Laserfiche WebLink
Page 3 of 8 <br />3.2 Bidding Requirements: <br />3.2.1 When supplies or equipment are competitive in nature, specifications <br />cannot exclude all but one type of equipment or supplies. Proposals and <br />specifications must allow free and full competition. Bidding <br />requirements can- not be avoided by splitting a contract into several <br />contracts, each of which is below the minimum amount requiring sealed <br />bids. For example, the City cannot purchase $30,000 of lumber in several <br />transactions, each involving an expenditure of less than $25,000. <br />However, if materials or work logically fall into two separate contracts <br />because they involve separate transactions, as for the service of <br />contractors specializing in different kinds of work, the City can negotiate <br />the contracts individually without sealed bids if the bids do not exceed <br />the $25,000 minimum. <br />3.2.2 Sealed bids are required for purchases exceeding $175,000 The bids <br />must be advertised by the City Clerk in the City’s legal newspaper <br />(Notice to Bidders) and publicly opened and approved by Council <br />resolution. In addition to the legal notice, the City must prepare <br />instructions to bidders and general specifications for sealed bids. <br />Attaching a copy of the proposed contract to the instructions to bidders <br />is required. <br />3.2.3 Bid security in the amount of ten percent (10%) of the bid (for sealed <br />bids for purchases over $175,000) shall be submitted to the City Clerk. <br />The bid security guarantees that in the event the bidder’s offer is <br />accepted, the bidder will enter into a contract in accordance with the <br />proposal. Bid security of the successful bidder will be returned upon <br />execution of the con- tract documents. Bid securities of unsuccessful <br />bidders will be returned within a reasonable time period (Minnesota <br />Statute §574.27). Failure of the successful bidder to execute the Contract <br />and furnish applicable bonds within ten (10) days after receiving written <br />notice of the award shall cause the bid security to be forfeited as <br />liquidated damages to the City. In the event the successful bidder fails <br />to execute the contract, the City Council may award the contract to the <br />next lower competent bidder unless the Council determines that public <br />interest will be better served by accepting a higher bid, or the contract <br />may be re-advertised. <br />3.2.4 Municipal contracting law requires that bids must be awarded to the <br />lowest responsible bidder. It should be noted that the bidder who <br />submits the lowest bid in dollars is not necessarily the “lowest <br />responsible bidder” and the quoted phrase gives the Council reasonable <br />discretion in choosing among bidders. Responsibility, in bid statutes,