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161.32 CONTRACTING FOR WORK ON TRUNK HIGHWAY.
    Subdivision 1. Advertisement for bids. The commissioner may conduct the work or any
part of the work incidental to the construction and maintenance of the trunk highways by labor
employed to do the work or by contract. In cases of construction work, the commissioner shall
first advertise for bids for contracts, and if no satisfactory bids are received, may either reject all
bids and readvertise, or do the work by labor employed to do the work. Except as provided in
subdivision 3 or 4, when work is to be done under contract, the commissioner shall advertise for
bids once each week for three successive weeks prior to the date the bids are to be received. The
advertisement for bids must be published in a newspaper or other periodical of general circulation
in the state and may be placed on the Internet. The plans and specifications for the proposed work
must be on file in the commissioner's office prior to the first call for bids.
    Subd. 1a. Standard specifications, security. Contracts under this section must be based on
specifications prescribed by the commissioner. Each bidder for a contract shall furnish security
approved by the commissioner to ensure completion of the contract. The commissioner may
require that bid, performance, or payment bonds, or other security, be furnished electronically.
    Subd. 1b. Lowest responsible bidder; electronic bids. Bidders may submit bids
electronically in a form and manner required by the commissioner; however, the commissioner
may require that all bids of $5,000,000 and over for trunk highway contracts must be submitted
electronically. Trunk highway construction contracts, including design-build contracts, must
be awarded to the lowest responsible bidder, taking into consideration conformity with the
specifications, the purpose for which the contract or purchase is intended, the status and capability
of the vendor, and other considerations imposed in the call for bids. The commissioner may
decide which is the lowest responsible bidder for all contracts and may use the principles of
life-cycle costing, when appropriate, in determining the lowest overall bid. Any or all bids may be
rejected. When competitive bids are required and all bids are rejected, new bids, if solicited, must
be called for as in the first instance, unless otherwise provided by law.
    Subd. 1c. Alterations and erasures. A bid containing an alteration or erasure of any price
contained in the bid which is used in determining the lowest responsible bid must be rejected
unless the alteration or erasure is corrected pursuant to this subdivision. An alteration or erasure
may be crossed out and the correction printed in ink or typewritten adjacent to it and initialed in
ink by the person signing the bid.
    Subd. 1d. Special circumstances. The commissioner may reject the bid of any bidder who
has failed to perform a previous contract with the state. In the case of identical low bids from
two or more bidders, the commissioner may use negotiated procurement methods with the tied
low bidders for that particular transaction, so long as the price paid does not exceed the low
tied bid price. The commissioner may award contracts to more than one bidder in accordance
with subdivision 1b, if doing so does not decrease the service level or diminish the effect of
competition.
    Subd. 1e. Record. A record must be kept of all bids, including names of bidders, amounts
of bids, and each successful bid. After the contract is awarded, this record is open to public
inspection and may be posted on the Internet.
    Subd. 1f. Best value alternative. As an alternative to the procurement method described in
subdivisions 1a to 1e, the commissioner may issue a request for proposals and award the contract
to the vendor or contractor offering the best value as described in section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c).
    Subd. 2. Direct negotiation. In cases where the estimated cost of construction work or
maintenance work does not exceed $150,000, the commissioner may enter into a contract for
the work by direct negotiation, by obtaining two or more quotations for the work, and without
advertising for bids or otherwise complying with the requirements of competitive bidding if the
total contractual obligation of the state for the directly negotiated contract or contracts on any
single project does not exceed $150,000. All quotations obtained shall be kept on file for a period
of at least one year after receipt of the quotation.
    Subd. 3. Emergencies. In the case of emergency, contracts may be let without advertising for
bids. Emergency is defined as a condition on a trunk highway that necessitates immediate work in
order to keep such highway open for travel. No such contract shall be let without advertising for
bids except upon the written authority of the commissioner or the commissioner's deputy.
    Subd. 4. Trunk highways damaged by spring breakup. Contracts may be let for the repair
and restoration of trunk highways damaged by spring breakup upon advertisement for bids and
publication thereof in a newspaper or periodical of general circulation for a period of one week
prior to the date such bids are to be received, and upon the mailing of such advertisements to all
contractors who have filed a written request therefor.
    Subd. 5. Default by contractor. In cases where work is being done under contract and the
commissioner finds that the contractor has failed to comply within 60 days from the date of
receipt of a written demand to make arrangements, satisfactory to the commissioner, to correct
specified delays, neglect, or default, within the control of the contractor, the commissioner may
negotiate with others, with the approval of the defaulting contractor's surety, for the completion of
the contract according to the terms and provisions of the contract.
    Subd. 6. Landscape contractors; payment. When goods or services are provided to the
commissioner by a landscape contractor for the landscaping of a trunk highway, the commissioner
shall agree in the contract to pay the landscape contractor 100 percent of the value of the contract
upon completion of the contracted work. The commissioner may require the contractor, as part
of the contract, to post a bond for a sum not exceeding 125 percent of the value of the contract,
payable to the commissioner, and conditioned upon the work's compliance with the contract
terms, for a period of one year beyond the work completion date.
    Subd. 7. Approval and payment of supplemental agreements. Notwithstanding any law
to the contrary, when goods or services are provided to the commissioner under an agreement
supplemental to a contract for work on a trunk highway, the commissioner or designee may
approve the work. Payment of valid state obligations must be made within 30 days of approval of
the work or submission by the contractor of an invoice indicating completion of work, whichever
occurs later.
History: 1959 c 500 art 2 s 32; 1961 c 17 s 1; 1963 c 455 s 1; 1967 c 232 s 1; 1981 c 209 s
4; 1985 c 76 s 1; 1986 c 444; 1998 c 386 art 1 s 27-31; 1999 c 230 s 9; 2000 c 479 art 1 s 13;
2000 c 499 s 20; 1Sp2001 c 8 art 2 s 17-20; 2004 c 295 art 1 s 2; 2007 c 148 art 3 s 16