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<br /> <br />Purchases Exceeding $100,000 <br />There are three processes available that would satisfy statutory requirements for purchases that are above <br />$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 within the <br />current operating budget or capital improvement program, sealed bids shall be solicited by public notice <br />at least 10 calendar days before scheduled bid opening following preparation of bid specifications as <br />authorized by the City Council. The successful bid is to be awarded by the City Council to the lowest <br />responsible bidder.(Minnesota Statutes 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 acquisition will <br />be made in the same fashion as a purchase between $50,000 and $100,000 except that no other quotes <br />are required. <br />Exceptions to Competitive Bidding <br />The following are some of the more common exceptions to the competitive bidding requirements: <br /> Contracts less than $100,000175,000 <br /> Cooperative purchasing organizationsprograms <br /> Intergovernmental contracts <br /> Noncompetitive supplies and equipment <br /> Real estate purchasescontracts <br /> Professional services including: <br />o Architectural <br />o Auditing <br />o Engineering <br />o Legal <br />o Group Insurance <br />o Banking Services <br />o Investment Services <br />o Financial Service Providers <br />o Construction Management <br />o Surveying <br /> Emergency Purchases <br /> <br />Bond <br />The city is required to obtain both a payment and performance bond for all public work contracts over <br />$100,000175,000. Payment and performance bonds protect the city as well as subcontractors and persons <br />providing labor and materials. When the public work contract is let, the amount of the bond needs to be equal <br />to the contract price. If the contract price increases due to change orders, unforeseen conditions, cost overruns <br />or any other reason after the contract is signed, the city has the option of increasing the amount of the <br />Consideration may be given for the percentage of the contract that is complete in relation to <br /> <br /> <br />Professional Services <br />Contracts for professional services such as provided by engineers, attorneys, architects, accountants, and other <br />services requiring technical, scientific or professional training are exempt from the competitive bidding <br />requirements. However, the goals remain the same: to ensure all purchases are consistent with Minnesota <br />Financial Management Policies Page 15 <br /> <br />