Effective January 1, 2025, the bid threshold for contracts awarded by school districts pursuant to Public Contract Code (PCC) section 20111(a) increased from $114,500 to $114,800 (link available here). The bid threshold for contracts awarded by community college districts pursuant to PCC section 20651(a) increased from $114,500 to $114,800 (link available here). Contracts subject to the aforementioned bid threshold include contracts for:

1. 1. Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the district;
   2. Services, except for construction or professional services; and
   3. Repairs, including maintenance as defined in PCC section 20115 for school districts, or PCC section 20656 for community college districts, that are not public projects as defined in PCC section 22002(c).

The bid threshold for construction services contracts for both school districts and community college districts remains at $15,000, unless the district adopted the California Uniform Public Construction Cost Accounting Act (CUPCCAA). For school districts and community college districts that adopted CUPCCAA, effective January 1, 2025, the bid thresholds for construction services contracts are as follows:

1. 1. Public projects of $75,000 or less (increased from $60,000) may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order without bidding;
   2. Public projects of $220,000 or less (increased from $200,000) may be awarded by informal bidding procedures*; and
   3. Public projects of more than $220,000 must be awarded by formal bidding procedures.

* In the event all informal bids received are in excess of $220,000, and the cost estimate was reasonable, the governing board may award a contract up to $235,000 (increased from $212,500) to the lowest responsible bidder by 4/5th vote without formal bidding.

The aforementioned increases become effective on January 1, 2025, without a Board resolution or other affirmative action.  However, the districts may want to update their Board Policies or Administrative Regulations if they refer to the previous threshold amounts.

For more information about the adjusted bid thresholds, front end construction documents, or whether adopting CUPCCAA makes sense for your District, please contact an attorney in DWK’s Business, Property and Construction practice group.