New bill would require school districts to follow competitive bidding process

Wisconsin school districts would have to use competitive bidding for construction projects worth $150,000 under a proposal introduced by lawmakers.

Assembly Bill 723 would require public school boards to enter the competitive bidding process when constructing new buildings and facilities, according to the bill text.

“The school board may provide for additional means of advertising for bids. The school board shall let a public contract for which advertising for proposals is required under this paragraph to the lowest responsible bidder,” the bill text added.

The bill would raise the amount required for local governments to solicit competitive bids for public works projects, instead of awarding them directly, from $25,000 to $50,000. Some highway projects would be excluded.

According to the National Conference of State Legislatures, Wisconsin is one of three states allowing no-bid contracts for projects of any size.

Republican State Sen. Duey Stroebel, who helped author the bill, said in a statement the new requirement would make the state the 12th most lenient for construction. It would also be tied for fourth most lenient for supplies and equipment, he added.

However, the legislation wasn’t proposed without dissent. At a public hearing on Thursday, Chris Kulow, the government relations director for the state association of school boards, said competitive bidding could undermine local control and quality in school projects.

Local contractors have long-standing relationships with their school districts and have the option to keep dollars in the community, Kulow added.

“Local contractors have incentives to do good work because their reputation is on the line in the community,” he noted.

Stroebel said there were 103 capital referendums to decide school construction projects between April 2022 and 2023. Of those referendums, 75 passed and more than $2.4 billion in borrowing was approved, he added.

Marcie Rainbolt, the government affairs associate for the Wisconsin Counties Association, said increasing the minimum bid for municipalities could expedite projects and match other states’ thresholds.

In 2017, lawmakers introduced bills to increase bid requirements for school districts and municipalities, but those bills never progressed.