When is a governing body allowed to enter into a negotiated contract?

A governing body is allowed to enter into a negotiated contract when no bids are received after two advertisements. This provision is important because it allows municipalities to proceed with necessary projects or services without being stalled by a lack of competing bids. In such scenarios, the governing body can negotiate terms directly with potential vendors or service providers to ensure that the needs of the community continue to be met efficiently.

This decision to negotiate stems from the understanding that the absence of bids, despite efforts to solicit them, indicates a lack of interest or capability from the marketplace, and instead of abandoning the project, negotiating directly can provide a viable path forward.

While other circumstances for entering into negotiated contracts may exist, such as emergencies or legal cost considerations, the specific condition regarding the absence of bids after two advertisements creates a clear legal framework for municipalities, ensuring transparency and accountability.