Tractor Lease

The South Dakota Department of Transportation is conducting a formal sealed bid procurement to lease twenty (20) new, never-previously-owned tractors with 100-150 PTO horsepower for the 2027 mowing season. The Pierre Region DOT seeks equipment from a single vendor, with the lease term running from June 1, 2027, through November 30, 2027, on an as-needed basis with termination possible upon ten days' written notice by either party. Specified deliverables include MFWD diesel tractors equipped with deluxe cabs, air conditioning/heating, 26 GPM hydraulic pumps operating at 2500 PSI minimum, dual PTO speeds (540/1000 RPM), category 2 three-point hitches rated for 3300 pounds minimum, and a minimum 40-gallon fuel tanks. Each tractor must be delivered to the Pierre Region DOT yard at 104 South Garfield Avenue, Pierre, South Dakota 57501 between June 1-15, 2027, and retrieved following inspections after November 30, 2027; rear wheels must not exceed 8'6" width to allow DOT trailer transportation. The lessor must provide one hour of operator training per State employee with signed completion documentation, transport tractors throughout the Pierre Region geographical area, and assume responsibility for all major repairs, maintenance, normal service, parts installation, warranty claim handling, and 24-hour parts availability and routine maintenance supplies at the lessor's expense. Bid evaluation will be based on total low bid calculated at 250 hours of usage per tractor, with bidders submitting differentiated hourly rates for two usage tiers: Rate 1 for usage of 250 hours or less and Rate 2 for usage exceeding 250 hours. The opportunity was posted on March 3, 2026, with a bid due date of March 24, 2026.

The Vendor's Manual for South Dakota establishes that vendors must register with the state's electronic procurement system at no cost and comply with Secretary of State corporate registration requirements before contract award unless claiming a specific exemption; no set-aside designations for disadvantaged or minority-owned enterprises are identified in the procurement documents provided. No incumbent vendors or current contractors are listed, and no existing infrastructure or technology integration requirements are specified beyond the standard delivery location and geographic service area assignments across eleven designated locations in the Pierre Region. For any tractor out of service for five or more days, the lessor must provide a replacement tractor of similar features and horsepower upon State request, and the lessor is responsible for providing engine and hydraulic oil throughout the lease term. The total lease amount shall not exceed $100,000, representing the maximum budget ceiling for this procurement. Payment will be calculated by multiplying the applicable hourly rate by the difference between the hour meter reading upon tractor delivery and the final reading when tractors are returned; monthly itemized invoices may be submitted or invoices may be submitted at lease end, with rental rates not charged during periods when equipment is non-operable. The State will perform minor adjustments, greasing, and fluid checks and maintains liability and property insurance coverage.