House File 2013 - Introduced HOUSE FILE 2013 BY WILLS A BILL FOR An Act relating to procurement procedures for state agencies. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 5178YH (2) 86 je/sc
H.F. 2013 Section 1. Section 8A.311, subsection 10, Code 2016, is 1 amended to read as follows: 2 10. a. The director shall adopt rules providing that any 3 state agency may , upon request and approval by the department, 4 purchase directly from a vendor if the direct purchasing 5 is more economical than purchasing through the department, 6 if the agency shows that direct purchasing by the state 7 agency would be in the best interests of the state due to 8 an immediate or emergency need, or if the purchase will not 9 exceed ten thousand dollars and the purchase would contribute 10 to the agency complying with the targeted small business 11 procurement goals under sections 73.15 through 73.21 . A state 12 agency that makes such a purchase shall promptly notify the 13 department that the agency has done so. The notification shall 14 include documentation demonstrating that the purchase met the 15 criteria for a direct purchase provided in this subsection. 16 Prior notification of or approval by the department for such 17 purchases shall not be required. Competitive bidding shall not 18 be required for such purchases. 19 b. Any member of the executive council may bring before 20 the executive council for review a decision of the director 21 granting a state agency request for direct purchasing. The 22 executive council shall hear and review the director’s decision 23 in the same manner as an appeal filed by an aggrieved bidder, 24 except that the three-day period for filing for review shall 25 not apply. 26 Sec. 2. Section 8A.311A, subsection 3, paragraph a, Code 27 2016, is amended to read as follows: 28 a. The department determines, upon a request by the agency, 29 that the agency can satisfy satisfies the requirements for 30 purchase of the good or service directly from a vendor as 31 provided in section 8A.311, subsection 10 , paragraph “a” . 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -1- LSB 5178YH (2) 86 je/sc 1/ 2
H.F. 2013 Current law permits a state agency, upon request and 1 approval by the department of administrative services, to make 2 a purchase of goods or services directly from a vendor, rather 3 than purchasing through the department, if one of certain 4 conditions is met. One of the conditions is if the purchase 5 will not exceed $10,000 and the purchase would contribute to 6 the agency complying with targeted small business procurement 7 goals. 8 This bill modifies that condition to permit a state agency 9 to engage in direct purchasing for any purchase that will 10 not exceed $10,000. The bill strikes the requirement for 11 a prior request and approval by the department for direct 12 purchasing. The bill requires a state agency that makes such 13 a purchase to promptly notify the department that it has done 14 so. The bill provides that the notification must include 15 documentation demonstrating that the purchase met the criteria 16 for a direct purchase provided in the bill. The bill provides 17 that prior notification of or approval by the department for 18 such purchases shall not be required. The bill provides that 19 competitive bidding shall not be required for such purchases. 20 The bill also provides that a state agency that meets the 21 requirements for direct purchasing provided in the bill may 22 engage in direct purchasing instead of purchasing pursuant to a 23 master contract established by the department. 24 -2- LSB 5178YH (2) 86 je/sc 2/ 2