Signed measure would allow highway contracts to run for up to five years

The Department of Transportation may use open-end contracts for highway construction and reconstruction lasting up to five years. The contracts may cover work at one or more locations, with payment based on unit prices or items. The Department must use the contracts within the other requirements of the procurement law. The contract must cover work performed during a defined contract period. Each contract may last for a defined period of up to five years.

The Department must limit open-end contracts to no more than 25% of its authorized capital improvement budget and may award them to multiple firms statewide. The limit applies to the Department’s total authorized highway capital improvement budget for the applicable fiscal year or years. Bid bonds may be based on 10% of the expected maximum work under construction at one time. Performance bonds may be based on 100% of that expected maximum work. The Department decides when more than one firm is needed. The budget limit applies during each applicable fiscal year or years, and bond amounts apply while work is under construction.