On December 20, 2022, 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 those contracts to the lowest responsible bidder. Per Section 20111(a), the State Superintendent of Public Instruction increased the threshold to account for inflation, from $99,100 in 2022 to $109,300 in 2023.
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.
For more information on public contracts and bidding, please contact our office. Parker & Covert LLP has offices located in southern and northern California. We invite you to visit our website at www.ParkerCovert.com.
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