1997 Minnesota Statutes

     16B.17 Professional or technical services. 

    Subdivision 1.    Terms.  For the purposes of this 
 section, "professional or technical services" means services 
 that are intellectual in character; that do not involve the 
 provision of supplies or materials; that include consultation 
 analysis, evaluation, prediction, planning, or recommendation; 
 and that result in the production of a report or the completion 
 of a task. 

    Subd. 2.    Procedure for professional or technical 
 services contracts.  Before approving a proposed state 
 contract for professional or technical services, the 
 commissioner must determine, at least, that:  

    (1) all provisions of section 16B.19 and subdivision 3 of 
 this section have been verified or complied with; 

    (2) the work to be performed under the contract is 
 necessary to the agency's achievement of its statutory 
 responsibilities, and there is statutory authority to enter into 
 the contract; 

    (3) the contract will not establish an employment 
 relationship between the state or the agency and any persons 
 performing under the contract; 

    (4) no current state employees will engage in the 
 performance of the contract; 

    (5) no state agency has previously performed or contracted 
 for the performance of tasks which would be substantially 
 duplicated under the proposed contract; 

    (6) the contracting agency has specified a satisfactory 
 method of evaluating and using the results of the work to be 
 performed; and 

    (7) the combined contract and amendments will not extend 
 for more than five years.  

    Subd. 3.    Duties of contracting agency.  Before an 
 agency may seek approval of a professional or technical services 
 contract valued in excess of $5,000, it must certify to the 
 commissioner that:  

    (1) no current state employee is able and available to 
 perform the services called for by the contract; 

    (2) the normal competitive bidding mechanisms will not 
 provide for adequate performance of the services; 

    (3) the contractor has certified that the product of the 
 services will be original in character; 

    (4) reasonable efforts were made to publicize the 
 availability of the contract to the public; 

    (5) the agency has received, reviewed, and accepted a 
 detailed work plan from the contractor for performance under the 
 contract; 

    (6) the agency has developed, and fully intends to 
 implement, a written plan providing for the assignment of 
 specific agency personnel to a monitoring and liaison function, 
 the periodic review of interim reports or other indications of 
 past performance, and the ultimate utilization of the final 
 product of the services; and 

    (7) the agency will not allow the contractor to begin work 
 before funds are fully encumbered. 

    Subd. 3a.    Renewals.  The renewal of a professional or 
 technical contract must comply with all requirements, including 
 notice, applicable to the original contract.  A renewal contract 
 must be identified as such.  All notices and reports on a 
 renewal contract must state the date of the original contract 
 and the amount paid previously under the contract.  

    Subd. 4.    Reports.  (a) The commissioner shall submit 
 to the governor, the chairs of the house ways and means and 
 senate finance committees, and the legislative reference library 
 a monthly listing of all contracts for professional or technical 
 services executed or disapproved in the preceding month.  The 
 report must identify the parties and the contract amount, 
 duration, and tasks to be performed.  The commissioner shall 
 also issue quarterly reports summarizing the contract review 
 activities of the department during the preceding quarter. 

    (b) The monthly and quarterly reports must: 

    (1) be sorted by agency and by contractor; 

    (2) show the aggregate value of contracts issued by each 
 agency and issued to each contractor; 

    (3) distinguish between contracts that are being issued for 
 the first time and contracts that are being renewed; 

    (4) state the termination date of each contract; and 

    (5) categorize contracts according to subject matter, 
 including topics such as contracts for training, contracts for 
 research and opinions, and contracts for computer systems. 

    (c) Within 30 days of final completion of a contract over 
 $40,000 covered by this subdivision, the chief executive of the 
 agency entering into the contract must submit a one-page report 
 to the commissioner who must submit a copy to the legislative 
 reference library.  The report must: 

    (1) summarize the purpose of the contract, including why it 
 was necessary to enter into a contract; 

    (2) state the amount spent on the contract; and 

    (3) explain why this amount was a cost-effective way to 
 enable the agency to provide its services or products better or 
 more efficiently.  

    Subd. 5.    Contract terms.  (a) A professional or 
 technical services contract must by its terms permit the agency 
 to unilaterally terminate the contract prior to completion, upon 
 payment of just compensation, if the agency determines that 
 further performance under the contract would not serve agency 
 purposes.  If the final product of the contract is a written 
 report, a copy must be filed with the legislative reference 
 library.  

    (b) The terms of a contract must provide that no more than 
 90 percent of the amount due under the contract may be paid 
 until the final product has been reviewed by the chief executive 
 of the agency entering into the contract, and the chief 
 executive has certified that the contractor has satisfactorily 
 fulfilled the terms of the contract. 

    Subd. 6.    Exclusions.  This section and section 
 16B.167 do not apply to contracts with individuals or 
 organizations for administration of employee pension plans 
 authorized under chapter 354B or 354C.  

    HIST: 1984 c 544 s 22; 1986 c 444; 1990 c 572 s 2,3; 1995 c 
 254 art 1 s 54; 1996 c 398 s 4