1.1    .................... moves to amend H. F. No. 571 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 16C.02, is amended by adding a
1.4subdivision to read:
1.5    Subd. 4a. Best value; construction. For purposes of construction, building,
1.6alteration, improvement, or repair services, "best value" describes the result determined by
1.7a procurement method that considers price and performance criteria, which may include,
1.8but are not limited to:
1.9    (1) the quality of the vendor's or contractor's performance on previous projects;
1.10    (2) the timeliness of the vendor's or contractor's performance on previous projects;
1.11    (3) the level of customer satisfaction with the vendor's or contractor's performance
1.12on previous projects;
1.13    (4) the vendor's or contractor's record of performing previous projects on budget and
1.14ability to minimize cost overruns;
1.15    (5) the vendor's or contractor's ability to minimize change orders;
1.16    (6) the vendor's or contractor's ability to prepare appropriate project plans;
1.17    (7) the vendor's or contractor's technical capacities;
1.18    (8) the individual qualifications of the contractor's key personnel; or
1.19    (9) the vendor's or contractor's ability to assess and minimize risks.
1.20    "Performance on previous projects" does not include the exercise or assertion of a
1.21person's legal rights. This definition does not apply to sections 16C.32, 16C.33, 16C.34,
1.22and 16C.35.

1.23    Sec. 2. Minnesota Statutes 2006, section 16C.02, is amended by adding a subdivision
1.24to read:
1.25    Subd. 20. Vendor. "Vendor" means a business, including a construction contractor
1.26or a natural person, and includes both if the natural person is engaged in a business.

2.1    Sec. 3. Minnesota Statutes 2006, section 16C.03, subdivision 3, is amended to read:
2.2    Subd. 3. Acquisition authority. The commissioner shall acquire all goods, services,
2.3and utilities needed by agencies. The commissioner shall acquire goods, services, and
2.4utilities by requests for bids, requests for proposals, reverse auctions as provided in
2.5section 16C.10, subdivision 7, or other methods provided by law, unless a section of law
2.6requires a particular method of acquisition to be used. The commissioner shall make all
2.7decisions regarding acquisition activities. The determination of the acquisition method
2.8and all decisions involved in the acquisition process, unless otherwise provided for by
2.9law, shall be based on best value which includes an evaluation of price and may include
2.10other considerations including, but not limited to, environmental considerations, quality,
2.11and vendor performance. A best value determination must be based on the evaluation
2.12criteria detailed in the solicitation document. If criteria other than price are used, the
2.13solicitation document must state the relative importance of price and other factors. Unless
2.14it is determined by the commissioner that an alternative solicitation method provided by
2.15law should be used to determine best value, a request for bid must be used to solicit
2.16formal responses for all building and construction contracts. Any or all responses may
2.17be rejected. When using the request for bid process, the bid must be awarded to the
2.18lowest responsive and responsible bidder, taking into consideration conformity with
2.19the specifications, terms of delivery, the purpose for which the contract or purchase is
2.20intended, the status and capability of the vendor, and other considerations imposed in the
2.21request for bids. The commissioner may decide which is the lowest responsible bidder
2.22for all purchases and may use the principles of life-cycle costing, where appropriate, in
2.23determining the lowest overall bid. The duties set forth in this subdivision are subject to
2.24delegation pursuant to this section.

2.25    Sec. 4. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
2.26to read:
2.27    Subd. 3a. Acquisition authority; construction contracts. For all building and
2.28construction contracts, the commissioner shall award contracts pursuant to section 16C.28,
2.29and "best value" shall be defined and applied as set forth in sections 16C.02, subdivision
2.304a and 16C.28, subdivision 1, paragraph (a), clause (2). The duties set forth in this
2.31subdivision are subject to delegation pursuant to this section. The commissioner shall
2.32establish procedures for developing and awarding best value requests for proposals for
2.33construction projects. The criteria to be used to evaluate the proposals must be included in
2.34the solicitation document and must be evaluated in an open and competitive manner.

2.35    Sec. 5. Minnesota Statutes 2006, section 16C.03, is amended by adding a subdivision
2.36to read:
3.1    Subd. 18. Training. Users of best value procurement may be trained in the
3.2request for proposals process for best value contracting for construction projects.
3.3The commissioner may establish a training program for state and local officials and
3.4employees, and vendors and contractors, on best value procurement for construction
3.5projects, including those governed by section 16C.02, subdivision 4a. If the commissioner
3.6establishes such a training program, the state may charge a fee for providing training.

