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HomeMy WebLinkAbout06(F) - Approve Bidding Policy Report S:\POLICIES\Bidding Policy\BIDDING POLICY.docx BIDDING POLICY Adopted January 4, 2021 SUMMARY/PURPOSE This policy sets forth the general requirements for bidding and advertising for competitively bid projects that are estimated to exceed $175,000. It defines and clarifies the city’s bidding process that is established by state law, including processes specific to electronic bidding. Contracts that involve public improvements under Minnesota Statutes, chapter 429 may have additional requirements. The city of Prior Lake follows Minnesota law regarding municipal contracts, including procedures for competitive bidding and all public contract requirements. PROCEDURE 1. Approval. Projects or procurements must be either in the approved budget or require city council authorization prior to bidding. All competitively bid contracts require city council action awarding a contract. 2. Plans and Specifications. Prior to seeking bids, the city must prepare plans and specifications that meet all laws and requirements. A standard contract template shall also be used and will be modified as necessary for any given project. The plans and specifications shall include the city's contract requirements based upon the estimated contract amount. Bid bonds, responsible bidder, insurance, performance and payment bonds, and withholding affidavits are required for all competitively bid contracts. Other submissions may also be necessary. 3. Advertisement for Bid. Specific language is required for the advertisement for bids. The city's standard advertisement for bids should be used to ensure required language is included. When using electronic bidding, the notice will clearly state that paper bids will not be accepted and it will further specify the form and manner required for all electronic submissions. Projects estimated to exceed $175,000 require publication in the city's official newspaper at least ten days prior to the last day for submission of the bids (publication in an industry trade journal is optional). An affidavit of publication is required from each entity that published an advertisement. Minnesota Statutes, section 331A.03 authorizes the city to replace publication in the city’s official newspaper with dissemination on the city’s website , provided that the city follows the procedural requirements contained in said statute. 4. Bid Requirements. Required documents from the bidders may include but are not limited to a bid bond, bid form containing responsible contractor language, human rights certification, and affidavit of non-collusion. All paper bids must be sealed and identified on the outside wrapper. When using electronic bidding, staff shall ensure that the bidding website has the functionality to facilitate submission of all required information and documents to comply with all state bidding laws. S:\POLICIES\Bidding Policy\BIDDING POLICY.docx 5. Bid Opening. The bid opening will take place in a conference room, council chambers, or other public place where any person present may observe. Two city staff or agents will be present when the bid time expires. All bids shall be opened or, in the case of electronic bids, viewed online, acknowledged and read aloud. Bid results will become available after this process is complete, provided that only the name of the bidder and the bid amount is made public until after the city council awards a contract. For electronic bids, all bid submittals and documents for the winning contractor, including the bid tabulation and abst ract, shall be scanned and retained. 6. After Bid Opening. Bids should be evaluated to determine the responsibility of the bidder. If a contract is awarded, it must be awarded to the lowest responsible bidder. The City has the right to reject all bids. If city staff determines the lowest bidder is not the lowest responsible bidder, the city attorney shall be contacted for consultation and justification prior to recommendation and action by the city council. Once a contract is awarded, a signed contract, certificate of insurance, performance bond, payment bond, and any other items required by the city shall be provided before a notice to proceed is issued. 7. Record Retention. All bid submissions and documents, including those submitted electronically, shall be retained in accordance with the city’s record retention schedule.