Print
Senate File 465 - IntroducedA Bill ForAn Act 1relating to the awarding of contracts for public
2improvement projects.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26.7, subsection 2, Code 2019, is amended
2to read as follows:
32. The notice to bidders may provide that bids will be
4received for the furnishing of all labor and materials and
5furnishing or installing equipment under one contract, or for
6parts thereof in separate sections. If the notice provides for
7bids for separate parts of a project, the notice shall also
8provide that bids shall be accepted for any combination of
9parts, including for the whole project.
10 Sec. 2. Section 26.9, subsection 1, Code 2019, is amended
11to read as follows:
121. The contract or contracts for the public improvement
13must be awarded to the lowest responsive, responsible bidder or
14combination of responsible bidders whose bid or bids minimize
15the total cost of the award. However, contracts relating to
16public utilities or extensions or improvements thereof, as
17described in sections 384.80 through 384.94, may be awarded by
18the city as it deems to be in the best interests of the city.
19This section shall not be construed to prohibit a governmental
20entity in the award of a contract for a public improvement
21or a governing body of a city utility from providing, in the
22award of a contract for a public improvement, an enhancement
23of payments upon early completion of the public improvement if
24the availability of the enhancement payments is included in the
25notice to bidders, the enhancement payments are competitively
26neutral to potential bidders, the enhancement payments are
27considered as a separate item in the public hearing on the
28award of contract, and the total value of the enhancement
29payments does not exceed ten percent of the value of the
30contract.
31 Sec. 3. Section 26.10, subsection 1, Code 2019, is amended
32to read as follows:
331. The date and time that each bid is received by the
34governmental entity, together with the name of the person
35receiving the bid, shall be recorded on the envelope containing
-1-1the bid. All bids received after the deadlines for submission
2of bids as stated in the project specifications shall not be
3considered and shall be returned to the late bidder unopened.
4The governmental entity shall open, announce the amount of the
5bids, and file all proposals received, at the time and place
6specified in the notice to bidders. The governmental entity
7may, by resolution, award the contract or contracts for the
8public improvement to the bidder or combination of responsible
9bidders submitting the lowest responsive, total responsible bid
10or bids to minimize the total cost of the award, determined
11as provided in section 26.9, or the governmental entity
12may reject all bids received, fix a new date for receiving
13bids, and order publication of a new notice to bidders. The
14governmental entity shall retain the bid security furnished by
15the successful bidder until the approved contract form has been
16executed, a bond has been filed by the bidder guaranteeing the
17performance of the contract, and the contract and bond have
18been approved by the governmental entity. The provisions of
19chapter 573, where applicable, apply to contracts awarded under
20this chapter.
21 Sec. 4. Section 26.14, subsection 3, paragraphs a and b,
22Code 2019, are amended to read as follows:
23a. When a competitive quotation is required, the
24governmental entity shall make a good faith effort to obtain
25quotations for the work from at least two contractors regularly
26engaged in such work prior to letting a contract. Good
27faith effort shall include advising all contractors who have
28filed with the governmental entity a request for notice of
29projects. The governmental entity shall provide such notice
30in a timely manner so that a requesting contractor will have
31a reasonable opportunity to submit a competitive quotation.
32If the notice provides for quotations for separate parts of a
33project, the notice shall also provide that quotations shall
34be accepted for any combination of parts, including for the
35whole project. Quotations may be obtained from contractors
-2-1after the governmental entity provides a description of the
2work to be performed, including the plans and specifications
3prepared by an architect, landscape architect, or engineer, if
4required under chapter 542B, 544B, or 544A, and an opportunity
5to inspect the work site. The contractor shall include in
6the quotation the price for labor, materials, equipment, and
7supplies required to perform the work. If the work can be
8performed by an employee or employees of the governmental
9entity, the governmental entity may file a quotation for the
10work to be performed in the same manner as a contractor. If the
11governmental entity receives no quotations after making a good
12faith effort to obtain quotations from at least two contractors
13regularly engaged in such work, the governmental entity may
14negotiate a contract with a contractor regularly engaged in
15such work.
16b. The governmental entity shall designate the time, place,
17and manner for filing quotations, which may be received by
18mail, facsimile, or electronic mail. The governmental entity
19shall award the contract or contracts to the contractor or
20contractors submitting the lowest responsive, total responsible
21quotation or quotations to minimize the total cost of the
22award subject to section 26.9, or the governmental entity may
23reject all of the quotations. The unconditional acceptance and
24approval of the lowest responsive, responsible quotation shall
25constitute the award of a contract. The governmental entity
26shall record the approved quotation in its meeting minutes.
27The contractor awarded the contract shall not commence work
28until the contractor’s performance and payment bond has been
29approved by the governmental entity. A governmental entity
30may delegate the authority to award a contract, to execute
31a contract, to authorize work to proceed under a contract,
32or to approve the contractor’s performance and payment bond
33to an officer or employee of the governmental entity. A
34quotation approved outside a meeting of the governing body of
35a governmental entity shall be included in the minutes of the
-3-1next regular or special meeting of the governing body.
2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
5This bill relates to the awarding of contracts for public
6improvement projects.
7The bill provides that if a governmental entity states
8in a notice that the governmental entity is accepting bids
9or quotations for multiple parts of a project for public
10improvement, then the entity shall accept bids or quotations
11for any combination of parts of the project, including bids
12or quotations for the whole project. Under the bill, the
13governmental entity shall award a contract or multiple
14contracts to the combination of bidders or contractors that
15minimizes the total cost of the award.
