House Bill 987

Note: The governor has until Jun 21st to sign or veto bills. This is not in effect until signed, vetoed or allowed to be filed without signature. Do not take any action until or unless it actually becomes the law.

House Bill 987 has increased the dollar amount of purchases and contracts that require competitive bidding for the first time in a number of years. Generally, only purchases for $50,000 or more must be bid. The bill also makes provision for electronic bids and proposals and a number of other changes.

(a) Except as provided by this subchapter, all school district contracts, except contracts for the purchase of produce or vehicle fuel, valued at $50,000 [$25,000] or more in the aggregate for each 12-month period shall be made by the method, of the following methods, that provides the best value for the district:

Sec.44.0313.PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS. (a) A school district may receive bids or proposals under this chapter through electronic transmission if the board of trustees of the school district adopts rules to ensure the identification, security, and confidentiality of electronic bids or proposals and to ensure that the electronic bids or proposals remain effectively unopened until the proper time.

SECTION11.Section 281.047(a), Local Government Code, is amended to read as follows:

(a)This section applies to a contract that is for materials for, or construction of, facilities and that is for an amount greater than $50,000 [$10,000].

Bidding and purchasing is an area where mistakes and disputes can be costly, so move cautiously on this. After all, taking bids when you are not required to is just fine, but failing to take bids that are required isn’t.