Ohio Competitive Bidding Thresholds for Certain Public Entities Increased to $75,000 Through 2024, and to Increase 3% Annually

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Effective October 3, 2023, the construction competitive bidding threshold for certain Ohio political subdivisions including libraries, counties, and townships will increase from $50,000 to $75,000 through 2024, and will increase by 3% yearly as determined and published by the director of commerce. House Bill 33 created Ohio Revised Code (ORC) Section 9.17, which sets a uniform monetary threshold for competitive bidding for several types of political subdivisions.

Instead of including a numerical amount, the applicable bidding statutes will now specify that the bidding threshold will be “the amount specified in section 9.17 of the Revised Code.” ORC 9.17 provides, “(A) The amount for purposes of a provision of the Revised Code that references this section shall be as follows: (1) Beginning on the effective date of this section through calendar year 2024, seventy-five thousand dollars; (2) For each calendar year thereafter, the amount for the previous calendar year increased by three percent as determined and published by the director of commerce.”

Even though the competitive bidding threshold may be increased for a political subdivision, it is still essential to review any applicable purchasing/procurement policies and other applicable laws to determine if competitive bidding will be required for work costing less than $75,000 or for other types of purchases.

Political Subdivision

Competitive Bidding Threshold*

ORC Citation
Cities and Villages As defined by ORC 9.17 ($75,000 through 2024, increased 3% yearly), and $50,000 when entered into by the legislative authority of the village §§ 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 $50,000 § 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
State of Ohio and its agencies $250,000 (effective 1/19/2023; to be reviewed and adjusted every five years) §§ 153.01; 153.53
Townships 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

Each type of political subdivision in Ohio has its own competitive bidding threshold, and the state of Ohio has its own bidding threshold that only applies to the State and State agencies. The chart above summarizes the competitive bidding thresholds for various political subdivisions for competitive bidding. 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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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