The Iowa Department of Transportation’s vertical infrastructure advisory committee adjusted the competitive bid and quote thresholds applicable to public improvement projects with bid dates on or after January 1, 2023.
School districts are subject to the new thresholds, but only as they relate to “vertical infrastructure projects.” Schools are not subject to “horizontal infrastructure thresholds,” as those concern street, sewer, and other similar infrastructure projects typically constructed by cities and counties.
School Districts need to be aware of the following information regarding the threshold changes:
Accordingly, as of January 1, 2023, school districts will be required to publicly bid construction projects with an estimated total cost of $196,000 or more in accordance with the procedures outlined in Iowa law. That is an increase from the current threshold of $139,000.
Additionally, on January 1, 2023, the competitive quote thresholds will be adjusted to $81,000 for school districts with a population less than 50,000 and $109,000 for school districts with a population of 50,000 or more. That is an increase from the current quotation thresholds of $57,000 and $77,000 based on population.
Public improvement projects valued under the new competitive quotation thresholds may continue to be procured in accordance with any procedures adopted by the Board. Note that bonds are still required for public improvement projects valued at $25,000 or more.
The horizontal and vertical bid threshold subcommittees are composed of Iowa Department of Transportation appointees. The committee is balanced between representatives of both the public and private sector. Both committees meet at least every other year to adjust the bid and quote thresholds for projects.
For additional information regarding competitive bidding requirements, contact an attorney in our Construction Law Practice Group at Ahlers & Cooney.
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