How to sell to Iowa counties

Iowa has 99 counties, each run by a board of supervisors. State law sets bidding rules for county public improvements: buildings and other vertical work follow Iowa Code chapter 26, and roads and bridges follow the road statutes. State law sets no bidding rule for county purchases of goods and services, so those follow each county's policy. Bid amounts are adjusted every other year under Iowa Code 314.1B.

At a glance

Who buys

The board of supervisors lets contracts for county public improvements (Iowa Code 331.341) and secondary road contracts (Iowa Code 309.41). The county engineer runs secondary roads and bridges. No statewide purchasing officer title was confirmed; many counties route bid notices through the county auditor or engineer.

Goods and services

Iowa Code 331.341 covers public improvements only and sets no bidding requirement for goods or services. No statewide small-purchase or quote rule was found. Each county sets these in its own policy, so ask for it. County purchases are subject to the Iowa products preference in chapter 73 (Iowa Code 331.341).

Construction and public works

Buildings and other vertical improvements (chapter 26):

The statute's base amounts are $100,000 for bids and $67,000 for county quotes. Both are adjusted under Iowa Code 314.1B by committees that meet at least every other year, with changes effective Jan. 1 (Iowa DOT). The 2025 figures come from a law firm summary (secondary: Ahlers & Cooney). Whether they changed for 2026 is not confirmed. A county may choose to bid or quote below the thresholds (Iowa Code 26.14A).

Before entering a bid contract, the county holds a public hearing on the plans, specifications and form of contract (Iowa Code 26.12).

Roads, bridges and culverts (horizontal work) have a $115,000 bid threshold and no quote tier (2025; Iowa DOT and secondary: Ahlers & Cooney). Counties do not use the chapter 26 quote procedure for horizontal work. Projects paid from the secondary road fund follow Iowa Code 309.40 to 309.43, 310.14, 314.1 and 314.2 (Iowa DOT). For informal secondary road lettings, the board contacts at least 3 qualified bidders and records it in the minutes (Iowa Code 309.41).

Bid security is 5% to 10% of the estimated cost or of the bid (Iowa Code 26.8). Acceptable forms were not confirmed; check the notice.

Bonds. Public improvements of $25,000 or more need a contractor's bond under chapter 573 (Iowa Code 331.341). Bid projects need a performance bond equal to 100% of the contract (Iowa Code 26.8). Payment bond details were not confirmed; check the solicitation.

Notice and award

The notice to bidders is posted 13 to 45 days before the bid date. It goes in a statewide contractor plan room service, a construction lead-generating service, and on a government or statewide association website. A postponed letting with no other changes needs 4 to 45 days' notice (Iowa Code 26.3).

Contracts go to the lowest responsive, responsible bidder. Early-completion incentives are capped at 10% and must be stated in the notice (Iowa Code 26.9). No statewide RFP rule for goods or services was found.

Prevailing wage

Iowa has no state prevailing wage law (U.S. Department of Labor). Federally funded work can still require Davis-Bacon wages, and federal road projects can carry DBE goals.

Getting paid

On public improvements, interest accrues on approved progress payments unpaid 14 days after receipt, or a contract period of up to 30 days (Iowa Code 573.12). The county may retain no more than 3% of the amount due. A prime contractor may hold no more than 3% from subcontractors and must pay them within 7 days after it is paid (Iowa Code 573.12). The deadline for releasing retainage was not confirmed; check the contract. A general prompt payment rule for non-construction county purchases was not confirmed.

Cooperative purchasing and state contracts

The state may extend its contracts to governmental subdivisions, which pay vendors directly, and may enter cooperative procurement agreements with other governmental entities (Iowa Code 8A.311(5), (9)). That counties count as governmental subdivisions here is inferred, since the section doesn't define the term. See cooperative purchasing.

Preferences and required certifications

• Iowa products: county board purchases follow the chapter 73 preference (Iowa Code 331.341).
• Reciprocal preference: on public improvements by the state and political subdivisions, Iowa applies a resident bidder and labor force preference equal to the bidder's home-state preference. Nonresident bidders must disclose their home state's preferences (Iowa Code 8A.311B, formerly 73A.21).
• Targeted Small Business: the state certifies small businesses owned by women, minorities, service-disabled veterans or people with disabilities (Iowa DAS). County use of the program varies.

Whether county contracts require E-Verify, Israel boycott, divestment or non-collusion certifications was not confirmed; check the solicitation.

Architects and engineers

Architectural, landscape architectural and engineering design services are exempt from chapter 26 bidding, and public entities may not select these firms based on fees (Iowa Code 26.4). Expect qualifications-based selection.

Recent changes

• Jan. 1, 2025: County vertical bid and quote thresholds rose to $206,000 and $153,000; horizontal to $115,000 (secondary: Ahlers & Cooney).
• July 1, 2025: Retainage cap cut from 5% to 3% (Iowa Code 573.12).

Practical tips for Iowa

• Subscribe to the statewide plan room and lead services; formal building bids must be posted there (Iowa Code 26.3).
• Watch supervisors' agendas for plan and specification hearings, the clearest early sign of a bid.
• Know which rules apply: building work follows chapter 26; road work follows the secondary road statutes and Iowa DOT lettings.
• Check Iowa counties for each county's bid platform, contacts and agendas.