February 2010 - Parks & Recreation - 29

the discretion to waive bid defects and
accept Interboro's bid even if substitutes were not permitted. " Moreover,
under the circumstances of this case,
Interboro contended further that " the
park board accepted Interboro's substitute commodity as an approved equal,
resulting in a valid contract. " As a result, Interboro maintained that the City
was legally obligated to perform and
make payment according to the terms
of the contract.
As described by the appeals court,
" [t]he purpose of competitive bidding
is to give " all contractors an equal opportunity to bid and of assuring to the
taxpayers the best bargain for the least
money. " Further, the court noted that " [a]
fundamental purpose of competitive bidding is to deprive or limit the discretion
of contract making officials in the areas
which are susceptible to such abuses
as fraud, favoritism, improvidence, and
extravagance. "
According to the appeals cour t,
" competitive bidding is a condition
precedent to the letting of public contracts. " (A " condition precedent, " is an
event which must take place before
something else can occur, i.e. competitive bidding before a government
contract is awarded.) In this instance,
applicable state law required " sealed
bids on any contract entered into by a
municipality for the purchase of supplies when the contract's amount may
exceed $50,000. " Minn. Stat. § 471.345,
subd. 3 (2006)
As cited by the appeals court, the Minnesota state supreme court had held that
" a contract, let without competitive bidding where required by statute, is void
as a matter of sound public policy, " Further, the appeals court noted that a valid
bid must " substantially comply with the
requirements of law and the call for bids " :

was not arrived at by competitive
bidding, as required by statute.

In this particular instance, the specific issue before the appeals court was,
therefore, " whether Interboro's bid substantially complied with the call for bids. "
In addressing this issue, the court would

consider " whether Interboro enjoyed a
substantial advantage over other bidders "
if their bid was accepted. According to the
court, " [a] contract entered into with the
lowest bidder containing substantial provisions beneficial to that bidder that were
Continued on page 28

A bid constitutes a definite offer that
a municipality may accept without further negotiations... A bid that
does not comply with the issued call
for bids is a new offer rather than a
bid. A contract entered into based
on a new offer is void because it
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February 2010

Parks & Recreation	 27



February 2010 - Parks & Recreation

Table of Contents for the Digital Edition of February 2010 - Parks & Recreation

February 2010 - Parks & Recreation - 1
February 2010 - Parks & Recreation - 2
February 2010 - Parks & Recreation - 3
February 2010 - Parks & Recreation - 4
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