HF 2399 (LSB 6164HH (4) 91)

HOUSE FILE 2399

BY  GOLDING

A BILL FOR

An Act relating to the awarding of public improvement contracts.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 26.9, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  The contract for the public improvement must be awarded to the lowest responsive, responsible bidder or, if the lowest responsive, responsible bid is from a contractor whose headquarters is located more than fifty miles from the public improvement for which the contractor is submitting a bid, the contract may be awarded to a local contractor whose bid is no more than ten percent greater than the lowest responsive, responsible bid. However, contracts relating to public utilities or extensions or improvements thereof, as described in sections 384.80 through 384.94, may be awarded by the city as it deems to be in the best interests of the city. This section shall not be construed to prohibit a governmental entity in the award of a contract for a public improvement or a governing body of a city utility from providing, in the award of a contract for a public improvement, an enhancement of payments upon early completion of the public improvement if the availability of the enhancement payments is included in the notice to bidders, the enhancement payments are competitively neutral to potential bidders, the enhancement payments are considered as a separate item in the public hearing on the award of contract, and the total value of the enhancement payments does not exceed ten percent of the value of the contract.
   b.  For purposes of this subsection, “local contractor” means a contractor whose business headquarters is located within fifty miles of the public improvement for which the contractor is submitting a bid.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, a contract for a public improvement must be awarded to the lowest responsive, responsible bidder. This bill provides that a contract for a public improvement may be awarded to a local contractor whose bid is within 10 percent of the cost of the lowest responsive, responsible bid when the lowest responsive, responsible bid is from a contractor whose headquarters is located more than 50 miles from the public improvement for which the contractor is submitting a bid.
   The bill defines “local contractor” as a contractor whose business headquarters is located within 50 miles of the public improvement for which the contractor is submitting a bid.