3.7    Sec. 6. Minnesota Statutes 2006, section 16C.26, is amended to read:
3.816C.26 COMPETITIVE BIDS OR PROPOSALS.
3.9    Subdivision 1. Application. Except as otherwise provided by sections 16C.10,
3.1016C.26 and 16C.27, all contracts for building and construction or repairs must be based on
3.11competitive bids or proposals. "Competitive proposals" specifically refers to the method
3.12of procurement described in section 16C.28, subdivision 1, paragraph (a), clause (2).
3.13    Subd. 2. Requirement contracts. Standard requirement price contracts for building
3.14and construction must be established by competitive bids as provided in subdivision 1.
3.15The standard requirement price contracts may contain escalation clauses and may provide
3.16for a negotiated price increase or decrease based upon a demonstrable industrywide or
3.17regional increase or decrease in the vendor's costs or for the addition of similar products or
3.18replacement items not significant to the total value of existing contracts. The term of these
3.19contracts may not exceed five years including all extensions.
3.20    Subd. 3. Publication of notice; expenditures over $25,000. If the amount of an
3.21expenditure is estimated to exceed $25,000, bids or proposals must be solicited by public
3.22notice in a manner designated by the commissioner. To the extent practical, this must
3.23include posting on a state Web site. For expenditures over $50,000, when a call for bids is
3.24issued the commissioner shall solicit sealed bids by providing notices to all prospective
3.25bidders known to the commissioner by posting notice on a state Web site at least seven
3.26days before the final date of submitting bids. All bids over $50,000 must be sealed when
3.27they are received and must be opened in public at the hour stated in the notice. All
3.28proposals responsive to a request for proposals according to section 16C.28, subdivision 1,
3.29paragraph (a), clause (2), shall be submitted and evaluated in the manner described in the
3.30request for proposals, regardless of the dollar amount. All original bids and proposals and
3.31all documents pertaining to the award of a contract must be retained and made a part of a
3.32permanent file or record and remain open to public inspection.
3.33    Subd. 4. Building and construction contracts; $50,000 or less. An informal bid
3.34may be used for building, construction, and repair contracts that are estimated at less than
3.35$50,000. Informal bids must be authenticated by the bidder in a manner specified by the
4.1commissioner. Alternatively, a request for proposals may be issued according to section
4.216C.28, subdivision 1, paragraph (a), clause (2), for such contracts.
4.3    Subd. 5. Standard specifications, security. Contracts must be based on the
4.4standard specifications prescribed and enforced by the commissioner under this chapter,
4.5unless otherwise expressly provided or as authorized under section 16C.28, subdivision 1,
4.6paragraph (a), clause (2). Each bidder for a contract vendor or contractor must furnish
4.7security approved by the commissioner to ensure the making of the contract being bid for.
4.8    Subd. 6. Noncompetitive bids. Agencies are encouraged to contract with small
4.9targeted group businesses designated under section 16C.16 when entering into contracts
4.10that are not subject to competitive bidding procedures.

4.11    Sec. 7. Minnesota Statutes 2006, section 16C.27, subdivision 1, is amended to read:
4.12    Subdivision 1. Single source of supply. Competitive bidding is or proposals are not
4.13required for contracts clearly and legitimately limited to a single source of supply, and the
4.14contract price may be best established by direct negotiation.

