Laserfiche WebLink
F. Contracts or purchases $25,000 or less. If the amount of the contract is estimated to be $25,000 <br />or less, the contract or purchase may be made either upon quotation or in the open market, in the <br />discretion of the governing body. If the contract or purchase is made upon quotation it shall be <br />based, so far as practicable, on at least two quotations which shall be kept on file for a period of at <br />least one year after their receipt. Alternatively, cities may award a contract for construction, <br />alteration, repair, or maintenance work to the vendor or contractor offering the best value under a <br />request for proposals as described above and in state statutes section 16C.28, subdivision 1, <br />paragraph (a), clause (2), and paragraph (c). (Minn. Stat. Sec. 471.345.5) <br /> <br />Best Value Procurement Alternative <br /> <br />Under certain circumstances, as listed above, cities may use best value contracting for construction <br />projects. Best value procurement is a process based on competitive proposals, as an alternative to sealed <br />bids, which awards the contract to “the vendor or contractor offering the best value under a request for <br />proposals as described in section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).” <br />(Minn. Stat. Sec. 412.311.2) <br /> <br />For the purposes of construction, alteration, repair or maintenance work, “best value” describes the result <br />determined by a procurement method that considers price and other criteria. A list of potential other criteria <br />can be found in Minn. Stat. Sec. 16C.28.1b. The solicitation document must state the relative weight of <br />price and other selection criteria and the award must be made to the vendor or contractor offering the best <br />value applying the weighted selection criteria. If an interview of the vendor’s or contractor’s personnel is <br />one of the selection criteria, the relative weight of the interview shall be stated in the solicitation document <br />and applied accordingly. <br /> <br />Personnel administering best value procurement procedures must be trained in Request for Proposals <br />(RFP) process for best value contracting for construction projects. <br /> <br />Exceptions to Competitive Bidding <br /> <br />The following are some of the most common exceptions to the competitive-bidding requirements: <br /> <br />A. Non-contracts. An agreement that does not meet the definition of a contract under the competitive <br />bidding law is exempt from the competitive bidding requirements. For example, an agreement in <br />which a company supplied a special scoreboard system in exchange for the right to sell or lease <br />advertising space on it was found to be exempt from the competitive bidding requirements because <br />it was not a contract for “materials, supplies or equipment.” Likewise, contracts for refuse hauling <br />and janitorial services were also found to be exempt from the competitive bidding requirements <br />because they were not considered to be contracts within the definition of the competitive bidding <br />law. (LMC Competitive Bidding Requirements) <br />B. Cooperative purchasing. (a) Cities may contract for the purchase of supplies, materials, or <br />equipment by utilizing contracts that are available through the state's cooperative purchasing <br />venture authorized by section 16C.11. For a contract estimated to exceed $25,000, a city must <br />consider the availability, price and quality of supplies, materials, or equipment available through <br />the state's cooperative purchasing venture before purchasing through another source. (b) If a city <br />does not utilize the state's cooperative purchasing venture, a city may contract for the purchase of <br />supplies, materials, or equipment without regard to the competitive bidding requirements of this <br />section if the purchase is through a national municipal association's purchasing alliance or <br />cooperative created by a joint powers agreement that purchases items from more than one source <br />on the basis of competitive bids or competitive quotations. (Minn. Stat. Sec. 471.345.15) <br />C. Electronic reverse-auction purchases. Cities may use an electronic reverse-auction procedure <br />to contract for the purchase of supplies, materials, and equipment regardless of their cost. This <br />procedure allows vendors to compete to provide the requested supplies, materials or equipment at <br />the lowest selling price in an open and interactive electronic environment. Cities may not use this <br />process to contract for services or a service contract. (Minn. Stat. Sec. 471.345.16)