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

-Established 1981-

IV. CHALLENGES TO THE AWARD OF BID (continued)

C. Forum

1. Administrative Challenges

a. Formal procedures do not exist at the state or local level for administrative challenges to county bid procedures.

b. Informal challenges must be tailored to the specific procurement and brought to the attention of everyone involved in the process.

2. Judicial Challenges

a. Standing:  Standing must be established.  The most frequent challenges to the bid process or contract awards are taxpayer suits, Unsuccessful bidders may also bring a cause of action.

b. Scope of Review:  The scope of review by the court is limited to determining whether there has been fraud, collusion, favoritism or abuse of discretion.  Duffy v. Village of Princeton, 60 N.W.2d 27 (Minn. 1953). Abuse of discretion relates to such things as material deviation of bid proposals, insufficiency of bid specifications and failure to follow statutory bidding procedures.  The court will not attempt to substitute its judgment for that of the county.  McQuillin, Municipal Corporations, (3rd ed.) § 29.83.

D. Remedies

1. Injunctive Relief

a. Suits may be brought: (i) to set aside contracts entered into without competitive bidding; (ii) to set aside awards when bid specifications are too indefinite or are invalid for any other reason; (iii) or when a bid deviates substantially from specifications.  See Carl Bolander & Sons Co. v. City of Minneapolis, et al, 451 N.W. 2d 204, (Minn. 1990); Griswold v. Ramsey County, 65 N.W.2d 647 (Minn. 1954); Duffy, supra; Coller v. City of St. Paul, 26 N.W.2d 835 (Minn. 1947); Nielson v. City of Albert Lea, 86 N.W. 83 (Minn. 1904); Otter Tail Power Co. v. Village of Elbow Lake, 49 N.W.2d 197 (Minn. 1951); LeTourneau v. Hugo, 97 N.W. 115 (Minn. 1959); Arpin v. Thief River Falls, 141 N.W. 833 (Minn. 1913).

b. Generally, a bidder is not entitled to injunctive relief.  McQuillin, Municipal Corporations, (3rd ed.) § 29.83.  Leskinen v. Pucelj, 115 N.W. 2d 346 (1962).

18

Continue to Page Nineteen