H.F. _____ Section 1. NEW SECTION . 8A.311B Centralized purchasing —— 1 limitation on applicability. 2 Sections 8A.311 and 8A.311A shall not apply to the 3 procurement of any labor, materials, equipment, supplies, 4 services, goods, and any other items that would otherwise be 5 subject to chapter 26 or 573. 6 Sec. 2. Section 26.3, subsection 1, Code 2011, is amended 7 to read as follows: 8 1. If the estimated total cost of a public improvement 9 exceeds the competitive bid threshold of one hundred thousand 10 dollars, or the adjusted competitive bid threshold established 11 in section 314.1B , the governmental entity shall advertise for 12 sealed bids for the proposed public improvement by publishing a 13 notice to bidders. The notice to bidders shall be published 14 at least once, not less than four twenty and not more than 15 forty-five days before the date for filing bids, in a newspaper 16 published at least once weekly and having general circulation 17 in the geographic area served by the governmental entity. 18 Additionally, the governmental entity may publish a notice in 19 a relevant contractor organization publication and a relevant 20 contractor plan room service with statewide circulation, 21 provided that a notice is posted on a website sponsored by 22 either a governmental entity or a statewide association that 23 represents the governmental entity. 24 Sec. 3. Section 73A.18, Code 2011, is amended to read as 25 follows: 26 73A.18 When bids required —— advertisement —— deposit. 27 When the estimated total cost of construction, erection, 28 demolition, alteration or repair of a public improvement 29 exceeds the competitive bid threshold in section 26.3 , or as 30 established in section 314.1B , the municipality shall advertise 31 for bids on the proposed improvement by two publications in 32 a newspaper published in the county in which the work is to 33 be done. The first advertisement for bids shall be not less 34 than fifteen twenty and not more than forty-five days prior to 35 -1- LSB 2246YC (1) 84 je/rj 1/ 6

H.F. _____ the date set for receiving bids. The municipality shall let 1 the work to the lowest responsible bidder submitting a sealed 2 proposal. However, if in the judgment of the municipality 3 bids received are not acceptable, all bids may be rejected and 4 new bids requested. A bid shall be accompanied, in a separate 5 envelope, by a deposit of money or a certified check or credit 6 union certified share draft in an amount to be named in the 7 advertisement for bids as security that the bidder will enter 8 into a contract for the doing of the work. The municipality 9 shall fix the bid security in an amount equal to at least five 10 percent, but not more than ten percent of the estimated total 11 cost of the work. The checks, share drafts or deposits of 12 money of the unsuccessful bidders shall be returned as soon as 13 the successful bidder is determined, and the check, share draft 14 or deposit of money of the successful bidder shall be returned 15 upon execution of the contract documents. 16 Sec. 4. ALTERNATIVE PROJECT DELIVERY PILOT PROGRAM. 17 1. The department of administrative services shall oversee 18 an alternative project delivery pilot program. The object of 19 the pilot project shall be to determine whether alternative 20 project delivery can be an effective and efficient option 21 for the state to use when renovating or constructing new 22 facilities. The goal of the pilot project is to determine the 23 level of effectiveness and efficiencies offered by alternative 24 project delivery. 25 2. Starting on July 1, 2011, the department of 26 administrative services shall select five projects in each of 27 the next two years to utilize alternative project delivery. 28 The department shall partner with a pilot project advisory 29 committee to create a comprehensive procurement model for 30 alternative project delivery. The pilot project advisory 31 committee shall be composed of seven members who shall be 32 appointed by the titular heads of the following entities: 33 a. Department of administrative services. 34 b. American institute of architects, Iowa chapter. 35 -2- LSB 2246YC (1) 84 je/rj 2/ 6

H.F. _____ c. American council of engineering companies of Iowa. 1 d. Iowa chapter of the design-build institute of America. 2 e. Master builders of Iowa. 3 f. Mechanical contractors association of Iowa. 4 g. Iowa state building and construction trades council. 5 3. The appointee of the department of administrative 6 services shall be the chairperson of the pilot project advisory 7 committee. 8 4. Each member of the pilot project advisory committee shall 9 serve a two and one-half year term starting July 1, 2011, and 10 ending December 31, 2013. 11 5. Pilot project parameters shall include the following: 12 a. Up to a maximum of five projects shall be selected in 13 each of the next two fiscal years. 14 b. The projects shall include renovation and new 15 construction. The projects shall vary in size, complexity, 16 scheduling, and cost. 17 c. Selection of these projects shall be completed by October 18 1, 2011, for fiscal year 2011-2012, and by October 1, 2012, for 19 fiscal year 2012-2013. 20 d. The director of the department of administrative 21 services shall make the final selection of projects and type of 22 alternative project delivery options. 23 6. The pilot project advisory committee shall file a report 24 to the general assembly at the start of each legislative 25 session outlining pilot project performance. A final report 26 shall be issued to the general assembly on January 1, 2014. 27 7. Notwithstanding any other provision of the law to the 28 contrary, a pilot project participant may utilize alternative 29 project delivery procurement processes, as established by the 30 pilot project advisory committee and approved by the director 31 of the department of administrative services, on projects under 32 the control of the department of administrative services. 33 Notwithstanding any other provision of the law to the contrary, 34 a pilot project participant selected for a pilot project under 35 -3- LSB 2246YC (1) 84 je/rj 3/ 6

