Section 751.5.1. Applicability of competitive bidding.

       5.1(1) The commission shall use competitive bidding to purchase goods and services from private agencies when the estimated annual value of the contract is equal to or greater than $5,000 or when the estimated value of the multiyear service contract in the aggregate, including any renewals, is equal to or greater than $15,000, unless there is adequate justification for a sole-source procurement pursuant to subrule 5.1(2) or another provision of law.

        a.           When the estimated annual value of the contract is equal to or greater than $5,000, but less than $50,000, or the estimated value of the multiyear contract in the aggregate, including any renewals, does not exceed $150,000, the commission, in its sole discretion, shall use either a formal or informal competitive selection process to procure the goods or services.

        b.           When the estimated annual value of the contract is equal to or greater than $50,000 or the estimated value of the multiyear contract in the aggregate, including any renewals, exceeds $150,000, the commission shall use a formal competitive bidding process to procure the goods or services.

        c.           For any single item, the commission may spend up to the maximum amount permitted by Iowa Code Supplement section 8D.11 to acquire the item. This maximum amount is not applicable to purchases under the contracting authority permitted by Iowa Code section 8D.13 or any other authority of the commission.

       5.1(2) The commission shall avoid sole-source procurements unless clearly necessary and justifiable. The commission may purchase goods or services using a sole-source procurement under the following circumstances:

        a.           The executive director or commission’s designee determines that one vendor is the only one qualified or eligible or is quite obviously the most qualified or eligible to provide the goods or perform the services; or

        b.           The goods or services being purchased involve work that is of such a specialized nature or related to a specific geographic location that only a single source, by virtue of experience, expertise, proximity to the project, or ownership of intellectual property rights, could most satisfactorily provide the service; or

        c.           The commission is hiring the services of experts, advisors, counsel, or consultants to assist in any type of legal proceeding including but not limited to testifying or assisting in the preparation of quasi-judicial or judicial proceedings; or

        d.           The federal government or other provider of funds for the service being purchased, other than the state of Iowa, has imposed clear and specific restrictions on the commission’s use of the funds in a way that restricts the commission to only one service provider; or

        e.           Applicable law requires, provides for, or permits the use of a sole-source procurement; or

        f.            There is an immediate or emergency need for the item or service; or

        g.           The item is maintenance services for the network for which the vendor supplies remote maintenance service for network components or software or the vendor supplies software upgrades, patches, modifications or the like electronically or for which the service will preserve equipment or software warranties; or

        h.           The executive director or the commission’s designee determines that the best interests of the commission will be served by exemption from the bidding process.

       5.1(3) When the annual value of the contract exceeds $5,000 or when the estimated value of the multiyear contract in the aggregate, including renewals, is equal to or greater than $15,000, the commission shall complete a sole-source justification form. The executive director or the executive director’s designee shall sign the sole-source justification form.