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    Subdivision 1. Application. Except as otherwise provided by sections 16C.10, 16C.26 and
16C.27, all contracts for building and construction or repairs must be based on competitive bids or
proposals. "Competitive proposals" specifically refers to the method of procurement described in
section 16C.28, subdivision 1, paragraph (a), clause (2), and paragraph (c).
    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 $25,000. If the amount of an expenditure
is estimated to exceed $25,000, bids or proposals must be solicited by public notice in a manner
designated by the commissioner. To the extent practical, this must include posting on a state Web
site. For expenditures over $50,000, when a call for bids is issued, the commissioner shall solicit
sealed bids by providing notices to all prospective bidders known to the commissioner by posting
notice on a state Web site at least seven days before the final date of submitting bids. All bids over
$50,000 must be sealed when they are received and must be opened in public at the hour stated
in the notice. All proposals responsive to a request for proposals according to section 16C.28,
1, paragraph (a), clause (2), and paragraph (c), shall be submitted and evaluated in the
manner described in the request for proposals, regardless of the dollar amount. All original bids
and proposals 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; $50,000 or less. An informal bid may be
used for building, construction, and repair contracts that are estimated at less than $50,000.
Informal bids must be authenticated by the bidder in a manner specified by the commissioner.
Alternatively, a request for proposals may be issued according to section 16C.28, subdivision 1,
paragraph (a), clause (2), and paragraph (c), for such contracts.
    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 or as authorized under section 16C.28, subdivision 1, paragraph (a), clause (2),
and paragraph (c). Each vendor or contractor 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.
History: 2002 c 254 s 2; 2005 c 78 s 3,4; 2005 c 156 art 2 s 27,28; 2007 c 148 art 3 s 6

Official Publication of the State of Minnesota
Revisor of Statutes