Bill Text: IA HF2242 | 2013-2014 | 85th General Assembly | Introduced


Bill Title: A bill for an act concerning competitive bidding requirements for certain service contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-02-13 - Subcommittee, Windschitl, Highfill, and Riding. H.J. 242. [HF2242 Detail]

Download: Iowa-2013-HF2242-Introduced.html
House File 2242 - Introduced HOUSE FILE 2242 BY ISENHART A BILL FOR An Act concerning competitive bidding requirements for certain 1 service contracts. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6026YH (2) 85 ec/sc
H.F. 2242 Section 1. NEW SECTION . 73A.18A Service contracts —— 1 bidding requirements —— security. 2 1. For purposes of this section, “service contract” means 3 a contract for services when the predominant factor, thrust, 4 and purpose of the contract as reasonably stated is for the 5 provision of services. When there is a contract for goods and 6 services and the predominant factor, thrust, and purpose of the 7 contract as reasonably stated is for the provision or rendering 8 of services with goods incidentally involved, a service 9 contract exists. “Service contract” also includes grants or 10 consulting services when the predominant factor, thrust, and 11 purpose of the contract formalizing the grant or consulting 12 service is for the provision of services. 13 2. When the estimated total cost of a service contract 14 exceeds fifty thousand dollars, the applicable city or county 15 shall advertise for bids on the proposed contract by two 16 publications in a newspaper of general circulation in the 17 county in which the work is to be performed or in which the 18 service is to be provided. The first advertisement for bids 19 shall be not less than fifteen days prior to the date set for 20 receiving bids. The city or county shall accept the lowest 21 responsible bidder submitting a sealed proposal. However, if 22 in the judgment of the city or county bids received are not 23 acceptable, all bids may be rejected and new bids requested. A 24 bid shall be accompanied, in a separate envelope, by a deposit 25 of money or a certified check or credit union certified share 26 draft in an amount to be named in the advertisement for bids 27 as security that the bidder will enter into a contract for 28 the performance of the work or the provision of services. 29 The city or county shall fix the bid security in an amount 30 equal to at least five percent, but not more than ten percent, 31 of the estimated total cost of the service contract. The 32 checks, share drafts, or deposits of money of the unsuccessful 33 bidders shall be returned as soon as the successful bidder is 34 determined, and the check, share draft, or deposit of money of 35 -1- LSB 6026YH (2) 85 ec/sc 1/ 2
H.F. 2242 the successful bidder shall be returned upon execution of the 1 contract documents. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 The bill requires a city or county to utilize a competitive 6 bidding process when entering into a service contract with 7 an estimated total cost over $50,000. The bill defines a 8 service contract as a contract in which the predominant factor, 9 thrust, and purpose of the contract as reasonably stated is for 10 the provision of services and not goods. The bill includes 11 grants and consulting services within the definition of service 12 contracts. 13 If the estimated total cost of the service contract exceeds 14 $50,000, the bill requires the city or county to advertise for 15 bids and establishes the manner of advertisement. The bill 16 provides that the city or county accept the lowest responsible 17 bidder or, if no bid is deemed acceptable, to reject all bids 18 and submit the contract for bid again. The bill requires bid 19 security to accompany each bid in an amount equal to at least 5 20 percent, but not more than 10 percent, of the estimated total 21 cost of the service contract. 22 -2- LSB 6026YH (2) 85 ec/sc 2/ 2
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