House Study Bill 508
HOUSE FILE
BY (PROPOSED COMMITTEE ON
GOVERNMENT OVERSIGHT BILL
BY CHAIRPERSON ALONS)
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 5442HC 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 To the extent practicable the rules shall be
1 13 substantially similar to the 2000 model procurement code for
1 14 state and local governments. The director may exempt by rule
1 15 purchases of noncompetitive items and purchases in lots or
1 16 quantities too small to be effectively purchased by
1 17 competitive bidding. The rules may include the use of a
1 18 master contract; however, the term of a master contract shall
1 19 be no longer than five years unless a longer term is
1 20 determined, in the sole discretion of the department, to
1 21 provide a greater fiscal savings. Documentation supporting
1 22 that determination shall be provided to the department of
1 23 management, which shall maintain the documentation in a master
1 24 contract file. A master contract shall not be extended beyond
1 25 the specified term unless a competitive bidding process is
1 26 used. Any master contract in effect on July 1, 2006, may be
1 27 extended beyond the term of the master contract as expressly
1 28 provided by the terms of the master contract; however, that
1 29 extension may be for no longer than three years. Preference
1 30 shall be given to purchasing Iowa products and purchases from
1 31 Iowa=based businesses if the Iowa=based business bids
1 32 submitted are comparable in price to bids submitted by out=
1 33 of=state businesses and otherwise meet the required
1 34 specifications. If the laws of another state mandate a
1 35 percentage preference for businesses or products from that
2 1 state and the effect of the preference is that bids of Iowa
2 2 businesses or products that are otherwise low and responsive
2 3 are not selected in the other state, the same percentage
2 4 preference shall be applied to Iowa businesses and products
2 5 when businesses or products from that other state are bid to
2 6 supply Iowa requirements.
2 7 Sec. 3. Section 216B.3, subsection 12, unnumbered
2 8 paragraph 1, Code 2005, is amended to read as follows:
2 9 Manage and control the property, both real and personal,
2 10 belonging to the department. Equipment, supplies, or services
2 11 procured by the commission shall be purchased through a
2 12 competitive bidding procedure as established by rule. To the
2 13 extent practicable, the rules shall be substantially similar
2 14 to the 2000 model procurement code for state and local
2 15 governments. However, the commission may exempt by rule
2 16 purchases of noncompetitive items and purchases in lots or
2 17 quantities too small to be effectively purchased by
2 18 competitive bidding. The rules shall provide that
2 19 architectural and engineering services shall be procured on
2 20 the basis of bidder competence and reasonable price and shall
2 21 not be based on competitive bidding. The rules may include
2 22 the use of a master contract; however, the term of a master
2 23 contract shall be no longer than five years unless a longer
2 24 term is determined, in the sole discretion of the commission,
2 25 to provide a greater fiscal savings. Documentation supporting
2 26 that determination shall be provided to the department of
2 27 management, which shall maintain that documentation in a
2 28 master contract file. A master contract shall not be extended
2 29 beyond the specified term unless a competitive bidding process
2 30 is used. Any master contract in effect on July 1, 2006, may
2 31 be extended beyond the term of the master contract as
2 32 expressly provided by the terms of the master contract;
2 33 however, that extension may be for no longer than three years.
2 34 PARAGRAPH DIVIDED. The commission shall, according to the
2 35 schedule established in this subsection, when the price is
3 1 reasonably competitive and the quality as intended, purchase
3 2 soybean=based inks and plastic products with recycled content,
3 3 including but not limited to plastic garbage can liners. For
3 4 purposes of this subsection, "recycled content" means that the
3 5 content of the product contains a minimum of thirty percent
3 6 postconsumer material.
