General Service Enterprise
How to Do Business with the State of Iowa
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A Guide for the Vendor Community Prepared By: Table of Contents
Our mission is to facilitate a process that provides timely, cost-effective, high quality goods and services through cooperative and proactive procurement practices. Business owners will find that the State of Iowa offers many opportunities to sell goods and services. This guide offers a brief overview of the structure of purchasing in the State of Iowa and the related laws. We hope the information provided entices your company to join the many other businesses currently providing goods and services to the State of Iowa. The State of Iowa cannot operate without the goods and services of private businesses. Through your participation in an open competitive procurement process, the government and the taxpayer benefit from improved quality at lower prices. The Iowa procurement code is designed to ensure fair and equitable treatment of all persons who deal with the procurement process. We look forward to your continued interest and participation in the procurement process within the State of Iowa. Ray Walton, Chief Operating
Officer The State of Iowa does not discriminate on the basis of disability in the admission or access to, or treatment of employment in, its programs or activities pursuant to the Americans with Disabilities Act of 1990 (ADA) 42 USC § 12101. This guide is provided for general information purposes only. Nothing contained herein shall be construed to amend, modify, override, or nullify any state statute, county ordinance, rule, policy, procedure or document used in the procurement process. Frequently Asked Questions from the Business Community How do I get on the bidders list? There is an approved vendors list maintained in the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services, for the procurement of commodities, services and construction needs. All companies shall complete and submit to General Services Enterprise - Procurement Services, a Vendor Application Form that asks for important address information of a company and identification of the commodities or services the company provides. In addition, the company must complete and submit a Federal Identification W-9 form to General Services Enterprise - Procurement Services. There is no charge to get on the state bidders list. Vendor Application Forms are accessible on the State of Iowa Home Page - found at: Vendor Registration Process and Forms Companies that work in the construction field shall have a "contractor registration number" from the Workforce Center Administration Bureau before entering into a contract. Information can be obtained directly from the, Iowa Workforce Development Department, Labor Services Division, (515) 242-5871. A listing of current bids are also accessible on the state of General Services Enterprise - Procurement Services home page. Found at: http://das.gse.iowa.gov/iowapurchasing How are procurements under $5,000 handled? Agencies may purchase facility maintenance, repair and operational supplies and services when the cost is less than $5,000. For more information on this area of procurement, see the section entitled SMALL PURCHASE PROCUREMENT. Who is responsible for purchasing in Iowa state government? General Services Enterprise - Procurement Services establishes statewide general and individual contracts for commodities or services which are used in high volume by state agencies. Generally, all other formal bidding for the purchase of commodities or services needed by agencies that are not otherwise exempt is done through the General Services Enterprise - Procurement Services. The agencies and regent institutions which may by law purchase commodities and services independent of General Services Enterprise - Procurement Services include: the Terrace Hill Commission, the Department of Transportation, Iowa State University, University of Iowa, University of Northern Iowa, Iowa Braille and Sight Saving School, Iowa School for the Deaf, Department for the Blind, Iowa Prison Industries, Iowa Lottery and Iowa Communications Network. What is a general contract or individual contract and is it a good idea for me to bid on one? A general contract is a group of commonly used items or services which are competitively bid to set prices for a specified period of time. General Services Enterprise - Procurement Services, as a part of their service, cooperatively bids commonly used commodities or services based on estimated consumption in a specified period of time. A company awarded a general contract is obligated to offer those commodities or services to all participating state agencies and/or political subdivisions, regardless of their location within the State of Iowa. For additional information on this area of procurement, see the section entitled GENERAL OR INDIVIDUAL CONTRACT. Individual contracts are written exclusively for a particular agency or agencies and have the same conditions as described above. There