South Dakota Attorney General Marty Jackley has issued an official opinion stating that public school districts must comply with state competitive bidding and design‑build procurement laws for construction contracts valued at $100,000 or more, and cannot use cooperative purchasing groups to avoid those requirements.
Jackley emphasized that open bidding is essential to protecting taxpayers and maintaining trust in public spending
The opinion clarifies that while state law allows cooperative purchasing for supplies and certain services, it does not extend to construction projects. School construction is classified as a “public improvement,” meaning districts must follow strict bidding, advertising, and procurement procedures designed to ensure transparency and accountability.
Jackley warned that contracts awarded outside these legal requirements are considered void and could be subject to challenges by taxpayers in some cases.
He added that while the Legislature has the authority to revise procurement laws if needed, the current system is intended to safeguard public resources and ensure fair competition in school construction projects.
The opinion was issued at the request of State Sen. Jim Mehlhaff of Pierre.
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