Construction Program Guide
Electronic Contracting
The use of electronic documents and processes in the bidding and letting of projects has increased markedly since July 1999, when the Georgia DOT first used Internet bidding. As of February 25, 2020, there were at least 49 State Transportation Agencies (STAs) that allow contractors to submit electronic bids; with at least 47 of these receiving bids over the Internet, and at least 18 of these accepting only Internet bids.
The FHWA supports the use of electronic procedures to advertise, open bids, and award projects as long as the process assures opportunity for free, open, and competitive bidding, including adequate publicity of the advertisements or calls for bids, as required by 23 CFR 635.104(a).
Where allowed by State policy, Internet-based advertising may be used in lieu of traditional means if the State DOT can successfully demonstrate to the FHWA Division Administrator that using such means would generate “adequate publicity." In demonstrating whether this means would generate "adequate publicity," the STA should show that it has worked with appropriate representatives from the contracting industry.
The FHWA's policy allow bids to be announced by means other than reading them aloud, such as by posting them on the Internet.
Under the U.S. Department of Labor's policies in 29 CFR 5.5, electronic submittals and electronic signatures are considered acceptable for the contractor's weekly payroll and "statement of compliance."
As FHWA cautions STAs from making information available that could aid collusion, FHWA discourages the publication of plan-holder lists.
The Wisconsin DOT has implemented an Internet-based Civil Rights Compliance System for payment tracking and labor compliance management.
Authority/Legal Basis
Laws
Regulations
- 23 CFR 635.104 Method of construction (4/1/2019)
- 23 CFR 635.113 Bid opening and bid tabulations (04/01/2019)
Policy
- FHWA Contract Administration Core Curriculum Manual
- Interim Guidance: 23 CFR Part 635 Electronic Contracting Issues (07/14/2006) This Memorandum allows State Transportation Agencies (STAs) to use electronic methods for advertising, receiving bids or awarding contracts
- Electronic Signatures and the Copeland Act (11/12/2004)
- Electronic Security Issues -- Kansas Department of Transportation's (KDOT) Construction Management System (CMS) (07/07/1993)
- Computerization of Construction Records (09/21/1989)