The South Dakota Attorney General’s Office has issued an official opinion clarifying that public school districts must follow state competitive bidding and design-build procurement laws when entering into construction contracts valued at $100,000 or more. The opinion explains that districts may not use cooperative purchasing organizations to bypass these statutory requirements.
The official opinion was requested by District 24 State Senator Jim Mehlhaff of Pierre.
State law allows cooperative purchasing only for supplies and contractual services– not for public improvements such as school construction projects. The AG’s Office opinion says because construction work is legally defined as a public improvement, school districts must adhere to the bidding, advertising, and procedural safeguards established to ensure fairness, transparency, and responsible use of taxpayer funds.
Attorney General Marty Jackley said contracts awarded in violation of these procurement statutes are void. He said taxpayers may, in some circumstances, have standing to challenge unauthorized expenditures of public funds.
Jackley said the existing legal framework is designed to protect public resources by ensuring integrity in school construction contracting. He said the Legislature retains the authority to revise procurement statutes or establish penalties if it determines changes are necessary.
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