2005 Minnesota Statutes

     16C.26 Competitive bids. 

    Subdivision 1.    Application.  Except as otherwise 
 provided by sections 16C.26 and 16C.27, all contracts for 
 building and construction or repairs must be based on 
 competitive bids. 

    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 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, 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 original 
 bids 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. 

    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.  Each bidder for a contract 
 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. 

    HIST: 2002 c 254 s 2; 2005 c 78 s 3,4; 2005 c 156 art 2 s 
 27,28