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SF2038 (Legislative Session 94 (2025-2026))

Metropolitan Council small business programs application expansion and direct negotiation of certain contracts authorization provision

Related bill: HF2097

AI Generated Summary

This bill seeks to amend Minnesota statutes related to the Metropolitan Council's contracting and small business programs. Key provisions include:

  1. Direct Negotiation Authority: The Metropolitan Council may enter into contracts for construction or maintenance work through direct negotiation without competitive bidding, provided the contract value does not exceed a specified limit.

  2. Small Business Preferences:

    • The Council may apply up to a 6% bid preference for small targeted group businesses and veteran-owned small businesses.
    • Certain contracts may be exclusively designated for small targeted group or veteran-owned businesses if at least three such businesses are expected to bid.
    • The Council may set subcontracting goals for large contracts, requiring a portion of the work to be subcontracted to small targeted group and veteran-owned businesses.
    • Contractors may face financial incentives or penalties based on their compliance with these subcontracting goals.

  3. Direct Contracting: The Council is encouraged to directly award contracts to small targeted group or veteran-owned businesses without a competitive bidding process for contracts below a specified threshold.

  4. Payment Requirements: Prime contractors must pay subcontractors within 10 days of receiving payment from the Council, with penalties for late payments, including interest and legal fee coverage for prevailing subcontractors in disputes.

  5. Working Capital Support: The Metropolitan Council can grant funds to nonprofit organizations for working capital loans to socially and economically disadvantaged businesses, helping them secure government contracts.

  6. Federal Compliance: These provisions do not apply when federal funds are involved, if federal disadvantaged business regulations are in place.

  7. Reporting Requirement: The Metropolitan Council must report compliance with these provisions to the Commissioner of Administration.

The bill aims to enhance opportunities for small businesses, particularly those owned by disadvantaged and veteran entrepreneurs, in government contracting while streamlining certain procurement processes.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toTransportation
March 23, 2025SenateFloorActionComm report: To pass and re-referred toState and Local Government
March 23, 2025SenateFloorActionComm report: To pass and re-referred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows direct award of contracts to veteran-owned small businesses."
      ],
      "removed": [],
      "summary": "Amends provisions related to small businesses, including preferences and subcontracting arrangements under section 473.142.",
      "modified": [
        "Adjusts preference percentage rates for bids from small targeted group businesses."
      ]
    },
    "citation": "473.142"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Aligns certain preference criteria for small targeted group and veteran-owned businesses.",
      "modified": [
        "Updates references where the council can follow preference percentages defined in 16C.16."
      ]
    },
    "citation": "16C.16"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to contract negotiations specifics for projects under section 161.32.",
      "modified": [
        "Clarifies conditions where direct negotiation is permitted without competitive bidding."
      ]
    },
    "citation": "161.32"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications related to the application of bidding preferences.",
      "modified": [
        "Aligns small business bid preferences with provisions stated in section 161.321."
      ]
    },
    "citation": "161.321"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Addresses the percentage limits for bid preferences from small and veteran-owned businesses.",
      "modified": [
        "Defines allowed percentage limits for bid preferences under subdivision 6."
      ]
    },
    "citation": "16C.16, subdivision 6"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Outlines contract value limits subject to direct awards in section 16C.16.",
      "modified": [
        "Details the value limit for non-competitive bidding purchases."
      ]
    },
    "citation": "16C.16, subdivision 6, paragraph b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References federal definitions for socially and economically disadvantaged individuals.",
      "modified": []
    },
    "citation": "Code of Federal Regulations title 49 section 26.5"
  }
]

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