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The rapid development and technological changes inherent in IVHS projects can make following standard State bidding practices ineffective. The Arizona Department of Transportation's (ADOT) Freeway Management System project has recently used several non-traditional contracting concepts to ensure delivery of its Advanced Traffic Management System. These contracting procedures include a two-step bidding process, requisitioning from existing statewide contracts, and total life cycle cost bidding for electronic variable message signs. Two-step procedures, statewide procurement contracts, and total life cycle cost bidding procedures provide ADOT with unique concepts to purchase equipment in an effort to obtain the highest quality for a reasonable price. The innovative processes have resulted in 7% to 30% lower overall cost and greater probability of project success. As high technology items are dealt with by public agencies, it is necessary to be innovative in the ways we procure systems.