House File 2520 - IntroducedA Bill ForAn Act 1relating to the calculation of bids for awarding
2contracts for public improvements.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 26.9, subsection 1, Code 2024, is amended
2to read as follows:
   31.  a.  The contract for the public improvement must be
4awarded to the lowest responsive, responsible bidder. However,
5contracts relating to public utilities or extensions or
6improvements thereof, as described in sections 384.80 through
7384.94, may be awarded by the city as it deems to be in the best
8interests of the city. This section shall not be construed to
9prohibit a governmental entity in the award of a contract for a
10public improvement or a governing body of a city utility from
11providing, in the award of a contract for a public improvement,
12an enhancement of payments upon early completion of the public
13improvement if the availability of the enhancement payments is
14included in the notice to bidders, the enhancement payments are
15competitively neutral to potential bidders, the enhancement
16payments are considered as a separate item in the public
17hearing on the award of contract, and the total value of the
18enhancement payments does not exceed ten percent of the value
19of the contract.
   20b.  When determining the lowest responsive bid, a county
21or city shall treat a bid as though the overall cost is five
22percent lower if the bidder’s proposal contains a statement
23that twenty-five percent of the labor force for the work will
24be completed through apprenticeships. A county or city shall
25also treat a bid as though the overall cost is five percent
26lower if the general contractor has not committed a violation
27of the federal Occupational Safety and Health Act of 1970, 29
28U.S.C.§651 – 678, in the preceding two years.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
   32This bill relates to the calculation of bids for contracts
33for public improvements. The bill requires a county or
34city to reduce the cost of a bid by 5 percent for purposes
35of determining the lowest responsive bid for a contract for
-1-1a public improvement if the bidder’s proposal states that
225 percent of the labor force will be completed through
3apprenticeships or if the general contractor has not violated
4the federal Occupational Safety and Health Act in the preceding
5two years.
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