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In the United States, a public agency awards a tunnel construction contract under the procurement rules, funding conditions, delivery method and solicitation that apply to that project. The contract may go to the lowest responsive and responsible bidder, or to the team offering the best value under published criteria; design-build does not automatically mean either approach. The solicitation and governing jurisdiction—not a universal tunnel-specific rule—determine how the winner is chosen.
First separate project delivery from contractor selection
Two related decisions shape a contract award: how the agency packages design and construction, and how it evaluates competing firms. Delivery method describes who performs the work and when the contractor joins the project. The award method describes how the agency chooses among bidders or proposing teams.
| Delivery method | Basic arrangement | What it means for selection |
|---|---|---|
| Design-bid-build | Design and construction are separate contracts and processes. | The construction contractor is selected after design through the applicable bid or proposal process. |
| Design-build | One entity is responsible for both design and construction. The New Jersey Department of Transportation defines it as a method in which a single design-builder is responsible for both phases (NJDOT Alternative Project Delivery Overview). | The agency may first qualify teams, then evaluate technical and price proposals. The specific solicitation determines the award method. |
| CM/GC, progressive design-build, or another authorized approach | The agency uses a different sequence or allocation of design, construction and pricing responsibilities. | When the contractor participates and how price is established depend on the method and applicable rules. |
These are delivery approaches, not award formulas. A design-build procurement can use best value or another method permitted by law; the method alone does not establish that the lowest price wins.
How the award process usually unfolds
There is no single procedure for every U.S. tunnel project. The responsible agency, jurisdiction, funding source, delivery method and live solicitation determine the required steps. A typical public transportation procurement moves through the following stages.
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- Choose an authorized delivery and procurement method. The agency decides how to package the work and what selection approach it may use under governing law and funding requirements.
- Prepare and publish the solicitation. The agency sets out the scope, eligibility or qualification rules, schedule, submission instructions, pricing format, evaluation criteria and required approvals. A public letting or solicitation makes the opportunity available to bidders or proposing teams. On applicable local transportation projects, the funding and agency arrangement can affect who conducts the letting and who provides oversight.
- Qualify or shortlist teams when required. In a common two-phase design-build process, firms submit statements of qualifications in response to a request for qualifications. The agency evaluates the teams and may invite a shortlist to submit full proposals. FHWA described three to five teams as a common range in practices reported in a 2002 survey; that is historical practice, not a current universal requirement (FHWA design-build procurement discussion).
- Receive and evaluate bids or proposals. In the proposal phase of two-phase design-build, shortlisted teams submit technical and price proposals. Depending on the rules and solicitation, the process may also allow discussions, alternative technical concepts, revised proposals or best and final offers.
- Select the apparent winner using the disclosed award method. In sealed bidding, the award is generally made to the lowest responsive and responsible bidder. Under best value, price is weighed with specified performance considerations. Agencies should apply the criteria disclosed in the solicitation rather than inventing new ones during evaluation.
- Complete approvals, make the award and execute the contract. The agency records its evaluation and selection, obtains any required funding or oversight approvals, announces or makes the award under the applicable process, and executes the contract. TxDOT’s guide for local-government transportation projects treats preparation, letting and award, and contract execution as distinct stages, with approval and oversight steps for applicable projects (TxDOT local-government contract guidance).
Does the lowest bidder always win?
No. In a sealed-bid procurement, the award generally goes to the lowest responsive and responsible bidder, not necessarily the firm that submitted the smallest number regardless of compliance or capability. The Federal Transit Administration’s Best Practices Procurement Manual reproduces this language from FTA Circular 4220.1E: “A firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder” (FTA Best Practices Procurement Manual).
- Responsive means the bid complies with material requirements in the solicitation, such as required forms, pricing instructions and submission terms.
- Responsible concerns the bidder’s ability and qualifications to perform the contract.
These are separate checks. A low bid can fail the responsiveness test, or a bidder can be found not responsible. Under a best-value process, the agency compares price with published performance criteria, so the lowest price need not be the winner.
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What agencies may evaluate
The solicitation controls the actual criteria and, where applicable, their weights. Depending on the procurement, agencies may assess:
- Relevant project experience, qualifications, staff and capacity;
- Technical design, construction approach and management plans;
- Work sequencing, schedule and ability to meet project milestones;
- Past performance and plans for managing procurement or delivery difficulties;
- Compliance with mandatory submission and contract requirements; and
- Price, evaluated alone or together with performance factors.
For example, Ohio Administrative Code Rule 153:1-6-02 requires a two-step best-value process for covered design-build projects and requires the public authority to establish qualifications criteria and set and weight proposal-phase performance and pricing criteria. Its listed performance considerations include schedule, approach, sequencing, performance history, plans for procurement difficulties, technical design, personnel and management. The rule became effective May 19, 2026. It allows a one-step design-build process for Ohio public-authority projects valued below $4 million; that threshold is specific to Ohio, not a national rule (Ohio Administrative Code Rule 153:1-6-02).
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How to read a tunnel solicitation before comparing firms
For a project-specific answer, use the current solicitation and the governing law. A general description of an agency’s procurement practice is not a substitute for binding project criteria. Check the documents for:
- The delivery method and the division of design, construction and pricing responsibilities;
- Whether firms must qualify before submitting full proposals and how any shortlist is formed;
- The technical and price factors evaluated, including any stated weights;
- The responsiveness and responsibility requirements;
- Schedule and sequencing expectations;
- Whether discussions, revised proposals or best and final offers are permitted;
- Required funding or oversight approvals; and
- How the agency records and announces its selection, along with any applicable protest rules and deadlines.
Submission platforms and instructions are project-specific. NJDOT, for example, identifies BidExpress as a service used to post procurement files, questions and answers, addenda and submissions (NJDOT Alternative Project Delivery Overview); its use there does not establish that other agencies or solicitations use the same platform.
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What is different about tunnel contracts?
Tunnel construction can involve technically demanding design and construction choices, but the available official guidance does not establish a separate nationwide “tunnel award” rule. The award process remains dependent on the agency’s authority, funding, delivery method and solicitation.
Washington State’s SR 99 bored-tunnel design-build project illustrates why project documents matter: WSDOT’s project page lists its request for qualifications, a best-value equation and a contract award notice. Those materials show how that project documented selection; they do not establish a formula that applies to every tunnel procurement (WSDOT SR 99 tunnel project).
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