Montana

Key Agency(ies): The Montana Department of Administration is the central authority responsible for managing and overseeing state procurement activities. The Chief Procurement Officer, located within this department, is the primary official for procurement matters. The Department is tasked with administering the Montana Procurement Act, issuing rules and regulations, and conducting or supervising procurements for state agencies.

Key Statute: The primary statutory authority governing procurement in Montana is the Montana Procurement Act, codified at Mont. Code. Ann. Title 18, Chapter 4.

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Key Regulations: The Department of Administration Rules (Administrative Rules of Montana, Mont. Admin. R. § Title 2, Chapter 5) are the rules issued by the Department of Administration that supplement and implement the Montana Procurement Act.

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Procurement Types/Highlights:

• Competitive Sealed Bidding
• Competitive Sealed Proposals (RFPs)
• Small Purchases and Limited Solicitations
• Sole Source Procurement

Bid Protests:

Regs Governing Bid Protests:

• Mont. Code Ann. § 18-4-242 outlines the exclusive remedies for unlawful solicitations or awards, including the protests and appeals process.
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Eligible Protesters:

• Any bidder, offeror, or contractor (except those involved in small purchases or limited solicitations) who is aggrieved by the solicitation or award may file a protest with the Department of Administration.

Timeliness Rules:

• The protest must be submitted in writing to the department no later than 14 days after the execution of the contract in question.

Protest Process:

• The protest must be in writing and submitted to the Department of Administration.
• The Department will attempt to resolve the protest by mutual agreement.
• If not resolved, the department must issue a written decision within 30 days.
• If the protester is dissatisfied, they may request a contested case hearing under the Montana Administrative Procedure Act within 14 days of the department’s decision.
• The state is not required to delay, halt, or modify the procurement process pending the result of a protest, contested case proceeding, or judicial review.
• If a solicitation or award is found to be in violation of the law, the department may cancel or revise the solicitation or award or ratify and affirm the contract if it is in the best interests of the state and the awarded party did not act fraudulently or in bad faith. If fraud or bad faith is found, the contract may be declared void.

Appeals:

• After the administrative process, a party may seek judicial review by filing a petition under section Mont. Code Ann. § 2-4-702.
• The court may order remedies as provided in Mont. Code Ann. § 18-4-242.

Claims: 

• Contractors must follow the dispute resolution procedure specified in the contract.
• If the contract does not specify a time, the contractor must bring the claim within 90 days after the dispute arises.
• Before proceeding to court, the contractor must exhaust the administrative remedies provided in the contract or by statute.
• Mont. Code Ann. § 18-1-402

Suspension & Debarment:

• The Department of Administration may remove (debar) or temporarily suspend a vendor from eligibility for state contracts.
• Suspension may be imposed when there is probable cause to believe removal is warranted or if the vendor is indicted for an offense that would lead to removal.
• Suspension remains in effect at least until after trial if requested by the Attorney General.
• Grounds for removal or suspension include:
  • Violation of contract provisions
  • Deliberate failure to perform or meet specifications
  • Recent record of failure to perform on contracts
  • Any cause determined to be serious or compelling, including removal by another government entity
    • Code Ann. § 18-4-241

Interesting/Distinctions: 

• Under Montana law, in the event of a tie bid, preference is given to bidders offering American-made products or supplies.
• Most contracts for supplies or services may not exceed seven years, including extensions or renewals, with some exceptions.