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

The number and types of bids you have to get vary depending on the cost of what you’re buying:

If you expect to spend this amount of money buying supplies or services from a particular seller (vendor) Then you must
$100,000 or more Use a formal bidding process
$25,000-$99,999 Get at least three verbal quotes (bids)
$10,000-$24,999 Get at least two quotes OR buy the material service from a vendor on one of the lists below

Keep records of all the quotes or bids you get, including any documentation you used to justify a single source purchase. Ask your MDA grant contact person for a worksheet to help you.

In order to prevent conflicts of interest, nonprofit organizations must have written guidelines on selecting and awarding contracts.

Bidding Exceptions

There are two situations when you don’t need to follow the bidding requirements above:

  1. If you identify your vendor(s) in your grant application and they’re included in our contract with you, you don't need to get any extra bids, or
  2. You determine that there is only one reasonable vendor and the vendor’s price seems fair.

Selecting Vendors

When possible, buy your materials or services from a vendor that is on one of three target vendor lists:

Check to make sure the vendor you want to use is not on Minnesota’s suspended/debarred list.

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 Agreement

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