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House File 2457 - IntroducedA Bill ForAn Act 1relating to bidding for purchases through a competitive
2bidding process by the state.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 8A.311, Code 2022, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 12A. a. If the lowest responsive bid
4received by the state for products or other purchases is from
5an out-of-state business and totals less than five hundred
6thousand dollars, and an Iowa-based business submitted a bid
7which is within five percent or ten thousand dollars of the
8price of the lowest bid, whichever is less, the Iowa-based
9business which submitted the lowest responsive bid shall be
10notified and shall be allowed to match the lowest bid before
11a contract is awarded.
12b. This subsection does not apply to a request for bids or
13proposals for products or other purchases associated with the
14following:
15(1) Road or bridge construction or repair.
16(2) Architectural or engineering services.
17c. This subsection does not apply to procurement of or for
18public improvement projects.
19d. For purposes of this subsection, “public improvement”
20means a building or construction work which is constructed
21under the control of a governmental entity and is paid for
22in whole or in part with funds of the governmental entity,
23including a building or improvement constructed or operated
24jointly with any other public or private agency, and including
25a highway, bridge, or culvert project, but excluding emergency
26work or repair or maintenance work performed by state
27employees.
28 NEW SUBSECTION. 12B. a. A response to a request for
29bids or proposals for products or other purchases by the
30state which totals less than five hundred thousand dollars in
31value shall contain documentation showing that the submitting
32business paid taxes, as defined in section 445.1, in this state
33during the most recently completed fiscal year for which such
34documentation is available.
35b. This subsection does not apply to a request for bids or
-1-1proposals for products or other purchases associated with the
2following:
3(1) Road or bridge construction or repair.
4(2) Architectural or engineering services.
5c. This subsection does not apply to procurement of or for
6public improvement projects.
7d. For purposes of this subsection, “public improvement”
8means a building or construction work which is constructed
9under the control of a governmental entity and is paid for
10in whole or in part with funds of the governmental entity,
11including a building or improvement constructed or operated
12jointly with any other public or private agency, and including
13a highway, bridge, or culvert project, but excluding emergency
14work or repair or maintenance work performed by state
15employees.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill provides that for purchases initiated by the state
20through a competitive bidding process, if the lowest responsive
21bid received is from an out-of-state business and totals less
22than $500,000, and an in-state business submitted a bid which
23is within 5 percent or $10,000 of the price of the lowest
24responsive bid, whichever is less, the state shall notify
25the in-state business which submitted the lowest responsive
26bid and allow it to match the lowest responsive bid from the
27out-of-state business before a contract is awarded.
28The bill also provides that a response to a request for bid
29or proposal for a purchase by the state which is less than
30$500,000 in value must contain documentation showing that the
31submitting business paid taxes, as defined in Code section
32445.1, in this state during the most recently completed fiscal
33year for which such a figure is available.
34The bill does not apply to a request for bids or proposals
35for products or other purchases associated with road or bridge
-2-1construction or repair, to a request for bids or proposals
2for products or other purchases associated with architectural
3or engineering services, or to procurement of or for public
4improvement projects.
5The bill defines “public improvement” as a building or
6construction work which is constructed under the control of
7a governmental entity and is paid for in whole or in part
8with funds of the governmental entity, including a building
9or improvement constructed or operated jointly with any other
10public or private agency, and including a highway, bridge, or
11culvert project, but excluding emergency work or repair or
12maintenance work performed by state employees.
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2bidding process by the state.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 8A.311, Code 2022, is amended by adding
2the following new subsections:
3 NEW SUBSECTION. 12A. a. If the lowest responsive bid
4received by the state for products or other purchases is from
5an out-of-state business and totals less than five hundred
6thousand dollars, and an Iowa-based business submitted a bid
7which is within five percent or ten thousand dollars of the
8price of the lowest bid, whichever is less, the Iowa-based
9business which submitted the lowest responsive bid shall be
10notified and shall be allowed to match the lowest bid before
11a contract is awarded.
12b. This subsection does not apply to a request for bids or
13proposals for products or other purchases associated with the
14following:
15(1) Road or bridge construction or repair.
16(2) Architectural or engineering services.
17c. This subsection does not apply to procurement of or for
18public improvement projects.
19d. For purposes of this subsection, “public improvement”
20means a building or construction work which is constructed
21under the control of a governmental entity and is paid for
22in whole or in part with funds of the governmental entity,
23including a building or improvement constructed or operated
24jointly with any other public or private agency, and including
25a highway, bridge, or culvert project, but excluding emergency
26work or repair or maintenance work performed by state
27employees.
28 NEW SUBSECTION. 12B. a. A response to a request for
29bids or proposals for products or other purchases by the
30state which totals less than five hundred thousand dollars in
31value shall contain documentation showing that the submitting
32business paid taxes, as defined in section 445.1, in this state
33during the most recently completed fiscal year for which such
34documentation is available.
35b. This subsection does not apply to a request for bids or
-1-1proposals for products or other purchases associated with the
2following:
3(1) Road or bridge construction or repair.
4(2) Architectural or engineering services.
5c. This subsection does not apply to procurement of or for
6public improvement projects.
7d. For purposes of this subsection, “public improvement”
8means a building or construction work which is constructed
9under the control of a governmental entity and is paid for
10in whole or in part with funds of the governmental entity,
11including a building or improvement constructed or operated
12jointly with any other public or private agency, and including
13a highway, bridge, or culvert project, but excluding emergency
14work or repair or maintenance work performed by state
15employees.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill provides that for purchases initiated by the state
20through a competitive bidding process, if the lowest responsive
21bid received is from an out-of-state business and totals less
22than $500,000, and an in-state business submitted a bid which
23is within 5 percent or $10,000 of the price of the lowest
24responsive bid, whichever is less, the state shall notify
25the in-state business which submitted the lowest responsive
26bid and allow it to match the lowest responsive bid from the
27out-of-state business before a contract is awarded.
28The bill also provides that a response to a request for bid
29or proposal for a purchase by the state which is less than
30$500,000 in value must contain documentation showing that the
31submitting business paid taxes, as defined in Code section
32445.1, in this state during the most recently completed fiscal
33year for which such a figure is available.
34The bill does not apply to a request for bids or proposals
35for products or other purchases associated with road or bridge
-2-1construction or repair, to a request for bids or proposals
2for products or other purchases associated with architectural
3or engineering services, or to procurement of or for public
4improvement projects.
5The bill defines “public improvement” as a building or
6construction work which is constructed under the control of
7a governmental entity and is paid for in whole or in part
8with funds of the governmental entity, including a building
9or improvement constructed or operated jointly with any other
10public or private agency, and including a highway, bridge, or
11culvert project, but excluding emergency work or repair or
12maintenance work performed by state employees.
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