Bid Thresholds Increased To $96,700 For School And Community College District Contracts

CATEGORY: Public Education Matters
CLIENT TYPE: Public Education
DATE: Jan 25, 2021

As of January 1, 2021, the bid threshold over which community college and school district governing boards must competitively bid and award certain contracts was increased to $96,700.  This increased threshold level 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, are not public projects as defined in PCC section 22002 subdivision (c).

PCC 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 by 1.57% to $96,700 for 2021.

Contracts for the construction of public projects, as defined in PCC section 22002 subdivision (c), still have a bid threshold of $15,000.  Public projects include contracts for construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair.  This $15,000 threshold is not adjusted for inflation.

The California Department of Education posted its notice adjusting the bid threshold for K-12 school districts here.  The California Community Colleges Chancellor’s Office issued a memorandum adjusting the bid limits, which can be found here.

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