The Hibbing Public Utilities utilizes the State Auditor’s Office and the League of MN Cities as its source for local government rules, regulations and guidance.
Quotes are comprised of projects exceeding $25,000 but not more than $175,000. For city contracts entered into on or after Aug. 1, 2018, competitive bidding is not required on contracts that exceed $25,000 but does not exceed $175,000. In this event, Cities use the competitive quote process.
If direct negotiation is used, the city must get at least two quotations when possible and keep them on file for at least one year. If the price of the contract is estimated to be $25,000 or less, the city has discretion to make the contract by obtaining quotations or it may simply buy or sell the item on the “open market”. If the city chooses to use quotations for the contract, it shall be based, as far as practicable, on at least two quotations which shall be kept on file for at least one year.
Requests for Proposals (RFPs)
The purpose of a Request for Proposal (RFP) is to state the purpose and/or overall objectivity of a project. This includes background information, purpose of project, scope of work, term of contract, timeline of project, experience of contractor and related work history, and/or point of contact.
The uniform municipal contracting law (competitive bidding law) requires cities to use the competitive bidding process for certain contracts estimated to exceed a dollar threshold. Typically, this involves the solicitation of sealed bids and the award of the contract to the “lowest responsible bidder.” The law makes no distinction based on the funds from which payments will be made. For example, a contract that will be paid from municipal liquor store revenues must be competitively bid if the estimated cost is expected to exceed the bidding threshold.
The competitive bidding law generally supersedes all inconsistent laws and charter provisions. A city may, however, need to comply with additional statutory requirements. For example, the competitive bidding process for local improvement projects that are paid for with special assessments has additional requirements. It is important to review any additional requirements that apply to a particular type of contract before beginning the competitive bidding process.
The competitive bidding law serves three general purposes. First, it is intended to ensure city taxpayers receive the benefit of the lowest obtainable price from a responsible contractor. Second, competitive bidding provides contractors a level playing field on which to compete for city contracts. Third, it limits the discretion of contract-making officials in situations that are susceptible to fraud, favoritism, or other similar abuses.
Contracts entered into on or after August 1, 2018, exceeding the estimated price of $175,000, must use the competitive bidding process.
Current Projects / Solicitations
Requests for Proposal (RFPs).