are preferences for recycled products, printing, and Targeted Small Businesses. For more information on this area of procurement, see the section entitled PREFERENCES. The state attempts to determine the common-use items and the items that can most efficiently and economically be purchased using the competitive bid process. For a new commodity to be put on contract, an agency must notify General Services Enterprise - Procurement Services of a need. If agencies identify a specific need for a commodity, General Services Enterprise - Procurement Services may then begin the process of developing specifications and soliciting bids. All formal sealed bids are due at the time, date and location specified in the bid document. Late bids are returned unopened. You are welcome to attend any formal sealed bid opening and may review bids received during the bid opening. However, response to competitive sealed proposals (RFP's) may not be open to the public, and award information may not be available for public inspection until the contract is signed by all parties. Am I allowed to visit end users to show my product or market my service? Vendors are requested to make appointments in advance and to limit the meeting to current information about the product or service. Visits to using agencies are encouraged. Remember that informing an agency of your product or service does not add it to a general or individual contract. No, due to the large number of vendors on the bidders list or the estimated value of the purchase, it is often not practical to send bids to every vendor on the General Services Enterprise - Procurement Services bidders list. Copies of all current bids are accessible on the General Services Enterprise - Procurement Services home page at: http://das.gse.iowa.gov/iowapurchasing and click on "Current Bidding Opportunities" or go directly to: http://bidopportunities.iowa.gov. In late 2004, early 2005, General Services Enterprise - Procurement Services will be implementing a new vendor system called "Vendor Self Serve" (VSS). When this is implemented, vendors will be notified, by e-mail, when a bid is let that applys to their commodity(s), service(s) or construction. It is very important to complete the commodity listing when completing a vendor application. This new system will enable vendors to update their vendor information and post bids automatically. Bids must be manually signed in ink in the space provided on the solicitation; original signature must be submitted with the bid. In the case of Errors in the extension price, the unit price will govern. Each error and/or correction must be initialed by the bidder.
Source: Iowa Department of Administrative Services, General Services Enterprise - Procurement Services, October, 2004 a. Iowa Department of Administrative Services Iowa's procurement function is centralized in the Iowa Department of Administrative Services. A system for uniform standards and specifications for purchasing is established for all state agencies to follow excluding the Department of Transportation, the Department for the Blind, Iowa State University, University of Northern Iowa, University of Iowa, Iowa Braille and Sight Saving School, Iowa School for the Deaf, Iowa Prison Industries, Iowa Lottery, Terrace Hill Commission and Iowa Communications Network. The implementation of Iowa's Administrative Code, rules related to procurement, is centralized within the Iowa Department of Administrative Services. The Administrative Code implements broad policy mandates set by the Iowa General Assembly in the Iowa Code. The Director of the Iowa Department of Administrative Services has the authority to refuse to process state agency procurement requests if, in the Director's opinion, the purchase would not be in the best interest of the state. Disputes which arise between a vendor and an agency are heard by the Director of the Iowa Department of Administrative Services. Purchasing is in the Iowa Department of Administrative Services. The General Services Enterprise - Procurement Services professional staff carry out the centralized procurement of expendable and non-expendable commodities and provide assistance as requested on any or all procurement needs of state agencies. Individual Iowa state agencies may purchase commodities or services directly if the dollar value of the procurement is within a limit set by law and/or if they are dealing with a company that is a certified Targeted Small Business. c. Architectural and Engineering Architectural and Engineering is also in the Iowa Department of Administrative Services. The procurement responsibilities of Architectural and Engineering includes but are not limited to the services of architects, engineers, space planners, hazardous material managers, construction management, landscape architects, land surveying and testing services. In addition, the Division of Architectural and Engineering is responsible for building, altering, repairing, or improving any real property of the state. While Architectural and Engineering has the