In Ohio, boards of education are required to seek formal bids from potential vendors before they “build, repair, enlarge, improve or demolish a school building” if the cost of the work is over a certain threshold amount. Currently, state law sets the competitive bidding threshold amount at $50,000 for school boards. However, starting Oct. 24, the threshold amount will increase to $75,000, where it will remain for the rest of the year. Starting in January 2025 and for each calendar year thereafter, the threshold amount will be increased annually by three percent. This number will be determined and published by the Director of Commerce.
Occasionally, OSBA’s legal division receives questions about what constitutes a “school building” for purposes of the competitive bidding statute. For example, there is some debate about whether the definition of “school building” is limited to buildings where student instruction takes place or whether it extends to include any building or structure owned by a school board. Unfortunately, this term is not defined in RC 3313.46. In the absence of definitive guidance in this area, questions about whether things like press boxes, concession stands, or similar structures should be competitively bid should be directed to board counsel.
OSBA’s competitive bidding fact sheet is in the process of being updated to reflect the new competitive bidding threshold and will be available to members on or before the Oct. 24 effective date. If you have any additional questions or concerns in the meantime, please reach out to OSBA’s legal division at 855-OSBA-LAW.