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SD DOT will open way for more small bidders

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news Mitchell, 57301
Mitchell South Dakota 120 South Lawler 57301

By Bob Mercer

Capitol Correspondent

PIERRE — Smaller contractors might get more work on state highway projects in South Dakota as a result of rule changes under consideration.

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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.

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