By: Will Clemens, Commissioner, California Uniform Construction Cost Accounting Commission
AB 2192 (Carrillo) , which takes effect January 1, 2025, increases the bidding thresholds for public agencies that have opted into the California Uniform Public Construction Cost Accounting Act (CUPCCAA) on “Public Projects” as defined in the Act. AB 2192 also expands the scope of reviews by the California Uniform Construction Cost Accounting Commission (CUCCAC) which performs certain duties relating to administration and compliance with the Act.
CUPCCAA was enacted in 1983 and codified in Public Contract Code Section 22000 et seq. The Act provides public agencies with an alternative bidding process on capital projects to those provided for in the enabling legislation for the agency. Participation in the Act is completely voluntary, and agencies can opt into the Act relatively easily by adoption of a resolution and an informal bidding ordinance. The resolution then needs to be filed with the State Controller’s Office. A sample ordinance and other helpful information on CUPCCAA can be found on the State Controller's website at https://www.sco.ca.gov/ard_cuccac.html.
Typically, the enabling legislation for public agencies include outdated bidding thresholds above which construction projects must be formally bid. Usually these range from $5,000 to $25,000 depending on the type of agency. In today’s environment, this almost certainly requires a time consuming and inefficient design and formal bid process. CUPCCAA provides agencies with efficiencies that can save time and money on their capital programs.
Many participating agencies appreciate CUPCCAA because it has given them more leeway in the execution of projects; sped up the award process; expedited project delivery; reduced the time, effort, and expense associated with project bidding; and simplified project administration. To date, 1,631 public agencies, including 433 Special Districts, have opted to utilize the advantages of the Act.
This bill authorizes public projects of $75,000 (increased from $60,000) or less to be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order, authorizes public projects of $220,000 (increased from $200,000) or less to be let to contract by informal procedures, and requires public projects of more than $220,000 (increased from $200,000) to be let to contract by formal bidding procedures. The bill permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $220,000, to award the contract at $235,000 (increased from $212,500) or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.
This bill additionally requires CUCCAC to review the accounting procedures of any participating public agency where an interested party presents evidence that the work undertaken by the public agency has been split or separated into smaller work orders or projects, as specified. The bill also requires CUCCAC to review noncompliance with bidding procedures for the publication or posting and electronic transmission of notice inviting formal bids.
CUCCAC routinely reviews the bidding thresholds every five years and makes recommendations to the State Controller to adjust them.
Communication is provided for general information only and is not offered or intended as legal advice. Readers should seek the advice of an attorney when confronted with legal issues and attorneys should perform an independent evaluation of the issues raised in these communications.
Take a look back at previous parts of the 2025 New Laws Series in CSDA eNews for more in-depth overviews of new laws affecting special districts:
Missed Part 5? Read it now: Development Related Fees: Changes to Preliminary Estimate and Collection Provisions
Missed Part 4? Read it now: New Laws Impacting Proposition 218
Missed Part 3? Read it now: The Brown Act: Clarification of the Standards for Remote Meetings and an Expanded Ground for Closed Session; New Attorney General Guidances
Missed Part 2? Read it now: Assembly Bill 2561 (McKinnor): All Local Agencies Must Present Status of Job Vacancies at a Public Hearing
Missed Part 1? Read it now: Public Officials May Not Block Commenters from Official Social Media Accounts and Posts