By attorney Elizabeth Burnett
The competitive bid and quote thresholds applicable to public improvement projects will be adjusted for public improvement projects with bid dates on or after January 1, 2025.
The competitive bidding thresholds for horizontal infrastructure projects are decreasing in 2025. Horizontal infrastructure typically refers to highway, bridge, and culvert projects. Cities with a population of 50,000 or less must competitively bid horizontal infrastructure projects with an estimated total cost equal to or greater than $62,000. The threshold for cities with a population greater than 50,000 will be $89,000. For counties, the threshold will be $115,000. Horizontal infrastructure thresholds generally do not apply to school districts.
The competitive bidding thresholds for vertical infrastructure projects are increasing in 2025. Vertical infrastructure generally refers to the construction or renovation of structures, buildings, or other public improvements that are not roads, bridges, and culverts. All cities, school districts, and counties must competitively bid vertical infrastructure projects with an estimated total cost of $206,000 or more.
The competitive quote thresholds for vertical infrastructure projects have been adjusted upward to $82,000 for cities or school districts with a population less than 50,000 and $114,000 for cities or school districts with a population of 50,000 or more. The competitive quote threshold for counties has increased to $153,000.
A summary chart is included below:
|
Horizontal - Cities with 50,000 population or less |
Horizontal - Cities with more than 50,000 population |
Horizontal - Counties |
Vertical - Cities or other govern-mental entities with less than 50,000 population |
Vertical - Cities or other govern-mental entities with 50,000 population or more |
Vertical - Counties |
|
|
Competitive bids |
$62,000 |
$89,000 |
$115,000 |
$206,000 |
$206,000 |
$206,000 |
|
Competitive quotes |
N/A |
N/A |
N/A |
$82,000 |
$114.000 |
$153,000 |
Bidding thresholds are set by the Iowa Department of Transportation’s horizontal and vertical infrastructure advisory committees. The horizontal and vertical bid threshold subcommittees are composed of Iowa Department of Transportation appointees. The committees are balanced between representatives of both the public and private sector. Both committees meet at least every other year to consider adjustments to the competitive bid and quote thresholds for city, county, and school district projects.
For additional information regarding competitive bidding requirements, visit the Iowa DOT Webpage - Bid & Quote Thresholds, or contact Ahlers & Cooney.
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