Master Builders of Iowa

As most of you know, Iowa Code 26.3 outlines the requirements for competitive bidding on public projects. The current threshold for the competitive bid process is $100,000 and will be increasing to $125,000 on January 1, 2012. Although $100,000 has been the magic number according to Iowa Code, the Construction Update Plan Room Network targets any projects with a pre-construction cost estimate of greater than $20,000 and therefore we have not made any changes to our policy or procedure as it relates to plans in the Plan Rooms. Please read below to find out more details pertaining to the threshold increase.

The Vertical Infrastructure Advisory Committee recently met to consider public bidding thresholds for the start of 2012. During the meeting, the Committee agreed to raise the competitive bid threshold from $100,000 to $125,000 effective January 1, 2012. Iowa law provides for the adjustment of the threshold pursuant to an advisory committee who is assigned to recommend adjustments (upward, downward or unchanged) that will take effect at the beginning of each year. The Committee reviews price adjustments for all types of construction, reconstruction and public improvement projects based on the changes in the construction price index, building cost index, and material cost index from the proceeding adjustment.

The thresholds for the competitive quotation process were also raised in a similar manner. The new thresholds, effective January 1, 2012 for the competitive quotation process are as follows:

• $48,000 for cities with a population of less than 50,000 (includes school districts in those cities)
• $69,000 for cities with a population of more than 50,000 (includes school districts in those cities)
• $91,000 for counties (includes county hospitals)

The competitive quotation process requires public entities to obtain a minimum of two competitive quotations if the cost of public improvement is less than $100,000, but greater than the aforementioned competitive quotation thresholds. Here are additional aspects of the competitive quotation process:

• The governmental entity must provide a description of the work to be performed and allow a contractor to visit the project site.
• The contractor must include the price for labor, material, equipment and supplies required to perform the work.
• The governmental entity must designate the time, place, and manner for filing quotes. The filing process may be by mail, fax or e-mail.
• The project must be awarded to the lowest responsive, responsible bidder OR the governmental entity reserves the right to reject all quotes.
• If the work can be performed by an employee or employees of the governmental entity, the governmental entity may file a quotation for the work to be performed in the same manner as a contractor.
• If no quotes are received to perform the work or if the governmental entity submits the lowest quote, the governmental entity may self-perform the work.
• Architectural and Engineering plans and specifications are required on projects in which such services are necessary as defined in Iowa Code Sections 544A and 542B.