SDCL § 1-33B-3.6: Contract negotiation.

The governmental unit may negotiate a contract with the most qualified energy service provider at a price that the governmental unit determines fair and reasonable, taking into account the scope of the services rendered. The provider selected is not required to have submitted the proposal with the lowest cost. If the governmental unit is unable to negotiate a satisfactory contract with the provider, negotiations with that provider shall be formally terminated, and the governmental unit may select the next provider until an agreement is reached or the process is terminated. The governmental unit may choose to reject all proposals.