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Standard P/T Contract Process: $0-$5,000

This contracting process cannot be used as a means to obtain a contractor for multiple or ongoing single contracts and may not be amended to exceed the $5,000 limit.
At this dollar level you may choose to select any vendor directly. 


Pre-Contract Processes

  • Develop Scope of Work and Deliverables

Contractor Selection

The selected vendor should not be currently debarred or suspended from eligibility to enter into a contract with the State. See the Suspended/Debarred Vendor Report.
  • Send Scope of Work and Deliverables to selected contractor(s) for the contractor to create a written proposal
  • Receive contractor’s written proposal, which must include a cost estimate
  • Select contractor using Best Value (see Minn. Stat. § 16C.02, subd. 4)
  • Complete New Hire Reporting Form for Independent Contractors

Negotiation and Contract Drafting

  • Determine negotiation approach, prepare, and conduct negotiations. Contact our general inbox for assistance with contractor negotiations.
  • Draft the contract using the Professional/Technical Services Contract template 
  • Obtain evidence of Workers' Compensation coverage (if contractor is a sole proprietor, it may take exception to workers’ compensation requirements)
  • Send draft contract to contractor for review
  • Send draft contract to Agency Contract Coordinator for review 
  • Send draft contract to Attorney General’s Office for review and comment if negotiations altered the Intellectual Property clause 
  • Encumber funds and fill in SWIFT block on contract form

Contract Execution

  • Complete 16A/16C Reporting Form regardless of whether work has started or not:
  • Fill Box I if no work has started
  • Fill Box II if work started before funds were encumbered
  • Fill box III if work started before the contract was fully executed (signed by all parties, including Department of Administration)
  • Route contract for signatures in the following order: Encumbrance, Contractor, Agency, Department of Administration 
  • Include supporting documents with the contract when routing to OSP, such as: Certification form, 16A/16C Reporting Form, Insurance Adjustment Form, etc.  
  • Review signatures for legality, completeness, and accuracy
  • Distribute executed copies to: contractor, Agency and Project Manager
  • Send written authorization to contractor that work may begin.
  • Non-standard Procedures
  • Process Request for Emergency Authorization to begin work prior to contract execution, if required and authorized by law

Contract Work Completion 

If final product of the contract is a written report, send copy of the report to the Legislative Reference Library Contract File. Maintain the following in the contract file: 
  • Letter to contractor containing scope of work and deliverables
  • Proposal of selected contractor
  • New Hire Reporting for Independent Contractors form (see Minn. Stat. § 256.998)
  • Fully executed contract
  • Any selection documentation
  • Approved Request for Emergency Authorization to begin work prior to contract execution, if applicable
  • 16A/16C Memo if a violation has occurred or if the contract effective date has passed but work has not begun
  • Federal Authorization Document (if Federal money is paid under the contract)
  • Evidence of Workers' Compensation coverage (not for sole proprietorships)
  • Evidence of other required insurance coverage
  • Resolution or other evidence of approval required for local government units
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