authority to conduct its own procurement, all procurement is handled by the professional staff in the General Services Enterprise - Procurement Services with the exception of emergency procurements. There is an approved vendors list maintained in the Iowa Department of Administrative Services for the procurement of commodities and for the procurement of construction needs. All companies shall complete and submit to the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services, a Vendor Application Form that asks for important address information on a company and identification of the commodities or services the company provides. In addition, the company shall complete and submit a Federal Identification W-9 form to the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services. There is no charge to get on the state vendors list. Companies that work in the construction field shall have a "contractor registration number" from the Workforce Center Administration Bureau before entering into a contract. Information can be obtained directly from the, Iowa Workforce Development Department, Labor Services Division, (515) 242-5871. The vendor may be selected from the approved listing or any other accepted source. No person or firm shall be considered as a qualified vendor until it has been approved and entered into the permanent approved vendor listing. 3.General or individual Contracts A general or individual contract, is a group of common items or services which are competitively bid to set prices for a specified period of time. The Iowa Department of Administrative Services, General Services Enterprise - Procurement Services establishes these contracts. The general or individual contract is important to you as a vendor if: Your company sells any of the commodities or services requested in a general or individual contract. In order to bid on a general or individual contract you should: Arrange a meeting with the appropriate buyer Review current general contracts or individual contracts Review the current specifications for commodities on the contracts Request the general contract or individual contract bidding schedules Watch the newspaper for advertisements Access the Internet at: http://das.gse.iowa.gov/iowapurchasing Expenditures less than $5,000 are referred to as small purchases. For commodities and services, a minimum of three quotations (in any form) must be obtained and award is made to the vendor with the lowest compliant bid. Expenditures for commodities and services between $5,000 and $50,000 require written response to an Invitation to Bid. Bids are opened informally within 24 hours of the due date. Award is made to the lowest compliant bid based on the agency's specifications. Expenditures for construction costs less than $25,000 require written response to an Invitation to Bid. Bids are opened informally within 24 hours of the due date. Award is made to the lowest compliant bid based on the agency's specifications. 6. Formal Competitive Sealed Bidding Purchase of commodities and services of $50,001 or more and construction of $100,001 or more are made through competitive sealed bidding. The bidder may receive a copy of the solicitation in one of three ways: Copies of the bid are available through the Department's Internet home page at: http://das.gse.iowa.gov/iowapurchasing If the company is registered with the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services and the commodities, services or construction requirements match those identified by the company in the completion of the vendor application, the company may be randomly selected to receive a copy of the solicitation through direct mail. All registered vendors do not automatically receive a solicitation. Requests for copies of the solicitation may be made by telephone, fax or in person to: Iowa Department of Administrative Services Copies of solicitations that are six pages or less may be faxed, all others are mailed. The bid document specifies the scope of work or requirements, specifications, terms and conditions for the furnishing of commodities, services, or construction to meet the needs of the state. The bidder must comply with the requirements of the bid document. It requires careful checking of the time, date, and location for submittal of the bid. The bid document will provide a name and phone number for the bidder to contact for questions and further information. Telegraphic, facsimile or telephonic bids will not be considered as "formal" bids. 7. Award Policy (Bidder Qualification) All bids shall be publicly opened and read. Contracts shall be let at the time and place established in the bid document. In the award of contracts, consideration is given to the price bid, the bidder's mechanical and other equipment, the bidder's financial responsibility and the bidder's ability and experience in the performance of like or similar contracts. Advertising is required for two types of solicitations and two different forms of advertising are permitted. Advertising may be in a local newspaper of general circulation