2002 Minnesota Statutes

     16C.26 Competitive bids. 

    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 bids. 

    Subd. 2.    Requirement contracts.  Standard requirement 
 price contracts for building and construction must be 
 established by competitive bids as provided in subdivision 1.  
 The 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 or for the addition 
 of similar products or replacement items not significant to the 
 total value of existing contracts.  The term of these contracts 
 may not exceed five years including all extensions. 

    Subd. 3.    Publication of notice; expenditures over 
 $15,000.  If the amount of an expenditure is estimated to 
 exceed $15,000, sealed bids must be solicited by public notice 
 inserted at least once in a newspaper or trade journal not less 
 than seven days before the final date of submitting bids.  The 
 commissioner shall designate the newspaper or trade journal for 
 that publication and may designate different newspapers or 
 journals according to the nature of the purchase or contract.  
 The commissioner shall also solicit sealed bids by sending 
 notices by mail to all prospective bidders known to the 
 commissioner and by posting notice on a public bulletin board in 
 the commissioner's office at least five days before the final 
 date of submitting bids.  All bids must be sealed when they are 
 received and must be opened in public at the hour stated in the 
 notice.  All original bids and 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. 

    Subd. 4.    Building and construction contracts; $15,000 
 or less.  All contracts, the amount of which is estimated to 
 be $15,000 or less, may be made either upon competitive bids or 
 in the open market, in the discretion of the commissioner.  So 
 far as practicable, however, they must be based on at least 
 three competitive bids which must be permanently recorded.  

    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 provided.  Each bidder for a contract 
 must furnish security approved by the commissioner to ensure the 
 making of the contract being bid for. 

    Subd. 6.    Noncompetitive bids.  Agencies are 
 encouraged to contract with small targeted group businesses 
 designated under section 16C.16 when entering into contracts 
 that are not subject to competitive bidding procedures. 

    HIST: 2002 c 254 s 2