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Minn. Stat. §§ 471.345; <br />429.041, subd. 1. <br />Minn. Stat. § 471.345, <br />subd. 6. <br />Foley Bros., Inc. v. <br />Marshall, 266 Minn. <br />259, 123 N.W.2d 387 <br />(Minn. 1963). <br />R.E. Short Co. v. City <br />of Minneapolis, 269 <br />N.W.2d 331 (Minn. <br />1978);Griswold v. <br />Ramsey County, 242 <br />Minn. 529, 65 N.W.2d <br />647 (Minn. 1954). <br />Minn. Stat. § 471.345, <br />subd. 2. <br />Part I. Purpose of competitive <br />bidding <br />The uniform municipal contracting law (competitive- bidding law) requires <br />cities to use the competitive- bidding process for certain contracts estimated to <br />cost over $100.000. For local improvement projects that are paid for with <br />special assessments, the competitive- bidding process must be used if the <br />estimated cost of the contract exceeds $50,000. <br />The competitive- bidding law generally supersedes all inconsistent laws and <br />charter provisions governing city contracts. <br />Generally, the competitive- bidding process involves publication of an <br />advertisement to solicit sealed bids and the award of the contract to the <br />"lowest responsible bidder." (See discussion below for exceptions to this <br />general rule.) <br />The competitive- bidding law has three general purposes. First, it is intended to <br />ensure taxpayers receive the lowest price and best value for their tax dollars. <br />Second, it allows contractors a level playing field on which to compete for <br />city contracts. Third, it limits the discretion of contract - making officials and <br />reduces the possibility of fraud or favoritism. <br />Part 11. Scope of statutory <br />requirement <br />A. Contracts subject to competitive bidding <br />There are two elements a city must consider to determine if the competitive - <br />bidding law applies to a particular contract: the type of contract and its <br />estimated price. <br />Under the competitive- bidding law, the definition of the term "contract" is <br />broad, but it does not include all contracts. The competitive - bidding law <br />applies to: <br />• Contracts for the sale, purchase or rental of supplies, materials or <br />equipment. <br />• Contracts for the construction, alteration, repair or maintenance of real or <br />personal property. <br />COMPETITIVE BIDDING REQUIREMENTS IN CITIES 3 <br />