House File 765 - Introduced
HOUSE FILE
BY COMMITTEE ON ECONOMIC
GROWTH
(SUCCESSOR TO HF 587)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to procurement goals for purchases from certain
2 targeted small businesses.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2620HV 83
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PAG LIN
1 1 Section 1. Section 8A.311, subsection 10, paragraph a,
1 2 Code 2009, is amended to read as follows:
1 3 a. The director shall adopt rules providing that any state
1 4 agency may, upon request, purchase directly from a vendor if
1 5 the direct purchasing is as economical or more economical than
1 6 purchasing through the department, or upon a showing that
1 7 direct purchasing by the state agency would be in the best
1 8 interests of the state due to an immediate or emergency need.
1 9 The rules shall include a provision permitting a state agency
1 10 to purchase directly from a vendor, on the agency's own
1 11 authority, if the purchase is from a targeted small business
1 12 certified pursuant to section 10A.104, will not exceed ten
1 13 twenty thousand dollars, and the purchase will contribute to
1 14 the agency complying with or exceeding the targeted small
1 15 business procurement goals under sections 73.15 through 73.21.
1 16 Sec. 2. Section 73.16, subsection 2, paragraph c,
1 17 subparagraph (3), Code 2009, is amended to read as follows:
1 18 (3) A community college, or area education agency, or
1 19 school district shall establish a procurement goal from
1 20 certified targeted small businesses, identified pursuant to
1 21 section 10A.104, subsection 8, of at least ten percent of the
1 22 value of anticipated procurements of goods and services
1 23 including construction, but not including utility services,
1 24 each fiscal year. Such a procurement goal shall be expressed
1 25 as a dollar amount of the certified purchases to be procured
1 26 from targeted small businesses and shall exceed the
1 27 procurement goal set in the prior fiscal year.
1 28 Sec. 3. Section 73.16, subsection 2, paragraph d, Code
1 29 2009, is amended by striking the paragraph.
1 30 Sec. 4. Section 73.17, unnumbered paragraph 2, Code 2009,
1 31 is amended to read as follows:
1 32 A community college or area education agency shall, on a
1 33 quarterly basis, and a school district shall, on an annual
1 34 basis, review the community college's, or area education
1 35 agency's, or school district's anticipated purchasing
2 1 requirements. A community college, or area education agency,
2 2 or school district shall notify the department of education,
2 3 which shall report to the department of economic development,
2 4 of their anticipated purchases and recommended procurements
2 5 with unit quantities and total costs for procurement contracts
2 6 designated to satisfy the targeted small business procurement
2 7 goal not later than August 15 of each fiscal year and
2 8 quarterly thereafter, except that school districts shall
2 9 report annually.
2 10 Sec. 5. Section 73.18, Code 2009, is amended to read as
2 11 follows:
2 12 73.18 NOTICE OF SOLICITATION FOR BIDS == IDENTIFICATION OF
2 13 TARGETED SMALL BUSINESSES.
2 14 The director of each agency or department, the
2 15 administrator of each area education agency, and the president
2 16 of each community college, and the superintendent of each
2 17 school district releasing a solicitation for bids or request
2 18 for proposal under the targeted small business procurement
2 19 goal program shall consult a directory of certified targeted
2 20 small businesses produced by the department of economic
2 21 development that lists all certified targeted small businesses
2 22 by category of goods or services provided prior to or upon
2 23 release of the solicitation and shall send a copy of the
2 24 request for proposal or solicitation to any appropriate
2 25 targeted small business listed in the directory. The Iowa
2 26 department of economic development may charge the department,
2 27 agency, area education agency, or community college, or school
2 28 district a reasonable fee to cover the cost of producing,
2 29 distributing, and updating the directory.
2 30 Sec. 6. Section 73.19, Code 2009, is amended to read as
2 31 follows:
2 32 73.19 NEGOTIATED PRICE OR BID CONTRACT.
