Wisconsin contracts with out-of-state firm on road signs

By Patrick Marley of the Journal Sentinel
April 14, 2014
Madison — The state has entered into a new contract to maintain the blue signs on highways that direct drivers to restaurants and gas stations near Wisconsin's highways, and businesses that rely on that service won't see a price cut.

The new contract gives the work to Interstate Logos, a Georgia-based subsidiary of billboard giant Lamar Advertising Co., and keeps prices at the same amounts they have been for years.

The company that had been providing the work for nearly 30 years, Derse-Wisconsin Highway Business Signs of Milwaukee, had proposed a price cut, but businesses won't see that reduction because the work went to the Georgia firm.

State officials contend businesses will get better service under the new contract, which starts May 1 and is good for 10 years.

Derse twice appealed the decision, called an "intent to award," giving the work to a new firm — first to the state Department of Transportation and then to the Department of Administration — but both times officials found the decision was made properly.

Interstate Logos will charge businesses $30 per month for signs on highways and $10 per month for signs on exit and entrance ramps — the same rates Derse has charged for years.

Derse had proposed cutting its rates to $21 for highway signs and keeping its rates at $10 for ramp signs. Businesses with signs on both sides of a highway would have seen their annual price drop by $216 under that proposal.

Interstate Logos had originally proposed raising prices, but state officials said they would not go along with that plan.

The sign program largely operates without the use of state money. Restaurants, gas stations, hotels and attractions pay the vendor, who is under contract with the state to ensure the signs are in place.

In an email announcing the decision Friday, state traffic engineer Bill McNary wrote, "Interstate Logos will provide better signs and better response in the maintenance of signs."

The competition for the new contract was tight, with just 22 points on a 1,000-point scale separating the two vendors. Interstate Logos scored 848 points and Derse 826 points.

Derse has the option of suing in Dane County Circuit Court to try to stop the new contract, but officials with the firm have not said if they would do that.

Twitter: twitter.com/patrickdmarley