The California Department of Education and the California Community Colleges Chancellor’s Office have announced that the bid threshold for school districts and community college districts will be increased to $88,300, effective January 1, 2017, on certain contracts, as defined in Public Contract Code sections 20111(a) and 20651(a).  This bid threshold is adjusted annually for inflation.  In 2016, the bid threshold for these contracts was $87,800.

School and community college districts are required to competitively bid and award contracts involving an expenditure of more than $88,300 for any of the following:

• Equipment, materials, or supplies furnished, sold, or leased to the district;
• Non-construction services; or
• Repairs, including maintenance (as defined in Public Contract Code sections 20115 and 20656 for school and community college districts, respectively), that are not public projects (as defined in Public Contract Code section 22002(c)).

Contracts for construction services remain subject to a lower bid threshold that is not adjusted for inflation.  School and community college districts must competitively bid and award public works contracts involving an expenditure of $15,000 or more, unless the district has adopted the Uniform Public Construction Cost Accounting Act.

For more information, please contact your legal counsel or a DWK attorney.