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RELEVANT LINKS: League of Minnesota Cities Handbook for Minnesota Cities 10/15/2018 Expenditures, Purchasing, and Contracts Chapter 22 | Page 28 D. Best value contracting Minn. Stat. § 16C.28. Minn. Stat. § 412.311, subd. 2. Minn. Stat. § 429.041, subd. 2a. Minn. Stat. § 469.015, subd. 1a. Minn. Stat. § 469.068, subd. 1a. Minn. Stat. § 469.101, subd. 5a. Minn. Stat. § 471.345, subds. 3a, 4a, and 5. Best value contracting provides an alternative to the competitive bidding process for contracts for construction, building, alteration, improvement, or repair work. A city may award this type of contract to the vendor or contractor offering the best value through the request for proposals process set forth in state law. With best value, cities can consider performance factors, along with price, when awarding construction project contracts. Performance criteria may include (but are not limited to): Rochester City Lines, Co. v. City of Rochester, 868 N.W.2d 655 (Minn. 2015) (holding the “unreasonable, arbitrary, or capricious”’ standard of review applies to a city’s best value bidding process). • Quality of performance on previous projects (this does not include the exercise or assertion of a person’s legal rights). • Timeliness of performance on previous projects. • Level of customer satisfaction on previous projects. • Record of performing previous projects on budget and ability to minimize cost overruns. • Ability to minimize change orders. • Ability to prepare appropriate project plans. • Technical capabilities. • Qualifications of key personnel. • Ability to assess and minimize risks. Minn. Stat. § 16C.28, subd. 1(c). A city’s request for proposal (RFP) must set forth the criteria used to evaluate best value contracting. The RFP also must state the relative weight assigned to price, as well as to other selection criteria. If an interview of the vendor or contractor’s personnel represents a factor in the selection criteria, the RFP must specify the relative weight of the interview and must apply it accordingly. Minn. Stat. § 16C.28, subd. 1a (c). It appears that cities are limited to using best value contracting for either one project annually or 20 percent of their projects, whichever is greater, for the first three fiscal years in which best value contracting is used. E. Exemptions In the absence of a statutory or charter requirement, a city need not advertise for bids. Cities may choose to advertise for bids, however, even if the law does not require them to do so. Cities need not follow the competitive bidding process for the following types of contracts. 1. Professional services Krohnberg v. Pass, 187 Minn. 73, 244 N.W. 329 (Minn. 1932). Cities do not have to use the competitive bidding process when contracting for professional services, such as those of doctors, engineers, lawyers,