ISAC

House File 2713, passed in 2006, created what is now Chapter 26 of the Iowa Code, called “Iowa Construction Bidding Procedures Act.”

Click here for a for a chart explaining the various competitive bidding thresholds.

What is Covered?
We are not talking about everything you purchase.  This is about construction projects.  The technical term is “public improvements.”  That is defined as any “building or construction work” constructed under the control of the county, and paid for in whole or in part by the county.

It generally means installation or construction of a fixed structure.  So building a building, an addition to that building, a parking lot, an air conditioning system, a boiler or a shelter in a county park.  This does not apply to road construction. 

Emergency Work
If it is emergency work, which is defined as work where a delay might cause serious loss or injury to the county, then you do not have to use competitive bidding.  But you do have to do two things: 1)pass a resolution declaring an emergency under Chapter 26, and 2)procure a certificate from a licensed engineer or architect certifying that emergency repairs are necessary.

Repair or Maintenance Work
If not emergency work, it may be “repair or maintenance work.”  This is the preservation of the building so that it remains in sound condition.  This does include minor replacements.  But it does not mean changing the footprint of the building.  Any repair work done by county employees is not subject to this new law, regardless of the cost. 

If the repair or maintenance work is going to be done by someone else, then it is subject to the formal bidding procedures.

If it is a “public improvement,” and is not emergency work, and it is not repair or maintenance work, then it is “building or construction work.”  This is the bread and butter stuff like putting a new addition on the courthouse.  Building a jail.  Expanding the auditor’s office.  Things like that.

If it is building or construction work, then it is subject to the new Chapter 26 of the Iowa Code.

What Does It Cost?
The first question you ask is, what is the total cost?  And this means the total cost of the labor, materials, equipment and supplies.  It excludes the cost of the architect or engineer.

If it is a public improvement, and it costs less than $75,000, then no bid or quotation is required.   The county can get the work done any way that it wants.  But having a written policy that applies to the entire courthouse makes sense.

If the cost is $100,000 or more, then the formal bidding process must be used. 

Competitive Quotations
The new twist created by HF 2713 is for projects that cost $75,000 to $100,000.  HF 2713 created a “competitive quotation” process.  This is found in Iowa Code section 26.14. 

Here is how it works:

• A county has to make a good faith effort to obtain quotations from at least two contractors prior to letting a contract. 

• The solicitation by the county may be oral or written.  Here is an example of a Request for Quotation form that you can use.  It al least gives you something to start with if you want to do one yourself. 

• Each solicitation shall include a description of the work to be performed and plans or specifications if required elsewhere in the Code. 

• The solicitation shall advise that the contractor has the opportunity to inspect the work site. 

• You have to provide the same information to all contractors from whom quotes are solicited.

In the solicitation you have to:

1)specify the form and content of the quotation – you can develop a form

2)state when and where the quotation is to be provided

3)establish the acceptable method of delivery of the quotation – mail, email, fax or hand delivery

4)inform the contractor that a performance and payment bond will be required

The county may submit a quote – it has to meet the same requirements as every other quote.

A quote must be in writing.

The county cannot require that labor, material, equipment or supplies be broken out separately.

If the county is going to submit a bid, there are special requirements regarding estimating sales and fuel tax.  See 761 IAC 180.7(2), 180.8(2)

The county must reject non-responsive quotes.

The county shall award the contract to the contractor submitting the “lowest responsive, responsible quotation” or “may reject all of the quotations.”

You have to record all approved quotations in your meeting minutes.

The board may delegate the authority to award the contract and sign the contract to an officer or employee of the county, provided that an award approved outside of a meeting shall be reported in the meeting minutes of the next regularly scheduled meeting of the board.

If no quotes are received, the county may authorize its employees to perform the work.

If the county submits a bid, and it is the low bid, the board may authorize its employees to do the work.

HF 2713 required the IDOT to adopt rules on how competitive quotation process would work.  ISAC got to appoint a county supervisor to the advisory group that worked on the rules.  The committee finished its work in December, and the rules are now making their way through the administrative rules process. 

In the meantime, House File 2713 took effect on January 1, 2007, so Chapter 26 of the Iowa Code is in effect today.  Counties are authorized to use the competitive quotation process today. 

The competitive quotation threshold of $75,000 is subject to adjustment by the IDOT.

For roads, bridges and culverts, the formal bidding threshold is $75,000.  If it is less than that, you can use and informal process.  If it is $75,000 or more, you need to use the formal process.  There is no competitive quotation process.

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