HF 2748

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; making changes to the Uniform Municipal
Contracting Law; allowing municipalities to use requests for proposals; requiring
municipalities to make a best value determination for all purchases; clarifying
single source purchasing; amending Minnesota Statutes 2004, sections 471.345,
subdivisions 3, 4, by adding subdivisions; 471.36.

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

Section 1.

Minnesota Statutes 2004, section 471.345, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Proposal defined. new text end

new text begin "Proposal" means the response to the request for
proposal or RFP.
new text end

Sec. 2.

Minnesota Statutes 2004, section 471.345, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin Request for proposal defined. new text end

new text begin "Request for proposal" or "RFP" means a
solicitation in which it is not advantageous to set forth all the actual, detailed requirements
at the time of solicitation and responses are subject to negotiation.
new text end

Sec. 3.

Minnesota Statutes 2004, section 471.345, is amended by adding a subdivision
to read:

new text begin Subd. 2c. new text end

new text begin Best value. new text end

new text begin The determination of the acquisition method and all
decisions involved in the acquisition process, unless otherwise provided for by law,
must be based on best value that includes an evaluation of price and may include other
considerations including, but not limited to, environmental considerations, quality, and
vendor performance. If a best value method is used, the best value determination must
be based on the evaluation criteria detailed in the solicitation document. If criteria in
addition to price are used, the solicitation document must state the relative importance of
price and other factors. Unless it is determined by the governing body 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.
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 governing body 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.
new text end

Sec. 4.

Minnesota Statutes 2004, section 471.345, subdivision 3, is amended to read:

Subd. 3.

Contracts over $50,000.

If the amount of the contract is estimated
to exceed $50,000, sealed bids new text begin or proposals new text end shall be solicited by public notice in the
manner and subject to the requirements of the law governing contracts by the particular
municipality or class thereof provided that with regard to repairs and maintenance of
ditches, bids shall not be required if the estimated amount of the contract does not exceed
the amount specified in section 103E.705, subdivisions 5, 6, and 7.

Sec. 5.

Minnesota Statutes 2004, section 471.345, subdivision 4, is amended to read:

Subd. 4.

Contracts from $10,000 to $50,000.

If the amount of the contract is
estimated to exceed $10,000 but not to exceed $50,000, the contract may be made
either upon sealed bids new text begin or proposals, new text end or by direct negotiation, by obtaining two or more
quotations for the purchase or sale when possible, and without advertising for bids new text begin or
proposals new text end or otherwise complying with the requirements of competitive bidding. All
quotations obtained shall be kept on file for a period of at least one year after receipt
thereof.

Sec. 6.

Minnesota Statutes 2004, section 471.36, is amended to read:

471.36 NONCOMPETITIVE SUPPLIES AND EQUIPMENT.

The provisions of sections 471.35 to 471.37 shall not apply deleted text begin to noncompetitive
types and kinds of supplies and equipment deleted text end new text begin where, after a search, the product is clearly
and legitimately determined to be available from a single source and the price has been
fairly and reasonably established new text end .