In March 2025, the Federal Highway Administration (FHWA) issued new guidance following an audit by the Office of Inspector General (OIG) that could reshape how State Departments of Transportation (DOTs) approach bidding oversight. The message is clear: more consistent, systematic monitoring of bidding activity not only identifies potential anticompetitive behavior but also brings real benefits to the taxpayers.
Why does monitoring matter?
By identifying anomalies and patterns early, DOTs can maintain a fair, competitive environment that ultimately benefits the public. When DOTs actively monitor bids and maintain open, ongoing conversations with the industry, something more subtle – and powerful – happens: the market responds, and prices tend to go down.
When contractors understand that the agency is consistently analyzing bids, comparing patterns across multiple years, and initiating conversations about bidding behavior, it encourages the shift toward pricing work competitively. It reminds everyone that pricing practices are under scrutiny, and that pricing anomalies won’t fly under the radar.
In simple terms, it’s about cutting off the temptation to manipulate costs to maximize private profits at the public’s expense. Instead, it’s about refocusing the industry efforts on delivering maximum public value.
A culture of oversight
The ripple effect of this approach is significant. Lower project costs don’t just save money on paper – according to the OIG, dollars saved through competitive pricing can be reinvested into additional projects. That means more bridges repaired, more miles of road resurfaced, more improvements delivered to communities – all without needing additional funding!
But just as meaningful as the benefits of action are the risks of doing nothing.
When oversight fades and conversations with contractors stop – the market takes notice. Without a consistent presence, DOTs may unintentionally signal that no one is watching – and that’s when bidding behavior can shift. Costs increase and collusive patterns go unchecked. The result is fewer projects and public dollars spent without delivering the full value.
The formula is straightforward:
Oversight + Systematic Analysis + Communication = Healthier Competition + Lower Prices
This approach relies on not just hard enforcement, but on culture change. It’s not only about catching suspicious behavior after it happens, but about trying to create an environment where fair competition is the default. A few “we noticed this trend” and “could you explain how you arrived at this price?” conversations, and a steady drumbeat of oversight can do more to shape market behavior – and ultimately drive better prices – than any single investigation ever could.
A competitive, transparent future
For state DOT agencies, complying with FHWA’s new guidance isn’t just about checking a box. It’s about embracing a proactive approach that strengthens public trust and makes the most of the projects’ budgets. It’s about sending a clear message: ”We are paying attention.”
With closer monitoring and consistent engagement, taxpayers’ dollars stretch further. Communities get more roads, bridges, and infrastructure improvements – without adding funding. It’s a true win-win, driven by the act of monitoring and communicating.
Looking ahead, AASHTOWare Data Analytics SaaS can help DOTs spot trends and flag anomalies early, and automate much of the analysis that took months in the past. Competition checks for pricing anomalies and collusion detection allow agencies to move beyond spreadsheets into systematic, real-time oversight, identifying potential anticompetitive behavior before it has impact on the budgets.
When DOTs take a thoughtful, data-informed approach to monitoring and messaging, they reinforce their core role as stewards of taxpayer money. And that means DOTs help build a more competitive environment, more efficient, and more accountable infrastructure landscape – one that benefits everyone.
Authors
Dr. Kateryna Bondareva
Senior Business Analyst
Dr. Kateryna Bondareva works at the intersection of product and data at Infotech focusing on AASHTOWare Project Data Analytics SaaS. With a background in computer science and hands-on experience of analytical tools development, she is uniquely qualified to provide her expertise in solving your most pressing needs with data analysis. She also partners with Infotech’s Market Analysis Training team to build programs that empower DOTs to spot bidding trends and collusion red flags.