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4 <br />Minn. Stat. §§ 471.345, <br />subd. 3; 429.041, subd. <br />1. <br />subd. 4. <br />§ 471.345 <br />su . <br />subd4. <br />Griswold v. Ramsey <br />County, 242 Minn. 529 <br />65 N.W.2d 647 (Minn. <br />1954) <br />Minn. Stat. § 471.345, <br />subd. 5. <br />Minn. Stat <br />For more information <br />about the CPV <br />program, contact the <br />Department of <br />Administration at 651- <br />296 -2600. <br />Minn. Stat. § 471.345, <br />subd. 15. <br />If a contract is the type of contract subject to the competitive- bidding law, it <br />will trigger the competitive- bidding requirements if its estimated cost will <br />exceed $100,000. (For a local improvement project that is paid for with <br />special assessments, the competitive- bidding process must be used if the <br />estimated cost of the contract will exceed $50,000.) <br />If the cost of the contract is estimated to exceed $25,000, but not to exceed <br />$100,000, com etitive bidding is allowed bu of re uired. The city has the <br />option of either using the competitive - bidding process or making the contract <br />by direct negotiation. If the city chooses to use the competitive- bidding <br />process, however; it must follow through with the procedure even though it <br />was not originally required. If direct negotiation is used, the city must get at <br />least two quotations and keep them on file tor at least one year. <br />If the contract is expected to be $25,000 or less. the council has discretion to <br />make the contract by obtaining quotes or it may simply buy or sell the item on <br />The open market. If the council chooses to obtain quotes, It must o tarn at <br />least two quotes and keep them on file for at least one year. <br />The law makes no distinction between contracts on the basis of the funds from <br />which payments are made. Thus, a contract that is payable from the municipal <br />liquor store fund must use the competitive- bidding process if its estimated <br />cost is expected to exceed the competitive- bidding threshold. <br />B. Joint contracting <br />§ 471.59. Go - mental entities may jointly contract to undertake projects and purchase <br />service . r equipment. Under such an agreement, one governmental entity <br />may solici ids on behalf of itself and other governmental units that are <br />parties to the .: eement. <br />An example of this the state's Cooperative Purchasing Venture Program <br />(CPV Program). Citie ' that participate in this program are allowed to purchase <br />equipment under state contracts at prices the state has already competitively <br />bid. <br />Cities also have authority to eng e in joint purchasing for contracts for the <br />purchase of supplies, materials or e. ipment if the purchase is made through a <br />national municipal association's pure sing alliance or cooperative. The <br />alliance or cooperative must have been .eated by a joint - powers agreement <br />and must purchase items from more than o e source on the basis of <br />competitive bids or competitive quotations. <br />Joint purchasing agreements should be made usi • a formal council action, <br />such as a resolution. Ideally, cities wishing to make surchases under one set of <br />bids or quotations should agree to do so before the re • . est for bids or <br />quotations is made. This allows bidders to know how ma • purchases are <br />likely to be made. <br />LEAGUE OF MINNESOTA CITIES <br />