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Minnesota Legislature

Office of the Revisor of Statutes

HF 571

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/05/2007
1st Engrossment Posted on 03/05/2007

Current Version - 1st Engrossment

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A bill for an act
relating to state government; defining best value; changing provisions for
acquisition and competitive bidding; amending Minnesota Statutes 2006,
sections 16C.02, by adding subdivisions; 16C.03, subdivisions 3, 4, 16, by
adding a subdivision; 16C.26, subdivisions 1, 3, 4, 5; 16C.27, subdivision 1;
16C.28, subdivisions 1, 3, 4; 103D.811, subdivision 3; 103E.505, subdivision
5; 116A.13, subdivision 5; 123B.52, subdivision 1, by adding a subdivision;
160.17, by adding a subdivision; 160.262, by adding a subdivision; 161.32, by
adding a subdivision; 161.3412, subdivision 1; 161.38, subdivision 4; 365.37, by
adding a subdivision; 374.13; 375.21, by adding a subdivision; 383C.094, by
adding a subdivision; 412.311; 429.041, by adding a subdivision; 458D.21, by
adding a subdivision; 469.015, by adding a subdivision; 469.068, subdivision
1, by adding a subdivision; 471.345, subdivision 5, by adding subdivisions;
473.523, by adding a subdivision; 473.756, subdivision 12.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 16C.02, is amended by adding a
subdivision to read:


new text begin Subd. 4a. new text end

new text begin Best value; construction. new text end

new text begin For purposes of construction, building,
alteration, improvement, or repair services, "best value" describes the result determined by
a procurement method that considers price, the vendor's or contractor's ability to assess
and minimize foreseeable and unforeseeable risks, and other performance criteria, which
may include, but are not limited to:
new text end

new text begin (1) the quality of the vendor's or contractor's performance on previous projects;
new text end

new text begin (2) the timeliness of the vendor's or contractor's performance on previous projects;
new text end

new text begin (3) the level of customer satisfaction with the vendor's or contractor's performance
on previous projects;
new text end

new text begin (4) the vendor's or contractor's record of performing previous projects on budget and
ability to minimize cost overruns;
new text end

new text begin (5) the vendor's or contractor's ability to minimize change orders;
new text end

new text begin (6) the vendor's or contractor's ability to prepare appropriate project plans;
new text end

new text begin (7) the vendor's or contractor's technical capacities; and
new text end

new text begin (8) the individual qualifications of the contractor's key personnel.
new text end

new text begin This subdivision does not apply to sections 16C.32, 16C.33, 16C.34, and 16C.35.
new text end

Sec. 2.

Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
to read:


new text begin Subd. 20. new text end

new text begin Vendor. new text end

new text begin "Vendor" means a business, including a construction contractor
or a natural person, and includes both if the natural person is engaged in a business.
new text end

Sec. 3.

Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:


Subd. 3.

Acquisition authority.

The commissioner shall acquire all goods, services,
and utilities needed by agencies. The commissioner shall acquire goods, services, and
utilities by requests for bids, requests for proposals, reverse auctions as provided in section
16C.10, subdivision 7, or other methods provided by law, unless a section of law requires
a particular method of acquisition to be used. The commissioner shall make all decisions
regarding acquisition activities. new text beginFor all acquisitions other than building and construction
contracts,
new text endthe determination of the acquisition method and all decisions involved in the
acquisition process, unless otherwise provided for by law, shall be based on best value
which includes an evaluation of price and may include other considerations including,
but not limited to, environmental considerations, quality, and vendor performance.
new text begin Such new text enda best value determination must be based on the evaluation criteria detailed in the
solicitation document. If criteria other than price are used, the solicitation document
must state the relative importance of price and other factors. deleted text beginUnless it is determined by
the commissioner that an alternative solicitation method provided by law should be used
to determine best value, a request for bid must be used to solicit formal responses for all
building and construction contracts.
deleted text end Any or all responses may be rejected. When using the
request for bid process, the bid must be awarded to the lowest responsive and responsible
bidder, taking into consideration conformity with the specifications, terms of delivery, the
purpose for which the contract or purchase is intended, the status and capability of the
vendor, and other considerations imposed in the request for bids. The commissioner may
decide which is the lowest responsible bidder for all purchases and may use the principles
of life-cycle costing, where appropriate, in determining the lowest overall bid. The duties
set forth in this subdivision are subject to delegation pursuant to this section.

