16C.28 CONTRACTS; AWARD.
Subdivision 1. Award requirements.
(a) All state building and construction contracts
entered into by or under the supervision of the commissioner or an agency for which competitive
bids or proposals are required may be awarded to either of the following:
(1) the lowest responsible bidder, taking into consideration conformity with the
specifications, terms of delivery, the purpose for which the contract is intended, the status and
capability of the vendor or contractor, other considerations imposed in the call for bids, and,
where appropriate, principles of life-cycle costing; or
(2) the vendor or contractor offering the best value, taking into account the specifications
of the request for proposals, the price and performance criteria as set forth in section
, and described in the solicitation document.
(b) The vendor or contractor must secure bonding, commercial general insurance coverage,
and workers' compensation insurance coverage under paragraph (a), clause (1) or (2). The
commissioner shall determine whether to use the procurement process described in paragraph (a),
clause (1), or the procurement process described in paragraph (a), clause (2), and paragraph (c). If
the commissioner uses the method in paragraph (a), clause (2), and paragraph (c), the head of the
agency shall determine which vendor or contractor offers the best value, subject to the approval of
the commissioner. Any or all bids or proposals may be rejected.
(c) When using the procurement process described in subdivision 1, paragraph (a), clause
(2), the solicitation document must state the relative weight of price and other selection criteria.
The award must be made to the vendor or contractor offering the best value applying the weighted
selection criteria. If an interview of the vendor's or contractor's personnel is one of the selection
criteria, the relative weight of the interview shall be stated in the solicitation document and
Subd. 1a. Establishment and purpose.
(a) The state recognizes the importance of the
inclusion of a best value contracting system for construction as an alternative to the current
low-bid system of procurement. In order to accomplish that goal, state and local governmental
entities shall be able to choose the best value system in different phases.
(b) "Best value" means the procurement method defined in section
, subdivision 4a.
(c) The following entities are eligible to participate in phase I:
(1) state agencies;
(3) cities; and
(4) school districts with the highest 25 percent enrollment of students in the state.
Phase I begins on July 1, 2007.
(d) The following entities are eligible to participate in phase II:
(1) those entities included in phase I; and
(2) school districts with the highest 50 percent enrollment of students in the state.
Phase II begins two years from July 1, 2007.
(e) The following entities are eligible to participate in phase III:
(1) all entities included in phases I and II; and
(2) all other townships, school districts, and political subdivisions in the state.
Phase III begins three years from July 1, 2007.
(f) The commissioner or any agency for which competitive bids or proposals are required
may not use best value contracting as defined in section
16C.02, subdivision 4a
, for more than
one project annually, or 20 percent of its projects, whichever is greater, in each of the first three
fiscal years in which best value construction contracting is used.
Subd. 2. 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 in a manner that is clear and authenticated by an
authorized representative of the responder. An alteration or erasure may be crossed out and the
correction printed in ink or typewritten adjacent to it and initialed by an authorized representative
of the responder.
Subd. 3. Special circumstances.
The commissioner may reject the bid or proposal of any
vendor or contractor 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
vendor or contractor in accordance with subdivision 1, if doing so does not decrease the service
level or diminish the effect of competition.
Subd. 4. Record.
A record must be kept of all bids or proposals, including names of bidders,
amounts of bids or proposals, and each successful bid or proposal. This record is open to public
inspection, subject to section
and other applicable law.
Subd. 5. Preferences not cumulative.
The preferences under sections
apply, but are not cumulative. The total percentage of preference
granted on a contract may not exceed the highest percentage of preference allowed for that
contract under any one of those sections.
History: 2002 c 254 s 4; 2005 c 78 s 5; 2005 c 156 art 2 s 29; 2007 c 148 art 3 s 8