DSF DOLLAR THRESHOLD VALUES FOR CONTRACTING AND BIDDING
The following guide is intended to govern construction contracting by DSF. It establishes a reasonable comprehensive
interpretation of all applicable statues and provides a model for clarity and consistency. Exceptions may occur and
should be cleared with the Bureau Director before execution.
Contracting for construction may be accomplished under a written proposal from the contractor summarizing the
scope of work and cost and acknowledged by the project manager in advance of the work. A formal contract is
not required, and direct payments may be made based upon vendor's invoice and approval of the project manager.
DSF will not entertain construction projects with a dollar value less than $5000 for submittal as a Small or
Capital project request.
Bidding and contracting should be accomplished using either simplified solicited bidding procedures for small
projects or s.16.855 bid procedures and DSF Division 1 format. The project manager shall determine method
used. A formal DSF construction contract is executed for contracts handled by DSF. Contracting below $40,000
may be delegated to the agencies under an approved small project funding request. Payments are handled per
provisions of the contract documents.
Work costing up to $30,000 may also be done on delegated projects under an agency purchase order per "limited
trades". See definition s. 16.70(7). This involves repair and replacement in-kind where A/E services are not
Bidding and contracting should generally be accomplished under s.16.855 bid procedures using DSF Division 1
format, however, where projects qualify simplified bidding procedures may also be used for projects costing up
to $150,000. Bids are opened and contract awarded by DSF. The Building Commission may waive any or all of
The Governor must approve contracts and change orders equal to or greater than this amount (s.16.87 (3) WI Statutes).
When changes in the scope and cost of the contract are required they must be documented showing the extent and
reason the change was needed. A letter is recommended for an informal contract and a change order is required
for a formal DSF contract.
Documentation of all bidding, negotiations, and contracting transactions is required.
Construction includes all labor and materials used in the erection, alteration, repair, or demolition of any
appliance, device, equipment, building, structure, or facility.
These guidelines do not apply to contracts with other governmental agencies.
Competitive bidding, public posting and Adm 21 procedures are required for construction projects costing over
$0 DOA shall take charge of and supervise all A/E services or construction work performed by or for the state. Construction
includes all labor and materials used in the erection, alteration, repair, or demolition of any appliance, device, equipment,
building, structure, or facility. Work may be delegated to agencies with proper guidelines provided by DOA (s.16.85 (1) WI
$25,000 Prevailing wage rates are required if total estimated project cost exceeds this amount. Exemptions for: Minor service or
maintenance work, warranty work, or work under a supply and installation contract. .
$30,000 Agencies may undertake in-kind repair or replacement work by purchase order within definition of limited trades work
(.16.87 (2) WI Statutes). This work is typically a procurement via Vendornet.
$40,000 Projects whose estimated construction cost exceeds this amount must generally be advertised and a public bid opening
conducted based upon separate base bids, except contracts with counties or municipalities (s.16.855 WI Statutes). Building
Commission may waive any or all of 16.855 if in best interests of state (s.13.48 WI Statutes).
Bid openings for projects in excess of this amount shall be presided over and contracts shall be awarded by DSF (WI Admin.
Use of formal bid documents and DSF review is generally required for all projects exceeding this amount. Review for
projects less than this amount is at the option of the DSF project manager. Alternative simplified bid documents and
contracting procedures may be used for small projects costing up to $150,000.
DSF Discretionary limit for delegation of contract administration to agencies (s.16.85 (11) WI Statutes & DSF Policy).
Projects less than $40,000 maybe delegated back to the submitting agency.
$150,000 The Governor must approve contracts and change orders equal to or greater than this amount (s.16.87 (3) WI Statutes).
$150,000 Limit of small projects funding. Bidding for projects less than this amount may follow simplified procedures (1997-99 CB).
Projects in excess of this amount must have State Bldg. Comm. approval (s.13.48 (10) WI Statutes). Funding for Small
Projects is approved by the Bldg. Comm. and administered by DSF (BC Policy).
Attorney General's approval is required to settle matters involving recovery of bid guarantee for projects over this amount
(97-99 Capital Budget).
A performance payment bond is required for contracts over $150,000 (s.779.14).
$500,000 Building Commission Secretary may authorize single base bids for projects up to this amount (BC Policy).
$500,000 By Statute-limit at which project must be enumerated. Exceptions may apply for projects that address maintenance or are
not new space requests.