Minnesota
Administrative Fees:
Administrative Fees on State Contracts
Disclaimer:
This information is self-reported by the state via the Survey of State Procurement Practices
Administrative Fees in Use:
Yes
Types of Contracts with Admin. Fees:
Statewide/Enterprise, National Cooperative, Other: See Notes
Amount and Frequency of Fees Collected:
The admin fee is generally 1%. We include an admin fee on approximately 44% of our statewide contracts.
Notes:
Not all contracts include an administrative fee. OSP determines on a case-by-case basis whether an admin fee will be included.
State authority to conduct best value procurement (BVP)
Best Value Procurement Definition:
Best Value Procurement Definition
Definition of Best Value Procurement:
Yes
Citation:
MN ST § 16C.02
Citation Language:
Subd. 4. Best value. “Best value” describes a result intended in the acquisition of all goods and services. Price must be one of the evaluation criteria when acquiring goods and services. Other evaluation criteria may include, but are not limited to, environmental considerations, quality, and vendor performance. In achieving “best value” strategic sourcing tools, including but not limited to best and final offers, negotiations, contract consolidation, product standardization, and mandatory-use enterprise contracts shall be used at the commissioner's discretion.
Public Link:
Westlaw Flags:
No Flag
Statutory, regulatory, and procedural guidance for bid protests
Protest Procedure:
Protest Procedure
Status:
Statutory Guidance
Citation:
MN ST § 16C.03
Citation Language:
Subd. 2. Rulemaking authority. (a) Subject to chapter 14, the commissioner may adopt rules, consistent with this chapter and chapter 16B, relating to the following topics: (1) procurement process including solicitations and responses to solicitations, bid security, vendor errors, opening of responses, award of contracts, tied bids, and award protest process;
Public Link:
Statutory, regulatory, and procedural guidance for bid responsiveness
Bid Responsiveness:
Bid Responsiveness Definition
Definition:
No
Statutory, regulatory, and procedural guidance for bidder responsibility
Responsible Bidder Definition:
Responsible Bidder Definition
Definition:
Yes
Citation:
MN ADC 1230.0150
Citation Language:
"Responsible vendor" means a vendor who: A. is a manufacturer of, deals in, but is not a broker of, or is the agent of a manufacturer with full knowledge of supplies to be furnished; or B. if services are to be provided, has the necessary skills or is in the business of supplying these services; and § C. can demonstrate a satisfactory credit standing, lack of delinquent tax liability, and the financial capability to perform a contract as evidenced by the ability to obtain bonding when required; and D. has no unresolved record of failure to perform, or of unsatisfactory performance of, contracts for the state or other customers; and E. is not currently debarred by another government entity for any cause including defaults on contracts, late deliveries, products not meeting specifications, substandard installation, or service; and F. is otherwise qualified under rule and law, including incorporation in or registration to do business in Minnesota; and G. has not engaged in unlawful practices, associated with organized crime, or operated under false names or fronts as a small business or a socially or economically disadvantaged small business; and H. is in compliance with all tax laws of Minnesota, as evidenced by timely filing of all required returns, reports, payments, and possession of all applicable stamps, licenses, or other permits, and freedom from any judgment, lien, or seizure of assets or property to satisfy tax payments or duties; and I. is willing to furnish all information necessary to determine responsibility as outlined in items A to H within 30 calendar days or less or within a reasonable amount of time determined by prior consensus between the bidder and the division.
Public Link:
Name:
Commodity Code
Commodity Code:
UNSPSC
Name:
Competitive Thresholds
Formal/Competitive Sealed Bidding:
$50,000 goods and services; $100,000 for Dept. of Transportation
Citation:
MN ST 16C.06 § 2
Public Link:
Citation Language:
Subd. 2.Solicitation process**.** (a) A formal solicitation must be used to acquire all goods, service contracts, and utilities estimated at or more than $50,000, or in the case of a Department of Transportation solicitation, at or more than $100,000, unless otherwise provided for. Formal responses must be authenticated by the responder in a manner specified by the commissioner. (b) An informal solicitation may be used to acquire all goods, service contracts, and utilities that are estimated at less than $50,000, or in the case of a Department of Transportation solicitation, at or less than $100,000. The number of vendors required to receive solicitations may be determined by the commissioner. Informal responses must be authenticated by the responder in a manner specified by the commissioner.
Small Purchases/Informal Purchasing:
$5,000; $50,000; $100,000 for Dept. of Transportation
Citation 2:
MN DOA Purchasing Policy 2; MN ST 16C.06 § 2(b)
Public Link 2:
Citation Language 2:
Purchasing Policy 2 - Revised: The FPO can be used in certain circumstances by authorized State employees to purchase items up to $5,000.00. The FPO limit of $5,000.00 includes freight and miscellaneous charges, but not sales and use taxes. It is intended for use when the State employee is not in his or her primary work location and procuring the goods and allowable services cannot be done in the Statewide Integrated Financial Tools (SWIFT) System. The FPO is not to be used to order goods and services for future deliveries. ; 16C.06 Subd. 2 (b) An informal solicitation may be used to acquire all goods, service contracts, and utilities that are estimated at less than $50,000, or in the case of a Department of Transportation solicitation, at or less than $100,000. The number of vendors required to receive solicitations may be determined by the commissioner. Informal responses must be authenticated by the responder in a manner specified by the commissioner.
