South Dakota Attorney General Marty Jackley’s office 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 states that districts may not use cooperative purchasing organizations to bypass those statutory requirements.
“Open and fair bidding isn’t just a procedural formality — it’s the foundation that protects taxpayers, ensures integrity in public spending, and guarantees that every project is awarded on merit rather than convenience,” Jackley said. “When the process is transparent, the public can trust the outcome.”
State law allows cooperative purchasing only for supplies and contractual services, not for public improvements such as school construction projects, according to the opinion. Because construction work is legally defined as a public improvement, school districts must follow the bidding, advertising and procedural safeguards established to ensure fairness, transparency and responsible use of taxpayer funds.
“The opinion underscores that contracts awarded in violation of these procurement statutes are void, and that taxpayers may, in some circumstances, have standing to challenge unauthorized expenditures of public funds,” Jackley said.
Jackley noted that the Legislature retains the authority to revise procurement statutes or establish penalties if it determines changes are necessary, though the existing legal framework is designed to protect public resources by ensuring integrity in school construction contracting.
The opinion was requested by state Sen. Jim Mehlhaff of Pierre.