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

-Established 1981-

I.  The Decision to Bid (Continued)

3.  Competitive bidding must be solicited for rental of equipment estimated to be more than $60,000.  (Minn. Stat. § 471.345, subd. 5a).

The estimated contract price is determined to be over the dollar limitations set forth above if the individual contract price to be paid or received is over the amount.  In multi-year contracts the estimated contract price is determined to be over the dollar limitations set forth above if the total contract amount is over the limitations [i.e., do not divide into a per year amount].

See also Minn. Stat. § 465.71 for installment and lease purchases.

  D. Exceptions to Bidding Requirements

1.  Contracts estimated from $10,000 to $15,000 may be $10,000 to $35,000 for municipalities of less than 2,500 population; $50,000 for all others. If the amount of the contract is estimated to exceed $10,000 but not to exceed $35,000 for municipalities of less than 2,500 population, or $50,000 for all others may be competitively bid or handled by direct negotiation if:

a.  Two or more price quotations are obtained when possible; and

b.  all quotations are kept for one year after receipt.  (Minn. Stat. § 471.345, subd. 4.)

2.  Contracts estimated at less than $10,000 may, in the discretion of the governing body, be:

a.  Based on two or more quotations, if practicable, which shall be kept on file for a period of at least one year after their receipt;

b.  Made in the open marketplace. (Minn. Stat. § 471.345, subd. 5.)

3.  Emergencies:

a.  Minn. Stat. § 375.21 excepts from bidding, repairs for destruction of roads or bridges by floods, rain, snow or other casualty or from the breaking or damaging of any property in the county if the public health, safety or welfare would suffer by delay; and the action of the board is recorded in its official proceedings.

b.  Minn. Stat. § 375.22 provides that bidding is not required in case of an emergency arising from:

Breakage, damage or decay in county property that cannot be allowed to wait for the time required to advertise for bid if the work is authorized by a majority of the board of county commissioners and the action is ratified and recorded in the official proceedings of the board.

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