The California Department of Education and the California Community Colleges Chancellor’s Office have announced an increase to the current bid threshold for certain contracts pursuant to Public Contract Code sections 20111(a) and 20651(a), respectively.

In 2014, school and community college districts were required to competitively bid and award contracts involving an expenditure of more than $84,100 for any of the following:

1.  the purchase of equipment, materials, or supplies to be furnished, sold, or leased to the district;
2.  services that are non-construction; and
3.  repairs, including maintenance (as defined in Public Contract Code section 20115), that are not public projects (as defined in Public Contract Code section 22002(c)).

Due to inflation, the threshold has been increased to $86,000. This change became effective January 1, 2015.

For more information, please contact a DWK attorney from our Business, Property and Finance and Construction Practice Groups.