Sec. 4.

Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Acquisition authority; construction contracts. new text end

new text begin For all building and
construction contracts, the commissioner shall award contracts according to section
16C.28, and "best value" shall be defined and applied as set forth in sections 16C.02,
subdivision 4a and 16C.28, subdivision 1, paragraph (a), clause (2). The duties set forth in
this subdivision are subject to delegation according to this section.
new text end

Sec. 5.

Minnesota Statutes 2006, section 16C.03, subdivision 4, is amended to read:


Subd. 4.

Contracting authority.

The commissioner shall conduct all contracting
by, for, and between agencies and perform all contract management and review functions
for contracts, except those functions deleted text beginspecificallydeleted text end delegated to be performed by the
contracting agency, the attorney general, or otherwise provided for by law.

Sec. 6.

Minnesota Statutes 2006, section 16C.03, subdivision 16, is amended to read:


Subd. 16.

Delegation of duties.

The commissioner may delegate duties imposed by
this chapter to the head of an agency deleted text beginanddeleted text endnew text begin,new text end to any subordinate of the agency headnew text begin, or to a
technical review committee appointed by the commissioner
new text end. Delegated duties shall be
exercised in the name of the commissioner and under the commissioner's direct supervision
and control. A delegation of duties may include, but is not limited to, allowing individuals
within agencies to acquire goods, services, and utilities within dollar limitations and
for designated types of acquisitions. Delegation of contract management and review
functions must be filed with the secretary of state and may not, except with respect to
delegations within the Department of Administration, exceed two years in duration. The
commissioner may withdraw any delegation at the commissioner's sole discretion.

Sec. 7.

Minnesota Statutes 2006, section 16C.26, subdivision 1, is amended to read:


Subdivision 1.

Application.

Except as otherwise provided by sections 16C.26
and 16C.27, all contracts for building and construction or repairs must be based on
competitive bidsnew text begin or proposals. "Competitive proposals" specifically refers to the method
of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2)
new text end.

Sec. 8.

Minnesota Statutes 2006, section 16C.26, subdivision 3, is amended to read:


Subd. 3.

Publication of notice; expenditures over $25,000.

If the amount of
an expenditure is estimated to exceed $25,000, bids new text beginor proposals new text endmust be solicited by
public notice in a manner designated by the commissioner. To the extent practical, this
must include posting on a state Web site. For expenditures over $50,000, new text beginwhen a call
for bids is issued
new text endthe commissioner shall solicit sealed bids by providing notices to all
prospective bidders known to the commissioner by posting notice on a state Web site at
least seven days before the final date of submitting bids. All bids over $50,000 must be
sealed when they are received and must be opened in public at the hour stated in the
notice. new text beginAll proposals responsive to a request for proposal according to section 16C.28,
subdivision 1, paragraph (a), clause (2), shall be submitted and evaluated in the manner in
the request for proposal, regardless of the dollar amount.
new text endAll original bids new text beginand proposals
new text endand all documents pertaining to the award of a contract must be retained and made a part
of a permanent file or record and remain open to public inspection.

Sec. 9.

Minnesota Statutes 2006, section 16C.26, subdivision 4, is amended to read:


Subd. 4.

Building and construction contracts; $50,000 or less.

An informal bid
may be used for building, construction, and repair contracts that are estimated at less than
$50,000. Informal bids must be authenticated by the bidder in a manner specified by the
commissioner.new text begin Alternatively, a request for proposal may be issued according to section
16C.28, subdivision 1, paragraph (a), clause (2), for such contracts.
new text end

Sec. 10.

Minnesota Statutes 2006, section 16C.26, subdivision 5, is amended to read:


Subd. 5.

Standard specifications, security.

Contracts must be based on the
standard specifications prescribed and enforced by the commissioner under this chapter,
unless otherwise expressly providednew text begin or as authorized under section 16C.28, subdivision 1,
paragraph (a), clause (2)
new text end. Each deleted text beginbidder for a contractdeleted text end new text beginvendor or contractor new text endmust furnish
security approved by the commissioner to ensure the making of the contract being bid for.

