SENATE FILE _____

BY  (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON DANIELSON)

A BILL FOR

An Act relating to state procurement processes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  8A.311B  Centralized purchasing —— limitation on applicability.
   Sections 8A.311 and 8A.311A shall not apply to the procurement of any labor, materials, equipment, supplies, services, goods, and any other items that would otherwise be subject to chapter 26 or 573.
   Sec. 2.  Section 26.3, subsection 1, Code 2011, is amended to read as follows:
   1.  If the estimated total cost of a public improvement exceeds the competitive bid threshold of one hundred thousand dollars, or the adjusted competitive bid threshold established in section 314.1B, the governmental entity shall advertise for sealed bids for the proposed public improvement by publishing a notice to bidders. The notice to bidders shall be published at least once, not less than four twenty and not more than forty-five days before the date for filing bids, in a newspaper published at least once weekly and having general circulation in the geographic area served by the governmental entity. Additionally, the governmental entity may publish a notice in a relevant contractor organization publication and a relevant contractor plan room service with statewide circulation, provided that a notice is posted on a website sponsored by either a governmental entity or a statewide association that represents the governmental entity.
   Sec. 3.  Section 73A.18, Code 2011, is amended to read as follows:
   73A.18  When bids required —— advertisement —— deposit.
   When the estimated total cost of construction, erection, demolition, alteration or repair of a public improvement exceeds the competitive bid threshold in section 26.3, or as established in section 314.1B, the municipality shall advertise for bids on the proposed improvement by two publications in a newspaper published in the county in which the work is to be done. The first advertisement for bids shall be not less than fifteen twenty and not more than forty-five days prior to the date set for receiving bids. The municipality shall let the work to the lowest responsible bidder submitting a sealed proposal. However, if in the judgment of the municipality bids received are not acceptable, all bids may be rejected and new bids requested. A bid shall be accompanied, in a separate envelope, by a deposit of money or a certified check or credit union certified share draft in an amount to be named in the advertisement for bids as security that the bidder will enter into a contract for the doing of the work. The municipality shall fix the bid security in an amount equal to at least five percent, but not more than ten percent of the estimated total cost of the work. The checks, share drafts or deposits of money of the unsuccessful bidders shall be returned as soon as the successful bidder is determined, and the check, share draft or deposit of money of the successful bidder shall be returned upon execution of the contract documents.
   Sec. 4.  ALTERNATIVE PROJECT DELIVERY PILOT PROGRAM.
   1.  The department of administrative services shall oversee an alternative project delivery pilot program. The object of the pilot project shall be to determine whether alternative project delivery can be an effective and efficient option for the state to use when renovating or constructing new facilities. The goal of the pilot project is to determine the level of effectiveness and efficiencies offered by alternative project delivery.
   2.  Starting on July 1, 2011, the department of administrative services shall select five projects in each of the next two years to utilize alternative project delivery. The department shall partner with a pilot project advisory committee to create a comprehensive procurement model for alternative project delivery. The pilot project advisory committee shall be composed of seven members who shall be appointed by the titular heads of the following entities:
   a.  Department of administrative services.
   b.  American institute of architects, Iowa chapter.
   c.  American council of engineering companies of Iowa.
   d.  Iowa chapter of the design-build institute of America.
   e.  Master builders of Iowa.
   f.  Mechanical contractors association of Iowa.
   g.  Iowa state building and construction trades council.
   3.  The appointee of the department of administrative services shall be the chairperson of the pilot project advisory committee.
   4.  Each member of the pilot project advisory committee shall serve a two and one-half year term starting July 1, 2011, and ending December 31, 2013.
   5.  Pilot project parameters shall include the following:
   a.  Up to a maximum of five projects shall be selected in each of the next two fiscal years.
   b.  The projects shall include renovation and new construction. The projects shall vary in size, complexity, scheduling, and cost.
   c.  Selection of these projects shall be completed by October 1, 2011, for fiscal year 2011-2012, and by October 1, 2012, for fiscal year 2012-2013.
   d.  The director of the department of administrative services shall make the final selection of projects and type of alternative project delivery options.
   6.  The pilot project advisory committee shall file a report to the general assembly at the start of each legislative session outlining pilot project performance. A final report shall be issued to the general assembly on January 1, 2014.