4.15    Sec. 8. Minnesota Statutes 2006, section 16C.28, is amended to read:
4.1616C.28 CONTRACTS; AWARD.
4.17    Subdivision 1. Lowest responsible bidder Award requirements. (a) All state
4.18building and construction contracts entered into by or under the supervision of the
4.19commissioner or an agency for which competitive bids or proposals are required must
4.20be awarded to the lowest responsible bidder, taking into consideration conformity with
4.21the specifications, terms of delivery, the purpose for which the contract is intended, the
4.22status and capability of the vendor, and other considerations imposed in the call for bids.
4.23The commissioner may decide which is the lowest responsible bidder for all contracts
4.24and may use the principles of life cycle costing, where appropriate, in determining the
4.25lowest overall bid. The head of the interested agency shall make the decision, subject
4.26to the approval of the commissioner. Any or all bids may be rejected. In a case where
4.27competitive bids are required and where all bids are rejected, new bids, if solicited, must
4.28be called for as in the first instance, unless otherwise provided by law. may be awarded to
4.29either of the following:
4.30    (1) the lowest responsible bidder, taking into consideration conformity with the
4.31specifications, terms of delivery, the purpose for which the contract is intended, the status
4.32and capability of the vendor or contractor, other considerations imposed in the call for
4.33bids, and, where appropriate, principles of life-cycle costing; or
5.1    (2) the vendor or contractor offering the best value, taking into account the
5.2specifications of the request for proposals, the price and performance criteria as set forth
5.3in section 16C.02, subdivision 4a, and described in the solicitation document.
5.4    (b) The vendor or contractor must secure bonding, commercial general insurance
5.5coverage, and workers' compensation insurance coverage under paragraph (a), clause
5.6(1) or (2). The commissioner shall determine whether to use the procurement process
5.7described in paragraph (a), clause (1), or the procurement process described in paragraph
5.8(a), clause (2). If the commissioner uses the method in paragraph (a), clause (2), the head
5.9of the agency shall determine which vendor or contractor offers the best value, subject to
5.10the approval of the commissioner. Any or all bids or proposals may be rejected.
5.11    Subd. 1a. Establishment and purpose. (a) The state recognizes the importance of
5.12the inclusion of a best value contracting system for construction as an alternative to the
5.13current low-bid system of procurement. In order to accomplish that goal, state and local
5.14governmental entities shall be able to choose the best value system in different phases.
5.15    (b) "Best value" means the procurement method defined in section 16C.02,
5.16subdivision 4a.
5.17    (c) (1) The following entities are eligible to participate in phase I: state agencies;
5.18Hennepin, Olmsted, Ramsey, and St. Louis counties; cities and school districts with the
5.19highest 25 percent enrollment of students in the state. Phase I begins on the effective
5.20date of this section.
5.21    (2) The following entities are eligible to participate in phase II: those entities
5.22included in phase I; counties with populations over 100,000; and school districts with the
5.23highest 50 percent enrollment of students in the state. Phase II begins two years from
5.24the effective date of this section.
5.25    (3) The following entities are eligible to participate in phase III: all entities included
5.26in phases I and II; and all other counties, townships, school districts, and political
5.27subdivisions in the state. Phase III begins three years from the effective date of this section.
5.28    (4) The commissioner or any agency for which competitive bids or proposals are
5.29required may not use best value contracting as defined in section 16C.02, subdivision 4a,
5.30for more than one project annually, or 20 percent of its projects, whichever is greater, in
5.31each of the first three fiscal years in which best value construction contracting is used.
5.32    Subd. 2. Alterations and erasures. A bid containing an alteration or erasure of
5.33any price contained in the bid which is used in determining the lowest responsible bid
5.34must be rejected unless the alteration or erasure is corrected in a manner that is clear and
5.35authenticated by an authorized representative of the responder. An alteration or erasure
6.1may be crossed out and the correction printed in ink or typewritten adjacent to it and
6.2initialed by an authorized representative of the responder.
6.3    Subd. 3. Special circumstances. The commissioner may reject the bid or proposal
6.4of any bidder vendor or contractor who has failed to perform a previous contract with
6.5the state. In the case of identical low bids from two or more bidders, the commissioner
6.6may use negotiated procurement methods with the tied low bidders for that particular
6.7transaction so long as the price paid does not exceed the low tied bid price. The
6.8commissioner may award contracts to more than one bidder vendor or contractor in
6.9accordance with subdivision 1, if doing so does not decrease the service level or diminish
6.10the effect of competition.
6.11    Subd. 4. Record. A record must be kept of all bids or proposals, including names of
6.12bidders, amounts of bids or proposals, and each successful bid or proposal. This record is
6.13open to public inspection, subject to section 13.591 and other applicable law.
6.14    Subd. 5. Preferences not cumulative. The preferences under sections 16B.121,
6.1516C.06, subdivision 7 , and 16C.16 apply, but are not cumulative. The total percentage
6.16of preference granted on a contract may not exceed the highest percentage of preference
6.17allowed for that contract under any one of those sections.

