A quiet change in Montana procurement law now requires competitive bidding for Board of Investments contracts—and most service providers don't know it yet.
Most professional services owners in Montana have no idea that the state's Board of Investments operated outside the normal competitive bidding rules. Until now.
Senate Bill 232, which took effect immediately upon passage and approval, changed that. The Board of Investments is now subject to Montana's Procurement Act for virtually all of its purchases—meaning if you want to bid on BOI contracts for services, supplies, or consulting work, you'll need to compete through formal procurement processes instead of being selected outside that framework.
For decades, the Board of Investments had an exemption from Montana's competitive bidding requirements. That meant contracts for professional services, consulting, supplies, and other purchases could be awarded without the RFP (Request for Proposal) process that applies to most state entities. The exemption created a less transparent procurement environment and limited opportunities for firms that weren't already connected to the board.
SB232 eliminates that exemption. Section 1 of the bill, amending 18-4-132(1)(d), brings the Board of Investments under the Montana Procurement Act's competitive bidding and RFP requirements for all purchases except securities transactions. Securities purchases remain exempt—that's the only carve-out.
For professional services firms, this is significant. It means:
You now have a formal path to bid. Instead of contracts being awarded through informal channels, BOI procurement now follows the same competitive process as other state agencies. If you provide accounting, legal, consulting, IT, engineering, or other professional services, you can watch for BOI RFPs and submit formal proposals.
The playing field is more level. Existing relationships matter less. The competitive process is designed to evaluate proposals on merit and value, not just incumbent relationships or informal connections.
You need to stay informed. BOI contract opportunities will now appear in the state procurement system, just like other state contracts. Professional services firms should monitor the Montana Procurement Clearinghouse and set up alerts for BOI opportunities in their service areas.
The Board of Investments still has an exemption for securities purchases and related investment transactions. That remains outside the Procurement Act's requirements. This change applies only to non-securities purchases—the services, supplies, and consulting work that many professional services firms actually bid on.
If your firm provides services that might interest a state entity, make sure you're set up to receive and respond to RFPs. Ensure your business is registered in the state procurement system and that you're monitoring opportunities. The change is effective immediately, so BOI procurement under the new rules has already begun.
For a detailed, business-specific guide to Montana's state procurement process and how to position your firm for BOI and other state contracts, resources are available through your industry association or local business development office.