Senate D
emocratic Leaders today announced an effort to change the State of Iowa’s purchasing procedures to put Iowa small businesses first when it comes to state purchasing.
“What Iowa businesses need most are customers, and the State of Iowa should be one of those customers whenever it makes sense,” said Senator Liz Mathis of Robins, the bill’s lead sponsor. “If Senate File 15 becomes law, when an Iowa-based business is within 5 percent or $10,000 of the low bid from an out-of-state business, the Iowa-based business will have the chance to match that bid.”
There are hundreds of state purchases open for bid at any given time—everything from ice machines to furniture to IT services. Local, small businesses would benefit most from Senate File 15 because the legislation only applies to purchases of less than $500,000.
“Why would an Iowa state agency by bedding, towels and sheets from North Carolina? Why are our state dollars being used to buy bread and bakery products from a company in Missouri,” asked Mathis. “If we can do more to put Iowa companies first, we should.”
Mathis noted that under her legislation, the state of Iowa is never required to pay more than the lowest bid. Also, the state can purchase from an out-of-state vendor if no Iowa company matches their bid.
“Iowa’s state government is a major purchaser of goods and services,” Mathis said. “From what my constituents tell me and from what I’ve read in the papers, there is room for improvement when it comes to buying from Iowa companies first.”
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CAPTION: Senate Democrats today announced an effort to make more state purchasing at Iowa businesses. State Senator Liz Mathis of Robins, the bill’s lead sponsor, said “If Senate File 15 becomes law, when an Iowa-based business’s bid is within 5 percent or $10,000 of the low bid from an out-of-state business, the Iowa-based business will have the chance to match that bid.” LINK for more info.