LANSING – The Michigan Administrative Board has approved the first infrastructure project to use federal stimulus funds, but in doing so is now giving the Department of Transportation more leeway to approve competitively bid highway contracts in an effort to get as much of the state’s share of those dollars through the pipeline as possible by June 30.

The board approved repairs to a 10-mile stretch of northbound I-75 in Ogemaw County. The project is expected to start Monday.

But the panel also unanimously approved a resolution submitted by MDOT Director Kirk Steudle that allows the department to approve competitive bids for projects costing up to $250,000, as well as any new consulting engineering contracts.

The board currently has to approve any state contract or grant above $25,000 that would be used to purchase materials or services.

The resolution emphasizes the state has to obligate projects funded through the stimulus, stating, “to meet the federal requirements and to maximize the availability of funds for Michigan under the American Recovery and Reinvestment Act, MDOT has asked the State Administrative Board to institute a modified process.”

The resolution also modifies bid approval based on engineer’s estimates, stating MDOT may let contracts without the board’s approval, but only if the lowest bid does not exceed the engineer’s estimate by more than 10 percent and there is more than one bid if the contract is worth more than $500,000. If neither of those two conditions is met, then MDOT can’t award the contract without board approval.

The board also is allowing MDOT to enter into contracts without board approval if it’s related to public transportation or aeronautics grants to local units of government or other entities selected to receive the money by the Federal Transit Authority or Federal Aviation Authority.

The resolution also says MDOT doesn’t need board approval for existing engineering contracts that exceed 6 percent of the contractually budgeted amount if the department determines more work is needed in relation to a federal stimulus project.

But the department will also be required to report monthly on its awarding of contracts to the board’s Transportation and Natural Resources Committee.

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