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Minnesota Legislature

Office of the Revisor of Statutes

Chapter 16C

Section 16C.03

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16C.03 COMMISSIONER'S AUTHORITY; POWERS AND DUTIES.
    Subdivision 1. Scope. The commissioner's authority in this section applies to an agency
and is subject to other provisions of this chapter and chapter 16B. Unless otherwise provided,
the provisions in this chapter and chapter 16B do not apply to the Minnesota State Colleges
and Universities.
    Subd. 2. Rulemaking authority. Subject to chapter 14, the commissioner may adopt rules,
consistent with this chapter and chapter 16B, relating to the following topics:
(1) procurement process including solicitations and responses to solicitations, bid security,
vendor errors, opening of responses, award of contracts, tied bids, and award protest process;
(2) contract performance and failure to perform;
(3) authority to debar or suspend vendors, and reinstatement of vendors;
(4) contract cancellation;
(5) procurement from rehabilitation facilities;
(6) organizational conflicts of interest; and
(7) surplus property acquisition, distribution, and disposal.
    Subd. 3. Acquisition authority. The commissioner shall acquire all goods, services, and
utilities needed by agencies. The commissioner shall acquire goods, services, and utilities
by requests for bids, requests for proposals, reverse auctions as provided in section 16C.10,
subdivision 7
, or other methods provided by law, unless a section of law requires a particular
method of acquisition to be used. The commissioner shall make all decisions regarding
acquisition activities. The determination of the acquisition method and all decisions involved in
the acquisition process, unless otherwise provided for by law, shall be based on best value which
includes an evaluation of price and may include other considerations including, but not limited
to, environmental considerations, quality, and vendor performance. A best value determination
must be based on the evaluation criteria detailed in the solicitation document. If criteria other than
price are used, the solicitation document must state the relative importance of price and other
factors. Any or all responses may be rejected. When using the request for bid process, the bid
must be awarded to the lowest responsive and responsible bidder, taking into consideration
conformity with the specifications, terms of delivery, the purpose for which the contract or
purchase is intended, the status and capability of the vendor, and other considerations imposed in
the request for bids. The commissioner may decide which is the lowest responsible bidder for all
purchases and may use the principles of life-cycle costing, where appropriate, in determining
the lowest overall bid. The duties set forth in this subdivision are subject to delegation pursuant
to this section.
    Subd. 3a. Acquisition authority; construction contracts. For all building and construction
contracts, the commissioner shall award contracts pursuant to section 16C.28, and "best value"
shall be defined and applied as set forth in sections 16C.02, subdivision 4a, and 16C.28,
subdivision 1
, paragraph (a), clause (2), and paragraph (c). The duties set forth in this subdivision
are subject to delegation pursuant to this section. The commissioner shall establish procedures for
developing and awarding best value requests for proposals for construction projects. The criteria
to be used to evaluate the proposals must be included in the solicitation document and must be
evaluated in an open and competitive manner.
    Subd. 4. Contracting authority. The commissioner shall conduct all contracting by, for, and
between agencies and perform all contract management and review functions for contracts, except
those functions specifically delegated to be performed by the contracting agency, the attorney
general, or otherwise provided for by law. The commissioner may require that agency staff
participate in the development of enterprise procurements including the development of product
standards, specifications and other requirements.
    Subd. 4a. Commissioner approval. Notwithstanding any law to the contrary, after January
1, 2002, any contract entered into by the Department of Transportation must be approved by the
commissioner, unless the commissioner has delegated approval authority to the Department of
Transportation under subdivision 16.
    Subd. 5. Amendments, cancellations, and appeals. The commissioner shall, in addition
to the duties set forth in subdivisions 3 and 4, make all decisions regarding amendments,
cancellations, and appeals of all agency acquisition activities unless the duties are delegated
pursuant to this section.
    Subd. 6. Lease and installment purchases. The commissioner is authorized to enter into
lease purchases or installment purchases for periods not exceeding the anticipated useful life of
the items acquired unless otherwise prohibited by law.
    Subd. 7. Lease, rental, and installment agreements. The commissioner is authorized to
enter into lease, lease purchase, rental, or installment agreements for the use or acquisition,
whichever is applicable, of real or personal property.
    Subd. 8. Policy and procedures. The commissioner is authorized to issue policies,
procedures, and standards applicable to all acquisition activities by and for agencies. Consistent
with the authority specified in this chapter, the commissioner shall develop and implement
policies, procedures, and standards ensuring the optimal use of strategic sourcing techniques.
    Subd. 9. Employee purchasing. The commissioner is authorized to enter into contracts
under which a vendor agrees to sell computer equipment and related products to state employees,
for their own use related to work, at contract prices. Employees may make only one purchase
under this subdivision. Under no circumstances shall the state be liable for purchases made
under this subdivision. The provisions of section 43A.38, subdivisions 4 and 5, clause (a), do not
apply to this subdivision.
    Subd. 10. Cooperative purchasing. The commissioner is authorized to enter into a
cooperative purchasing agreement for the provision of goods, services, and utilities with one
or more other states or governmental units, as described in section 471.59, subdivision 1;
