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

SF 2038 expands opportunities for small businesses owned by minorities or veterans under Metropolitan Council contracts. It allows the Council to directly negotiate contracts (without competitive bidding) for projects under $161,320, and authorizes a 6% bid preference for qualifying small businesses. The bill also requires prime contractors to subcontract at least 75% of work to these businesses and sets payment deadlines with interest penalties for late payments to subcontractors. This directly affects the Metropolitan Council’s procurement of construction, goods, and services, and benefits small targeted group and veteran-owned businesses designated under Minnesota law.