Sec. 11.

Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:


Subdivision 1.

Single source of supply.

Competitive bidding deleted text beginisdeleted text end new text beginor proposals are new text endnot
required for contracts clearly and legitimately limited to a single source of supply, and the
contract price may be best established by direct negotiation.

Sec. 12.

Minnesota Statutes 2006, section 16C.28, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginLowest responsible bidderdeleted text endnew text begin Award requirementsnew text end.

new text begin(a) new text endAll state
building and construction contracts entered into by or under the supervision of the
commissioner or an agency for which competitive bids new text beginor proposals new text endare required deleted text beginmust
be awarded to the lowest responsible bidder, taking into consideration conformity with
the specifications, terms of delivery, the purpose for which the contract is intended, the
status and capability of the vendor, and other considerations imposed in the call for bids.
The commissioner may decide which is the lowest responsible bidder for all contracts
and may use the principles of life cycle costing, where appropriate, in determining the
lowest overall bid. The head of the interested agency shall make the decision, subject
to the approval of the commissioner. Any or all bids may be rejected. In a case where
competitive bids are required and where all bids are rejected, new bids, if solicited, must
be called for as in the first instance, unless otherwise provided by law.
deleted text endnew text begin may be awarded to
either of the following:
new text end

new text begin (1) the lowest responsible bidder, taking into consideration conformity with the
specifications, terms of delivery, the purpose for which the contract is intended, the status
and capability of the vendor or contractor, other considerations imposed in the call for
bids, and, where appropriate, principles of life-cycle costing; or
new text end

new text begin (2) the vendor or contractor offering the best value, taking into account the
specifications of the request for proposal, the purpose for which the contract is intended,
the price, the timing of project delivery, the factors in section 16C.02, subdivision 4a, and
other considerations in the request for proposal.
new text end

new text begin (b) The vendor or contractor must secure bonding, commercial general insurance
coverage, and workers' compensation insurance coverage under paragraph (a), clause (1)
or (2). The head of the interested agency shall determine whether to use the procurement
process described in paragraph (a), clause (1), or the procurement process described in
paragraph (a), clause (2). If the agency uses the method in paragraph (a), clause (2), the
head of the agency shall determine which vendor or contractor offers the best value,
subject to the approval of the commissioner. Any or all bids or proposals may be rejected.
In a case where competitive bids or proposals are required and where all bids or proposals
are rejected, new bids or proposals, if solicited, must be called for as in the first instance,
unless otherwise provided by law.
new text end

Sec. 13.

Minnesota Statutes 2006, section 16C.28, subdivision 3, is amended to read:


Subd. 3.

Special circumstances.

The commissioner may reject the bid new text beginor proposal
new text endof any deleted text beginbidderdeleted text end new text beginvendor or contractor new text endwho has failed to perform a previous contract with
the state. In the case of identical low bids from two or more bidders, the commissioner
may use negotiated procurement methods with the tied low bidders for that particular
transaction so long as the price paid does not exceed the low tied bid price. The
commissioner may award contracts to more than one deleted text beginbidderdeleted text end new text beginvendor or contractor new text endin
accordance with subdivision 1, if doing so does not decrease the service level or diminish
the effect of competition.

Sec. 14.

Minnesota Statutes 2006, section 16C.28, subdivision 4, is amended to read:


Subd. 4.

Record.

A record must be kept of all bidsnew text begin or proposalsnew text end, including names of
bidders, amounts of bidsnew text begin or proposalsnew text end, and each successful bidnew text begin or proposalnew text end. This record is
open to public inspection.

Sec. 15.

Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:


Subd. 3.

Awarding of contract.

(a) At a time and place specified in the bid notice,
the managers may accept or reject any or all bids and may award the contract to the lowest
responsible bidder. The bidder to whom the contract is to be awarded must give a bond,
with ample security, conditioned by satisfactory completion of the contract.

(b) Bids must not be considered which in the aggregate exceed by more than 30
percent the total estimated cost of construction or implementation.

