(1) Where satisfactory bids cannot be secured, or where, in the judgment of the department, it is more feasible to execute any work by prison labor or free labor, authority is given the department to use prison labor, either state or county, or free labor, and to purchase equipment necessary to carry on the work; provided, that the inmates shall be available by law at the time and satisfactory arrangements can be made by which they may be used.
(2) When work is executed by means of labor of state inmates, the commissioner shall pay for the labor on the highway work according to rules and regulations prescribed by law and the state authorities, who may furnish the inmates, and, if the inmates so used are county inmates, the county authorities controlling the inmates shall receive pay for the labor at the price to be agreed upon by the commissioner and the respective county officials authorized to furnish the labor.
(3) In case the commissioner is not able to make satisfactory arrangements to construct the highways with state or county inmate labor or by contract with other parties, then the commissioner is empowered to build and construct the highways, either on force account by contract or in a manner deemed advisable by the commissioner.