Competitive Bid Threshold Increased

On October 10, 2024, MDE issued a memorandum announcing the new competitive bid threshold, which MDE adjusts annually to account for inflation based on the consumer price index.

School districts, ISDs, and public school academies must competitively bid the following if the cost will exceed the new bid threshold of $30,512: (1) labor and materials for construction projects (RSC Section 1267); and (2) the purchase of supplies, materials, and equipment (RSC Sections 623a and 1274).

School officials must not disaggregate a project (which includes additions, repairs, or renovations) or the purchase of supplies, materials, and equipment into discrete components to circumvent competitive bidding requirements. Instead, school officials must calculate each procurement transaction as a whole.

If below the threshold amount, competitive bids are not legally required under state law. School officials should review whether school board policies require competitive bidding even when not mandated by state law. For Thrun Policy Service subscribers, our purchasing and construction policies (Policies 3301 and 3306) do not require competitive bidding for procurements below the state bid threshold, except when competitive bidding is required by federal law for federally funded projects and purchases.