MDE Increases Competitive Bid Threshold

In a memorandum anticipated in the coming days, MDE will announce the new competitive bid threshold. MDE adjusts this threshold annually to account for inflation as measured by the average consumer price index.

For the 2022-23 fiscal year, $28,048 is the threshold amount at which school districts, ISDs, and public school academies must competitively bid for:  (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 supplies, materials, and equipment into discrete components to circumvent competitive bidding requirements. Instead, school officials must calculate each procurement as a whole.

If the cost is less than the threshold amount, competitive bids are not legally required under state law. School officials, however, should review whether their board policy on procurement requires competitive bidding for costs less than the threshold amount.