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

-Established 1981-

I.  The Decision to Bid (Continued)

     B. Statutory Provisions

Three statutes identify generally which county contracts are subject to competititve bidding:

Minn. Stat. § 373.01: delineates the powers and duties of a county, including requirements for the sale, lease or conveyance of personal property over $15,000 and real property owned by the county.

Minn. Stat. § 375.21:  addresses county contracts for work or labor, or to purchase furniture, fixtures or other property, or to construct or repair roads, bridges or buildings; and

Minn. Stat. § 471.345; Uniform Municipal Contracting Law.

These statutes identify purchases or conveyances for which competitive bids must be sought and establish the basic procedural framework for the bidding process.

     C. Situations Generally Requiring Bid Solicitations:

1.  If the amount of a contract is estimated to be over $15,000 $50,000, competitive bidding must be solicited for:

a.  Work or labor, or to purchase furniture, fixtures or other property, or to construct or repair roads, bridges or buildings (Minn. Stat. § 375.21), or

b.  The sale or purchase of supplies, materials, equipment or the rental thereof (except see 3. below), or the construction, alteration, repair or maintenance of real or personal property.  (Minn. Stat. § 471.345, subd. 2)

2.  Competitive bidding must generally be solicited for the sale, lease or conveyance of real estate owned by the county.  However, exceptions to bidding in Minn. Stat. § 373.01 subd. 1(4) include:

a.  The lease of a residence acquired by the furtherance of an approved capital improvement project;

b.  Leases that do not exceed $15,000 for any one year may be negotiated rather than bid;

c.  Acquisition of county right-a-way property may be by exchange of parcels of real property of substantially similar or equal value without advertisement for bids.

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