California’s bid thresholds for contracts awarded by school districts and community college districts have increased effective January 1, 2025.
Non-Construction Contracts
Under Public Contract Code Sections 20111(e) and 20651(d), school districts and community college districts may now award non-construction contracts for amounts up to $114,800 without competitive bidding. This is an increase from the previous threshold of $114,500. This threshold applies to the following types of contracts:
• Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the district;
• Services that are not construction services; and
• Repairs that are not a public project as defined in Public Contract Code section 22002(c). Repairs include maintenance, as defined in Public Contract Code Section 20115 for local school districts, and Public Contract Code Section 20656 for community college districts.
Construction Contracts
The bid threshold for construction contracts remains unchanged at $15,000 for local school districts and community college districts as set forth in Public Contract Code sections 20111(b) and 20651(b), respectively. However, this threshold does not apply to districts that have opted into the California Uniform Public Construction Cost Accounting Act (CUPCCAA), which provides for an alternative bidding procedure.
For school districts and community college districts that have opted into CUPCCAA, Assembly Bill (“AB”) 2192 increased the bid thresholds for construction projects effective January 1, 2025, as follows:
• Construction projects of $75,000 (increased from $60,000) or less may be performed without bidding by negotiated contract or purchase order, or by the employees of a public agency by force account
• Construction projects of $220,000 (increased from $200,000) or less may be awarded by informal procedures.
• Construction projects of more than $220,000 (increased from $200,000) must be awarded by formal bidding procedures. However, a higher threshold of $235,000 applies if:
o All bids received exceed $220,000;
o The governing board awards the contract to the lowest responsible bidder by adoption of a resolution by a four-fifths vote; and
o The governing board determines the cost estimate of the public agency was reasonable.
Expanded Definition of “Public Project”
California Assembly Bill 2192 also expanded the definition of “public project” under CUPCCAA (Public Contract Code section 22002) to add “installations” to the other types of construction related-work involving publicly owned, leased, or operated facilities.
Conclusion
Although updated bid thresholds provide school districts and community college districts with greater flexibility in contracting, districts still should ensure compliance with all applicable Public Contract Code provisions when awarding contracts.
For legal guidance regarding 2025 bid threshold changes, please contact one of the attorneys at Tao | Rossini APC.