or advertising may be done electronically. Advertising is required. . . When the anticipated aggregate fiscal year cost of the acquisition exceeds $50,000, or a contract is bid, the intent to acquire shall be published at least once. When the estimated total cost of construction, erection, demolition, alteration or repair of a public improvement exceeds $100,000, the intent to improve must be published twice in a newspaper in the county in which the work is to be done, at least 15 calendar days prior to all mandatory bid requirements. Multi-step sealed bidding is used when it is not practical to initially prepare definitive specifications which will be suitable to permit an award based on price. Multi-step sealed bidding is a combination of the competitive sealed bidding and proposal procedures. Multi-step sealed bidding allows the solicitation of un-priced technical offers and follow-up discussions to determine the acceptability of the technical offer followed by competitive sealed bidding and award of a contract to the lowest compliant bidder. As a bidder, you may be required to participate in a pre-bid conference to discuss the solicitation and/or other issues at any time during the evaluation of the un-priced technical offer. 10. Competitive Sealed Proposals Sometimes, competitive sealed bidding is determined to be either not practicable or not advantageous to the state for procurements greater than $50,000. This determination allows the award to be based on factors other than price. In that instance, awards for the purchase of commodities, services, or construction may be made through a request for proposal (RFP). A RFP will be generated by the General Services Enterprise - Procurement Services and contain specific information related to the terms and conditions of the procurement. Proposal evaluation methods will be defined in the RFP and rating systems may be used. General Services Enterprise - Procurement Services ensures that proper procedures are in place to safeguard the information contained in the vendor proposal and to provide fairness to all vendors in the negotiation process. Professional services may be procured through any of the source selection methods allowed by the procurement code. These methods are competitive sealed bids, competitive sealed proposals, small purchase process, sole source, and emergency procurement. Contracts under $1,000 are not subject to any competitive requirements. The final steps in the selection of professional service providers comes after an agency identifies a need and subsequently moves forward with the actual procurement. By law, the State of Iowa also requires the selected service provider to complete documentation verifying the state's employer/employee relationship with the service provider. 1. Completion of IRS Form SS-8 "Information for use in determining whether a worker is an employee for federal employment taxes and income taxes withholding." 2. Completion of a pre-contract questionnaire which asks "Twenty Common Law Factors Used by the IRS to determine the presence of an employer/employee relationship." Contracts exceeding $10,000 require that the pre contract questionnaire be signed by the department director. a. Sole Source and Emergency Professional Service Contracts All sole source and emergency contracts for $10,000 or more must have the pre-contract questionnaire and contract signed by the department director (inclusive of amendments that might make the total contract value $10,000 or more.) b. Special Requirements for Vendors with Professional Service Contracts Records must be retained for five years following the date of final payment. All records shall be available to the Auditor of the State of Iowa or the Comptroller of the United States (if federal money is involved). Vendors must file an affirmative action program with the Department of Management, pursuant to Executive Order #15 and Executive Order #34. The State of Iowa must approve all subcontracts entered into by vendors. If the vendor is a joint entity, all entities shall be jointly liable for the terms and obligations of the professional service contract. Vendor shall provide and pay for all labor, materials, equipment, tools, construction equipment, machinery and storage of same. Water, heat, utilities, transportation that are necessary to the execution of the contract must be provided by the vendor. The vendor must preserve the confidentiality of the state and its business in all professional service contracts. Breach of contract, for any reason, may result in liquidated damages up to 20% of the contract amount. c. Invitation to Qualify (ITQ) You are invited to submit a response to the ITQ for consideration by the STATE of Iowa to be included in a Statewide IT Consulting Multi-Award contract. The purpose of this process is to provide State agencies a means to secure a variety of services specifically related to information technology consulting and staff augmentation services in a uniform manner consistent with State law, enterprise standards and policies.