(c) new text beginAs an alternative to the procurement method described in paragraph (a), the
managers may issue a request for proposal and award the contract to the vendor or
contractor offering the best value as described in section 16C.28, subdivision 1, paragraph
(a), clause (2).
new text end

new text begin (d) new text endThe contract must be in writing and be accompanied by or refer to the plans and
specifications for the work to be done as prepared by the engineer for the watershed
district. The plans and specifications shall become a part of the contract.

deleted text begin (d)deleted text end new text begin(e) new text endThe contract shall be approved by the managers and signed by the president,
secretary, and contractor.

Sec. 16.

Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:


Subd. 5.

How contract may be awarded.

The contract may be awarded in one
job, in sections, or separately for labor and material and deleted text beginmustdeleted text end new text beginmay new text endbe let to the lowest
responsible bidder.new text begin Alternatively, the contract may be awarded to the vendor or contractor
offering the best value under a request for proposal as described in section 16C.28,
subdivision 1, paragraph (a), clause (2).
new text end

Sec. 17.

Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:


Subd. 5.

How job may be let.

The job may be let in one job, or in sections, or
separately for labor and material, and deleted text beginshalldeleted text end new text beginmay new text endbe let to the lowest responsible bidder or
bidders therefor.new text begin Alternatively, the contract may be awarded to the vendor or contractor
offering the best value under a request for proposal as described in section 16C.28,
subdivision 1, paragraph (a), clause (2).
new text end

Sec. 18.

Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:


Subdivision 1.

Contracts.

A contract for work or labor, or for the purchase of
furniture, fixtures, or other property, except books registered under the copyright laws, or
for the construction or repair of school houses, the estimated cost or value of which shall
exceed that specified in section 471.345, subdivision 3, must not be made by the school
board without first advertising for bids or proposals by two weeks' published notice in the
official newspaper. This notice must state the time and place of receiving bids and contain
a brief description of the subject matter.

Additional publication in the official newspaper or elsewhere may be made as the
board shall deem necessary.

After taking into consideration conformity with the specifications, terms of delivery,
and other conditions imposed in the call for bids, every such contract new text beginfor which a call for
bids has been issued
new text endmust be awarded to the lowest responsible bidder, be duly executed
in writing, and be otherwise conditioned as required by law. The person to whom the
contract is awarded shall give a sufficient bond to the board for its faithful performance.
Notwithstanding section 574.26 or any other law to the contrary, on a contract limited
to the purchase of a finished tangible product, a board may require, at its discretion, a
performance bond of a contractor in the amount the board considers necessary. A record
must be kept of all bids, with names of bidders and amount of bids, and with the successful
bid indicated thereon. A bid containing an alteration or erasure of any price contained in
the bid which is used in determining the lowest responsible bid must be rejected unless the
alteration or erasure is corrected as provided in this section. An alteration or erasure may
be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
initialed in ink by the person signing the bid. In the case of identical low bids from two or
more bidders, the board may, at its discretion, utilize negotiated procurement methods
with the tied low bidders for that particular transaction, so long as the price paid does not
exceed the low tied bid price. In the case where only a single bid is received, the board
may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as
the price paid does not exceed the original bid. If no satisfactory bid is received, the
board may readvertise. Standard requirement price contracts established for supplies or
services to be purchased by the district must be established by competitive bids. Such
standard requirement price contracts may contain escalation clauses and may provide for a
negotiated price increase or decrease based upon a demonstrable industrywide or regional
increase or decrease in the vendor's costs. Either party to the contract may request that the
other party demonstrate such increase or decrease. The term of such contracts must not
exceed two years with an option on the part of the district to renew for an additional two
years. Contracts for the purchase of perishable food items, except milk for school lunches
and vocational training programs, in any amount may be made by direct negotiation
by obtaining two or more written quotations for the purchase or sale, when possible,
without advertising for bids or otherwise complying with the requirements of this section
or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a
period of at least one year after receipt.

Every contract made without compliance with the provisions of this section shall be
void. Except in the case of the destruction of buildings or injury thereto, where the public
interest would suffer by delay, contracts for repairs may be made without advertising
for bids.

Sec. 19.

