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Committee approves TDOT amendment to add years 4–5 of SWRI SmartWay Central pricing after cost‑structure questions
Summary
Tennessee Department of Transportation won committee approval to add pricing for years 4 and 5 to its SWRI SmartWay Central maintenance contract; members asked staff to return with a comparison of 3+2 renewals versus a 5‑year price lock.
The Fiscal Review committee approved an amendment to the Tennessee Department of Transportation’s contract with Southwest Research Institute (SWRI) to add pricing for years four and five of the SmartWay Central support contract and to increase the maximum liability to $8,025,974 (80% federal, 20% state match).
Natalie Christophe, TDOT’s deputy commissioner and chief financial officer, said SWRI only provides price locks in three‑year increments, so the department requested years 4 and 5 to lock the price for the five‑year period. A committee member calculated that, given the procurement structure, the state paid about $566,504 more by using a 3+2 arrangement rather than a single five‑year pricing schedule and asked TDOT staff to prepare comparative figures for the next fiscal review meeting. Christophe confirmed the company will only price‑lock for three years and the department accommodated that structure.
Committee members asked about total liabilities and how procurement choices affect long‑term cost. Chair accepted a motion and the amendment was approved by voice vote.
