tie vote in a city with an
  6  2 even number of council members, as provided in section 372.4.
  6  3 Passage of a motion requires a majority vote of a quorum of
  6  4 the council.  A resolution must be passed to spend public
  6  5 funds in excess of twenty=five fifty thousand dollars on any
  6  6 one project, or to accept public improvements and facilities
  6  7 upon their completion.  Each council member's vote on a
  6  8 measure must be recorded.  A measure which fails to receive
  6  9 sufficient votes for passage shall be considered defeated.
  6 10    Sec. 13.  Section 384.96, Code 2005, is amended to read as
  6 11 follows:
  6 12    384.96  SEALED BIDS.
  6 13    When the estimated total cost to a city of a public
  6 14 improvement exceeds the sum of twenty=five fifty thousand
  6 15 dollars, the governing body shall advertise for sealed bids
  6 16 for the proposed improvement by publishing a notice to bidders
  6 17 as provided in section 362.3, except that the notice to
  6 18 bidders may be published more than twenty days but not more
  6 19 than forty=five days before the date for filing bids.
  6 20    Sec. 14.  Section 384.102, Code 2005, is amended to read as
  6 21 follows:
  6 22    384.102  WHEN HEARING NECESSARY.
  6 23    When the estimated total cost of a public improvement
  6 24 exceeds the sum of twenty=five fifty thousand dollars, the
  6 25 governing body shall not enter into a contract for the
  6 26 improvement until it has held a public hearing on the proposed
  6 27 plans, specifications, and form of contract, and estimated
  6 28 cost for the improvement.  Notice of the hearing must be
  6 29 published as provided in section 362.3.  At the hearing any
  6 30 interested person may appear and file objections to the
  6 31 proposed plans, specifications, contract, or estimated cost of
  6 32 the improvement.  After hearing objections, the governing body
  6 33 shall by resolution enter its decision on the plans,
  6 34 specifications, contract, and estimated cost.
  6 35    Sec. 15.  Section 573.2, unnumbered paragraph 1, Code 2005,
  7  1 is amended to read as follows:
  7  2    Contracts for the construction of a public improvement
  7  3 shall, when the contract price equals or exceeds twenty=five
  7  4 fifty thousand dollars, be accompanied by a bond, with surety,
  7  5 conditioned for the faithful performance of the contract, and
  7  6 for the fulfillment of other requirements as provided by law.
  7  7 The bond may also be required when the contract price does not
  7  8 equal that amount.  However, if a contractor provides a
  7  9 performance or maintenance bond as required by a public
  7 10 improvement contract governed by this chapter and subsequently
  7 11 the surety company becomes insolvent and the contractor is
  7 12 required to purchase a new bond, the contractor may apply for
  7 13 reimbursement from the governmental agency that required a
  7 14 second bond and the claims shall be reimbursed from funds
  7 15 allocated for road construction purposes.
  7 16    Sec. 16.  Section 904.314, unnumbered paragraph 1, Code
  7 17 2005, is amended to read as follows:
  7 18    The director shall cause plans and specifications to be
  7 19 prepared by the department of administrative services for all
  7 20 improvements authorized and costing over twenty=five fifty
  7 21 thousand dollars.  An appropriation for any improvement
  7 22 costing over twenty=five fifty thousand dollars shall not be
  7 23 expended until the adoption of suitable plans and
  7 24 specifications, prepared by a competent architect and
  7 25 accompanied by a detailed statement of the amount, quality,
  7 26 and description of all material and labor required for the
  7 27 completion of the improvement.
  7 28    Sec. 17.  Section 904.315, Code 2005, is amended to read as
  7 29 follows:
  7 30    904.315  CONTRACTS FOR IMPROVEMENTS.
  7 31    The director of the department of administrative services
  7 32 shall, in writing, let all contracts for authorized
  7 33 improvements costing in excess of twenty=five fifty thousand
  7 34 dollars under chapter 8A, subchapter III.  Upon prior
  7 35 authorization by the director, improvements costing five
  8  1 thousand dollars or less may be made by the superintendent of
  8  2 any institution.
  8  3    A contract is not required for improvements at a state
  8  4 institution where the labor of inmates is to be used if the
  8  5 contract is not for a construction, reconstruction,
  8  6 demolition, or repair project or improvement with an estimated
  8  7 cost in excess of twenty=five fifty thousand dollars.
  8  8                           EXPLANATION
  8  9    This bill changes the bid threshold requirement for
  8 10 advertising for bids for a contract for a public improvement
  8 11 from a cost of $25,000 to a minimum cost of $50,000.  This
  8 12 increase in the threshold applies to contracts entered into by
  8 13 the state department of administrative services; the
  8 14 department of human services; the veterans affairs commission;
  8 15 municipalities, including townships; school corporations; the
  8 16 state fair board; the state board of regents; soil and water
  8 17 conservation districts; aviation authorities; counties;
  8 18 cities; and the state department of corrections.  The bill
  8 19 applies the threshold amount requirement to the bond
  8 20 requirement for construction of public improvements by the
  8 21 state and major political subdivisions pursuant to Code
  8 22 section 573.2.
  8 23 LSB 2004HH 81
  8 24 eg:rj/cf/24