* ITQ Version 1 d. Professional Service Insurance Requirements Vendor must maintain worker's compensation insurance. Vendor may be required to maintain - for the life of the contract - public liability or property damage insurance and/or vehicle insurance. Appropriate insurance certifications must be filed with the state contracting agent before work can begin. Sole source procurements are made without competition if the commodities, services, or construction needed are available from only one source. Sole source procurements are for commodities, services, or construction of $5,000 or more. In a sole source procurement, the end user must justify and document the need and written approval must be granted by the agency head and the Iowa Department of Administrative Services. The Director of the Iowa Department Administrative Services may prequalify needs as sole source procurements if the director deems such acquisition to be in the best interest of the State. Any procurement which is less than $5,000 is handled as a small purchase. Emergency purchases of commodities, services, or construction are made whenever situations or conditions arise which create a threat to public health, welfare or safety and normal competitive procurement methods cannot be followed. Documentation of the need and approval of the procurement by the agency head is required. Any procurement less than $5,000 is handled as a small purchase. A cooperative purchase allows the use of the established contract to other specified purchasers (municipality, county, city, local government, hospital or university) under the same contract terms, conditions and special provisions. At the same time the General Use contract bid is submitted, the bidder is to indicate if they will allow local government agencies or political subdivisions to purchase items from the contract at the same price and contract terms and conditions. 15. Cost or Pricing Data Requirements Cost and pricing data refers to all facts as of the date of a general or individual contract that prudent buyers and sellers believe to be significant influences on price negotiations. Cost and pricing data is factual and verifiable and contributes to determinations about the reliability of future cost estimates. Cost and pricing data are required to be submitted in writing prior to price negotiations. The pre-bid conference is designed to give all vendors a general idea of what is expected of them and what is expected of the state prior to solicitation of bids or proposals. It is used to identify state-of-the-art limits, technical aspects, specifications and standards relative to the subject. The pre-bid conference may be called at the discretion of the buyer. The General Services Enterprise - Procurement Services ensures that all specifications are open and promote competitive bidding. Some specifications allow for repeated use in procurements. Specifications refer to any physical or functional requirement of a commodity, service, or construction item. All material, supplies and equipment offered and furnished must be new, and of current manufacturer production, unless the solicitation specifically permits offers of used or reconditioned items. Vendors are encouraged to notify the General Services Enterprise - Procurement Services prior to the bid opening whenever specifications are not openly competitive. A vendor may offer an item that materially conforms to or exceeds the specifications, but which may be technically different from the item bid. Substitutions shall be reviewed for compliance with the specifications prior to award. The state shall determine if a bid shall be awarded "All or None." The statement may appear on the solicitation. The vendor may not specify "All or None" as a term of the bid response. The General Services Enterprise - Procurement Services may award either by item or by lot, whichever is to the advantage of the state and identified in the specifications. All material, supplies and equipment offered and furnished must be new, of the latest model, crop year or manufacture and shall be at least equal in quality to that specified in specifications as submitted. Unless the solicitation specifically permits an offer of remanufactured, demonstrational, or used equipment, they are not acceptable. 20. Inspection Testing, Sampling, and Demonstration Inspection, testing, sampling, and demonstration of commodities, services, and construction offered by vendors/contractors may be required prior/after award. Vendors must guarantee pricing until testing is completed. If additional testing of a product is required after delivery, the payment discount period shall not begin until the test is completed and final approval made. The purchasing agency may audit the books and records relating to the award of a contract to a contractor or subcontractor prior to or after award. Contractors are required to maintain records of transactions related to state business for three years after the date of final payment. 