Minnesota Statutes 2006, section 123B.52, is amended by adding a
subdivision to read:


new text begin Subd. 1b. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a contract for construction, building, alteration, improvement,
or repair may be awarded to the vendor or contractor offering the best value under a request
for proposal as described in section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 20.

Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
referenced in subdivision 2, counties or towns may issue a request for proposal and award
the contract to the vendor or contractor offering the best value as described in section
16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 21.

Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 4, the commissioner may allow for the award of design-build
contracts for the projects described in subdivision 4 to the vendor or contractor offering
the best value under a request for proposal as described in section 16C.28, subdivision 1,
paragraph (a), clause (2).
new text end

Sec. 22.

Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision
to read:


new text begin Subd. 1f. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivisions 1a to 1e, the commissioner may issue a request for proposal and
award the contract to the vendor or contractor offering the best value as described in
section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 23.

Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:


Subdivision 1.

Best value selection.

Notwithstanding sections 16C.25, 161.32,
and 161.321, or any other law to the contrary, the commissioner may solicit and award
a design-build contract for a project on the basis of a best value selection processnew text begin as
defined in section 16C.02, subdivision 4a
new text end. Section 16C.08 does not apply to design-build
contracts to which the commissioner is a party.

Sec. 24.

Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:


Subd. 4.

Effects on other law of public contract with commissioner.

Whenever
the road authority of any city enters into an agreement with the commissioner pursuant
to this section, and a portion of the cost is to be assessed against benefited property,
the letting of a public contract by the commissioner for the work shall be deemed to
comply with statutory or charter provisions requiring the city (1) to advertise for bids
before awarding a contract for a public improvement, (2) to let the contract to the lowest
responsible biddernew text begin or to the vendor or contractor offering the best valuenew text end, and (3) to require
a performance bond to be filed by the contractor before undertaking the work. The
contract so let by the commissioner and the performance bond required of the contractor
by the commissioner shall be considered to be the contract and bond of the city for the
purposes of complying with the requirements of any applicable law or charter provision,
and the bond shall inure to the benefit of the city and operate for their protection to the
same extent as though they were parties thereto.

Sec. 25.

Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 2, a contract for construction, building, alteration, improvement,
or repair may be awarded to the vendor or contractor offering the best value under a request
for proposal as described in section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 26.

Minnesota Statutes 2006, section 374.13, is amended to read:


374.13 TO ADVERTISE FOR BIDS.

new text begin Subdivision 1. new text end

new text begin Bidding process. new text end

When the plans and specifications are completed
and approved by the city council and the county board, the commission shall, after notice
appropriate to inform possible bidders, obtain bids or proposals for all or any portion of
the work or materials, or both, to be done, performed, or furnished in the construction of
the building. All bids or proposals shall be sealed by the bidders or proposers and filed
with the commission at or before the time specified for the opening of bids or proposals.
At the time and place specified for the opening of bids or proposals, the commission shall
meet, open the bids or proposals, tabulate them, and award the contract or contracts to the
responsible bidder whose bid or proposal is the most favorable to the city or county, or
reject all bids and proposals. If all bids or proposals are rejected, the commission may,
after similar notice, obtain more bids or proposals or may modify or change the plans and
specifications and submit the modified plans and specifications to the city council and the
county board for approval. When the modified or changed plans and specifications are
satisfactory to both the city council and the county board, the plans and specifications
shall be returned to the commission and the commission shall proceed again, after similar
notice, to obtain bids or proposals. Any contract awarded by the commission shall be
subject to approval by the city council and the county board.

new text begin Subd. 2. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, the commission may issue a request for proposal and award the
contract to the vendor or contractor offering the best value as described in section 16C.28,
subdivision 1, paragraph (a), clause (2).
new text end

Sec. 27.

Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision
to read:


new text begin Subd. 1b. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a county board may award a contract for construction, building,
alteration, improvement, or repair to the vendor or contractor offering the best value
under a request for proposal as described in section 16C.28, subdivision 1, paragraph
(a), clause (2).
new text end

Sec. 28.

