House
File
2399
-
Introduced
HOUSE
FILE
2399
BY
GOLDING
A
BILL
FOR
An
Act
relating
to
the
awarding
of
public
improvement
1
contracts.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2399
Section
1.
Section
26.9,
subsection
1,
Code
2026,
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
or,
if
4
the
lowest
responsive,
responsible
bid
is
from
a
contractor
5
whose
headquarters
is
located
more
than
fifty
miles
from
the
6
public
improvement
for
which
the
contractor
is
submitting
7
a
bid,
the
contract
may
be
awarded
to
a
local
contractor
8
whose
bid
is
no
more
than
ten
percent
greater
than
the
lowest
9
responsive,
responsible
bid
.
However,
contracts
relating
to
10
public
utilities
or
extensions
or
improvements
thereof,
as
11
described
in
sections
384.80
through
384.94
,
may
be
awarded
by
12
the
city
as
it
deems
to
be
in
the
best
interests
of
the
city.
13
This
section
shall
not
be
construed
to
prohibit
a
governmental
14
entity
in
the
award
of
a
contract
for
a
public
improvement
15
or
a
governing
body
of
a
city
utility
from
providing,
in
the
16
award
of
a
contract
for
a
public
improvement,
an
enhancement
17
of
payments
upon
early
completion
of
the
public
improvement
if
18
the
availability
of
the
enhancement
payments
is
included
in
the
19
notice
to
bidders,
the
enhancement
payments
are
competitively
20
neutral
to
potential
bidders,
the
enhancement
payments
are
21
considered
as
a
separate
item
in
the
public
hearing
on
the
22
award
of
contract,
and
the
total
value
of
the
enhancement
23
payments
does
not
exceed
ten
percent
of
the
value
of
the
24
contract.
25
b.
For
purposes
of
this
subsection,
“local
contractor”
means
26
a
contractor
whose
business
headquarters
is
located
within
27
fifty
miles
of
the
public
improvement
for
which
the
contractor
28
is
submitting
a
bid.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
Under
current
law,
a
contract
for
a
public
improvement
must
33
be
awarded
to
the
lowest
responsive,
responsible
bidder.
This
34
bill
provides
that
a
contract
for
a
public
improvement
may
be
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awarded
to
a
local
contractor
whose
bid
is
within
10
percent
1
of
the
cost
of
the
lowest
responsive,
responsible
bid
when
the
2
lowest
responsive,
responsible
bid
is
from
a
contractor
whose
3
headquarters
is
located
more
than
50
miles
from
the
public
4
improvement
for
which
the
contractor
is
submitting
a
bid.
5
The
bill
defines
“local
contractor”
as
a
contractor
whose
6
business
headquarters
is
located
within
50
miles
of
the
public
7
improvement
for
which
the
contractor
is
submitting
a
bid.
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