Among the many changes stemming from Ohio Senate Bill 168 (“SB 168”), are changes to Ohio Revised Code Section (“RC”) 3313.46, which will result in an increase to the bidding threshold affecting Ohio public school districts, beginning October 24, 2024. SB 168 removes the existing bidding threshold of $50,000 from RC 3313.46, and replaces it with reference to the amount specified in RC 9.17. This change marks the first increase to the bidding threshold applicable to schools set forth in RC 3313.46 since the threshold increased from $25,000 to $50,000 in 2017.
RC 9.17, which became effective in October 2023, sets the bidding threshold at $75,000 through calendar year 2024, and provides for increases of 3% each calendar year to follow. This means that, beginning October 24, 2024, the bidding threshold for public schools will increase to $75,000, which aligns the threshold for schools with other political subdivisions in the state. This change also likely will reduce the number of projects falling within the scope of RC 3313.46 for which bidding will be necessary. While other statutes and federal laws affect bidding in other circumstances, RC 3313.46 specifically addresses circumstances when a “board determines to build, repair, enlarge, improve, or demolish any school building.” Many school board policies on this topic include reference to the $50,000 bidding threshold, and, as a result, will require revision in advance of the October 24, 2024 effective date to reflect the updated standard. Additionally, many boards of education have adopted policy language requiring schools to obtain quotes even in circumstances when competitive bidding is not otherwise required. The necessary changes to reflect the legal standards addressed above create a good opportunity to review your policies and procedures on bidding and quotes to be sure they align, not only with the legal standards, but also with district practices.
Please feel free to reach out to any of the attorneys in Weston Hurd’s Education Law Group with any questions about competitive bidding and/or updating your policies and procedures accordingly.
