New Bid Threshold for School District Contracts Effective January 1, 2021

On December 18, 2020, the California Department of Education announced the annual adjustment to the bid threshold for competitive contracts awarded by school districts.

Public Contract Code section 20111(a) requires school districts to competitively bid contracts involving an expenditure of more than $50,000, adjusted for inflation, and award them to the lowest responsible bidder.  Per Section 20111(a), the State Superintendent of Public Instruction increased the threshold to account for inflation, from $95,200 in 2020 to $96,700 in 2021.

This higher bid limit only applies to (1) the purchase of equipment, materials, or supplies to be furnished, sold, or leased to the school district; (2) services, except construction services; 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).  The $15,000 threshold for construction contracts under Section 22002(c) is not adjusted for inflation and therefore remains unchanged.

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