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Purchases Exceeding$100,000 <br /> There are three processes available that would satisfy statutory requirements for purchases that are <br /> above $100,000: <br /> 1. Purchases through Cooperative Purchasing Organizations: <br /> The city is a member of various cooperative purchasing organizations <br /> 2. Purchases Made Outside of the Cooperative Bidding Process: <br /> If the amount of the contract is estimated to exceed$100,000, and funds are appropriated <br /> within the current operating budget or capital improvement program, sealed bids shall be <br /> solicited by public notice at least 10 calendar days before scheduled bid opening following <br /> preparation of bid specifications as authorized by the City Council. The successful bid is to <br /> be awarded by the City Council to the lowest responsible bidder.(Minnesota Statutes <br /> 471.345) <br /> 3. Non-Competitive Supplies or Equipment: <br /> If the city is purchasing a product or service which is available from only one source,the <br /> acquisition will be made in the same fashion as a purchase between$50,000 and $100,000 <br /> except that no other quotes are required. <br /> Exceptions to Competitive Bidding <br /> The following are some of the more common_exceptions e competitive bidding requirements: <br /> • Contracts less than$100,000 <br /> • Cooperative purchasing organize <br /> • Intergovernmental contracts <br /> • Noncompetitive supplies and equipm <br /> • Real estate purchases <br /> • Professional services including: <br /> • Architectural <br /> • Auditing <br /> • Engineering <br /> • Legal <br /> o Group Insurance <br /> ;' <br /> • Banking Services <br /> • Investment Services <br /> • Financial Service Providers <br /> • Construction Management <br /> • Surveying <br /> • Emergency Purchases... <br /> Contractor's Bond <br /> The city is required to obtain both a payment and performance bond for all public work contracts <br /> over$100,000. Payment and performance bonds protect the city as well as subcontractors and <br /> persons providing labor and materials. When the public work contract is let, the amount of the <br /> bond needs to be equal to the contract price. If the contract price increases due to change orders, <br /> unforeseen conditions, cost overruns or any other reason after the contract is signed, the city has the <br /> option of increasing the amount of the contractor's bond. Consideration may be given for the <br /> Financial Management Policies Page 17 <br />