New Bid Limit Of $95,200 For School And Community College District Contracts

CATEGORY: Public Education Matters
CLIENT TYPE: Public Education
DATE: Mar 27, 2020

As of January 1, 2020, the bid threshold over which community college district and school district governing boards must competitively bid and award certain contracts was raised to $95,200.  This 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, other than 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).

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 2.76% to $95,200 for 2020.

Contracts for 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 reconstruction, erection, alteration, renovation, improvement, demolition, and repair.  This $15,000 threshold is not adjusted for inflation.

The notice adjusting the bid limits is on the California Department of Education’s website here.  The California Community Colleges Chancellor’s Office also posted its notice adjusting the bid limits here.