U.S. Department of Transportation Federal Highway Administration

MEMORANDUM

As many of you know, the use of the Internet in our daily lives is increasing at a rapid pace. President Bush has made the expansion of Electronic Government a key Government-wide Initiative in the 2002 document "The Presidents Management Agenda." (.pdf, 0.6 mb) Its use by the State Transportation Agencies (STAs) in the procurement and contracting processes has raised questions as to whether it complies with current FHWA regulations. In short, the answer is "yes," the use of the Internet by the STAs in their procurement and contracting practices does comply with FHWA regulations.

The document "Questions and Answers Regarding Electronic Contracting," posted on the FHWA web site, will serve as our guidance on this matter. This document will also include links to a web page "Summary of STA Bidding Information Available on the Internet," as well as a November 12, 2004 letter from the U.S. Department of Labor regarding Electronic Signatures and the Copeland Act. In the future, the FHWA intends to perform a comprehensive update 23 CFR Part 635 to provide for changes in law and policy. We expect to expressly provide for Internet bidding as part of this update.

If you have any questions about this policy or desire further information, please contact one of the following:

• Mr. John Huyer at 202-366-1937, John.Huyer@fhwa.dot.gov, or
• Mr. Gerald Yakowenko at 202-366-1562, Gerald.Yakowenko@fhwa.dot.gov.