How to sell to Montana counties

Montana has 56 counties. County bidding follows MCA 7-5-2301 to 7-5-2311, with notice rules in MCA 7-1-2121. Title 18 adds statewide rules that expressly reach counties: bid security, bonds, prevailing wage, retainage, preferences and architect and engineer selection. A few counties have consolidated city-county governments, but the same bidding statutes apply to county governing bodies.

At a glance

Who buys

Most counties are governed by a Board of County Commissioners, the "governing body" that publishes bid notices and lets contracts (MCA 7-5-2301). The state Department of Administration may act as a county's purchasing agent if both sides agree (MCA 7-5-2308).

Goods and services

The county may not enter a contract over $80,000 for the following without first publishing a bid notice (MCA 7-5-2301):

• Vehicles, road machinery and other machinery, apparatus and appliances.
• Equipment, materials and supplies.

Splitting contracts to avoid bidding is prohibited (MCA 7-5-2305). The statute does not set rules for purchases of $80,000 or less, and it does not list general services. Counties handle those under their own policies, often with quotes.

Exceptions (MCA 7-5-2304): public printing, emergency purchases after fire, flood, storm, epidemic and similar events, and purchases under cooperative purchasing agreements.

Construction and public works

Construction, repair and maintenance contracts over $80,000 need a published bid notice (MCA 7-5-2301).

• Bid security. Every public authority, expressly including counties, must require bid security and an indemnity covenant with each bid (MCA 18-1-201). Accepted forms are cash, a cashier's or certified check, a bank money order or draft, or a surety bid bond from a Montana-authorized surety (MCA 18-1-203). The advertisement states the amount; no statewide percentage was confirmed.
• Bonds. Counties must require a bond guaranteeing performance and payment of laborers and suppliers. Cash-type alternatives must equal 100% of the contract sum. Counties may accept bonds from two or more individual sureties. Bonds may be waived on building and construction projects under $150,000 (MCA 18-2-201). See performance bond and payment bond.
• Retainage. Capped at 5% (MCA 18-2-316). See Getting paid.

Notice and award

The bid notice runs twice, with at least 6 days between publications, in a newspaper of general circulation published at least weekly in the county. If no newspaper qualifies, the notice is posted in 3 public places named by resolution, one of which can be the county website (MCA 7-1-2121). The minimum time between the last notice and bid opening was not confirmed.

Each contract goes to the lowest responsible bidder, subject to the county resident preference and Title 18 preference rules (MCA 7-5-2301). Public agencies award regardless of the bidder's residency, apart from reciprocal preferences (MCA 18-1-102). A county RFP process was not confirmed.

Prevailing wage

Montana's prevailing wage law applies to public works contracts over $25,000 let by the state, a county, a municipality, a school district or another political subdivision. It covers construction services and also nonconstruction services (MCA 18-2-401). At least 50% of each contractor's workers on the project must be bona fide Montana residents (Montana Department of Labor and Industry).

Getting paid

Montana's construction prompt payment law covers government owners, and "government entity" includes counties (MCA 28-2-2101). Payments more than 30 days late earn interest of 1.5% per month (MCA 28-2-2104). Owners approve payment requests within 21 days and pay within 7 days of approval (secondary: Levelset summary).

Retainage on county construction contracts is capped at 5%, and contractors may not withhold more than that from subcontractors (MCA 18-2-316). The section sets no release deadline; check the contract.

Cooperative purchasing and state contracts

Counties may enter cooperative purchasing agreements with the State, Montana or other states' political subdivisions and other government entities. Those purchases are deemed compliant with bidding law (MCA 7-5-2310, enacted 2021). The state Department of Administration may also act as a county's purchasing agent (MCA 7-5-2308).

Preferences and required certifications

• County resident preference. Optional. It applies only when no out-of-state bidders take part, and the resident bid may be at most $500 or 3% higher, whichever is less. On construction over $80,000 with an out-of-state bidder, the state reciprocal preference applies instead (MCA 7-5-2309).
• Reciprocal preference. Montana residents get a reciprocal preference against bidders from states that favor their own residents, on goods and construction (MCA 18-1-102).
• Conflict of interest. 2025 HB 683 revised county conflict-of-interest rules in MCA 7-5-2311. Bidders must disclose financial conflicts or the bid is nonresponsive (secondary: PRIA bill summary).
• Israel boycott, E-Verify, debarment and non-collusion rules for counties were not confirmed; check the solicitation.

Architects and engineers

Montana's qualifications-based selection law covers counties as "local agencies" (MCA 18-8-202). The process runs through public notice, selection and negotiation (MCA 18-8-203 to 18-8-205). When estimated fees are $50,000 or less, the county may negotiate directly, but contracts may not be split (MCA 18-8-212).

Recent changes

• 2023: The newspaper notice rule in MCA 7-1-2121 was last amended (Ch. 396, L. 2023).
• 2025: MCA 7-5-2301 was amended by Ch. 710, L. 2025; the current text sets the bid threshold at $80,000.
• 2025 (signed May 13): HB 683 requires bidders to disclose financial conflicts with county officials (secondary: PRIA bill summary).

Practical tips for Montana

• Price in prevailing wage on county public works over $25,000, including some service contracts.
• Bring bid security with every bid. The ad states the amount and the forms allowed.
• Watch for two notices about a week apart in the county's newspaper or on its website.
• Check Montana counties for each county's bid platform, contacts and agendas.