If you receive a grant from us, you must follow certain rules when you buy supplies or services for your grant project. This information will help you understand the requirements.

Getting Bids

In general, follow the same bidding rules that you normally would. The number and types of bids you’re expected to get vary depending on cost:

If you expect to spend this amount of money buying supplies or services from any single vendor Then you must
$175,000 or more
For contracts beginning before August 1, 2018, this threshold is $100,000
Issue a formal notice and conduct a bidding process with sealed bids.
For contracts beginning before August 1, 2018, this threshold is $25,000 to $99,999.
Award the contract through sealed bids or by direct negotiation. If you choose direct negotiation, get at least two quotes. Keep bids on file for at least one year.
$25,000 or less Ask for quotes in the open market. Get at least two, if possible.

You can also award contracts 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).

Keep supporting documentation of your bidding and contracting process in your financial records, including any documentation used to justify a single source purchase.

Prevailing Wage

If your project involves construction and your grant award is over $200,000, you must follow prevailing wage rules. Ask your MDA grant contact person for more information.

Sample Grant Agreements

See sample grant agreements for Municipalities on the Office of Grants Management website. These can help you better understand how bidding fits into the grant process.