SF 4088

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/23/2024 09:45am

A bill for an act
relating to state contracting; modifying requirements related to the small business
or small targeted group business preference program; amending Minnesota Statutes
2023 Supplement, section 16C.16, subdivision 6.

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

Section 1.

Minnesota Statutes 2023 Supplement, section 16C.16, subdivision 6, is amended
to read:

Subd. 6.

Purchasing methods.

(a) The commissioner may award up to a 12 percent
preference for specified goods or services to small targeted group businesses.

(b) The commissioner may award a contract for goods, services, or construction directly
to a small business or small targeted group business without going through a competitive
solicitation process up to a total contract award value, including extension options, of
$100,000.

(c) The commissioner may designate a purchase of goods or services for award only to
small businesses or small targeted group businesses if the commissioner determines that at
least three small businesses or small targeted group businesses are likely to respond to a
solicitation.

(d) The commissioner, as a condition of awarding a construction contract or approving
a contract for professional or technical services, may set goals that require the prime
contractor to subcontract a portion of the contract to small businesses or small targeted
group businesses. The commissioner must establish a procedure for granting waivers from
the subcontracting requirement when qualified small businesses or small targeted group
businesses are not reasonably available. The commissioner may establish financial incentives
for prime contractors who exceed the goals for use of small business or small targeted group
business subcontractors and financial penalties for prime contractors who fail to meet goals
under this paragraph. The subcontracting requirements of this paragraph do not apply to
prime contractors who are small businesses or small targeted group businesses.

new text begin (e) If the preference allowed under this section would otherwise be the deciding factor
in the award of a contract, the commissioner may not award the contract to the business
that was awarded a preference if the total cost of the resulting contract would exceed 120
percent of the total cost proposed in the best-valued response from a business that was not
awarded a preference.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, and applies to contracts
for which a solicitation is published on or after that date.
new text end