Increased Bidding Threshold for Ohio Public School Districts Beginning October 24, 2024
Effective October 24, 2024, the competitive bidding threshold for Ohio public school districts contained in Ohio Revised Code (“ORC”) 3313.46 will increase from $50,000 to $75,000 through 2024, and will then increase by 3% annually as set forth in ORC 9.17. This change in the law was included Senate Bill 168 and builds upon the 2023 changes in the bidding threshold for other Ohio political subdivisions.
Each type of political subdivision in Ohio has its own competitive bidding statute. The chart below summarizes the competitive bidding thresholds for various political subdivisions. However, this chart does not capture the full statutory requirements for each political subdivision, which are not the same. Additionally, there may be exceptions to competitive bidding requirements for specific political subdivisions. Also note that different statutory procurement processes may be required to engage design professionals, construction managers at risk, and design-builders.
|
Political Subdivision |
Competitive Bidding Threshold |
ORC Citation |
|
|
Cities and Villages* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§§ 735.05, 731.14, 731.141 |
|
|
Counties* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 307.86 |
|
|
County Sewer Districts |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§§ 6117.27, 307.86 |
|
|
Hospitals, County* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§§ 307.86, 307.92 |
|
|
Hospitals, Joint Township Hospital Districts |
No threshold requirements are found in the Ohio Revised Code. |
||
|
Hospitals, Municipal |
$50,000 for construction projects subject to approval of the board of hospital trustees |
§ 749.26 |
|
|
Public Libraries* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 3375.41 |
|
|
Metropolitan Housing Authorities |
All projects, regardless of cost, are subject to competitive bidding. |
§ 3735.36 |
|
|
Municipal Utilities (Water, Sewer, Gas and Electric)* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 735.05 |
|
|
Port Authorities |
$150,000 |
§§ 4582.12(A), 4582.31(A)(18)(b) |
|
|
Public School Districts |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 3313.46(A) |
|
|
Regional Airport Authority* |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 308.13(A) |
|
|
Regional Sewer Districts |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 6119.10 |
|
|
Regional Transit Authority |
$100,000 |
§ 306.43(E)(3) |
|
|
Soil and Conservation Districts |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§§ 940.06(H)(1), 307.86 |
|
|
$250,000 (effective 1/19/2023; to be reviewed and adjusted every five years) |
§§ 153.01; 153.53 |
|
|
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) for most projects, but requirements vary depending on the purpose of the contract |
§§ 505.37, 511.12, 515.01, 515.07, 521.05, 505.35, 505.50 |
|
|
Park Districts |
As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly) |
§ 1545.07 |
* The law now explicitly prohibits this subdivision from dividing projects in order to avoid the competitive bidding requirements. However, it is implied and recommended practice for all public entities to refrain from doing so as well.
Each political subdivision, including public school districts, should review the applicable statutory requirements and its own internal policies in consultation with legal counsel to determine the proper procedures for procurement, including bidding for construction contracts and other types of purchases.
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