AB 2192 Increases CUPCCAA Bid Thresholds

Assembly Bill 2192 (“AB 1292”), effective January 1, 2025, will increase the bidding thresholds for public agencies who have adopted the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”). Public agencies that adopt CUPCCAA may award or perform public projects at higher bid thresholds than the $15,000 default threshold.

The new CUPCCAA thresholds include:

• For public projects of $75,000 or less, the public agency may perform the project by the employees of a public agency by force account, by negotiated contract, or by purchase order (this is an increase for the former limit of $60,000 or less).
• For public projects of $220,000 or less, the public agency may award the project by using its informal bidding procedures (this is an increase from the former limits of $200,000 or less).
• For public projects of $220,000 or more, the public agency must award the project by formal bidding procedures.
• In the event all of the bids are in excess of $220,000, the governing body of a public agency may award the contract at $235,000 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

AB 2192 also expanded the definition of public project to include “installations” involving any publicly owned, leased, or operated facility. The updated definition of public project under CUPCCAA will include construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, painting and repainting, and repair work involving any publicly owned, leased, or operated facility.

Additionally, AB 2192 expanded the CUPCCAA Commission’s authority to review a public agency’s accounting procedures when an interested party presents evidence that: (1) the work undertaken by the public agency has been split or separated into smaller work orders or projects, or (2) the work has exceeded the limits for informal bidding or otherwise did not meet the informal or formal bidding requirements.

Public agencies that have adopted CUPCCAA must ensure they are following the updated thresholds at the start of 2025 and should review and update all procurement policies, procedures, and manuals in accordance with AB 2192.

Liebert Cassidy Whitmore attorneys are closely monitoring developments in relation to this Special Bulletin and are able to advise on the impact this could have on your organization. If you have any questions about this issue, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.