Annual adjustment to bid threshold for contracts awarded by school districts

The CDE has adjusted the bid threshold to reflect the percentage change in the annual average value of the Implicit Price Deflator for State and Local Government Purchases. Effective January 1, 2022, the State Superintendent has determined that the inflation adjusted bid threshold will increase from $96,700 to $99,100.

Public Contract Code requires school 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 inflation adjusted bid threshold is now $99,100. Contracts subject to competitive bidding include:

  • Purchase of equipment, materials, or supplies to be furnished, sold, or leased to the school district.
  • Services that are not construction services.
  • Repairs, including maintenance, that are not public projects.

Click here for a chart that shows the inflation adjusted bid thresholds for the current and two prior years.