Minnesota Statutes 2006, section 383C.094, is amended by adding a
subdivision to read:


new text begin Subd. 1a. new text end

new text begin Contracts in excess of $500; best value alternative. new text end

new text begin As an alternative to
the procurement method described in subdivision 1, the contract may be awarded to the
vendor or contractor offering the best value under a request for proposal as described in
section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 29.

Minnesota Statutes 2006, section 412.311, is amended to read:


412.311 CONTRACTS.

new text begin Subdivision 1. new text end

new text begin Lowest responsible bidder. new text end

Except as provided in sections 471.87
to 471.89, no member of a council shall be directly or indirectly interested in any contract
made by the council. Whenever the amount of a contract for the purchase of merchandise,
materials or equipment or for any kind of construction work undertaken by the city is
estimated to exceed the amount specified by section 471.345, subdivision 3, the contract
shall be let to the lowest responsible bidder, after notice has been published once in the
official newspaper at least ten days in advance of the last day for the submission of bids. If
the amount of the contract exceeds $1,000, it shall be entered into only after compliance
with section 471.345.

new text begin Subd. 2. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, a contract for construction, building, alteration, improvement,
or repair may be awarded to the vendor or contractor offering the best value under a request
for proposal as described in section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 30.

Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 2, the council may issue a request for proposal and award the
contract to the vendor or contractor offering the best value as described in section 16C.28,
subdivision 1, paragraph (a), clause (2).
new text end

Sec. 31.

Minnesota Statutes 2006, section 458D.21, is amended by adding a
subdivision to read:


new text begin Subd. 2a. new text end

new text begin Contracts in excess of $5,000; best value alternative. new text end

new text begin As an alternative
to the procurement method described in subdivision 2, the board may issue a request for
proposal and award the contract to the vendor or contractor offering the best value as
described in section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 32.

Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Best value alternative. new text end

new text begin As an alternative to the procurement method
described in subdivision 1, the authority may issue a request for proposal and award the
contract to the vendor or contractor offering the best value under a request for proposal as
described in section 16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 33.

Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:


Subdivision 1.

Contracts; bids; bonds.

All construction work and every purchase
of equipment, supplies, or materials necessary in carrying out the purposes of sections
469.048 to 469.068, that involve the expenditure of $1,000 or more, shall be awarded by
contract as provided in this subdivisionnew text begin or in subdivision 1anew text end. Before receiving bids under
sections 469.048 to 469.068, the authority shall publish, once a week for two consecutive
weeks in the official newspaper of the port's city, a notice that bids will be received for the
construction work, or purchase of equipment, supplies, or materials. The notice shall state
the nature of the work, and the terms and conditions upon which the contract is to be let
and name a time and place where the bids will be received, opened, and read publicly,
which time shall be not less than seven days after the date of the last publication. After
the bids have been received, opened, read publicly, and recorded, the commissioners
shall award the contract to the lowest responsible bidder, reserving the right to reject
any or all bids. The contract shall be executed in writing and the person to whom the
contract is awarded shall give sufficient bond to the board for its faithful performance. If
no satisfactory bid is received, the port authority may readvertise, or, by an affirmative
vote of two of its commissioners in the case of a three-member commission, or five of
its members in the case of a seven-member commission, may authorize the authority
to perform any part or parts of any construction work by day labor under conditions it
prescribes. The commissioners may establish reasonable qualifications to determine
the fitness and responsibility of bidders, and require bidders to meet the qualifications
before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote
declare that an emergency exists requiring the immediate purchase of any equipment or
material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount,
or making of emergency repairs, it shall not be necessary to advertise for bids, but the
material, equipment, or supplies may be purchased in the open market at the lowest price
obtainable, or the emergency repairs may be contracted for or performed without securing
formal competitive bids. An emergency, for purposes of this section, is unforeseen
circumstances or conditions which result in the jeopardizing of human life or property.

In all contracts involving the employment of labor, the commissioners shall stipulate
conditions they deem reasonable, as to the hours of labor and wages and may stipulate as
to the residence of employees to be employed by the contractors.

Bonds shall be required from contractors for any works of construction as provided
in and subject to all the provisions of sections 574.26 to 574.31.

Sec. 34.

Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Contracts; best value alternative. new text end

new text begin As an alternative to the procurement
method described in subdivision 1, a contract may be awarded to the vendor or contractor
offering the best value under a request for proposal as described in section 16C.28,
subdivision 1, paragraph (a), clause (2).
new text end

Sec. 35.

Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
to read:


new text begin Subd. 3a. new text end

new text begin Contracts over $50,000; best value alternative. new text end

new text begin As an alternative to the
procurement method described in subdivision 3, municipalities may award a contract for
construction, alteration, repair, or maintenance work to the vendor or contractor offering
the best value under a request for proposal as described in section 16C.28, subdivision 1,
paragraph (a), clause (2).
new text end

Sec. 36.

Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
to read:


new text begin Subd. 4a. new text end

new text begin Contracts from $10,000 to $50,000; best value alternative. new text end

new text begin As an
alternative to the procurement method described in subdivision 4, municipalities may
award a contract for construction, alteration, repair, or maintenance work to the vendor
or contractor offering the best value under a request for proposal as described in section
16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 37.

Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:


Subd. 5.

Contracts less than $10,000.

If the amount of the contract is estimated
to be $10,000 or less, the contract may be made either upon quotation or in the open
market, in the discretion of the governing body. If the contract is made upon quotation
it shall be based, so far as practicable, on at least two quotations which shall be kept on
file for a period of at least one year after their receipt.new text begin Alternatively, municipalities may
award a contract for construction, alteration, repair, or maintenance work to the vendor
or contractor offering the best value under a request for proposal as described in section
16C.28, subdivision 1, paragraph (a), clause (2).
new text end

Sec. 38.

Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Contracts over $50,000; best value alternative. new text end

new text begin As an alternative to
the procurement method described in subdivision 1, the council may issue a request
for proposal and award the contract to the vendor or contractor offering the best value
under a request for proposal as described in section 16C.28, subdivision 1, paragraph
(a), clause (2).
new text end

Sec. 39.

Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:


Subd. 12.

Contracts.

The authority may enter into a development agreement with
the team, the county, or any other entity relating to the construction, financing, and use of
the ballpark and related facilities and public infrastructure. The authority may contract
for materials, supplies, and equipment in accordance with sections 471.345 and 473.754,
except that the authority, with the consent of the county, may employ or contract with
persons, firms, or corporations to perform one or more or all of the functions of architect,
engineer, or construction manager with respect to all or any part of the ballpark and
public infrastructure. Alternatively, at the request of the team and with the consent of the
county, the authority shall authorize the team to provide for the design and construction
of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter
257. The construction manager may enter into contracts with contractors for labor,
materials, supplies, and equipment for the construction of the ballpark and related public
infrastructure through the process of public bidding, except that the construction manager
may, with the consent of the authority or the team:

(1) narrow the listing of eligible bidders to those which the construction manager
determines to possess sufficient expertise to perform the intended functions;

(2) award contracts to the contractors that the construction manager determines
provide the best valuenew text begin under a request for proposal as described in section 16C.02,
subdivision 4a
new text end, which are not required to be the lowest responsible bidder; and

(3) for work the construction manager determines to be critical to the completion
schedule, award contracts on the basis of competitive proposals or perform work with
its own forces without soliciting competitive bids if the construction manager provides
evidence of competitive pricing.

The authority shall require that the construction manager certify, before the contract is
signed, a fixed and stipulated construction price and completion date to the authority
and post a performance bond in an amount at least equal to 100 percent of the certified
price, to cover any costs which may be incurred in excess of the certified price, including
but not limited to costs incurred by the authority or loss of revenues resulting from
incomplete construction on the completion date. The authority may secure surety bonds
as provided in section 574.26, securing payment of just claims in connection with all
public work undertaken by it. Persons entitled to the protection of the bonds may enforce
them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any
property of the authority under the provisions of sections 514.01 to 514.16. Contracts for
construction and operation of the ballpark must include programs, including Youthbuild,
to provide for participation by small local businesses and businesses owned by people of
color, and the inclusion of women and people of color in the workforces of contractors
and ballpark operators. The construction of the ballpark is a "project" as that term is
defined in section 177.42, subdivision 2, and is subject to the prevailing wage law under
sections 177.41 to 177.43.