Change to Competitive Bidding Threshold for Pupil Transportation Contracts

Chapter 56 of the Laws of 2010 amended General Municipal Law § 103 (1) by increasing the threshold for purchase contracts from $10,000 to $20,000 effective for any contract let or awarded on or after June 22, 2010.

"Purchase contracts" include regular home to school transportation contracts for the 10 month school year, 2 month Summer school, special education and non-public schools students, sports and field trips, as well as the less familiar, administrative or management contract, and maintenance contracts.

The law clarifies that we must use the "aggregate purchase" rule for calculating the dollar threshold, when a series of purchases of the same commodity or service are to be made within the twelve-month period commencing on the date of the purchase.

Thus the anticipated value of all new pupil transportation contracts must be totaled to determine whether the $20,000 threshold will be met, triggering the requirement for competitive bidding of all pupil transportation contracts for that year.

See the New York State, Office of the State Comptroller's Legal Opinion (Opinion 91-64) on the competitive bidding requirement.