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Procurement guidance

The purpose of this guidance is to provide grantees with the resources and requirements needed in procurements for services or supplies, or where State or Federal Transit Administration (FTA)-funded facilities or assets are used in revenue contracts. We provide the same level of guidance and requirements for all procurements, regardless of whether granted with federal or state funds.

We, as a State recipient of federal and state grant funds, are responsible for ensuring that sub-recipients and/or grantees are aware of and comply with procurement requirements. All procurement transactions must be conducted in a manner that provides full and open competition.
Procurement processes will vary based on the type and amount of the supply, equipment, product or service. The Office of Transit and Active Transportation at MnDOT has initiated an online procurement application for micro and small purchases. Subrecipients must use the application to complete these procurements. If you do not have access, please make contact with the Procurement Team.

Listed below are reference documents that explain the procurement process. Prior to solicitation and contract signature, subrecipients and/or grantees must complete the appropriate online procurement method to receive their electronic notice to proceed.

It is the responsibility of all sub-recipients and/or grantees to plan in advance of procurements to allow necessary time in review, Disadvantaged Business Enterprise (DBE) goal setting and approvals.

Topics

Guidance

Resources

Micro purchases include acquisition of supplies, services, property, and construction in amounts at or below $10,000.

Specific considerations

  • Multiple sources

Forms

Small purchases include acquisition of supplies, services and construction in amounts ranging from $10,000 to $250,000.

Specific considerations

  • Multiple sources available
  • Not an emergency purchase

Forms

Invitation for bid is sealed bidding in which bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is lowest in price.

Specific considerations

  • Complete and adequate specification or purchase description
  • Two or more responsible bidders willing to compete
  • Selection can be made on basis of price
  • Procurement suitable for firm, fixed price
  • No discussion with bidders needed after receipt of offers; except for clarifications and best and final offer

Forms

Request for proposals are competitive proposals when the nature of the procurement does not lend itself to sealed bidding and the recipient expects that more than one source will be willing and able to submit an offer or proposal.

Specific considerations

  • Bidder input needed for specification
  • Two or more responsible bidders willing to compete
  • Discussion needed with bidders after receipt of proposals, prior to award or basing the contract award on factors other than price alone
  • Fixed price can be set after discussions

Forms

Normally, the recipient must provide for full and open competition when soliciting bids or proposals.  The Common Grant Rule for governmental recipients, however, acknowledges that under certain circumstances, a recipient may conduct procurements without providing for full and open competition.

Specific considerations

When appropriate
  • Adequate completion
  • Sole source
    • If one of four conditions are present
    • Single bid or single proposal
When prohibited
  • Failure to plan
  • Limited availability of federal assistance

Forms