This blog post was authored by Heather DeBlanc
As of January 1, 2014, school and community college district governing boards will be required to competitively bid and award any of the following contracts involving an expenditure of more than $84,100:
- Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the school district;
- Services that are not construction services; and
- Repairs, including maintenance as defined in Public Contract Code (PCC) sections 20115 and 20656, that are not public projects as defined in PCC section 22002(c).
PCC sections 20111(a) and 20651(a) require school and community college district governing boards, respectively, to competitively bid and award any contracts involving an expenditure of more than $50,000, adjusted for inflation, to the lowest responsible bidder. The State Superintendent of Public Instruction and the Board of Governors of the California Community Colleges are required to annually adjust the $50,000 amount specified in the PCC. Both entities have increased the bid limit to $84,100 for 2014.
It is important to note that contracts for construction of public projects as defined in PCC section 22002(c) still have a bid threshold of $15,000. The definition of public project includes contracts for reconstruction, erection, alteration, renovation, improvement, demolition, and repair. This $15,000 threshold is not adjusted for inflation.
The notice adjusting the bid limits is posted on the California Department of Education’s website at: http://www.cde.ca.gov/fg/ac/co/bidthreshold2014.asp. The State Chancellor’s Office distributed its notice last week, and it should be on the agency’s website soon.