FOR IMMEDIATE RELEASE: Thursday, June 25, 2026
Contact: Tony Mangan, Communications Director, 605-773-6878
Pierre, S.D. – South Dakota Attorney General Marty Jackley announces his office has issued an official opinion clarifying that South Dakota 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.
“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,” said Attorney General Jackley. “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. 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.
“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,” said Attorney General Jackley.
Attorney General Jackley noted that the Legislature retains the authority to revise procurement statutes or establish penalties if it determines changes are necessary. The existing legal framework, however, is designed to protect public resources by ensuring integrity in school construction contracting.
The official opinion was requested by State Sen. Jim Mehlhaff of Pierre. The opinion can be found here:
https://atg.sd.gov/OurOffice/OfficialOpinions/opinionhtml.aspx?id=1775#gsc.tab=0
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