This workshop will provide an overview and details about contracting with the State of Minnesota. Topics to be covered include an overview of the state’s purchasing practices; where the dollars come from; how the dollars can be spent; how to get registered as a vendor; where to find business opportunities; and State expectations of contractors. Presenter: Duane Kroll, MN Department of Administration

1. Department of Administration
Materials Management Division
Duane Kroll, CPPB

2. Purchasing Authority
Commissioner of Administration
(As delegated by Minn. Stat. Ch. 16C)
Materials
Management Division
Authorized Agency
Buyer
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3. What the State Buys
 Total value of State purchasing
is approximately $1.8 billion
 Wide Range of Goods
 Non-Prof/Tech Services
 Professional/Technical
Services
 Construction
 CPV purchases brings
value much higher
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4. Procurement Overview
 One time Purchases
 Long Term Contracts
 Over 1600 contracts
 1 – 5 year contract terms are typical
 Approximately 1000 contracts are
offered to CPV members
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5. Cooperative Purchasing Venture
(CPV) Program
 Allows other governmental entities to
procure goods and services from state
contracts, when allowed by the contract
 Political Subdivision must be a current CPV
member
 Ability to leverage better prices due to
increased volume (saves time and money)
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6. Who is Eligible to Join?
 All governmental units
 A “governmental unit” is defined by statute as any
city, county, town, school district, political
subdivision, licensed nonprofit hospital, or any
agency of the State of Minnesota, another state or
United States government. (Minn. Stat. 471.59
Subd. 1.)
 See our website to see additional groups that may
participate in our program.
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7. Procurement Methods
 Request for Bid (RFB)
 Best Value: Award to lowest
responsive/responsible
bidder meeting all terms,
conditions, and specifications
 Request for Proposal
 Ability to Negotiation
 Best Value: Award based on
price as well as other criteria
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8. Request for Bid/Proposal
 Advertising Required
 Over $25,000 for goods & non-P/T services
 Over $25,000 for construction
 Sealed Bids/Proposals Required
 Over $50,000 for goods & non-P/T services
 Over $50,000 for construction
 Professional Technical Services
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9. Authority for Local Purchase
(ALP)
 Delegated to individuals in state agencies
by Dept. of Administration
 Levels of Delegation of Authority
 $10,000
 $25,000/$50,000
 Special delegations
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10. Small Business Preferences
 Targeted Groups (TG)
 Must be certified, eligible, and
approved for the specific products and
services
 Up to 6% preference
 Economically Disadvantaged (ED)
 Up to 6% preference
 Except for Construction: up to 4%
 Veteran Owned (VO)
 Up to 6% preference
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11. Small Business Program
Targeted Groups (TG)
 Small businesses owned, operated and
controlled by the following groups:
 Minorities
 (A) Asian (I) American Indian
 (B) African American (E) Alaska Native
 (H) Hispanic
 Disabled (D)
 Women (W)
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12. Small Business Procurement
Program
Economically Disadvantaged (ED)
 (L) Labor Surplus Area
 County designated by US Dept of Labor
 (M) Low Median Income County
 County designated by MN Planning
 Certified Rehab. Facility or Extended
Employment provider (Minn. Stat. 268A)
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13. Commodity Purchase Requirements
 $0 - $2,500
 Minimum of one solicitation to TG/ED/VO within
normal purchase area
 $2,500 - $10,000
 Minimum of two solicitations
 Contact a TG/ED/VO vendor, when reasonably
available
 $10,000 - $25,000/$50,000
 Minimum of three solicitations
 Contact a TG/ED/VO vendors, when available
 Advertised on MMD’s Website
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14. Veteran’s Owned (VO) Preference
 In accordance with Minnesota Statutes 16C.16, subd.
6a, eligible verified veteran-owned small businesses
with their principal place of business in Minnesota
may receive up to 6 percent preference when
responding to solicitations. The preference is applied
only to the first $500,000 of the response.
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15. Veteran Eligibility
 Eligible veteran-owned small businesses must be
currently verified by the U.S. Department of Veterans
Affairs' Center for Veterans Enterprise prior to the
solicitation opening date and time to receive the
preference.
 If the preference is being applied in a solicitation, the
solicitation document will include language and a
form relative to the preference. Eligible veteran-owned
small businesses should complete the Veteran-Owned
Preference Form, and include any required
documentation.
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16. Veteran Eligibility (continued)
 Only eligible, verified, veteran-owned small businesses
that provide the required documentation will be given
the preference.
 Information regarding verification by the United
States Department of Veterans Affairs may be found at
http://www.vetbiz.gov.
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17. Vendor Opportunities
Solicitation Announcements are
posted on MMD’s website:
www.mmd.admin.state.mn.us
 Advertised RFBs/RFPs for goods and non-P/T
services
 Construction projects
 Some Prof/Tech services
 Updated real-time daily
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18. Professional/Technical Services
“Services that are intellectual in character; that
include consultation, analysis, evaluation,
prediction, planning, programming or
recommendation, and result in the production of a
report or the completion of a task. Professional or
technical contracts do not include the provision of
supplies or materials except by the approval of the
commissioner or except as incidental to the
provision of professional or technical services.”
Minn. Stat. § 16C.08
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19. Professional/Technical
Requirements
 $0 - $5,000
 Contact a minimum of one vendor
 $5,000 - $50,000
 Advertisement required either in State Register
and/or on MMD website
 Other advertising encouraged
 Over $50,000
 Advertisement required in State Register
 MMD website or other advertising encouraged
 Formal RFP 19

20. Vendor Opportunities –
Professional/Technical
State Register
 Advertised RFPs for professional/technical
services
 Published each Monday
 www.comm.media.state.mn.us
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21. Who to contact?
 Agency Procurements
 Contact agencies directly
 State Procurements
 See solicitation postings on MMD’s website
 www.mmd.admin.state.mn.us
 Professional/Technical Procurements
 Contact Agency
 Also view MMD’s website and State Register
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22. Vendor’s Common Errors
Error’s when responding to a
Solicitation
 Did not get their response in on time
 Failed to read the solicitation document
 Did not sign properly
 Did not respond to all requirements
 Taking exception to the terms, conditions, or
specifications that make it a material deviation
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23. Vendor’s Common Errors (con’t)
 Did not initial strike-overs properly
 Pricing in vendor’s response completed in
pencil
 Not providing proper attachments
 Not providing all the information that was
required
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24. MMD Website
 www.mmd.admin.state.mn.us
 Solicitation Announcements
 Vendor Management information
 List of Acquisition Management Specialists
 Professional/Technical Coordinators
 Small Business (TG/ED) Program
Information
 On Line Vendor Registration
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25. Registrations/Certifications
 Online Vendor Registration is on MMD’s
Website
 Vendor list used centrally and state wide
 Vendors can view and change their own
information
 Small Business Procurement Program
 Certified company info available via
 MMD website (public)
 Internal automated purchasing system (state
employees)
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26. MMD Helpline 651-296-2600
 Quick Access
 General Information
 Small Business Program
Information
 Bid Request/Bid Results Line
 MMD Switchboard
 www.mmd.admin.state.mn.us
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27. Contact Information
 MMD Helpline
 651.296.2600
 Bid Results Available
 Acquisitions Manager/Asst. Director
 Brenda Thielen Willard; CPPO, CPPB
 651.201.2402
 Vendor Management Specialist
 Stephanie Selb
 651.201.2428
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28. Questions?
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