Competitive Bidding

Competitive Bidding Project Size Threshold Increased to $200,000 and Alternate Procedures Allowed for Smaller Projects. (AB 2249, Cooley)

The Uniform Public Construction Cost Accounting Act authorizes public projects of $45,000 or less to be performed by the employees of a public agency, authorizes public projects of $175,000 or less to be let to contract by informal procedures, and requires public projects of more than $175,000 to be let to contract by formal bidding procedures. The act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable. The new law increases these thresholds and authorizes public projects of $60,000 or less to be performed by the employees of a public agency, authorizes public projects of $200,000 or less to be let to contract by informal procedures, and requires public projects of more than $200,000 to be let to contract by formal bidding procedures. If all bids received for the performance of a public project are in excess of $200,000, the agency may award a contract at $212,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.