The Minnesota Chapter
of the National Institute
of Governmental Purchasing, Inc.

-Established 1981-

III. AWARD OF BID

A. Basis for Bid Award.

Minn. Stat. § 375.21 provides that, when a county is required to competitively bid by the dollar limitations of Minn. Stat. § 471.345, the bid award must be to the "lowest, responsible bidder."

1. However, this is not always the bidder with the lowest unit price.

a. Quality, suitability and adaptability are factors a county may consider in addition to price in determining to whom a contract should be awarded.  Otter Tail Power Co. v Village of Elbow Lake, 42 N.W.2d 197 (Minn.1951); O.A.G. 707a-15, October 25, 1966.

b. Similarly, the fitness, responsibility or capacity of the bidder to perform is legitimate consideration. State v. Snively, 221 N.W. 535 (Minn.1928); Duffy v. Village of Princeton, 60 N.W.2d 27 (Minn. 1953).

2. However, in considering these factors, the award must be based upon a substantial difference between bidders, particularly where a higher bid is selected over a lower one. O.A.G. 707a-15, October 25, 1966.

a. The availability of local repair service may be an essential consideration in determining the adaptability or suitability of an emergency vehicle particularly where the absence of the vehicle at a repair station some distance from the town would seriously impede the provision of service.  O.A.G. 707a-15, October 25, 1966.

b. NOTE: In the above case it probably would not have been permissible to draft specifications that excluded all but the make of vehicle carried by the local dealer.

B. Examination of Bids.

1. Bids are opened and examined at the time and place indicated in the advertisement.  Close examination of bids may be reserved for a later date, although at the opening, it is appropriate to read the proposals out loud.  The bidders should be advised that final award will be make by the county commissioners at their next meeting.  (This assumes the time for opening bids is not the same time as the board meeting).

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