H.F. _____ this section is exempt from competitive bidding requirements 1 under the Code on projects under the control of the department 2 of administrative services. No other public entity other 3 than a pilot project participant selected for a pilot 4 project under this section shall be exempt from competitive 5 bidding requirements under the Code. This authorization for 6 construction management at risk and design-build procurement 7 shall be for the sole and exclusive use of planning, acquiring, 8 building, equipping, altering, repairing, improving, or 9 demolishing any structure or appurtenance thereto, including 10 facilities, utilities, or other improvements to any real 11 property, but shall not include highways, roads, bridges, dams, 12 turnpikes, or related structures, or stand-alone parking lots. 13 8. It is the intent of this section that an appropriation of 14 thirty thousand dollars from the rebuild Iowa infrastructure 15 fund to the department of administrative services shall be used 16 to cover expenses associated with administration and reporting 17 requirements of the pilot project. 18 EXPLANATION 19 This bill relates to state procurement processes. 20 The bill provides that Code sections 8A.311 and 8A.311A, 21 relating to competitive bidding and centralized purchasing 22 procedures under the department of management, do not apply to 23 the procurement of any labor, materials, equipment, supplies, 24 services, goods, and any other items that would otherwise be 25 subject to Code chapter 26 or 573. 26 The bill provides that under Code section 26.3, published 27 notice to bidders for public improvement projects by the state 28 or political subdivisions exceeding competitive bid thresholds 29 must occur not less than 20 days before the date for filing 30 bids. Current law requires that published notice must occur 31 not less than four days before the date for filing bids. 32 The bill provides that under Code section 73A.18, published 33 notice to bidders for public improvement projects by 34 municipalities exceeding competitive bid thresholds must occur 35 -4- LSB 2246YC (1) 84 je/rj 4/ 6

H.F. _____ not less than 20 and not more than 45 days before the date for 1 filing bids. Current law requires that published notice must 2 occur not less than 15 days before the date for filing bids. 3 The bill creates an alternative project delivery pilot 4 program to be overseen by the department of administrative 5 services. The bill provides that the object of the pilot 6 project is to determine whether alternative project delivery 7 can be an effective and efficient option for the state to use 8 when renovating or constructing new facilities. The bill 9 provides that the goal of the pilot project is to determine the 10 level of effectiveness and efficiencies offered by alternative 11 project delivery. The bill provides that starting on July 1, 12 2011, the department of administrative services will select 13 five projects in each of the next two years to use alternative 14 project delivery. The bill provides for a pilot project 15 advisory committee with seven members who shall be appointed 16 by the heads of certain public and private entities. The bill 17 provides that the appointee of the department of administrative 18 services will be the chairperson of the committee. The 19 bill directs the department of administrative services to 20 partner with the pilot project advisory committee to create 21 a comprehensive procurement model for alternative project 22 delivery. The bill provides that each member of the committee 23 will serve a two and one-half year term starting July 1, 2011, 24 and ending December 31, 2013. The bill sets out certain 25 parameters for the pilot project, including that the director 26 of the department of administrative services will make the 27 final determination for selection of projects and type of 28 alternative project delivery options. The bill directs the 29 committee to file a report to the legislature at the start of 30 each legislative session outlining pilot project performance 31 with a final report to be issued on January 1, 2014. The bill 32 authorizes a pilot project participant to utilize alternative 33 project delivery procurement processes, as established by the 34 pilot project advisory committee and the director, on projects 35 -5- LSB 2246YC (1) 84 je/rj 5/ 6

H.F. _____ under the control of the department of administrative services. 1 The bill exempts pilot project participants from competitive 2 bidding requirements under the Iowa Code. The bill specifies 3 that no other public entity other than a pilot project 4 participant is granted such an exemption. The bill defines 5 the scope of authorized uses for construction management at 6 risk and design-build procurement. The bill includes intent 7 language that provides that an appropriation of $30,000 8 from the rebuild Iowa infrastructure fund to the department 9 of administrative services will be used to cover expenses 10 associated with administration and reporting requirements of 11 the pilot project. 12 -6- LSB 2246YC (1) 84 je/rj 6/ 6