Section 761.20.3. Procurement policy.

It is the policy of the department to procure equipment, materials, supplies and services in the most efficient and economical manner possible. It is also the policy of the department that procurement shall be competitive to the maximum practicable extent.

       20.3(1) Formal advertising. The formal advertising method of procurement shall be used whenever this method is feasible and practicable under the existing conditions and circumstances and the estimated, aggregate amount of the purchase equals or exceeds $50,000.

       20.3(2) Limited solicitation. The limited solicitation method of procurement may be used if formal advertising is not feasible or practicable, or the estimated, aggregate amount of purchase is less than $50,000.

       20.3(3) Negotiation. The negotiation method of procurement may be used if formal advertising or limited solicitation is not feasible or practicable, or in any of the following instances:

        a.           Procurement by negotiation is determined to be necessary and in the public interest during a period of man-made or natural disaster or emergency.

        b.           The estimated, aggregate amount of the purchase is less than $5,000.

        c.           The procurement is for architectural, landscape architectural, engineering, or related professional or technical services.

        d.           The procurement is for other professional services.

        e.           The procurement is for services to be rendered by an educational institution.

        f.            It is impracticable to secure competition through formal advertising or limited solicitation, such as when:

       (1)             Equipment, materials, supplies or services can be obtained from only one source.

       (2)             Competition is precluded because of the existence of patent rights, copyrights, secret processes, control of basic raw materials, or similar circumstances.

       (3)             Bids or quotations have been solicited, and no responsive bids or quotations have been received.

       (4)             Bids or quotations have been solicited, and the responsive bids or quotations do not cover the quantity requirements of the solicitation. In this case, negotiation is permitted for the remaining quantity requirements.

       (5)             The procurement is for electrical power or energy, natural or manufactured gas, water or other utility services, or the procurement is for construction of a part of a utility system or railroad and it would not be practicable to allow a contractor other than the utility or railroad company to perform the work.

       (6)             The procurement is for technical or professional services in connection with the assembly, installation or servicing (or the instruction of personnel therein) of equipment of a highly technical or specialized nature.

       (7)             The procurement involves maintenance, repair, alteration or inspection, and the exact nature or amount of work to be done is not known.

       (8)             The procurement is for commercial transportation.

       (9)             It is impossible to draft adequate specifications or any other adequately detailed description of the item or services to be procured.

       (10)           The procurement is for a part or component being procured as a replacement in support of equipment specially designed by the manufacturer, and the data available is not adequate to ensure that the part or component supplied by another manufacturer will perform the same function as the part or component it is to replace.

       (11)           The procurement involves construction where a contractor or group of contractors is already at work on the site, and either it would not be practicable to allow another contractor or an additional contractor to work on the same site or the amount of work involved is too small to interest other contractors to mobilize and demobilize.

        g.           The procurement is for experimental, developmental or research work or for the manufacture or furnishing of property for experimentation, development, research or testing.

        h.           It is determined that the bids or quotations received are not reasonable or have not been independently arrived at.

        i.            Procurement by negotiation is otherwise authorized by law including, but not limited to, Iowa Code section 73.19.

        j.            The manufacturer is willing to sell directly to the state at distributor cost.