-4-js/rn
2improvement projects.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 26.7, subsection 2, Code 2019, is amended
2to read as follows:
32. The notice to bidders may provide that bids will be
4received for the furnishing of all labor and materials and
5furnishing or installing equipment under one contract, or for
6parts thereof in separate sections. If the notice provides for
7bids for separate parts of a project, the notice shall also
8provide that bids shall be accepted for any combination of
9parts, including for the whole project.
10 Sec. 2. Section 26.9, subsection 1, Code 2019, is amended
11to read as follows:
121. The contract or contracts for the public improvement
13must be awarded to the lowest responsive, responsible bidder or
14combination of responsible bidders whose bid or bids minimize
15the total cost of the award. However, contracts relating to
16public utilities or extensions or improvements thereof, as
17described in sections 384.80 through 384.94, may be awarded by
18the city as it deems to be in the best interests of the city.
19This section shall not be construed to prohibit a governmental
20entity in the award of a contract for a public improvement
21or a governing body of a city utility from providing, in the
22award of a contract for a public improvement, an enhancement
23of payments upon early completion of the public improvement if
24the availability of the enhancement payments is included in the
25notice to bidders, the enhancement payments are competitively
26neutral to potential bidders, the enhancement payments are
27considered as a separate item in the public hearing on the
28award of contract, and the total value of the enhancement
29payments does not exceed ten percent of the value of the
30contract.
31 Sec. 3. Section 26.10, subsection 1, Code 2019, is amended
32to read as follows:
331. The date and time that each bid is received by the
34governmental entity, together with the name of the person
35receiving the bid, shall be recorded on the envelope containing
-1-1the bid. All bids received after the deadlines for submission
2of bids as stated in the project specifications shall not be
3considered and shall be returned to the late bidder unopened.
4The governmental entity shall open, announce the amount of the
5bids, and file all proposals received, at the time and place
6specified in the notice to bidders. The governmental entity
7may, by resolution, award the contract or contracts for the
8public improvement to the bidder or combination of responsible
9bidders submitting the lowest responsive, total responsible bid
10or bids to minimize the total cost of the award, determined
11as provided in section 26.9, or the governmental entity
12may reject all bids received, fix a new date for receiving
13bids, and order publication of a new notice to bidders. The
14governmental entity shall retain the bid security furnished by
15the successful bidder until the approved contract form has been
16executed, a bond has been filed by the bidder guaranteeing the
17performance of the contract, and the contract and bond have
18been approved by the governmental entity. The provisions of
19chapter 573, where applicable, apply to contracts awarded under
20this chapter.
21 Sec. 4. Section 26.14, subsection 3, paragraphs a and b,
22Code 2019, are amended to read as follows:
23a. When a competitive quotation is required, the
24governmental entity shall make a good faith effort to obtain
25quotations for the work from at least two contractors regularly
26engaged in such work prior to letting a contract. Good
27faith effort shall include advising all contractors who have
28filed with the governmental entity a request for notice of
29projects. The governmental entity shall provide such notice
30in a timely manner so that a requesting contractor will have
31a reasonable opportunity to submit a competitive quotation.
32If the notice provides for quotations for separate parts of a
33project, the notice shall also provide that quotations shall
34be accepted for any combination of parts, including for the
35whole project. Quotations may be obtained from contractors
-2-1after the governmental entity provides a description of the
2work to be performed, including the plans and specifications
3prepared by an architect, landscape architect, or engineer, if
4required under chapter 542B, 544B, or 544A, and an opportunity
5to inspect the work site. The contractor shall include in
6the quotation the price for labor, materials, equipment, and
7supplies required to perform the work. If the work can be
8performed by an employee or employees of the governmental
9entity, the governmental entity may file a quotation for the
10work to be performed in the same manner as a contractor. If the
11governmental entity receives no quotations after making a good
12faith effort to obtain quotations from at least two contractors
13regularly engaged in such work, the governmental entity may
14negotiate a contract with a contractor regularly engaged in
15such work.
16b. The governmental entity shall designate the time, place,
17and manner for filing quotations, which may be received by
18mail, facsimile, or electronic mail. The governmental entity
19shall award the contract or contracts to the contractor or
20contractors submitting the lowest responsive, total responsible
21quotation or quotations to minimize the total cost of the
22award subject to section 26.9, or the governmental entity may
23reject all of the quotations. The unconditional acceptance and
24approval of the lowest responsive, responsible quotation shall
25constitute the award of a contract. The governmental entity
26shall record the approved quotation in its meeting minutes.
27The contractor awarded the contract shall not commence work
28until the contractor’s performance and payment bond has been
29approved by the governmental entity. A governmental entity
30may delegate the authority to award a contract, to execute
31a contract, to authorize work to proceed under a contract,
32or to approve the contractor’s performance and payment bond
33to an officer or employee of the governmental entity. A
34quotation approved outside a meeting of the governing body of
35a governmental entity shall be included in the minutes of the
-3-1next regular or special meeting of the governing body.
2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
5This bill relates to the awarding of contracts for public
6improvement projects.
7The bill provides that if a governmental entity states
8in a notice that the governmental entity is accepting bids
9or quotations for multiple parts of a project for public
10improvement, then the entity shall accept bids or quotations
11for any combination of parts of the project, including bids
12or quotations for the whole project. Under the bill, the
13governmental entity shall award a contract or multiple
14contracts to the combination of bidders or contractors that
15minimizes the total cost of the award.
-4-js/rn