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· The design-build contractor may operate the transit system for a limited initial <br /> period, with the option, at the choice of the public agency, to extend the contract at <br /> fixed rates with appropriate escalation. <br /> <br />With the design-build alternative, the public agency is still responsible for defining the system <br />sufficiently for final design, environmental clearance, right-of-way acquisition, funding, and <br />ultimate operations and maintenance. <br /> <br />3.1 STATE LAW <br /> <br />3.1.1 Mn/DOT Authority <br /> <br />Mn/DOT will be the federal grantee for purposes of the Northstar Corridor Rail Project. <br />Mn/DOT will comply with federal roles and regulations in its procurements related to the <br />Northstar Corridor Rail Project and will require its sub-grantees and third party contractors to do <br />the same. <br /> <br />Under Minnesota Statutes Section 174.82, the Commissioner of Transportation is responsible for <br />the planning, developing, constructing, operating, and maintaining of commuter rail in the State <br />of Minnesota. The Commissioner may enter in agreements with any public or private entity, <br />including a railroad, to carry out this authority. <br /> <br />Mn/DOT also has the legislative authority for the planning, designing, acquisition, construction <br />and equipping of LRT in the State of Minnesota (Minn. Stat. Section 174.35). <br /> <br />3.1.2 Contracting Authority <br /> <br />Minnesota Statutes Chapter 16C generally governs procurements made by the State of <br />Minnesota. <br /> <br />All acquisitions made by the State must be made by a best value procurement, except for <br />building and construction acquisitions, which use a low bid procurement (Minn. Stat. Section <br />16C.03, sub& 3). The legislature has defined "best value" as a procurement that takes cost into <br />account, as well as other areas such as environmental considerations, vendor performance, and <br />quality (Minn. Stat. 16C.02, subd. 4). <br /> <br />Under state statute, contracts entered into by the State cannot exceed five years. However, the <br />Department of Administration, the state agency charged with oversight of state acquisitions, may <br />waive the five year limitation on contracts where a five year limitation is impractical or not of <br />benefit to the citizens of the State of Minnesota. All contracts entered into by the State are also <br />subject to audit by the State and Legislative Auditors. <br /> <br />3.1.2.1 Proposals <br /> <br />Under Minnesota Statutes, acquisitions for professional services are broken into the following <br />two procurement thresholds: under $25,000 and $25,000 and above (Minn. Stat. Section 16C.06, <br />subd. 2). Professional services include services that are intellectual in nature, including, but not <br /> <br />Northstar Corridor Preliminary Engineering <br />Volume IH - June 1, 2001 <br /> <br />Procurement Plan <br /> Page 7 <br /> <br /> <br />