This bill amends Section 26.9 of the Iowa Code regarding the awarding of public improvement contracts. Under current law, contracts must be awarded to the lowest responsive, responsible bidder. The new provisions allow for a contract to be awarded to a local contractor if the lowest bid comes from a contractor whose headquarters is located more than fifty miles away from the project site, provided that the local contractor's bid is no more than ten percent higher than the lowest bid.

Additionally, the bill defines a "local contractor" as one whose business headquarters is situated within fifty miles of the public improvement project. The legislation also maintains that cities can award contracts for public utilities as they see fit and allows for enhancement payments for early completion of projects, as long as certain conditions are met.

Statutes affected:
Introduced: 26.9