Procurement laws address how local governments purchase materials or services, solicit bids, and award contracts.

Purchasing. The thresholds for conducting competitive bids for purchases vary based on government type, what is being purchased, and the overall value of the purchase.

There are three thresholds that apply to school districts when purchasing furniture, equipment, or supplies:

• purchases below $40,000 are not subject to any public bidding laws;
• purchases between $40,000 and $75,000 may be made after receiving quotes from at least three different sources; and
• purchases above $75,000 must follow an open public bidding process where notice is provided, written bids are collected, and all bids are publicly read and filed.

Public Works. The thresholds for conducting competitive bidding for public works projects vary based on government type, the nature of the project, and the project cost.

There are two thresholds that apply to school districts when conducting improvements, repairs, or other public works projects:

• improvements or repairs under $75,000 may be completed through a department within the district; and
• improvements or repairs that exceed $100,000 must follow an open public bidding process where notice is provided, written bids are collected, and all bids are publicly read and filed.

Purchasing. The three thresholds that apply to school districts when purchasing furniture, equipment, or supplies are increased to the following:

• purchases below $75,000 are not subject to any public bidding laws, increased from the previous $40,000 limit;
• purchases between $75,000 and $150,000 may be made after receiving quotes from at least three different sources, increased from the previous $40,000 to $75,000 limit; and
• purchases above $150,000 must follow an open public bidding process, increased from the previous $75,000 limit.

Public Works. Improvements or repairs to the property of a district may be completed through a department within the district if the costs are less than $100,000, increased from the previous $75,000 limit.

PRO: Bidding thresholds haven't been updated in over 20 years. This bill aligns the thresholds with cities and ports so that districts are on a level playing field. It accounts for inflation and the rising costs of materials and maintenance. When bid limits fall behind real world costs then districts are forced to delay or defer regular maintenance causing system failures that cost more to fix. School maintenance workers know their buildings best and take pride in caring for them.

OTHER: Procurement thresholds are more restrictive than current federal thresholds. This saves districts money, staff time, and attorney fees associated with the bidding process. The bidding process takes at least three weeks and some of the bids go unanswered or are answered by a single bidder who bids a price higher than buying directly. This preserves flexibility and the ability for districts to shop around efficiently.