Statutory, regulatory, and procedural guidance for contract claims before a specialized body
Contract Claims Procedure:
Contract Claims Procedure
Status:
No Official Guidance
Statutory, regulatory, and procedural guidance for contract claim appeals before a specialized body
Administrative Contract Claims Appeals:
Administrative Contract Claims Appeals
Status:
No Official Guidance
Comments:
Decision must be challenged in court.
eProcurement:
eProcurement
Platform:
Peoplesoft by Oracle
System Type:
ERP
Public Link:
System Name:
SWIFT
The rules concerning the size and composition of evaluation committees for formal solicitations
Eval Committees:
Evaluation Committees
Evaluation Team Requirements:
No official guidance
State entity with the statutory authority and oversight for the purchasing of goods and services
Goods and Services Procurement Entity:
Goods and Services Procurement
Entity:
Central Procurement Office
Citation:
MN ST § 16C.03
Public Link:
Citation Language:
Subdivision 1. Renumbered § 16C.001 in St.2014. Subd. 2. Rulemaking authority. (a) Subject to chapter 14, the commissioner may adopt rules, consistent with this chapter and chapter 16B, relating to the following topics: (1) procurement process including solicitations and responses to solicitations, bid security, vendor errors, opening of responses, award of contracts, tied bids, and award protest process; (2) contract performance and failure to perform; (3) authority to debar or suspend vendors, and reinstatement of vendors; (4) contract cancellation; (5) procurement from rehabilitation facilities; (6) organizational conflicts of interest; and (7) surplus property acquisition, distribution, and disposal. (b) Minnesota Rules, parts 1230.0100 to 1230.4300, adopted under chapter 16B, govern under this chapter until amended, repealed, or superseded by rules adopted under chapter 16B or this chapter. In the event rules adopted under chapter 16B conflict with provisions of this chapter, this chapter governs. Subd. 3. Acquisition authority. The commissioner shall acquire all goods, general services, building construction, and utilities needed by agencies. The commissioner shall make all decisions regarding acquisition activities. The commissioner shall conduct all contracting by, for, and between agencies and perform all contract management and review functions for contracts, except those functions specifically delegated to be performed by the contracting agency, the attorney general, or as otherwise provided for by law....
State authority to conduct multistep competitive sealed bidding
Authorization for Multi-Step Competitive Sealed Bidding:
Authorization for Multi-Step Competitive Sealed Bidding
Status:
No Authorization
Name:
Nonprofit Usage of Statewide Contracts
Citation:
Minn. Stat. § 16C.105
Public Link:
Citation Language:
The following entities are authorized to enter into cooperative purchasing agreements with the commissioner in accordance with section 16C.03, subdivision 10: (1) one or more other states or governmental units, as described in section 471.59, subdivision 1; (2) entities defined in section 16B.2975, subdivision 1; (3) a registered combined charitable organization and its affiliated agencies as defined by section 43A.50; (4) a charitable organization defined in section 309.50, subdivision 4, that is also a recipient of a state grant or contract; (5) a nonprofit community health clinic defined in section 145.9268; and (6) health care facilities that are required to provide indigent care, or any entity recognized by another state's statutes as authorized to use that state's commodity or service contracts.
Authorization:
Yes
Organizational location for the dedicated procurement attorney assigned to assist with and review purchasing and contracts.
Procurement Counsel Location:
Embedded in Procurement Office
Reports To:
Other
Official state procurement website for public
Public Link to Official State Procurement Website:
State Procurement Website
Public Link:
Statutory, regulatory, or procedural guidance for protest appeals before a specialized body
Administrative Protest Appeals:
Administrative Protest Appeals
Status:
No Statutory Guidance
Comments:
Decision must be challenged in court
The required time between the issuance of a formal solicitation and the scheduled opening of bids or proposals
Public Notice:
Public Notice
Formal Solicitation - Minimum Window for Proposals/Bids:
7 Days
Citation:
MN ADC 1230.0300
Public Link 1:
Citation Language:
Subpart 1. **Publication. ** Notice of solicitations estimated to exceed the limits established by Minnesota Statutes, section [16C.06](https://www.revisor.mn.gov/statutes/cite/16C.06), subdivision 1, must be advertised at least seven calendar days prior to the opening date.
State authority to conduct reverse auctions
Authorization for Reverse Auction:
Authorization for Reverse Auctions
Status:
Partial Authorization
Citation:
MN ST § 16C.10
Citation Language:
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.
Public Link:
Comments:
Prohibited on certain construction related procurements "2021 MN S.F. 1931 (NS) 2021 MN H.F. 1988 (NS)"
Official state procurement manual available to public
Public Link to State Procurement Manuals:
State Procurement Manual
Notes:
Found in section N. Not sure on the policy currentness
Awarded contracts as provided by each state
Link to State-Wide Contracts:
State-wide contracts
State-Wide Contracts Link:
Information for suppliers as provided by each state
Link to Supplier Registration:
Supplier Registration
Supplier Registration Link:
State entity with the statutory authority and oversight for the purchasing of technology
Technology Procurement Entity:
Technology Procurement Entity
Entity:
State Central Procurement Office
Citation:
MN ADC 1230.1910
Citation Language:
Subpart 1. Applicability. Parts 1230.1400 to 1230.1910 apply to the award of professional and technical procurements under Minnesota Statutes, section 16C.16, subdivision 3. Subp. 2. Awards. Division certification is not required for individuals who provide consultant, professional, or technical services and who are not organized as a business, corporation, partnership, proprietorship, or other recognized business structure. An individual person may be awarded contracts under Minnesota Statutes, section 16C.16, provided that the contracting agency maintains records stating that the individual meets the terms governing socially and economically disadvantaged persons, economically disadvantaged area persons, or veterans established in part 1230.0150, subparts 24, 26, and 28, and reports the awards in the format required by the division.