entities defined in section 16C.23, subdivision 1; a registered combined charitable organization
and its affiliated agencies as defined by section 309.501; a charitable organization defined in
section 309.50, subdivision 4, that is also a recipient of a state grant or contract; or a nonprofit
community health clinic defined in section 145.9268. The commissioner is authorized to enter
into cooperative purchasing agreements for the purchase of goods, services, and utilities with
health care facilities that are required to provide indigent care or any entity recognized by another
state's statutes as authorized to use that state's commodity or service contracts.
    Subd. 11. Surplus property. The commissioner is authorized to purchase, accept, transfer,
warehouse, sell, distribute, or dispose of surplus property in accordance with state and federal
rules and regulations. The commissioner may charge a fee to cover any expenses incurred in
connection with any of these acts.
    Subd. 12. Central distribution center. The commissioner is authorized to provide and
manage a central distribution center for federal and state surplus personal property, as defined in
section 16C.23, and may provide and manage a warehouse facility.
    Subd. 13. Central stores. The commissioner is authorized to provide agencies with supplies
and equipment and operate all central stores and supply rooms serving more than one agency.
    Subd. 14. Provision of goods, services, and utilities. The commissioner has the authority to
provide goods, services, and utilities under this chapter to state legislative and judicial branch
agencies, political subdivisions, the Minnesota State Colleges and Universities, the University of
Minnesota, and federal government agencies.
    Subd. 15. Reimbursement for goods, services, and utilities. The commissioner is
authorized to charge a fee to cover costs and expenses associated with operating a revolving fund
or an enterprise fund to acquire goods, services, and utilities. The fees are appropriated to the
commissioner to administer and manage the programs and facilities covered under this section.
    Subd. 16. Delegation of duties. The commissioner may delegate duties imposed by this
chapter to the head of an agency and to any subordinate of the agency head. Delegated duties shall
be exercised in the name of the commissioner and under the commissioner's direct supervision
and control. A delegation of duties may include, but is not limited to, allowing individuals within
agencies to acquire goods, services, and utilities within dollar limitations and for designated types
of acquisitions. Delegation of contract management and review functions must be filed with the
secretary of state and may not, except with respect to delegations within the Department of
Administration, exceed two years in duration. The commissioner may withdraw any delegation at
the commissioner's sole discretion. The commissioner may require an agency head or subordinate
to accept delegated responsibility to procure goods or services intended for the exclusive use of
the agency receiving the delegation.
    Subd. 17. Contract extension. The term of a contract may be extended for a time longer
than the time specified in this chapter, up to a total term of ten years, if the commissioner, in
consultation with the commissioner of finance, determines that the contractor will incur upfront
costs under the contract that cannot be recovered within a two-year period and that will provide
cost savings to the state and that these costs will be amortized over the life of the contract.
    Subd. 18. Contracts with foreign vendors. (a) The commissioner and other agencies to
which this section applies and the legislative branch of government shall, subject to paragraph
(d), cancel a contract for goods or services from a vendor or an affiliate of a vendor or suspend
or debar a vendor or an affiliate of a vendor from future contracts upon notification from the
commissioner of revenue that the vendor or an affiliate of the vendor has not registered to collect
the sales and use tax imposed under chapter 297A on its sales in Minnesota or to a destination in
Minnesota. This subdivision shall not apply to state colleges and universities, the courts, and any
agency in the judicial branch of government. For purposes of this subdivision, the term "affiliate"
means any person or entity that is controlled by, or is under common control of, a vendor through
stock ownership or other affiliation.
(b) Beginning January 1, 2006, each vendor or affiliate of a vendor selling goods or services,
subject to tax under chapter 297A, to an agency or the legislature must provide its Minnesota sales
and use tax business identification number, upon request, to show that the vendor is registered to
collect Minnesota sales or use tax.
(c) The commissioner of revenue shall periodically provide to the commissioner and the
legislative branch a list of vendors who have not registered to collect Minnesota sales and use tax
and who are subject to being suspended or debarred as vendors or having their contracts canceled.
(d) The provisions of this subdivision may be waived by the commissioner or the legislative
branch when the vendor is the single source of such goods or services, in the event of an
emergency, or when it is in the best interests of the state as determined by the commissioner in
consultation with the commissioner of revenue. Such consultation is not a disclosure violation
under chapter 270B.
    Subd. 19. Training. Any personnel administering procurement procedures for a user of
best value procurement or any consultant retained by a local unit of government to prepare or
evaluate solicitation documents must be trained, either by the department or through other
training, in the request for proposals process for best value contracting for construction projects.
The commissioner may establish a training program for state and local officials, and vendors and
contractors, on best value procurement for construction projects, including those governed by
section 16C.28. If the commissioner establishes such a training program, the state may charge a
fee for providing training.
History: 1998 c 386 art 1 s 4; 2000 c 420 s 1; 1Sp2001 c 10 art 2 s 34,35; 1Sp2003 c 1
art 2 s 46; 1Sp2005 c 3 art 5 s 1; 2007 c 67 s 1; 2007 c 83 s 1; 2007 c 139 s 1; 2007 c 148
art 2 s 30-33; art 3 s 3-5