2 33 1. In awarding a contract under the targeted small
2 34 business procurement goal program, a director of an agency or
2 35 department, or community college, or area education agency, or
3 1 school district, having purchasing authority may use either a
3 2 negotiated price or bid contract procedure.
3 3 2. A director of an agency or department, or community
3 4 college, or area education agency, or school district, using a
3 5 negotiated contract shall consider any targeted small business
3 6 engaged in that business.
3 7 3. The director of the department of economic development
3 8 or the director of the department of management may assist in
3 9 the negotiation of a contract price under this section.
3 10 4. Surety bonds guaranteed by the United States small
3 11 business administration are acceptable security for a
3 12 construction award under this section.
3 13 Sec. 7. Section 904.808, subsection 1, Code 2009, is
3 14 amended to read as follows:
3 15 1. A product possessing the performance characteristics of
3 16 a product listed in the price lists prepared pursuant to
3 17 section 904.807 shall not be purchased by any department or
3 18 agency of state government from a source other than Iowa state
3 19 industries, except under one or more of the following
3 20 circumstances:
3 21 a. When the purchase is made under emergency
3 22 circumstances, which shall be explained in writing by the
3 23 public body or officer who made or authorized the purchase if
3 24 the state director so requests; or.
3 25 b. When the state director releases, in writing, the
3 26 obligation of the department or agency to purchase the product
3 27 from Iowa state industries, after determining that Iowa state
3 28 industries is unable to meet the performance characteristics
3 29 of the purchase request for the product, and a copy of the
3 30 release is attached to the request to the director of the
3 31 department of administrative services for payment for a
3 32 similar product, or when Iowa state industries is unable to
3 33 furnish needed products, comparable in both quality and price
3 34 to those available from alternative sources, within a
3 35 reasonable length of time. Any disputes arising between a
4 1 purchasing department or agency and Iowa state industries
4 2 regarding similarity of products, or comparability of quality
4 3 or price, or the availability of the product, shall be
4 4 referred to the director of the department of administrative
4 5 services, whose decision shall be subject to appeal as
4 6 provided in section 8A.313. However, if the purchasing
4 7 department is the department of administrative services, any
4 8 matter which would be referred to the director under this
4 9 paragraph shall be referred to the executive council in the
4 10 same manner as if the matter were to be heard by the director
4 11 of the department of administrative services. The decision of
4 12 the executive council is final.
4 13 c. When the purchase is from a targeted small business
4 14 certified pursuant to section 10A.104, will not exceed twenty
4 15 thousand dollars, and will contribute to the agency complying
4 16 with or exceeding the targeted small business procurement
4 17 goals under sections 73.15 through 73.21.
4 18 EXPLANATION
4 19 This bill relates to procurement goals for purchases from
4 20 targeted small businesses.
4 21 Current law provides for certain procurement requirements
4 22 for community colleges, area education agencies, and school
4 23 districts. The bill removes school districts from these
4 24 procurement requirements. The bill also requires community
4 25 colleges and area education agencies, but not school
4 26 districts, to set yearly procurement goals, expressed as a
4 27 dollar amount of certified purchases, for purchases from
4 28 targeted small businesses certified by the department of
4 29 inspections and appeals pursuant to Code section 10A.104.
4 30 Current law allows state agencies to purchase directly from
4 31 a vendor if the purchase is less than $10,000 and contributes
4 32 to the agency meeting the targeted small business procurement
4 33 goal. The bill provides that purchases may be less than
4 34 $20,000 if they are from a targeted small business certified
4 35 pursuant to Code section 10A.104.
5 1 Current law prohibits the purchase of certain products by
5 2 state agencies from a source other than Iowa state industries
5 3 except in a limited set of circumstances. The bill provides
5 4 that purchases less than $20,000 from a targeted small
5 5 business that contribute to the agency's compliance with the
5 6 targeted small business procurement goals are one of the
5 7 circumstances in which a state agency may purchase products
5 8 from a source other than Iowa state industries.
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