   7.  Notwithstanding any other provision of the law to the contrary, a pilot project participant may utilize alternative project delivery procurement processes, as established by the pilot project advisory committee and approved by the director of the department of administrative services, on projects under the control of the department of administrative services. Notwithstanding any other provision of the law to the contrary, a pilot project participant selected for a pilot project under this section is exempt from competitive bidding requirements under the Code on projects under the control of the department of administrative services. No other public entity other than a pilot project participant selected for a pilot project under this section shall be exempt from competitive bidding requirements under the Code. This authorization for construction management at risk and design-build procurement shall be for the sole and exclusive use of planning, acquiring, building, equipping, altering, repairing, improving, or demolishing any structure or appurtenance thereto, including facilities, utilities, or other improvements to any real property, but shall not include highways, roads, bridges, dams, turnpikes, or related structures, or stand-alone parking lots.
   8.  It is the intent of this section that an appropriation of thirty thousand dollars from the rebuild Iowa infrastructure fund to the department of administrative services shall be used to cover expenses associated with administration and reporting requirements of the pilot project.
EXPLANATION
   This bill relates to state procurement processes.
   The bill provides that Code sections 8A.311 and 8A.311A, relating to competitive bidding and centralized purchasing procedures under the department of management, do not apply to the procurement of any labor, materials, equipment, supplies, services, goods, and any other items that would otherwise be subject to Code chapter 26 or 573.
   The bill provides that under Code section 26.3, published notice to bidders for public improvement projects by the state or political subdivisions exceeding competitive bid thresholds must occur not less than 20 days before the date for filing bids. Current law requires that published notice must occur not less than four days before the date for filing bids.
   The bill provides that under Code section 73A.18, published notice to bidders for public improvement projects by municipalities exceeding competitive bid thresholds must occur not less than 20 and not more than 45 days before the date for filing bids. Current law requires that published notice must occur not less than 15 days before the date for filing bids.
   The bill creates an alternative project delivery pilot program to be overseen by the department of administrative services. The bill provides that the object of the pilot project is to determine whether alternative project delivery can be an effective and efficient option for the state to use when renovating or constructing new facilities. The bill provides that the goal of the pilot project is to determine the level of effectiveness and efficiencies offered by alternative project delivery. The bill provides that starting on July 1, 2011, the department of administrative services will select five projects in each of the next two years to use alternative project delivery. The bill provides for a pilot project advisory committee with seven members who shall be appointed by the heads of certain public and private entities. The bill provides that the appointee of the department of administrative services will be the chairperson of the committee. The bill directs the department of administrative services to partner with the pilot project advisory committee to create a comprehensive procurement model for alternative project delivery. The bill provides that each member of the committee will serve a two and one-half year term starting July 1, 2011, and ending December 31, 2013. The bill sets out certain parameters for the pilot project, including that the director of the department of administrative services will make the final determination for selection of projects and type of alternative project delivery options. The bill directs the committee to file a report to the legislature at the start of each legislative session outlining pilot project performance with a final report to be issued on January 1, 2014. The bill authorizes a pilot project participant to utilize alternative project delivery procurement processes, as established by the pilot project advisory committee and the director, on projects under the control of the department of administrative services. The bill exempts pilot project participants from competitive bidding requirements under the Iowa Code. The bill specifies that no other public entity other than a pilot project participant is granted such an exemption. The bill defines the scope of authorized uses for construction management at risk and design-build procurement. The bill includes intent language that provides that an appropriation of $30,000 from the rebuild Iowa infrastructure fund to the department of administrative services will be used to cover expenses associated with administration and reporting requirements of the pilot project.