House
File
2241
-
Introduced
HOUSE
FILE
2241
BY
MURPHY
A
BILL
FOR
An
Act
concerning
competitive
bidding
requirements
for
service
1
contracts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6053YH
(2)
85
ec/sc
H.F.
2241
Section
1.
NEW
SECTION
.
73A.18A
Service
contracts
——
1
bidding
requirements
——
security.
2
1.
For
purposes
of
this
section,
“service
contract”
means
3
a
contract
for
services
to
be
provided
by
a
nongovernmental
4
entity
when
the
predominant
factor,
thrust,
and
purpose
of
5
the
contract
as
reasonably
stated
is
for
the
provision
of
6
services.
When
there
is
a
contract
for
goods
and
services
and
7
the
predominant
factor,
thrust,
and
purpose
of
the
contract
8
as
reasonably
stated
is
for
the
provision
or
rendering
of
9
services
with
goods
incidentally
involved,
a
service
contract
10
exists.
“Service
contract”
also
includes
grants
or
consulting
11
services
when
the
predominant
factor,
thrust,
and
purpose
of
12
the
contract
formalizing
the
grant
or
consulting
service
is
for
13
the
provision
of
services.
14
2.
When
the
estimated
total
cost
of
a
service
contract
15
exceeds
one
hundred
thousand
dollars,
the
applicable
city
or
16
county
shall
advertise
for
bids
on
the
proposed
contract
by
17
two
publications
in
a
newspaper
of
general
circulation
in
the
18
county
in
which
the
work
is
to
be
performed
or
in
which
the
19
service
is
to
be
provided.
The
first
advertisement
for
bids
20
shall
be
not
less
than
fifteen
days
prior
to
the
date
set
for
21
receiving
bids.
The
city
or
county
shall
accept
the
lowest
22
responsible
bidder
submitting
a
sealed
proposal.
However,
if
23
in
the
judgment
of
the
city
or
county
bids
received
are
not
24
acceptable,
all
bids
may
be
rejected
and
new
bids
requested.
A
25
bid
shall
be
accompanied,
in
a
separate
envelope,
by
a
deposit
26
of
money
or
a
certified
check
or
credit
union
certified
share
27
draft
in
an
amount
to
be
named
in
the
advertisement
for
bids
28
as
security
that
the
bidder
will
enter
into
a
contract
for
29
the
performance
of
the
work
or
the
provision
of
services.
30
The
city
or
county
shall
fix
the
bid
security
in
an
amount
31
equal
to
at
least
five
percent,
but
not
more
than
ten
percent,
32
of
the
estimated
total
cost
of
the
service
contract.
The
33
checks,
share
drafts,
or
deposits
of
money
of
the
unsuccessful
34
bidders
shall
be
returned
as
soon
as
the
successful
bidder
is
35
-1-
LSB
6053YH
(2)
85
ec/sc
1/
2
H.F.
2241
determined,
and
the
check,
share
draft,
or
deposit
of
money
of
1
the
successful
bidder
shall
be
returned
upon
execution
of
the
2
contract
documents.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
The
bill
requires
a
city
or
county
to
utilize
a
competitive
7
bidding
process
when
entering
into
a
service
contract
with
a
8
nongovernmental
entity
in
which
the
estimated
total
cost
of
9
the
service
contract
is
over
$100,000.
The
bill
defines
a
10
service
contract
as
a
contract
in
which
the
predominant
factor,
11
thrust,
and
purpose
of
the
contract
as
reasonably
stated
is
for
12
the
provision
of
services
and
not
goods.
The
bill
includes
13
grants
and
consulting
services
within
the
definition
of
service
14
contracts.
15
If
the
estimated
total
cost
of
the
service
contract
exceeds
16
$100,000,
the
bill
requires
the
city
or
county
to
advertise
for
17
bids
and
establishes
the
manner
of
advertisement.
The
bill
18
provides
that
the
city
or
county
accept
the
lowest
responsible
19
bidder
or,
if
no
bid
is
deemed
acceptable,
to
reject
all
bids
20
and
submit
the
contract
for
bid
again.
The
bill
requires
bid
21
security
to
accompany
each
bid
in
an
amount
equal
to
at
least
5
22
percent,
but
not
more
than
10
percent,
of
the
estimated
total
23
cost
of
the
service
contract.
24
-2-
LSB
6053YH
(2)
85
ec/sc
2/
2