2007 Minnesota Statutes

137.31 PROCUREMENT FROM SMALL BUSINESSES.
    Subdivision 1. Small business set asides. Prior to the beginning of each fiscal year, the
regents of the University of Minnesota shall designate and set aside for awarding to small
businesses approximately 20 percent of the value of procurement contracts which are to be
awarded during that fiscal year and which are to be paid in total or in part from funds appropriated
to the university by the legislature. The regents shall designate specific procurement contracts to
be set aside, or may authorize the university administration to divide the amount set aside into
procurement contracts of economically feasible size, in order to facilitate offers or bids from small
businesses. In making the annual designation, the regents shall attempt to vary the procurement
contracts included in the set-aside program so that a variety of goods and services produced by
different small businesses can be included in the university set-aside program over a period of
years. For the purposes of this section, (a) "procurement contract" means any agreement, written
or oral, by which the university obtains needed goods or services, including the construction of
capital improvements; and (b) "small business" has the meaning given that term by state law.
Nothing in this section shall be construed to prevent small businesses from seeking awards of
procurement contracts not included in the set-aside program.
    Subd. 2. Procurement rules. The regents shall establish procurement rules to govern the
university set aside program. The rules shall include guidelines and procedures for negotiating
price or securing bids, reasonable limitations on the amount by which a contract price under the
set-aside program may exceed the estimated cost of obtaining comparable goods or services on
the open market, uniform procedures for providing security for performance under procurement
contracts, criteria for evaluating the financial and technical capabilities of participating small
businesses, and any other matter deemed necessary or desirable for the proper operation of the
university small business set-aside program.
    Subd. 3.[Repealed, 1989 c 352 s 25]
    Subd. 3a.[Repealed, 1990 c 541 s 31]
    Subd. 4. Replacement contracts. If a procurement contract designated for the set-aside
program cannot be awarded to a small business under the conditions prescribed in subdivisions
1 and 2, the award shall be placed in accordance with the regular procurement policies of the
university. In this event, the university shall designate as a replacement a procurement contract
of comparable value to be included in the university set-aside program during that fiscal year if
practicable.
    Subd. 5. Publicity. The regents and the administration of the University of Minnesota shall
publicize the provisions of the university small business set-aside program, attempt to locate small
businesses able to perform set aside procurement contracts, and encourage participation by small
businesses in the University of Minnesota small business set-aside program.
    Subd. 6.[Repealed, 1995 c 212 art 2 s 22]
History: 1979 c 86 s 1; 1981 c 356 s 169; 1983 c 289 s 115 subd 1; 1987 c 312 art 1 s 26
subd 2; 1987 c 401 s 30; 1989 c 352 s 11-13; 1990 c 541 s 14; 1993 c 163 art 1 s 23