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<br /> <br /> <br />Purchases Exceeding $100,000 <br />There are three processes available that would satisfy statutory requirements for purchases that are <br />above $100,000: <br /> <br />1.Purchases through Cooperative Purchasing Organizations: <br />The city is a member of various cooperative purchasing organizations <br /> <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 /> <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 to the competitive bidding requirements: <br /> <br /> <br />Contracts less than $100,000 <br /> <br /> <br />Cooperative purchasing organizations <br /> <br /> <br />Intergovernmental contracts <br /> <br /> <br />Noncompetitive supplies and equipment <br /> <br /> <br />Real estate purchases <br /> <br /> <br />Professional services including: <br /> <br />Architectural <br />o <br /> <br />Auditing <br />o <br /> <br />Engineering <br />o <br /> <br />Legal <br />o <br /> <br />Group Insurance <br />o <br /> <br />Banking Services <br />o <br /> <br />Investment Services <br />o <br /> <br />Financial Service Providers <br />o <br /> <br />Construction Management <br />o <br /> <br />Surveying <br />o <br /> <br /> <br />Emergency Purchases <br /> <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 /> <br />