1997 Minnesota Statutes

     16B.08 Bids not required. 

    Subdivision 1.    Utility services.  Competitive bids 
 are not required for utility services where no competition 
 exists or where rates are fixed by law or ordinance.  

    Subd. 2.    Single source of supply.  Competitive 
 bidding is not required for purchases clearly and legitimately 
 limited to a single source of supply, and the purchase price may 
 be best established by direct negotiation.  

    Subd. 3.    Auction in lieu of bids.  The commissioner, 
 in lieu of advertising for bids, may sell buildings and other 
 personal property owned by the state and not needed for public 
 purposes at public auction to the highest responsible bidder.  A 
 sale under this subdivision may not be made until publication of 
 notice of the sale in a newspaper of general circulation in the 
 area where the property is located and any other advertising the 
 commissioner directs.  Any of the property may be withdrawn from 
 the sale prior to the completion of the sale unless the auction 
 has been announced to be without reserve.  If the sale is made 
 at public auction a duly licensed auctioneer must be retained to 
 conduct the sale.  The auctioneer's fees and other 
 administrative costs of the auction must be paid from the 
 proceeds from which an amount sufficient to pay them is 
 appropriated.  

    Subd. 4.    Negotiated contracts.  (a) In lieu of any of 
 the other requirements of this chapter, the commissioner may 
 negotiate a contract for public work to be performed at a 
 state-owned institution or installation if the cost does not 
 exceed $15,000 and if the head of the affected state agency 
 requests the commissioner to do so.  The commissioner shall have 
 prepared whatever plans and specifications for the public work 
 deemed necessary by the commissioner to protect the public 
 interest.  Contractor's bonds or security pursuant to chapter 
 574 are not required for contracts entered into pursuant to this 
 subdivision.  

    (b) In lieu of the requirement for competitive bidding in 
 section 16B.07, subdivision 1, purchases and contracts may be 
 negotiated in those circumstances determined by the 
 commissioner, and in any of those circumstances the commissioner 
 shall advertise for a request for proposal as a basis for 
 negotiation. 

    Subd. 5.    Federal agency price schedules.  
 Notwithstanding anything in this chapter to the contrary, the 
 commissioner may, instead of soliciting bids, contract for 
 purchases with suppliers who have published schedules of prices 
 effective for sales to any federal agency of the United States.  
 These contracts may be entered into, regardless of the amount of 
 the purchase price, if the commissioner considers them 
 advantageous and if the purchase price of all the commodities 
 purchased under the contract do not exceed the price specified 
 by the schedule.  

    Subd. 6.    Emergency purchases.  In emergencies the 
 commissioner may, without calling for bids, contract directly 
 for the repair, rehabilitation, and improvement of a state-owned 
 structure or may authorize an agency to do so, and may purchase 
 or may authorize an agency to purchase directly supplies, 
 materials, equipment, or utility services for immediate use.  An 
 emergency for the purposes of this subdivision is an unforeseen 
 occurrence or combination of circumstances which calls for 
 immediate action in the public interest.  

    Subd. 7.    Specific purchases.  (a) The following may 
 be purchased without regard to the competitive bidding 
 requirements of this chapter:  

    (1) merchandise for resale at state park refectories or 
 facility operations; 

    (2) farm and garden products, which may be sold at the 
 prevailing market price on the date of the sale; 

    (3) meat for other state institutions from the technical 
 college maintained at Pipestone by independent school district 
 No. 583; and 

    (4) products and services from the Minnesota correctional 
 facilities.  

    (b) Supplies, materials, equipment, and utility services 
 for use by a community-based residential facility operated by 
 the commissioner of human services may be purchased or rented 
 without regard to the competitive bidding requirements of this 
 chapter. 

    (c) Supplies, materials, or equipment to be used in the 
 operation of a hospital licensed under sections 144.50 to 144.56 
 that are purchased under a shared service purchasing arrangement 
 whereby more than one hospital purchases supplies, materials, or 
 equipment with one or more other hospitals, either through one 
 of the hospitals or through another entity, may be purchased 
 without regard to the competitive bidding requirements of this 
 chapter if the following conditions are met: 

    (1) the hospital's governing authority authorizes the 
 arrangement; 

    (2) the shared services purchasing program purchases items 
 available from more than one source on the basis of competitive 
 bids or competitive quotations of prices; and 

    (3) the arrangement authorizes the hospital's governing 
 authority or its representatives to review the purchasing 
 procedures to determine compliance with these requirements. 

    HIST: 1984 c 544 s 13; 1Sp1985 c 13 s 117; 1986 c 363 s 3; 
 1986 c 444; 1987 c 258 s 12; 1987 c 365 s 6,7; 1988 c 613 s 6; 
 1988 c 689 art 2 s 5; 1989 c 246 s 2; 1993 c 326 art 8 s 1; 1994 
 c 632 art 4 s 20; 1995 c 207 art 2 s 2; 1995 c 224 s 49