State Computer Information

Office of Procurement Management

Computer Product Contract Challenge Process for Vendors


The State of South Dakota will use the following challenge process when establishing state contracts for certain information technology products.  All award decisions will be made using a "best value" determination.   In establishing "best value", the State may consider factors other than price in making the award decision.  All decisions will be made in the best interest of the State of South Dakota.


  • A vendor that is challenging an established contract must submit pricing for every item on the current contract.  All items on a particular contract must be included in the challenge, unless otherwise stipulated. 


  • If a challenging vendor is offering the same product (same make & model, etc.) as offered on the current contract (the standard), the competing vendor may provide its pricing directly to the Office of Procurement Management (OPM).

  • If the challenger is offering a product that is considered "equal" to the current standard, but is not identical, the competing vendor must provide the product specifications to OPM.  OPM will request that the Bureau of Information and


  • Telecommunications (BIT) review the specifications.  If it is determined that the product specifications meet or exceed those of the product currently on contract, the challenging vendor will be asked to submit the actual product to BIT at 700 Governor's Drive, Pierre, SD, for technical evaluation.  After a successful evaluation, the challenging vendor will then be asked to submit their pricing to OPM.


  • The current contract holder will be notified that their contract has been challenged, and they will be informed of the product being offered by the challenging vendor.  The challenging vendor's pricing will not be revealed to the current contract holder.  The current contractor will be asked to submit new pricing in response to the challenge.   


  • In the event the State determines the challenging vendor's offer provides a better value than the current contract holder, the new vendor will be asked to sign a 3-month exclusive contract.  After the 3-month contract, vendors are again free to challenge the contract. 


  • In the event the State determines the current contract vendor's revised pricing provides a better value than the challenging vendor, the current contract will be extended for a 3-month exclusive period, after which the contract would be open for challenge from competing vendors.


  • Challenging vendors must accept the terms and conditions of the current contract in order to submit a challenge.


  • The State of South Dakota reserves the right to reject any or all offers, waive technicalities, and make awards as deemed to be in the best interest of, and providing the best value to, the State of South Dakota. 


The information technology products being provided by the vendor holding the current contract will be considered the standard. The specification for the standard is located on the Internet at


Vendors interested in competing for a contract for a particular information technology product may contact the Office of Procurement Management, PMB 01231, 523 East Capitol Avenue, Pierre, South Dakota 57501-3182, or phone 605/773-3405.


If there are any questions regarding this process, please feel free to contact the Office of Procurement Management.


(Revised 5-4-2007)