Competitive Bidding Thresholds for Some Ohio Public Authorities Increasing October 3, 2023

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Benesch

In its 2023 budget bill, H.B. 33, the Ohio Legislature modified several provisions of the Ohio Revised Code that establish dollar thresholds for when certain public authorities must competitively bid for certain goods and services. 

Effective October 3, 2023, the competitive bidding threshold for certain public construction projects will increase from $50,000 to $75,000 through 2024, and then will increase by 3% annually as determined and published by the Director of the Ohio Department of Commerce.  This change applies to at least the following public authorities: 

  • Cities and Villages;
  • Counties;
  • County Sewer Districts;
  • Public Libraries;
  • Regional Airport Authorities;
  • Regional Sewer Districts;
  • Townships

In the relevant statutes for each of these public authorities, the previous reference to the $50,000 threshold will be replaced with a reference to the dollar amount provided by Ohio Revised Code Section 9.17, a new statute effective on October 3 that states that any other provision in the Ohio Revised Code that references this new section will apply the new threshold, starting at $75,000 and then increasing 3% per year beginning in 2024. 

The increased thresholds do not apply to Ohio public school districts.

Each public authority has its own procurement statute that contains specific language regarding procurement requirements and certain exceptions to competitive bidding, and those sections should be consulted by those who have specific issues relating to procurement. 

Earlier this year, the Ohio Facilities Construction Commission increased the public bidding threshold applicable to the State of Ohio and its agencies from $200,000 to $250,000.  That amount will be reviewed and adjusted for inflation every five years. 

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