6.18    Sec. 9. Minnesota Statutes 2006, section 103D.811, subdivision 3, is amended to read:
6.19    Subd. 3. Awarding of contract. (a) At a time and place specified in the bid notice,
6.20the managers may accept or reject any or all bids and may award the contract to the lowest
6.21responsible bidder. The bidder to whom the contract is to be awarded must give a bond,
6.22with ample security, conditioned by satisfactory completion of the contract.
6.23    (b) Bids must not be considered which in the aggregate exceed by more than 30
6.24percent the total estimated cost of construction or implementation.
6.25    (c) As an alternative to the procurement method described in paragraph (a), the
6.26managers may issue a request for proposals and award the contract to the vendor or
6.27contractor offering the best value as described in section 16C.28, subdivision 1, paragraph
6.28(a), clause (2).
6.29    (d) The contract must be in writing and be accompanied by or refer to the plans and
6.30specifications for the work to be done as prepared by the engineer for the watershed
6.31district. The plans and specifications shall become a part of the contract.
6.32    (d) (e) The contract shall be approved by the managers and signed by the president,
6.33secretary, and contractor.

6.34    Sec. 10. Minnesota Statutes 2006, section 103E.505, subdivision 5, is amended to read:
7.1    Subd. 5. How contract may be awarded. The contract may be awarded in one
7.2job, in sections, or separately for labor and material and must may be let to the lowest
7.3responsible bidder. Alternatively, the contract may be awarded to the vendor or contractor
7.4offering the best value under a request for proposals as described in section 16C.28,
7.5subdivision 1, paragraph (a), clause (2).

7.6    Sec. 11. Minnesota Statutes 2006, section 116A.13, subdivision 5, is amended to read:
7.7    Subd. 5. How job may be let. The job may be let in one job, or in sections, or
7.8separately for labor and material, and shall may be let to the lowest responsible bidder or
7.9bidders therefor. Alternatively, the contract may be awarded to the vendor or contractor
7.10offering the best value under a request for proposals as described in section 16C.28,
7.11subdivision 1, paragraph (a), clause (2).

7.12    Sec. 12. Minnesota Statutes 2006, section 123B.52, subdivision 1, is amended to read:
7.13    Subdivision 1. Contracts. A contract for work or labor, or for the purchase of
7.14furniture, fixtures, or other property, except books registered under the copyright laws, or
7.15for the construction or repair of school houses, the estimated cost or value of which shall
7.16exceed that specified in section 471.345, subdivision 3, must not be made by the school
7.17board without first advertising for bids or proposals by two weeks' published notice in the
7.18official newspaper. This notice must state the time and place of receiving bids and contain
7.19a brief description of the subject matter.
7.20    Additional publication in the official newspaper or elsewhere may be made as the
7.21board shall deem necessary.
7.22    After taking into consideration conformity with the specifications, terms of delivery,
7.23and other conditions imposed in the call for bids, every such contract for which a call for
7.24bids has been issued must be awarded to the lowest responsible bidder, be duly executed
7.25in writing, and be otherwise conditioned as required by law. The person to whom the
7.26contract is awarded shall give a sufficient bond to the board for its faithful performance.
7.27Notwithstanding section 574.26 or any other law to the contrary, on a contract limited
7.28to the purchase of a finished tangible product, a board may require, at its discretion, a
7.29performance bond of a contractor in the amount the board considers necessary. A record
7.30must be kept of all bids, with names of bidders and amount of bids, and with the successful
7.31bid indicated thereon. A bid containing an alteration or erasure of any price contained in
7.32the bid which is used in determining the lowest responsible bid must be rejected unless the
7.33alteration or erasure is corrected as provided in this section. An alteration or erasure may
7.34be crossed out and the correction thereof printed in ink or typewritten adjacent thereto and
7.35initialed in ink by the person signing the bid. In the case of identical low bids from two or
7.36more bidders, the board may, at its discretion, utilize negotiated procurement methods
8.1with the tied low bidders for that particular transaction, so long as the price paid does not
8.2exceed the low tied bid price. In the case where only a single bid is received, the board
8.3may, at its discretion, negotiate a mutually agreeable contract with the bidder so long as
8.4the price paid does not exceed the original bid. If no satisfactory bid is received, the
8.5board may readvertise. Standard requirement price contracts established for supplies or
8.6services to be purchased by the district must be established by competitive bids. Such
8.7standard requirement price contracts may contain escalation clauses and may provide for a
8.8negotiated price increase or decrease based upon a demonstrable industrywide or regional
8.9increase or decrease in the vendor's costs. Either party to the contract may request that the
8.10other party demonstrate such increase or decrease. The term of such contracts must not
8.11exceed two years with an option on the part of the district to renew for an additional two
8.12years. Contracts for the purchase of perishable food items, except milk for school lunches
8.13and vocational training programs, in any amount may be made by direct negotiation
8.14by obtaining two or more written quotations for the purchase or sale, when possible,
8.15without advertising for bids or otherwise complying with the requirements of this section
8.16or section 471.345, subdivision 3. All quotations obtained shall be kept on file for a
8.17period of at least one year after receipt.
8.18    Every contract made without compliance with the provisions of this section shall be
8.19void. Except in the case of the destruction of buildings or injury thereto, where the public
8.20interest would suffer by delay, contracts for repairs may be made without advertising
8.21for bids.

