On December 5, 2023, 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 to award those contracts to the lowest responsible bidder. As authorized by Section 20111(e), the State Superintendent of Public Instruction increased the threshold to account for inflation, from $109,300 in 2023 to $114,500 in 2024. This increase reflects a 4.79% change in the Implicit Price Deflator for State and Local Government Purchases of Goods and Services for the United States.

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 or reconstruction contracts under Section 22002(c) is not adjusted for inflation and therefore remains unchanged.

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