September 5, 2019

Reminder: Bid Threshold Increased

KLC would like to remind our cities that as of June 27th of this year, cities may enter into agreements for the purchase of materials, supplies, equipment, or services where the value of the expenditure is less than $30,000.  HB 26 increased the threshold value to require a newspaper advertisement for bids from $20,000 to $30,000.

Based on early feedback, this change has given greater freedom to our cities in seeking the best possible value in making taxpayer purchases. It is important to remember that if your city has an ordinance which formally adopted the old $20,000 threshold to require bids, your city would need to amend the ordinance to reflect the new $30,000 threshold. The $30,000 is a default threshold under the model procurement and general bidding statutes. There is no formal requirement for a city to adopt the bid threshold by ordinance.

Finally, a city has the discretion to adopt a local policy that adopts a minimum bid threshold below the statutory $30,000 should the city determine a formal bid process for purchases is in the city’s best interest.

As always, should you have any questions about bidding or any other legal issues in your city, please contact the KLC Department for Municipal Law and Training.