HB384 • 2025

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.

Budget

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Berry
Last action: 2026-05-20
Official status: Out of Committee 5/20/26
Effective date: Not listed

Plain English Breakdown

The candidate explanation included details about bid bonds that were not explicitly mentioned in the official bill text.

Act to Change Rules for Highway Building Contracts

This act changes Delaware's rules to allow open-end contracts for highway construction or reconstruction up to five years, aligning with federal guidelines.

What This Bill Does

Changes the law to let the Department of Transportation use open-end contracts for highway work for up to five years.
Limits the use of these contracts to no more than 25% of the total budget for building and fixing highways each year.
Requires that companies bidding on these contracts provide a bid bond based on 10% of the expected cost of work at any one time.
Needs companies to have performance bonds covering 100% of the expected cost of work at any one time.

Who It Names or Affects

The Department of Transportation in Delaware
Companies that build or fix highways

Terms To Know

Open-end contract: A type of contract where the exact amount to be paid is not set at the start, but depends on how much work is done over a period of time.
Performance bond: An agreement that guarantees a company will complete its work as promised or pay for any losses caused by failing to do so.

Limits and Unknowns

The act does not specify how many companies can get these contracts.
It is unclear what happens if the Department of Transportation uses more than 25% of its budget on open-end contracts.

Bill History

2026-05-20 Delaware General Assembly
Reported Out of Committee (Transportation) in House with 9 On Its Merits
2026-04-30 Delaware General Assembly
Introduced and Assigned to Transportation Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.
This Act amends the Delaware Code to allow open-end contracts for highway construction or reconstruction for up to five (5) years. This Act is intended to conform Delaware’s procurement statutes to the time limits permitted for contracts by the Federal Highway Administration (FHWA) and still ensure that adequate security is maintained to cover all bids and ongoing work.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. Berry & Sen. Walsh

Rep. Morrison

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 384

AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO OPEN-END CONTRACTING FOR HIGHWAY CONSTRUCTION AND RECONSTRUCTION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 6970, Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 6970. Open-end contract process for highway construction and reconstruction.

(a)

Legislative findings. —

The General Assembly finds that certain market conditions, including but not limited to a diminished number of available private contractors

and/or

and

limits on competitive pricing opportunities for basic materials, can impede the State’s ability to complete its highway construction and reconstruction projects on a timely and useful schedule.

Furthermore, the open-end contract process allows for faster implementation of certain projects.

Under these circumstances, the General Assembly finds that the limited use of an open-end contract process for such work may enable the Department of Transportation

(“Department”)

to meet its capital improvement schedules despite these impediments.

(b) Notwithstanding any portion of this chapter to the contrary, the Department

of Transportation

is hereby authorized to use an open-end contract process for highway construction and reconstruction projects, under the following terms and conditions:

(1) As used herein, “open-end contract”

(also known as “indefinite delivery” or “indefinite quantity” contracts)

means a contract for highway construction and reconstruction work to be performed for a defined period of time, not to exceed

3

5

years, in which the Department may designate 1 or more locations for highway construction and reconstruction projects to be completed during the contract period, and in which the payments for the work to be performed at such locations are calculated based on a unit price/item basis during the contract period.

(2) The Department shall limit the use of this contract process to no more than 25% of its total authorized capital improvement budget for the applicable fiscal year or years, in order to provide adequate alternative contracting opportunities for those seeking to work on other Departmental highway construction and reconstruction projects.

(3) The Department may award open-end contracts to more than 1 firm, for work anywhere within the State, as it deems necessary.

(4)

Bid bonds may be based on 10% of the expected maximum value of work to be in construction at any one time, as determined by the Department.

(5)

Performance bonds may be based on 100% of the expected maximum value of work to be in construction at any one time, as determined by the Department.

(4)

(6)

In all other respects, the award and execution of open-end contracts shall be deemed to have complied with the provisions of this subchapter.

SYNOPSIS

This Act amends the Delaware Code to allow open-end contracts for highway construction or reconstruction for up to five (5) years. This Act is intended to conform Delaware’s procurement statutes to the time limits permitted for contracts by the Federal Highway Administration (FHWA) and still ensure that adequate security is maintained to cover all bids and ongoing work.