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Home > Grants, Loans & Financing > Grant Opportunities > Bidding Requirements

Fiscal Year 2018 Bidding Requirements


Each recipient of a grant from the Minnesota Department of Agriculture is expected to follow rules when making purchases as a part of their project. Formal guidelines will be included in your grant contract and links to them can be found below.

Individuals

Non-Governmental Organizations (i.e. Non-Profit Organizations and For-Profit Businesses)

Municipalities


Individuals and For-Profit Businesses

Template Grant Agreement for Individuals (Microsoft Word)

The number and types of bids you’re expected to get vary depending on anticipated costs:

  • If you expect any materials or services to cost more than $100,000, you need to use a formal bidding process.
  • If you expect any materials or services to cost between $25,000 and $99,999, you must get at least three verbal quotes or bids.
  • If you’re expecting any materials or services to cost between $10,000 and $24,999, you need to get at least two verbal quotes or bids, or you can purchase the material or service from a vendor on one of the target vendor lists below.

Keep track of all your quotes or bids. You can ask your grant administrator for a worksheet to help you do this.

When possible, you should try to purchase your materials or services from a vendor that is on one of three target vendor lists:

You also want to avoid using vendors who are on the suspended/debarred list in Minnesota.

If you’re anticipating that the construction of your project is going to cost more than $200,000, you need to follow prevailing wage rules. If you think this will apply to you, contact your grant administrator for further details.


Non-Governmental Organizations (i.e. Non-Profit Organizations and For-Profit Businesses)

Template Grant Agreement for Non-Governmental Organizations (Microsoft Word)

Most of the time, you will need to get bids/quotes for the materials and services that you use as a part of the grant project. The number and types of bids you’re expected to get vary depending on anticipated costs:

  • If you’re expecting any materials or services to cost more than $100,000, you need to use a formal bidding process.
  • If you’re expecting any materials or services to cost between $25,000 and $99,999, you must get at least three verbal quotes or bids.
  • If you’re expecting any materials or services to cost between $10,000 and $24,999, you need to get at least two verbal quotes or bids, or you can purchase the material or service from a vendor on one of the target vendor lists below.

There are two situations when you don’t need to follow the guidelines above. (1) If you choose your vendors while completing your grant application and they’re included in our contract with you, you don't need to get any extra bids, or (2) if you determine that there is only one reasonable vendor and the vendor’s price seems fair.

Keep track of all your quotes or bids. You can ask your grant administrator for a worksheet to help you do this.

When possible, you should try to purchase your materials or services from a vendor that is on one of three target vendor lists:

You also want to avoid using vendors who are on the suspended/debarred list in Minnesota.

If you’re anticipating that the construction of your project is going to cost more than $200,000, you need to follow prevailing wage rules. If you think this will apply to you, contact your grant administrator for further details.

As a non-profit organization, you must also have written guidelines on how you will select and award contracts, so you can prevent a conflict of interest.


Municipalities

Template Grant Agreement for Municipalities (Microsoft Word)

Your AGRI grant will follow the same rules you use when awarding other contracts.

The number and types of bids you’re expected to get vary depending on anticipated costs. You can also award a contract for construction, alteration, repair, or maintenance work to the vendor or contractor offering the best value under a request for proposals as described in Minn. Stat.§16C.28, Subd. 1, paragraph (a), clause (2) and paragraph (c).

  • If you expect that the contract is going to greater than $100,000, you need to do a formal notice and bidding process with sealed bids.
  • If you expect that the contract is going to be greater than $25,000 and less than $100,000, you can award the contract through sealed bids or by direct negotiation. If you choose to go through direct negotiation, you should get at least two quotes if possible. Keep all your bids on file for at least one year.
  • If you expect that the contract will be $25,000 or less, you can award the contract by getting a quote in the open market. You should try to get at least two quotes.
  • You should keep supporting documentation of your bidding and contracting process in your financial records, including any documentation you used to justify a single source.
  • If you’re anticipating that the construction of your project is going to cost more than $25,000, you need to follow prevailing wage rules. If you think this will apply to you, contact your grant administrator for further details.