The Oklahoma Bar Journal October 2026

The “local bid” preference does not apply, however, to any con struction contract for which federal funds are available for expenditure when its provisions may be in con flict with federal law or regulation. 43

time and place ensures fairness and transparency, prevents advance disclosure or favoritism, and creates a clear record to defend the bidding process against challenges. Paper bids must be opened publicly and read aloud in the presence of an administrative officer, and electronic bids may not be accessed before the sched uled opening and must be made publicly available at the time of opening, either in the same manner or by publication on the municipality’s website. 32 Prohibitions on early disclo sure. It is unlawful to disclose, obtain, or use bid information before the scheduled bid opening, or to delay or obstruct release of bid information after notice, unless the solicitation is with drawn or uniformly amended. Any violation constitutes a Class D1 felony, renders the bid ding process void, and requires the municipality to restart the solicitation and award process. 33 This felony could carry a maxi mum five-year prison sentence. 34 No Bids Received. If no timely bids are received after proper notice is given for a proposed municipal public construction contract under the act the munic ipality may negotiate the contract with a prospective contractor. Any contract awarded under this process may not exceed those dollar limits, must be limited to the work described in the original bid documents, and must be executed within six months of the original bid opening date. The negotiated contract and procedure must otherwise com ply with all applicable provisions of the act. 35

AWARDING THE CONTRACT Lowest Responsible Bidder Standard and Local Preference Municipal contracts under the act must be awarded to the lowest responsible bidder through open, competitive, sealed bidding. No work may begin until a writ ten contract is executed, and the contractor provides all required bonds and insurance. 36 Oklahoma’s long-held phrase, “lowest responsible bidder,” does not necessarily mean the lowest bid received. 37 “The Act does not require an award to the lowest bidder but to the lowest responsible bidder, which in all cases is not necessarily the bidder having the lowest bid.” 38 The goal “is to obtain the best results at the lowest cost, the greatest value for the fewest dollars; in other words, it is a means for making the best possible bargain.” 39 “It requires the responsible public entity to select the bidder who, all things being consid ered, has ability to respond to the requirements of the contract having full regard to the subject-matter thereof.” 40 Other states have adopted this interpretation as well. 41 However, if a contract is awarded to a bidder other than the lowest bidder, the municipality must publicly state the reasons for that decision. The statement must be placed on file, made available for public inspection, and maintained as a public record. 42 Cities may apply a “local bid” preference of up to 5% on qualify ing contracts if the local bidder is the second-lowest qualified bidder and agrees to match the lowest bid’s price and terms. The bid specifica tions must clearly disclose any local preference, and any local bidder must be authorized to transact busi ness in Oklahoma and maintain a bona fide in-state business location.

Required Justification if Not Awarding to Lowest Bidder

Courts allow judgment calls, but municipalities must be able to articulate rational, documented reasons for responsibility determi nations. Undocumented or post-hoc rationalizations invite injunctions. When a municipality does not award a contract to the lowest bid der, it may consider factors beyond price to determine the lowest responsible bidder. Courts recognize that public contracting involves purchas ing not only cost, but also skill, responsibility, reliability, and timely performance. In making this determination, a municipality may evaluate factors such as references, financial responsibility, ability to meet contract requirements, the quality of equipment and person nel, past performance, existing con tract commitments, reputation for integrity and reliability, judgment, business practices, experience, and the time required to complete the work. 44 This list is not exclusive, but any factors considered must be reasonable, related to performance of the contract, and supported by the record. Authority To Reject All Bids A municipality may reject any or all bids and resolicit bids if it determines that doing so is in the best interests of the public. 45 Award Deadlines and Extensions A contract must be awarded to the lowest responsible bidder

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

24 | OCTOBER 2026

THE OKLAHOMA BAR JOURNAL