SD DOT will open way for more small bidders
By Bob Mercer
PIERRE — Smaller contractors might get more work on state highway projects in South Dakota as a result of rule changes under consideration.
The rules currently require prospective bidders to get clearance from a special four-member review committee from the state Department of Transportation unless the amount being bid is under $100,000. That amount would change to $200,000 under the changes that recently received approval from the state Transportation Commission.
The next and final stop is the Dec. 17 meeting of the Legislature’s rules review committee.
The $100,000 was the smallest amount among states in the region, according DOT’s Laurie Schultz.
She said a $250,000 threshold was considered for South Dakota but contractors wanted to try the $200,000 level first.
More small contractors might qualify for projects, according to DOT’s business-impact analysis of the change.
“The increase in competition may result in better bid prices while providing the opportunity for a greater number of businesses to participate in public improvement projects,” the analysis stated.