8.22    Sec. 13. Minnesota Statutes 2006, section 123B.52, is amended by adding a
8.23subdivision to read:
8.24    Subd. 1b. Best value alternative. As an alternative to the procurement method
8.25described in subdivision 1, a contract for construction, building, alteration, improvement,
8.26or repair work may be awarded to the vendor or contractor offering the best value
8.27under a request for proposals as described in section 16C.28, subdivision 1, paragraph
8.28(a), clause (2).

8.29    Sec. 14. Minnesota Statutes 2006, section 160.17, is amended by adding a subdivision
8.30to read:
8.31    Subd. 2a. Best value alternative. As an alternative to the procurement method
8.32referenced in subdivision 2, counties or towns may issue a request for proposal and award
8.33the contract to the vendor or contractor offering the best value as described in section
8.3416C.28, subdivision 1, paragraph (a), clause (2).

9.1    Sec. 15. Minnesota Statutes 2006, section 160.262, is amended by adding a subdivision
9.2to read:
9.3    Subd. 5. Best value alternative. As an alternative to the procurement method
9.4described in subdivision 4, the commissioner may allow for the award of design-build
9.5contracts for the projects described in subdivision 4 to the vendor or contractor offering
9.6the best value under a request for proposals as described in section 16C.28, subdivision 1,
9.7paragraph (a), clause (2).

9.8    Sec. 16. Minnesota Statutes 2006, section 161.32, is amended by adding a subdivision
9.9to read:
9.10    Subd. 1f. Best value alternative. As an alternative to the procurement method
9.11described in subdivisions 1a to 1e, the commissioner may issue a request for proposals
9.12and award the contract to the vendor or contractor offering the best value as described in
9.13section 16C.28, subdivision 1, paragraph (a), clause (2).

9.14    Sec. 17. [161.3206] BEST VALUE CONTRACTING AUTHORITY.
9.15    Notwithstanding sections 16C.25, 161.32, or any other law to the contrary, the
9.16commissioner may solicit and award all contracts, other than design-build contracts
9.17governed by section 161.3412, for a project on the basis of a best value selection process as
9.18defined in section 16C.02, subdivision 41. Section 16C.08 does not apply to this section.

9.19    Sec. 18. Minnesota Statutes 2006, section 161.3412, subdivision 1, is amended to read:
9.20    Subdivision 1. Best value selection for design-build contracts. Notwithstanding
9.21sections 16C.25, 161.32, and 161.321, or any other law to the contrary, the commissioner
9.22may solicit and award a design-build contract for a project on the basis of a best value
9.23selection process. Section 16C.08 does not apply to design-build contracts to which the
9.24commissioner is a party.

9.25    Sec. 19. Minnesota Statutes 2006, section 161.38, subdivision 4, is amended to read:
9.26    Subd. 4. Effects on other law of public contract with commissioner. Whenever
9.27the road authority of any city enters into an agreement with the commissioner pursuant
9.28to this section, and a portion of the cost is to be assessed against benefited property,
9.29the letting of a public contract by the commissioner for the work shall be deemed to
9.30comply with statutory or charter provisions requiring the city (1) to advertise for bids
9.31before awarding a contract for a public improvement, (2) to let the contract to the lowest
9.32responsible bidder or to the vendor or contractor offering the best value, and (3) to require
9.33a performance bond to be filed by the contractor before undertaking the work. The
9.34contract so let by the commissioner and the performance bond required of the contractor
9.35by the commissioner shall be considered to be the contract and bond of the city for the
10.1purposes of complying with the requirements of any applicable law or charter provision,
10.2and the bond shall inure to the benefit of the city and operate for their protection to the
10.3same extent as though they were parties thereto.

