Managing Decisions about Joint Purchasing

We have previously provided information about the change in the bidding statute here (noting the increase in the bidding threshold for most contracts to $35,000 effective January 1, 2024) and considerations for joint purchasing cooperatives here (prior to the increase in the threshold amount).  

To reiterate those considerations, pursuant to Section 10-20.21 of the School Code, school districts must let for competitive bidding any contract in excess of $35,000, subject to certain exceptions provided in the statute. However, there is not currently a valid exception which allows for bidding cooperatives to be exempt from these bidding requirements.

Without question, utilizing bidding cooperatives for purchases that are below the threshold is acceptable and has been encouraged by and sponsored by various organizations. However, these organizations also caution that school districts should obtain an opinion from their board attorney to determine whether an exemption from the bidding mandate applies prior to making a purchase from a bidding cooperative in excess of $35,000. Few of these will meet the requirements of Section 10-20.21.

Article 28A of the School Code also creates the Education Purchasing Program for certain master contracts. At present, there is only one approved contractor under Article 28A, per ISBE’s website. Other state “master contracts” are perfectly acceptable for contracts under $35,000.