Iowa

Key Agency(ies): Iowa’s centralized procurements are administered by the Department of Administrative Services (DAS). The Central Procurement Bureau promulgates rules and manages statewide contracts for goods and services.

• Link

Key Statute: Iowa’s procurement laws are primarily located in the Iowa Code Chapter 8A.

• Link

Key Regulations: Iowa’s procurement rules appear in the Iowa Administrative Code (Iowa Admin. Code), Agency 11 (DAS), Chapters 117 and 118. The rules implement Chapter 8A of the Iowa Code and cover purchasing of goods and services.

• Link

Procurement Types/Highlights: The most common methods of procurement in Iowa are:

Competitive Sealed Bidding: Under Iowa Admin. Code r. 11-117.3, purchases for goods and services exceeding $50,000 and purchases of public improvements exceeding $100,000 must be conducted through competitive sealed bidding. Solicitations must be advertised through the DAS Bid Opportunities portal, and after a public bid opening, award is made to the lowest price responsible bidder.

Request for Proposals: When factors beyond price matter, such as qualifications or technical merit, Iowa may issue a request for proposals under Iowa Admin. Code r. 11-117.9 when award must be based on “best value” rather than lowest cost. Evaluation criteria must be disclosed in the solicitation, and proposal evaluation is overseen by the Department of Administrative Services.

Informal Competition/Delegated Purchase Authority: Agencies may be granted delegated purchase authority and may purchase goods and services directly within defined limits, typically up to $50,000 with streamlined competition requirements. Agencies must still seek multiple quotations and document purchases. 

Bid Protests:

Regs Governing Bid Protests:

• In Iowa, bid protests are administered centrally through the Department of Administrative Services under Iowa Admin. Code r. 11-117.20.

Timeliness Rules:

• Vendors must file bid protests within five business days of the date of the notice of award.

Protest Process:

• Timely appeals are considered “contested cases” under the Iowa Administrative Procedure Act and are referred to the Iowa Department of Inspection, Appeals, and Licensing for an administrative hearing.
• While a protest is ongoing, contract award may be paused, although the Iowa Code does not provide for an automatic stay.
• Both the protester and agency may present evidence at the administrative hearing. Following the hearing, an administrative law judge will issue a proposed decision which the DAS Director may adopt, modify, or reject.

Appeals:

• The Director’s decision is the final agency action, and contractors may seek further judicial review.

Claims: 

• If a contractor alleges nonpayment or a contract breach by a state agency, Iowa Code § 8A.513 requires that the Department of Administrative Services verify claims and ensure they are lawful, properly authorized, and within available appropriations.
• Once verified by DAS, contract claims in Iowa are generally pursued in state court.
• If a contractor alleged the state has breached a contract, the Iowa Supreme Court has held that the state has waived sovereign immunity by entering the contract and may be sued in state court.
• Iowa has no special contract claims board.

Suspension & Debarment:

• Iowa’s suspension and debarment procedures are administered by the Department of Administrative Services. Iowa Admin.
• Code r. 11-117.18 provides DAS the authority to suspend or debar vendors that fail to perform, engage in misconduct, or otherwise demonstrate unreliability as a contractor.
• Prior to a suspension or debarment, DAS must provide written notice to the contractor providing the factual basis for the action and the duration of the debarment sought.
• Vendors must be given notice and the opportunity to respond and present evidence in their defense.
• The DAS Director will then issue a written decision specifying the scope and duration of the action.
• In Iowa, suspensions may last no longer than one year, and the length of debarments are determined by the severity of the violation.

Interesting/Distinctions:

• Iowa procurement includes a Targeted Small Business program, which allows for streamlined awards of up to $25,000 to certified disadvantaged businesses.
• The Iowa Code also includes a purchasing preference for Iowa Prison Industries and for in-state vendors.