10.4    Sec. 20. Minnesota Statutes 2006, section 365.37, is amended by adding a subdivision
10.5to read:
10.6    Subd. 2a. Best value alternative. As an alternative to the procurement method
10.7described in subdivision 2, a contract for construction, building, alteration, improvement,
10.8or repair work may be awarded to the vendor or contractor offering the best value
10.9under a request for proposals as described in section 16C.28, subdivision 1, paragraph
10.10(a), clause (2).

10.11    Sec. 21. Minnesota Statutes 2006, section 374.13, is amended to read:
10.12374.13 TO ADVERTISE FOR BIDS.
10.13    Subdivision 1. Bidding process. When the plans and specifications are completed
10.14and approved by the city council and the county board, the commission shall, after notice
10.15appropriate to inform possible bidders, obtain bids or proposals for all or any portion of
10.16the work or materials, or both, to be done, performed, or furnished in the construction of
10.17the building. All bids or proposals shall be sealed by the bidders or proposers and filed
10.18with the commission at or before the time specified for the opening of bids or proposals.
10.19At the time and place specified for the opening of bids or proposals, the commission shall
10.20meet, open the bids or proposals, tabulate them, and award the contract or contracts to the
10.21responsible bidder whose bid or proposal is the most favorable to the city or county, or
10.22reject all bids and proposals. If all bids or proposals are rejected, the commission may,
10.23after similar notice, obtain more bids or proposals or may modify or change the plans and
10.24specifications and submit the modified plans and specifications to the city council and the
10.25county board for approval. When the modified or changed plans and specifications are
10.26satisfactory to both the city council and the county board, the plans and specifications
10.27shall be returned to the commission and the commission shall proceed again, after similar
10.28notice, to obtain bids or proposals. Any contract awarded by the commission shall be
10.29subject to approval by the city council and the county board.
10.30    Subd. 2. Best value alternative. As an alternative to the procurement method
10.31described in subdivision 1, the commission may issue a request for proposals and award
10.32the contract to the vendor or contractor offering the best value as described in section
10.3316C.28, subdivision 1, paragraph (a), clause (2).

10.34    Sec. 22. Minnesota Statutes 2006, section 375.21, is amended by adding a subdivision
10.35to read:
11.1    Subd. 1b. Best value alternative. As an alternative to the procurement method
11.2described in subdivision 1, a county board may award a contract for construction,
11.3building, alteration, improvement, or repair work to the vendor or contractor offering the
11.4best value under a request for proposals as described in section 16C.28, subdivision 1,
11.5paragraph (a), clause (2).

11.6    Sec. 23. Minnesota Statutes 2006, section 383C.094, is amended by adding a
11.7subdivision to read:
11.8    Subd. 1a. Contracts in excess of $500; best value alternative. As an alternative to
11.9the procurement method described in subdivision 1, the contract may be awarded to the
11.10vendor or contractor offering the best value under a request for proposals as described in
11.11section 16C.28, subdivision 1, paragraph (a), clause (2).

11.12    Sec. 24. Minnesota Statutes 2006, section 412.311, is amended to read:
11.13412.311 CONTRACTS.
11.14    Subdivision 1. Lowest responsible bidder. Except as provided in sections 471.87
11.15to 471.89, no member of a council shall be directly or indirectly interested in any contract
11.16made by the council. Whenever the amount of a contract for the purchase of merchandise,
11.17materials or equipment or for any kind of construction work undertaken by the city is
11.18estimated to exceed the amount specified by section 471.345, subdivision 3, the contract
11.19shall be let to the lowest responsible bidder, after notice has been published once in the
11.20official newspaper at least ten days in advance of the last day for the submission of bids. If
11.21the amount of the contract exceeds $1,000, it shall be entered into only after compliance
11.22with section 471.345.
11.23    Subd. 2. Best value alternative. As an alternative to the procurement method
11.24described in subdivision 1, a contract for construction, building, alteration, improvement,
11.25or repair work may be awarded to the vendor or contractor offering the best value
11.26under a request for proposals as described in section 16C.28, subdivision 1, paragraph
11.27(a), clause (2).

11.28    Sec. 25. Minnesota Statutes 2006, section 429.041, is amended by adding a subdivision
11.29to read:
11.30    Subd. 2a. Best value alternative. As an alternative to the procurement method
11.31described in subdivision 2, the council may issue a request for proposals and award the
11.32contract to the vendor or contractor offering the best value as described in section 16C.28,
11.33subdivision 1, paragraph (a), clause (2).