22. Acceptance Bid Security, Contract Performance and Payment Bonds Acceptable bid securities and contract performance and payment bonds include: bid bonds underwritten by a company licensed to issue bonds in Iowa, or a "certified check" payable to the state treasurer in an amount to be fixed in the specifications, either covering all classes or items, or separate certified checks for each bid in case the bidder makes more than one bid. In lieu of a certified check, the bidder may furnish a yearly bond in an amount to be established by the director. Bid security submitted by unsuccessful vendors will be returned upon award of contract. The "certified check" of the successful bidder shall be returned upon execution of the contract. Failure to submit appropriate bid security will be regarded as non-compliant and the offer will be rejected. The state encourages purchases from Targeted Small Businesses. Prior to making any purchase, agencies are required to determine if the commodities, services, or construction can be obtained from a Targeted Small Business. Notwithstanding any other statutory or administrative code, agencies may purchase directly from a Targeted Small Business if the purchase does not exceed $10,000. The business owner is responsible for obtaining certification as a Targeted Small Business. Application must be made to ascertain that a small business is owned, operated and actively managed by minorities, women, or persons with disabilities. Certification is administered through: Inspection and Appeals Once certification is obtained, the business shall complete a vendor application in the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services. The application provides complete information regarding the commodities, services, or construction handled by the Targeted Small Business. The application may be obtained by visiting the General Services Enterprise - Procurement Services' website at: http://das.gse.iowa.gov/iowapurchasing and clicking on the "Vendor Registration Process & Forms" or by contacting: Iowa Department of Administrative Services In order to promote their use, preferences are given for products containing recycled material as defined by the Iowa Code. Preference shall be given to purchasing Iowa products and purchases from Iowa based businesses if the bids submitted are equal in price to bids submitted by out-of-state businesses and otherwise meet the required specifications. Other state's laws may mandate a percentage preference for businesses or products from that state. If the effect of the preference is that bids of Iowa businesses or products are not selected in that other state, the same percentage preference shall be applied to Iowa businesses and products when businesses or products from that other state are bid to supply Iowa requirements. If all aspects of bid tabulations are equal, preference shall be given to purchasing American-made products and purchases from American-based businesses. If the life cycle costs are equal to those products of foreign businesses and the products most adequately fulfill the department's needs. General Services Enterprise - Procurement Services will resolve bids which are equal in all respects and tied in price by drawing lots. Whenever practical, the drawing will be held in the presence of the vendors who are tied in price. If this is not possible, the drawing will be made in front of at least three persons and said drawing documented. Whenever a tie involves an Iowa firm and a firm outside the State of Iowa, the Iowa firm will receive preference. Whenever a tie involves one or more Iowa firms and one or more firms outside the State of Iowa, the drawing will be held among the Iowa firms only. Tie bids involving Iowa produced or manufactured products and items produced or manufactured outside the State of Iowa will be resolved in favor of the Iowa product. A bid must be received in the Iowa Department of Administrative Services, General Services Enterprise - Procurement Services, no later than the date and time designated for the bid opening. All late formal bids shall be considered late and returned unopened. The person signing the solicitation must be a person authorized to bind the vendor contractually. Unsigned bids shall not be accepted unless there is other documentation with the submittal containing a binding signature. Unsigned bids cannot be signed after the bid is opened, even if the vendor or their representative is present at the bid opening. 26. Modifications in Bid - Withdrawal Bids may be modified or withdrawn prior to the time and date set for the opening. Modification or withdrawal must be in writing. Each correction made by the bidder on the bid response MUST BE INITIALED by each correction. No bid or line item shall be altered or amended after the bid opening. In the case of Errors in the extension price, the unit price will govern. Failure to comply with this policy is cause for rejection of part or all of the bid. The only discounts provision that will be considered in determining awards will be for cash discount of 60 days or longer. Bids which specify discounts of E.O.M. or of less than 60 days shall be considered as net per item bids. The state shall attempt to earn any discounts offered and compute the period from the latest of the following: From date of invoice. The state is eligible for cash discount if warrant is issued and post marked to the appropriate vendor prior to the 30th day from the above computation. If the payment is made via automated clearing house (ACH-direct deposit), the discount is earned if the effective date of the deposit is within the 60 day time limit. Agencies have the authority to make changes to purchase orders if the change does not affect the unit price. If there is an increase in price or quantity as shown on the original purchase order, change in F.O.B. point or a change in discount, Purchasing will contact the vendor and make a decision if the change is allowed. Agencies may trade in an item of equipment when purchasing new equipment. The General Services Enterprise - Procurement Services must approve the trade-in price