By attorneys Danielle Haindfield and Conner Wasson
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.
About Ahlers & Cooney's Client Alerts
Our Client Alerts are intended to provide occasional general comments on new developments in Federal and State law and regulations which we believe might be of interest to our clients. The Client Alerts should not be considered opinions of Ahlers & Cooney, P.C., and are not intended to provide legal advice as a substitute for seeking professional counsel. Readers should not under any circumstance act upon the information in this publication without seeking specific professional counsel. Ahlers & Cooney will be pleased to provide additional details regarding any article upon request. Additional copies of this Client Alert may be obtained by contacting any attorney in the Firm or by visiting the Firm's website at www.ahlerslaw.com. ©2022 Ahlers & Cooney, P.C. All Rights Reserved.
NOTICE TO THE PUBLIC
The determination of the need for legal services and the choice of a lawyer are extremely important decisions and should not be based solely upon advertisements or self-proclaimed expertise. This disclosure is required by rule of the Supreme Court of Iowa. Memberships and offices in legal fraternities and legal societies, technical and professional licenses, and memberships in scientific, technical and professional associations and societies of law or field of practice does not mean that a lawyer is a specialist or expert in a field of law, nor does it mean that such lawyer is necessarily any more expert or competent than any other lawyer. All potential clients are urged to make their own independent investigation and evaluation of any lawyer being considered. This notice is required by rule of the Supreme Court of Iowa.