Subdivision 1. Single source. The solicitation process described in this chapter is not required when there is clearly and legitimately only a single source for the goods and services and the commissioner determines that the price has been fairly and reasonably established.
Subd. 2. Emergency acquisition. The solicitation process described in this chapter is not required in emergencies. In emergencies, the commissioner may make any purchases necessary 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, goods, services, or utility services directly for immediate use.
Subd. 3. 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. 4. Cooperative agreements. The solicitation process described in this chapter is not required for cooperative agreements. The commissioner may enter into contracts or accept prices effective for sales to any governmental unit as defined in section 471.59, through a cooperative agreement as defined in section 471.59.
Subd. 5. Specific purchases. The solicitation process described in this chapter is not required for acquisition of the following:
(1) merchandise for resale purchased under policies determined by the commissioner;
(2) farm and garden products which, as determined by the commissioner, may be purchased at the prevailing market price on the date of sale;
(3) goods and services from the Minnesota correctional facilities;
(4) goods and services from rehabilitation facilities and extended employment providers that are certified by the commissioner of employment and economic development, and day services licensed under chapter 245D;
(5) goods and services for use by a community-based facility operated by the commissioner of human services;
(6) goods purchased at auction or when submitting a sealed bid at auction provided that before authorizing such an action, the commissioner consult with the requesting agency to determine a fair and reasonable value for the goods considering factors including, but not limited to, costs associated with submitting a bid, travel, transportation, and storage. This fair and reasonable value must represent the limit of the state's bid;
(7) utility services where no competition exists or where rates are fixed by law or ordinance;
(8) goods and services from Minnesota Sex Offender Program facilities; and
(9) contracts of the Department of Employment and Economic Development distributing state and federal funds for the purpose of subcontracting the provision of program services to eligible recipients. For these contracts, the commissioner of employment and economic development is authorized to directly enter into agency contracts and encumber available funds. For contracts distributing state or federal funds pursuant to the federal Workforce Investment Act, United States Code, title 29, section 2911 et seq., the commissioner of employment and economic development in consultation with the Job Skills Partnership Board is authorized to directly enter into agency contracts and encumber available funds to ensure a rapid response to the needs of dislocated workers. The commissioner of employment and economic development shall adopt internal procedures to administer and monitor funds distributed under these contracts. This exception also applies to any contracts entered into by the commissioner of education that were previously entered into by the commissioner of employment and economic development.
Subd. 6. Expenditures under specified amounts. A competitive solicitation process described in this chapter is not required for the acquisition of goods, services, construction, and utilities in an amount of $5,000 or less or as authorized by section 16C.16, subdivisions 6, paragraph (b), 6a, paragraph (b), and 7, paragraph (b).
Subd. 7. Reverse auction. (a) For the purpose of this subdivision, "reverse auction" means a purchasing process in which vendors compete to provide goods or services at the lowest selling price in an open and interactive environment. Reverse auctions may not be utilized to procure engineering design services or architectural services or to establish building and construction contracts under sections 16C.26 to 16C.29.
(b) The provisions of sections 13.591, subdivision 3, and 16C.06, subdivision 2, do not apply when the commissioner determines that a reverse auction is the appropriate purchasing process.
1998 c 386 art 1 s 11; 1999 c 245 art 5 s 1; 2000 c 420 s 2; 1Sp2003 c 1 art 2 s 56; 1Sp2003 c 8 art 1 s 8; art 2 s 14; 2004 c 206 s 52; 2005 c 9 s 1; 2005 c 156 art 2 s 22; 2007 c 148 art 2 s 42; 2009 c 111 s 2; 2013 c 108 art 9 s 1; 2013 c 142 art 3 s 19; 2014 c 196 art 2 s 9; 2016 c 189 art 12 s 3
Structure Minnesota Statutes
Chapters 16A - 16E — Administration And Finance
Chapter 16C — State Procurement
Section 16C.001 — Commissioner's Authority; Scope.
Section 16C.03 — Commissioner's Authority; Powers And Duties.
Section 16C.04 — Ethical Practices And Conflict Of Interest.
Section 16C.045 — Reporting Of Violations.
Section 16C.05 — Contract Management; Validity And Review.
Section 16C.051 — Contracts With Russia Or Belarus.
Section 16C.053 — Contracts With Vendors Who Discriminate Against Israel Prohibited.
Section 16C.054 — Accommodation For Hard-of-hearing In State-funded Capital Projects.
Section 16C.055 — Barter Arrangements Limited.
Section 16C.06 — Procurement Requirements.
Section 16C.071 — Exception For Federal Contracts.
Section 16C.072 — Contracts For Tax-related Activities.
Section 16C.0725 — Purchase Of Recycled, Repairable, And Durable Materials.
Section 16C.073 — Purchase And Use Of Paper Stock; Printing.
Section 16C.074 — Consideration Of Environmental Impacts Of Metal Recycling Facilities.
Section 16C.08 — Professional Or Technical Services.
Section 16C.086 — Call Center.
Section 16C.087 — Selection Of Certain Professional Service Contractors.
Section 16C.09 — Procedure For General Service Contracts.
Section 16C.10 — Exceptions Authorized.
Section 16C.105 — Cooperatives Authorized.
Section 16C.11 — Cooperative Purchasing Venture; Revolving Fund.
Section 16C.12 — Agricultural Food Products Grown In State.
Section 16C.13 — Certain Vehicles.
Section 16C.135 — Purchases Of Fuel And Vehicles By State Agencies.
Section 16C.137 — Minimizing Energy Use; Renewable Fuels.
Section 16C.138 — State Purchasing Of Electric And Plug-in Hybrid Electric Vehicles.
Section 16C.14 — Energy Efficiency Installment Purchases.
Section 16C.143 — Energy Forward Pricing Mechanisms.
Section 16C.144 — Guaranteed Energy-savings Program.
Section 16C.145 — Nonvisual Technology Access Standards.
Section 16C.147 — Document Imaging; Use Of Persons With Developmental Disabilities.
Section 16C.15 — Rehabilitation Facilities And Extended Employment Providers.
Section 16C.151 — Purchases From Corrections Industries.
Section 16C.155 — Janitorial Contracts; Rehabilitation Programs And Extended Employment Providers.
Section 16C.16 — Designation Of Procurements From Small Businesses.
Section 16C.17 — Encouragement Of Participation.
Section 16C.19 — Eligibility; Rules.
Section 16C.20 — Certification.
Section 16C.21 — Criminal Penalty.
Section 16C.25 — Building And Construction Contracts.
Section 16C.251 — Best And Final Offer.
Section 16C.26 — Competitive Bids Or Proposals.
Section 16C.28 — Contracts; Award.
Section 16C.281 — Original Jurisdiction Of Public Procurement Actions.
Section 16C.285 — Responsible Contractor Requirement Defined.
Section 16C.29 — Contract Management And Review.
Section 16C.32 — Design-build Contracts, Definitions.
Section 16C.33 — Design-build.
Section 16C.34 — Construction Manager At Risk.
Section 16C.35 — Job Order Contracting.
Section 16C.36 — Reorganization Services Under Master Contract.