and determine its reasonableness. If the price is not reasonable, the merchandise shall be declared surplus by the Iowa Department of Administrative Services. The state reserves the right to evaluate bids and award a contract either with or without the trade-in. Whenever the purchase of an item of equipment has been made with the trade-in of equipment, it shall be the vendor's responsibility to remove the traded equipment from the agency's facility within 30 days of the final acceptance of the equipment. The state shall not assume responsibility for equipment that is not removed within 30 days. Beyond 30 days, the state may remove the property and ship it to the vendor and charge the vendor for all packing, crating and transportation charges. The bidder shall contact the purchasing agent, and seek a resolution prior to submitting a formal appeal. Any vendor whose bid or proposal has been timely filed and who claims to be aggrieved in connection with a Notice of Intent to Award, may appeal the decision by filing a written notice of formal appeal to the Director of the Iowa Department of Administrative Services. The written notice of formal appeal may be submitted by fax transmission to the Director's office, (515)242-5974. Hearings are held in public within 60 days of the date the notice of appeal was received. Hearings are held before an administrative law judge assigned by the Department of Inspections and Appeals. After formally submitting an appeal, participants must file their discovery requests within 15 days and name all witnesses and exhibits associated with the appeal within 30 days. Any party appealing the notice of Intent to Award may petition the state for a stay of award. A petition for a stay of award may require a bond equal to 120% of the contract value. The proposed decision shall become the final decision of the Iowa Department of Administrative Services within 15 days after mailing the proposed decision unless, prior to that time, a vendor submits an appeal of the proposed decision. In the event that an appeal of a proposed decision is filed, the Department must schedule review of the proposed decision within 30 days and oral arguments may be heard. The State of Iowa requires state agencies to process payment upon receipts of commodities or services. It is the responsibility of the agency to initiate payment to the vendor in a timely manner (generally within the 30 day discount period). b. Payments to the Subcontractor Any money, other than retainage, paid to a contractor shall be dispersed to subcontractors after receipt of the money in accordance with the terms of the subcontract, providing there are no bona fide disputes. The same policy applies to final payments made to the contractor. 33. Strikes, Lockouts or Acts of God Whenever a vendor's place of business, mode of delivery or source of supply has been disrupted by one of these acts, it shall be the responsibility of the vendor to promptly advise the General Services Enterprise - Procurement Services. The State of Iowa may elect to cancel all orders on file with the vendor and place the order with another vendor. General Services Enterprise - Procurement Services will resolve bids which are equal in all respects and tied in price by drawing lots. Whenever practical, the drawing shall be held in the presence of the vendors who are tied in price. If this is not possible, the drawing will be made in front of at least three persons and said drawing documented. (See - 23. PREFERENCES - e. Tie Bids for more information regarding Iowa Businesses.) 35. Vendor Suspension or Removal A bidder may be suspended or removed from the approved vendors listing for any of the following reasons. The vendor may be suspended for up to one year or permanently. Failure to respond to three consecutive bid requests. Failure to deliver within specified delivery dates without permission of Purchasing and the using agency. Failure to deliver in accordance with specifications. Attempts to influence the decision of any state employee involved in the procurement process. Evidence of agreements by vendors to restrain trade, or impede competitive bidding. Such activities will be reported to the Iowa Attorney General. Determination by the Iowa Civil Rights Commission that a vendor conducts discriminatory employment practices . Evidence that the vendor has willfully filed a false document with the State of Iowa. 36. Incomplete Shipment from a Vendor From time to time it may be necessary for a vendor to make a partial shipment of an order. If complete delivery in one shipment is not a bid requirement, the agency may record receipt of the merchandise and: Accept the portion delivered and withhold payment until all merchandise has been received as ordered. Request the vendor to invoice for the portion delivered and issue a partial payment purchase order. If all commodities have not been delivered by the scheduled delivery date, the agency may request Purchasing to cancel the balance of the order and purchase from the next lowest bidder. Vendors are not exempt from paying federal excise tax and/or state sales tax as they are considered to be a cost of doing business and should be considered in pricing when preparing a bid on a state contract. Agencies that procure products for the purpose of resale are required to issue resale certificates to the successful vendor for the product(s) procured for resale. The agency is responsible for the collection of the appropriate sales tax when the product is sold.
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