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35 | Page <br /> <br />Awarding Contracts <br />“Best Value” Procurement Alternative <br />As an alternative, cities and other government entities may use a “best value” procurement process <br />for “construction, building, alteration, improvement or, repair [and maintenance] contracts.”5 Minnesota <br />Statute 412.311 allows the City to use a “Best Value” alternative instead of awarding the bid to the <br />lowest responsible bidder. Responsibility in bids means financial responsibility, but also integrity, skill, <br />and the likelihood of the bidder doing faithful and satisfactory work. Contact City Attorney in order to <br />use the best value alternative. <br /> <br />Best value procurement is a process based on competitive proposals that awards the contract to “the <br />vendor or contractor offering the best value, taking into account the specifications of the request for <br />proposals, the price and [specific] performance criteria.” <br /> <br />The price and performance criteria may include, but are not limited to: <br />1) Quality of performance on previous projects. <br />2) Timeliness of performance on previous projects. <br />3) Level of customer satisfaction on previous projects. <br />4) Record of performing projects on budget and ability to minimize cost overruns. <br />5) Ability to minimize change orders. <br />6) Ability to prepare appropriate project plans. <br />7) Technical capabilities. <br />8) Qualification of key personnel. <br />9) Ability to assess and minimize risks7 <br />The solicitation document must state the relative weight of price and other selection criteria. The <br />award must be made to the vendor or contractor offering the best value applying the weighted <br />selection criteria. If an interview of the vendor’s or contractor’s personnel is one of the selection <br />criteria, the relative weight of the interview must be stated in the solicitation document and applied <br />accordingly.8 <br />Personnel administering best value procurement procedures must be trained in the Request for <br />Proposals (RFP) process for best value contracting for construction projects.9 <br />5 Minn. Stat. §§ 412.311, subd. 2, and 471.345, subds. 3a, 4a, and 5. <br />6 Minn. Stat. § 16C.28, subd. 1(a) (2). The performance criteria are set forth in Minn. Stat. § 16C.02, subd. 4a, and is described in <br />solicitation documents. 7 Minn. Stat. § 16C.02, subd. 4a. <br />8 Minn. Stat. § 16C.28, subd. 1(c). <br />9 Minn. Stat. § 16C.03, subd. 19. <br /> <br /> <br /> <br /> <br /> <br />