Dive Brief:

• Because bidding on the second phase of California's high-speed rail line requires steep investments by hopeful firms, the state will pay each losing bidder $2 million to soften the blow.
• The bids will be for a 60-mile stretch from Fresno to the border of Tulare and Kern counties, and the California High-Speed Rail Authority estimates the winner will get a job valued at between $1.5 billion and $2 billion.
• The authority is expected to issue its request for proposals late this month or early in April.

Dive Insight:

Paying losers is not revolutionary – the authority did the same thing for bidders on the 29-mile first section of the line – but it is unusual. In recent months, firms have been asking the federal government to change its bidding procedures because the cost of preparing a qualifying bid early in the process is too high relative to the chance of winning the contract.