House OKs bill to increase sealed bidding threshold for city contracts

The House passed a bill 124-1 Monday that would increase the threshold for municipal contracts that are required to go through the sealed bidding process.

HF3841 would require cities go through the sealed bidding process for contracts estimated to cost $175,000 or more. Currently, the Uniform Municipal Contracting Law requires contracts estimated to cost $100,000 or more to go through the process.

The bill, sponsored by Rep. Jim Nash (R-Waconia), would also extend the direct negotiation range to $25,000-$175,000.

WATCH Full video of Monday's House Floor session 

The last time the ranges were increased was in 2008, when the threshold amount for sealed bids was increased from $50,000 to $100,000.

Nash said the bill “is going to help local governments.”

The bill now goes to the Senate, where Sen. Dan Hall (R-Burnsville) is the sponsor.