Public Contract Code (PCC) Section 20111(a) requires school and community college district governing boards to competitively bid and award any contracts involving an expenditure of more than $50,000, adjusted for inflation, to the lowest responsible bidder. The State Superintendent of Public Instruction (SSPI) is required to annually adjust the $50,000 amount specified in PCC Section 20111(a). As of January 1, 2015, this amount was increased to $86,000. School and community college district governing boards are required to competitively bid and award any of the following contracts involving an expenditure of more than $86,000:
- Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the school district.
- Non-specialized services that are not construction services.
- 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).
Contracts for construction of public projects as defined in PCC Section 22002(c) still have a bid threshold of $15,000. The definition of public project includes contracts for reconstruction, erection, alteration, renovation, improvement, demolition, and repair. This $15,000 threshold is not adjusted for inflation.
PCC 20111 and 20112 allow the governing board of any school district to delegate the authority in the calendar year 2015 to enter into bidding contracts, purchase supplies, materials apparatus, equipment and services for less than $86,000 and for less than $15,000 for construction contracts.
The authority to purchase is delegated to the:
- Superintendent of Schools
- Assistant Superintendent of Educational Services
- Chief Business Officer
- Chief Human Resources Officer
- General Counsel
Attached is the State's Annual Adjustment Guidelines.
The raising of the bid limit in response to the SSPI’s adjustment is a routine and annual Board item.
In addition, prior District practice has been to seek Board ratification of all contracts entered into pursuant to this delegation. This resolution would change that practice by requiring Board ratification only for contracts requiring the expenditure of between $25,000-$85,999 within sixty (60) days in order to permit the District greater flexibility for short-term or low-expenditure contracts. Contract amounts above $86,000 require prior Board approval.