Senate File 356 - Introduced SENATE FILE BY ZAUN Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing contractor qualifications for bidding on 2 public works projects and specifying criteria prohibited from 3 being required of contractors on public works or public road 4 projects. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1919XS 82 7 ec/cf/24 PAG LIN 1 1 Section 1. NEW SECTION. 72.6 PUBLIC WORKS PROJECTS == 1 2 CONTRACTOR QUALIFICATIONS. 1 3 1. DEFINITIONS. As used in this section, unless the 1 4 context otherwise provides: 1 5 a. "Public owner" means a public body, including the state 1 6 and a political subdivision of the state, an officer, 1 7 official, agency, authority, board, or commission of the state 1 8 or of a political subdivision of the state, or an institution 1 9 supported in whole or in part by public funds. 1 10 b. "Public road project" means a project under the control 1 11 of a public owner for the construction, maintenance, or repair 1 12 of a road or street that is funded, in whole or in part, by 1 13 moneys from the road use tax fund. 1 14 c. "Public works" means a building or other construction 1 15 work which is constructed under the control of a public owner 1 16 and is paid for in whole or in part with funds of a public 1 17 owner. "Public works" does not include any work done by or on 1 18 behalf of a drainage or levee district or any work funded by 1 19 federal funds where federal procurement policy applicable to 1 20 the use of the federal funds is inconsistent with the 1 21 requirements of this section. 1 22 d. "Public works project" or "project" means the 1 23 construction, maintenance, or repair of public works. 1 24 However, "public works project" does not mean a public road 1 25 project. 1 26 2. QUALIFICATIONS OF BIDDERS. Prior to awarding a 1 27 contract to perform a public works project pursuant to a 1 28 competitive bidding procedure, which contract authorizes the 1 29 expenditure of one hundred thousand dollars or more in public 1 30 funds, a public owner shall tabulate all bids received and 1 31 shall determine who is the lowest responsible bidder by 1 32 considering, in addition to the amount of the bid, all of and 1 33 only the following: 1 34 a. The past experience of the bidder in the performance of 1 35 similar projects. 2 1 b. The qualifications of the bidder to perform the type of 2 2 work required by the contract. 2 3 c. The bidder's record of reliability and timely 2 4 completion of past projects. 2 5 d. Proof of the financial responsibility of the bidder. 2 6 3. PROHIBITED CRITERIA. In determining who is the lowest 2 7 responsible bidder for purposes of awarding a contract to 2 8 perform a public works project or a public road project, a 2 9 public owner shall not do any of the following: 2 10 a. Select a bidder based in whole or in part on a 2 11 consideration of whether the bidder's employees belong to or 2 12 are represented by a labor union or a labor organization. 2 13 b. Require that the bidder selected enter into an 2 14 agreement that directly or indirectly limits or requires the 2 15 bidder to recruit, train, or hire employees from a particular 2 16 source to perform work on the public works project or the 2 17 public road project. 2 18 c. Require that the bidder selected enter into an 2 19 agreement that directly or indirectly requires the bidder to 2 20 offer particular types or amounts of health insurance, life 2 21 insurance, or disability insurance coverage or retirement 2 22 benefits to employees hired by the bidder to perform work on 2 23 the public works project or the public road project. 2 24 4. BIDDING DOCUMENTS. The criteria described in this 2 25 section that are required to be considered by the public owner 2 26 in determining who is the lowest responsible bidder shall be 2 27 included in any document requesting or inviting bids on public 2 28 works projects subject to this section. 2 29 EXPLANATION 2 30 This bill establishes contractor qualifications on public 2 31 works projects. The bill applies to the award of a contract 2 32 by a public owner to perform a public works project pursuant 2 33 to a competitive bidding procedure, when the contract 2 34 authorizes the expenditure of $100,000 or more in public 2 35 funds. 3 1 The bill provides that a public owner shall tabulate all 3 2 bids received and determine who is the lowest responsible 3 3 bidder by only considering, in addition to the amount of the 3 4 bid, the past experience of the bidder in performing similar 3 5 projects; the qualifications of the bidder to perform the type 3 6 of work required by the contract; the bidder's record of 3 7 reliability and timely completion of past projects; and proof 3 8 of the financial responsibility of the bidder. 3 9 The bill also provides that a public owner, in making a 3 10 determination of who is the lowest responsible bidder for 3 11 purposes of awarding a contract to perform a public works 3 12 project or a public road project, is prohibited from 3 13 considering whether a bidder's employees belong to a labor 3 14 union or organization; requiring that the bidder selected must 3 15 enter into an agreement that directly or indirectly requires 3 16 the bidder to recruit, train, or hire employees from a 3 17 particular source to perform work on the public works project 3 18 or a public road project; or requiring that the bidder 3 19 selected must enter into an agreement that directly or 3 20 indirectly requires the bidder to offer particular types or 3 21 amounts of health insurance, life insurance, or disability 3 22 insurance coverage or retirement benefits to employees hired 3 23 by the bidder to perform work on the public works project or a 3 24 public road project. 3 25 In addition, the bill requires that all bidding documents 3 26 requesting or inviting bids on a public works project indicate 3 27 what criteria shall be considered in awarding a contract to 3 28 the lowest responsible bidder. 3 29 The bill defines "public owner" as a public body, including 3 30 the state, a political subdivision of the state, an officer, 3 31 agency, authority, board, or commission of the state or of a 3 32 political subdivision, or an institution supported in whole or 3 33 in part by public funds. 3 34 The bill defines "public works" as a building or other 3 35 construction work which is constructed under the control of a 4 1 public owner and is paid for in whole or in part with funds of 4 2 a public owner. The bill provides that "public works" does 4 3 not include any work done by or on behalf of a drainage or 4 4 levee district or any work funded by federal funds where 4 5 federal procurement policy applicable to the use of the 4 6 federal funds is inconsistent with the requirements of this 4 7 bill. 4 8 The bill defines "public works project" or "project" as the 4 9 construction, maintenance, or repair of public works but does 4 10 not include a public road project. 4 11 LSB 1919XS 82 4 12 ec:sc/cf/24