Competitive Bid Threshold Letter - Oct 2025 for FY2026

Description

STATE OF MICHIGAN DEPARTMENT OF EDUCATION LANSING GRETCHEN WHITMER GOVERNOR MICHAEL F. RICE, Ph.D. STATE SUPERINTENDENT MEMORANDUM DATE: October 2, 2025 TO: Local and Intermediate School District Superintendents Public School Academy Directors FROM: Dr. Diane Golzynski, RDN, SNS Deputy Superintendent Division of Business, Health, and Library Services SUBJECT: FY 2026 Thresholds for Competitive Bids, Posting Travel Expenses, and Value of Awards The Michigan Department of Education (MDE) is providing updated information on statutory requirements that determine thresholds for competitive bids, travel expenses, and the value of awards. Sections 623a, 1267, and 1274 (MCLs 380.623a, 380.1267, and 380.1274) of Michigan’s Revised School Code establish a base above which competitive bids must be obtained for school construction projects (including renovation, repair, or remodeling) and procurement of supplies, materials, and equipment. The state laws also provide for an increase in the base amount corresponding to increases in the Consumer Price Index (CPI). For fiscal year 2026, which began this week on Wednesday, October 1, the base amount for Section 1267 (pertaining to construction, renovation, repair, or remodeling) and the new base for Sections 623a and 1274 (pertaining to procurement of supplies, materials, and equipment) are each $31,321. Section 620(1) of the Revised School Code (MCL 380.620(1)) establishes a base above which travel expenses paid with intermediate school district (ISD) funds must be posted to the ISD website. Section 620(1) provides for an increase in the base that corresponds with increases in the CPI. For fiscal year 2026, the base amount of $4,995 for travel increases to $5,128. There are changes to the limits on the value of awards given by an ISD to an employee, volunteer, or pupil, as well as the value above which an ISD administrator may not accept a gift from a vendor or potential vendor. Section 634 of the Revised School Code (MCL 380.634) places an upper limit on the STATE BOARD OF EDUCATION PAMELA PUGH – PRESIDENT • ELLEN COGEN LIPTON / TIFFANY D. TILLEY – CO-VICE PRESIDENTS JUDITH PRITCHETT – SECRETARY • MARSHALL BULLOCK II – TREASURER MITCHELL ROBINSON – NASBE DELEGATE • TOM MCMILLIN • NIKKI SNYDER 608 WEST ALLEGAN STREET • P.O.