11.34    Sec. 26. Minnesota Statutes 2006, section 458D.21, is amended by adding a
11.35subdivision to read:
12.1    Subd. 2a. Contracts in excess of $5,000; best value alternative. As an alternative
12.2to the procurement method described in subdivision 2, the board may issue a request for
12.3proposals and award the contract to the vendor or contractor offering the best value as
12.4described in section 16C.28, subdivision 1, paragraph (a), clause (2).

12.5    Sec. 27. Minnesota Statutes 2006, section 469.015, is amended by adding a subdivision
12.6to read:
12.7    Subd. 1a. Best value alternative. As an alternative to the procurement method
12.8described in subdivision 1, the authority may issue a request for proposals and award the
12.9contract to the vendor or contractor offering the best value under a request for proposals as
12.10described in section 16C.28, subdivision 1, paragraph (a), clause (2).

12.11    Sec. 28. Minnesota Statutes 2006, section 469.068, subdivision 1, is amended to read:
12.12    Subdivision 1. Contracts; bids; bonds. All construction work and every purchase
12.13of equipment, supplies, or materials necessary in carrying out the purposes of sections
12.14469.048 to 469.068, that involve the expenditure of $1,000 or more, shall be awarded by
12.15contract as provided in this subdivision or in subdivision 1a. Before receiving bids under
12.16sections 469.048 to 469.068, the authority shall publish, once a week for two consecutive
12.17weeks in the official newspaper of the port's city, a notice that bids will be received for the
12.18construction work, or purchase of equipment, supplies, or materials. The notice shall state
12.19the nature of the work, and the terms and conditions upon which the contract is to be let
12.20and name a time and place where the bids will be received, opened, and read publicly,
12.21which time shall be not less than seven days after the date of the last publication. After
12.22the bids have been received, opened, read publicly, and recorded, the commissioners
12.23shall award the contract to the lowest responsible bidder, reserving the right to reject
12.24any or all bids. The contract shall be executed in writing and the person to whom the
12.25contract is awarded shall give sufficient bond to the board for its faithful performance. If
12.26no satisfactory bid is received, the port authority may readvertise, or, by an affirmative
12.27vote of two of its commissioners in the case of a three-member commission, or five of
12.28its members in the case of a seven-member commission, may authorize the authority
12.29to perform any part or parts of any construction work by day labor under conditions it
12.30prescribes. The commissioners may establish reasonable qualifications to determine
12.31the fitness and responsibility of bidders, and require bidders to meet the qualifications
12.32before bids are accepted. If the commissioners by a two-thirds or five-sevenths vote
12.33declare that an emergency exists requiring the immediate purchase of any equipment or
12.34material or supplies at a cost in excess of $1,000, but not exceeding $5,000, in amount,
12.35or making of emergency repairs, it shall not be necessary to advertise for bids, but the
12.36material, equipment, or supplies may be purchased in the open market at the lowest price
13.1obtainable, or the emergency repairs may be contracted for or performed without securing
13.2formal competitive bids. An emergency, for purposes of this section, is unforeseen
13.3circumstances or conditions which result in the jeopardizing of human life or property.
13.4    In all contracts involving the employment of labor, the commissioners shall stipulate
13.5conditions they deem reasonable, as to the hours of labor and wages and may stipulate as
13.6to the residence of employees to be employed by the contractors.
13.7    Bonds shall be required from contractors for any works of construction as provided
13.8in and subject to all the provisions of sections 574.26 to 574.31.

13.9    Sec. 29. Minnesota Statutes 2006, section 469.068, is amended by adding a subdivision
13.10to read:
13.11    Subd. 1a. Contracts; best value alternative. As an alternative to the procurement
13.12method described in subdivision 1, a contract may be awarded to the vendor or contractor
13.13offering the best value under a request for proposals as described in section 16C.28,
13.14subdivision 1, paragraph (a), clause (2).

13.15    Sec. 30. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
13.16to read:
13.17    Subd. 3a. Contracts over $50,000; best value alternative. As an alternative to the
13.18procurement method described in subdivision 3, municipalities may award a contract for
13.19construction, alteration, repair, or maintenance work to the vendor or contractor offering
13.20the best value under a request for proposals as described in section 16C.28, subdivision 1,
13.21paragraph (a), clause (2).

