Thursday, February 4, 2016

Bidding as a Prime Contractor

Many of the projects that are let by the Iowa Department of Transportation are within the capability of DBE contractors. I encourage DBE contractors to be in the position to bid as a prime contractor.  Prior to bidding as a prime contractor the Iowa DOT will require you to complete Form 650004 Iowa DOT Contractor Financial-Experience-Equipment Statement Contractors' Form. You can download Form 650004 here. The Iowa DOT has funding to help DBE contractors pay for CPA accounting services in preparing Form 650004.

The amount of work that you are qualified to bid will first depend on how you prepare the statement.

Individually Prepared Statement is completed without the assist of a CPA and will be limited to $200,000 minus the amount of uncompleted work.

CPA Reviewed Statement will be limited to contracts less than $1 million plus total contracts less than the maximum prequalification amount minus the amount of uncompleted work.

CPA Audited Statement has no individual contract limitation and total contracts are limited to the maximum prequalification amount minus the amount of uncompleted work.

Maximum Prequalification Amount is based your amount of current assets plus 1/2 noncurrent assets plus loan authorization times an experience factor (0.0 to 12.5).

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The Iowa DOT also requires contractors to complete a minimum amount in work categories before they would allow you to prime work in those categories.

You will also need to be able to file an acceptable performance bond within 30 days of the approval date for awarding the contract.