House File 2520 - Introduced HOUSE FILE 2520 BY CROKEN A BILL FOR An Act relating to the calculation of bids for awarding 1 contracts for public improvements. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5470YH (3) 90 sc/js
H.F. 2520 Section 1. Section 26.9, subsection 1, Code 2024, is amended 1 to read as follows: 2 1. a. The contract for the public improvement must be 3 awarded to the lowest responsive, responsible bidder. However, 4 contracts relating to public utilities or extensions or 5 improvements thereof, as described in sections 384.80 through 6 384.94 , may be awarded by the city as it deems to be in the best 7 interests of the city. This section shall not be construed to 8 prohibit a governmental entity in the award of a contract for a 9 public improvement or a governing body of a city utility from 10 providing, in the award of a contract for a public improvement, 11 an enhancement of payments upon early completion of the public 12 improvement if the availability of the enhancement payments is 13 included in the notice to bidders, the enhancement payments are 14 competitively neutral to potential bidders, the enhancement 15 payments are considered as a separate item in the public 16 hearing on the award of contract, and the total value of the 17 enhancement payments does not exceed ten percent of the value 18 of the contract. 19 b. When determining the lowest responsive bid, a county 20 or city shall treat a bid as though the overall cost is five 21 percent lower if the bidder’s proposal contains a statement 22 that twenty-five percent of the labor force for the work will 23 be completed through apprenticeships. A county or city shall 24 also treat a bid as though the overall cost is five percent 25 lower if the general contractor has not committed a violation 26 of the federal Occupational Safety and Health Act of 1970, 29 27 U.S.C. §651 678, in the preceding two years. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the calculation of bids for contracts 32 for public improvements. The bill requires a county or 33 city to reduce the cost of a bid by 5 percent for purposes 34 of determining the lowest responsive bid for a contract for 35 -1- LSB 5470YH (3) 90 sc/js 1/ 2
H.F. 2520 a public improvement if the bidder’s proposal states that 1 25 percent of the labor force will be completed through 2 apprenticeships or if the general contractor has not violated 3 the federal Occupational Safety and Health Act in the preceding 4 two years. 5 -2- LSB 5470YH (3) 90 sc/js 2/ 2