13.22    Sec. 31. Minnesota Statutes 2006, section 471.345, is amended by adding a subdivision
13.23to read:
13.24    Subd. 4a. Contracts from $10,000 to $50,000; best value alternative. As an
13.25alternative to the procurement method described in subdivision 4, municipalities may
13.26award a contract for construction, alteration, repair, or maintenance work to the vendor or
13.27contractor offering the best value under a request for proposals as described in section
13.2816C.28, subdivision 1, paragraph (a), clause (2).

13.29    Sec. 32. Minnesota Statutes 2006, section 471.345, subdivision 5, is amended to read:
13.30    Subd. 5. Contracts less than $10,000. If the amount of the contract is estimated
13.31to be $10,000 or less, the contract may be made either upon quotation or in the open
13.32market, in the discretion of the governing body. If the contract is made upon quotation
13.33it shall be based, so far as practicable, on at least two quotations which shall be kept on
13.34file for a period of at least one year after their receipt. Alternatively, municipalities may
13.35award a contract for construction, alteration, repair, or maintenance work to the vendor or
14.1contractor offering the best value under a request for proposals as described in section
14.216C.28, subdivision 1, paragraph (a), clause (2).

14.3    Sec. 33. Minnesota Statutes 2006, section 473.523, is amended by adding a subdivision
14.4to read:
14.5    Subd. 1a. Contracts over $50,000; best value alternative. As an alternative to
14.6the procurement method described in subdivision 1, the council may issue a request for
14.7proposals and award the contract to the vendor or contractor offering the best value
14.8under a request for proposals as described in section 16C.28, subdivision 1, paragraph
14.9(a), clause (2).

14.10    Sec. 34. Minnesota Statutes 2006, section 473.756, subdivision 12, is amended to read:
14.11    Subd. 12. Contracts. The authority may enter into a development agreement with
14.12the team, the county, or any other entity relating to the construction, financing, and use of
14.13the ballpark and related facilities and public infrastructure. The authority may contract
14.14for materials, supplies, and equipment in accordance with sections 471.345 and 473.754,
14.15except that the authority, with the consent of the county, may employ or contract with
14.16persons, firms, or corporations to perform one or more or all of the functions of architect,
14.17engineer, or construction manager with respect to all or any part of the ballpark and
14.18public infrastructure. Alternatively, at the request of the team and with the consent of the
14.19county, the authority shall authorize the team to provide for the design and construction
14.20of the ballpark and related public infrastructure, subject to terms of Laws 2006, chapter
14.21257. The construction manager may enter into contracts with contractors for labor,
14.22materials, supplies, and equipment for the construction of the ballpark and related public
14.23infrastructure through the process of public bidding, except that the construction manager
14.24may, with the consent of the authority or the team:
14.25    (1) narrow the listing of eligible bidders to those which the construction manager
14.26determines to possess sufficient expertise to perform the intended functions;
14.27    (2) award contracts to the contractors that the construction manager determines
14.28provide the best value under a request for proposals as described in section 16C.28,
14.29subdivision 1, paragraph (a), clause (2), which are not required to be the lowest responsible
14.30bidder; and
14.31    (3) for work the construction manager determines to be critical to the completion
14.32schedule, award contracts on the basis of competitive proposals or perform work with
14.33its own forces without soliciting competitive bids if the construction manager provides
14.34evidence of competitive pricing.
14.35The authority shall require that the construction manager certify, before the contract is
14.36signed, a fixed and stipulated construction price and completion date to the authority
15.1and post a performance bond in an amount at least equal to 100 percent of the certified
15.2price, to cover any costs which may be incurred in excess of the certified price, including
15.3but not limited to costs incurred by the authority or loss of revenues resulting from
15.4incomplete construction on the completion date. The authority may secure surety bonds
15.5as provided in section 574.26, securing payment of just claims in connection with all
15.6public work undertaken by it. Persons entitled to the protection of the bonds may enforce
15.7them as provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any
15.8property of the authority under the provisions of sections 514.01 to 514.16. Contracts for
15.9construction and operation of the ballpark must include programs, including Youthbuild,
15.10to provide for participation by small local businesses and businesses owned by people of
15.11color, and the inclusion of women and people of color in the workforces of contractors
15.12and ballpark operators. The construction of the ballpark is a "project" as that term is
15.13defined in section 177.42, subdivision 2, and is subject to the prevailing wage law under
15.14sections 177.41 to 177.43."
15.15Amend the title accordingly