Ragan votes to put Iowa’s companies first in line for state contracts

DES MOINES – On Tuesday, March 10th, Senator Ragan from Mason City voted to put Iowa companies first in line when bidding for state contracts. If Senate File 1 becomes law, Iowa companies will have the opportunity to match competing out-of-state bids.

“There are hundreds of state purchases open for bid at any given time, everything from ice machines to furniture to computer services.” said Ragan. “When possible, Iowa businesses should have the first chance to bid on contracts when the state of Iowa purchases goods and services.”

Under the proposed legislation, if an Iowa firm was with within 5 percent or $10,000 of the lowest out-of-state bidder, the Iowa firm would have the opportunity to match the lowest bid. The State of Iowa would never be forced to pay more than the lowest bid.

“This legislation, which applies only to purchases of less than $500,000, focuses on helping Iowa’s local, small businesses,” Ragan said.

“When purchasing products with Iowa tax dollars, it just makes sense to purchase Iowa-made products made by Iowa workers from businesses that pay Iowa taxes,” said Ragan.

Senate File 1 passed on Tuesday with a bipartisan vote of 31 to 19 in the Senate chambers. It now heads over to the House for consideration.