3 7 Sec. 4. Section 262.9, Code Supplement 2005, is amended by
3 8 adding the following new subsection:
3 9 NEW SUBSECTION. 31. Require, to the extent practicable,
3 10 that all equipment, supplies, or services procured by all
3 11 institutions under the jurisdiction of the board be purchased
3 12 through a competitive bidding procedure as established by
3 13 rule. To the extent practicable, the rules shall be
3 14 substantially similar to the 2000 model procurement code for
3 15 state and local governments. However, the secretary may
3 16 exempt by rule purchases of noncompetitive items and purchases
3 17 in lots or quantities too small to be effectively purchased by
3 18 competitive bidding. The rules shall provide that
3 19 architectural and engineering services shall be procured on
3 20 the basis of bidder competence and reasonable price and shall
3 21 not be based on competitive bidding. The rules may include
3 22 the use of a master contract; however, the term of a master
3 23 contract shall be no longer than five years unless a longer
3 24 term is determined, in the sole discretion of the purchasing
3 25 authority, to provide a greater fiscal savings. Documentation
3 26 supporting that determination shall be provided to the
3 27 department of management, which shall maintain that
3 28 documentation in a master contract file. A master contract
3 29 shall not be extended beyond the specified term unless a
3 30 competitive bidding process is used. Any master contract in
3 31 effect on July 1, 2006, may be extended beyond the term of the
3 32 master contract as expressly provided by the terms of the
3 33 master contract; however, that extension may be for no longer
3 34 than three years.
3 35 Sec. 5. Section 307.21, subsection 4, paragraph a, Code
4 1 2005, is amended to read as follows:
4 2 a. Provide centralized purchasing services for the
4 3 department, in cooperation with the department of
4 4 administrative services. Equipment, supplies, or services
4 5 procured by the department shall be purchased through a
4 6 competitive bidding procedure as established by rule. To the
4 7 extent practicable, the rules shall be substantially similar
4 8 to the 2000 model procurement code for state and local
4 9 governments. However, the administrator may exempt by rule
4 10 purchases of noncompetitive items and purchases in lots or
4 11 quantities too small to be effectively purchased by
4 12 competitive bidding. The rules shall provide that
4 13 architectural and engineering services shall be procured on
4 14 the basis of bidder competence and reasonable price and shall
4 15 not be based on competitive bidding. The rules may include
4 16 the use of a master contract; however, the term of a master
4 17 contract shall be no longer than five years unless a longer
4 18 term is determined, in the sole discretion of the
4 19 administrator, to provide a greater fiscal savings.
4 20 Documentation supporting that determination shall be provided
4 21 to the department of management, which shall maintain that
4 22 documentation in a master contract file. A master contract
4 23 shall not be extended beyond the specified term unless a
4 24 competitive bidding process is used. Any master contract in
4 25 effect on July 1, 2006, may be extended beyond the term of the
4 26 master contract as expressly provided by the terms of the
4 27 master contract; however, that extension may be for no longer
4 28 than three years.
4 29 PARAGRAPH DIVIDED. The administrator shall, when the price
4 30 is reasonably competitive and the quality as intended,
4 31 purchase soybean=based inks and plastic products with recycled
4 32 content, including but not limited to plastic garbage can
4 33 liners, and shall purchase these items in accordance with the
4 34 schedule established in section 8A.315. However, the
4 35 administrator need not purchase garbage can liners in
5 1 accordance with the schedule if the liners are utilized by a
5 2 facility approved by the environmental protection commission
5 3 created under section 455A.6, for purposes of recycling. For
5 4 purposes of this subsection, "recycled content" means that the
5 5 content of the product contains a minimum of thirty percent
5 6 postconsumer material.
5 7 EXPLANATION
5 8 This bill establishes a general policy for state executive
5 9 branch agencies that equipment, supplies, or services procured
5 10 by the state shall be purchased using a competitive bidding
5 11 procedure, which is substantially similar to the 2000 model
5 12 procurement code for state and local governments. However,
5 13 architectural and engineering services shall be obtained on
5 14 the basis of competence and price instead of a competitive
5 15 bid. The bill also provides, as a general principle, that a
5 16 master contract may be in effect for only five years.
5 17 However, a longer term may be provided for if the agency
5 18 determines, in its sole discretion, that it would provide
5 19 greater savings. Documentation that supports this
5 20 determination must be provided to the department of
5 21 management, which shall maintain that documentation in a
5 22 central file available for public inspection. The bill does
5 23 not grant the department approval authority over these
5 24 contracts. The bill contains a grandfather clause for master
5 25 contracts in effect on July 1, 2006. These contracts may be
5 26 extended as expressly provided in the contract, but for no
5 27 longer than three years beyond the normal term of the master
5 28 contract.
5 29 A master contract is generally an agreement with a vendor
5 30 to sell a good or a service at a specified price, and allows
5 31 any number of individual sales at that price, usually to any
5 32 state agency.
5 33 LSB 5442HC 81
5 34 jr:rj/gg/14