Bid Threshold Increased to $114,500 for Community College and School District Contracts

CATEGORY: Special Bulletins
CLIENT TYPE: Public Education
PUBLICATION: LCW Special Bulletin
DATE: Jan 04, 2024

As of January 1, 2024, the bid threshold over which community college and school district governing boards must competitively bid and award certain contracts was increased from $109,300 to $114,500. This bid threshold applies to the following types of contracts:

  • Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the district;
  • Services that are not construction services; and
  • Repairs, including maintenance as defined in Public Contract Code (PCC) sections 20115 and 20656, as applicable, which are not public projects as defined in PCC section 22002 subdivision (c).

Public Contract Code sections 20111 subdivision (a) and 20651 subdivision (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 must annually adjust the $50,000 amount specified in the PCC. Both entities have increased the bid limit 4.79% to $114,500 for 2024.

Contracts for construction of public projects, as defined in Public Contract Code section 22002 subdivision (c), still have a bid threshold of $15,000. Public projects include 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 here. The California Community Colleges Chancellor’s Office posted its notice adjusting the bid limits here.

Liebert Cassidy Whitmore attorneys are closely monitoring developments in relation to this Special Bulletin and are able to advise on the impact this could have on your organization. If you have any questions about this issue, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.

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