Policies / 08-07 · Policy 7 of 13

Single Source Grants

OGM Policy 08-07, Version 2.0, effective November 21, 20254:44Based on public OGM policies and Minnesota statutes
Key points

What the policy requires

Competition is the default

Single source only after a search shows one entity is reasonably able and available

OGM Policy 08-07

Not a valid reason

Poor advance planning · personal or agency preference · an existing relationship alone · securing a preferred provider

OGM Policy 08-07; Minn. Stat. § 16B.98, subd. 3

Outside this policy

Recipients named in law · formula grants · noncompetitive federal grants · federal subrecipient designations · capital grants

OGM Policy 08-07, Applicability

Keep the evidence

Justification form and search documentation retained · agency grant records kept at least six years

OGM Policy 08-07; Minn. Stat. § 16B.98, subds. 5(c), 8

The justification form

Purpose · why noncompetitive · how the amount was set and why it is reasonable · search and validation steps

OGM Policy 08-07; OGM Form 07.01

Over $50,000? Assess risk too

Single source grants still need a preaward risk assessment · 15 days to answer information requests · contest rights if risk stops the award

Minn. Stat. § 16B.981, subds. 2, 4

Approval before encumbrance

Grant manager · division director or designee · agency head or designee, separate and independent of the preparer and other approvers

OGM Policy 08-07

Why the order matters

No encumbrance, no valid agreement. No fully executed agreement, no payment.

Minn. Stat. § 16B.98, subds. 5(a)(3), 7

Policy exceptions (2026 change)

Approved by the commissioner of Administration · expire or renew after five years · each one reported to legislative committees

Minn. Stat. § 16B.97, subd. 4(a)(1), as amended by Laws 2026, ch. 122, sec. 2
Team checklist

Questions to ask

  • 1Search documented before anyone says "only one"?
  • 2Justification covers purpose, need, amount, and search?
  • 3Three approvals before encumbrance, with an independent agency-level signer?
Sources

Policy and statutes

  • OGM Policy 08-07, v2.0 (November 21, 2025): mn.gov/grants
  • OGM Form 07.01, Single Source Grant Justification Form
  • Minn. Stat. §§ 16B.97, subd. 4 (Laws 2026, ch. 122, sec. 2); 16B.98, subds. 3, 5, 7, 8; 16B.981, subds. 2, 4

Statute links open the Office of the Revisor of Statutes.