Lessons from North Carolina’s Case Study
State DOTs are under increasing pressure to do more with less, balancing tight budgets with rising public expectations. One overlooked area for modernization is the directional signing (LOGO) program. Traditionally managed in-house, these programs require significant DOT staff time and resources, while often relying on outdated systems.
In 2024, North Carolina took a bold step: it became the latest state to privatize its LOGO program, creating a roadmap for others to follow.
Legislative Reform and Mandate
Governor Roy Cooper signed House Bill 199 (Session Law 2024-30) on July 2, 2024, requiring the North Carolina Department of Transportation (NCDOT) to contract with a private vendor to run the program.
Under the law, the vendor assumes responsibility for:
- Sign acquisition and installation
- Logo design, manufacturing, and placement
- Ongoing maintenance
- Customer service and business enrollment
- Financial management of the program
By tying fees to market-based rates linked to traffic volumes, the statute ensures businesses pay fair value for visibility — while creating a sustainable revenue stream for the DOT.
Transparent, Competitive Procurement
North Carolina’s timeline demonstrates that privatization can be accomplished both quickly and rigorously.
- July 2, 2024 – Bill signed into law
- October 1, 2024 – RFQ advertised
- October 30, 2024 – Proposals submitted
- November 7, 2024 – Shortlisted teams announced & draft RFP issued
- December 3, 2024 – Final RFP released
- January 7, 2025 – Technical & financial proposals due
- January 21, 2025 – LoneStar Logos Management Company awarded the contract
Operating as the North Carolina Signing Program, LoneStar Logos assumed management less than seven months after the bill was signed into law — showing other states that this kind of transition is achievable on a short timeline.
Technology-Driven Operations
With privatization came modernization. The new Enterprise Sign Management System (ESMS) integrates the entire program, from field operations to customer management. Built on Esri ArcGIS and Microsoft Dynamics 365, the system delivers:
- Real-time data visualization and tracking
- Streamlined workflows
- Transparent reporting and accountability
This kind of technology is difficult for state agencies to build in-house but is essential for running a modern, scalable program.
Reliable Revenue & Broader Impact
Financially, the privatized program guarantees a minimum of $10 million annually by the end of the contract (entire contract is a $92 million guarantee with potential for $142 million) — a reliable revenue stream for NCDOT without requiring upfront investment. These funds help offset budget shortfalls and support other critical transportation priorities.
At the same time, the program delivers economic development benefits. Small businesses, rural attractions, and local restaurants gain exposure they could not achieve otherwise, while travelers enjoy clearer, better-maintained signage that makes trips safer and more convenient.
The Takeaway
North Carolina’s case shows why DOTs should seriously consider privatizing their directional signing programs. The model:
- Reduces operational burden on state staff
- Unlocks predictable, growing revenue
- Brings modern technology and data-driven decision making
- Strengthens small business visibility and economic development
- Enhances the travel experience for millions of drivers
For other states weighing how to stretch limited resources, the message is clear: privatization isn’t just an option- it’s a proven solution.
Want to learn more or inquire about partnering with us?
