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