Does a school district have to competitively bid personal service contracts?
Personal services contracts (i.e., consulting, professional development training, and architects) are not required by state law to be bid. However, because of the unprecedented level of accountability and reporting, districts are encouraged to procure personal services through a competitive process. Section 1554 of the American Recovery and Reinvestment Act requires that to the maximum extent possible, ARRA funded contracts are to be awarded as fixed price contracts through the use of competitive procedures. Although the Recovery Act calls on agencies to commence expenditures and activities as quickly as possible consistent with prudent management, this statement by itself does not constitute a sufficient justification to support award of an ARRA funded contract on a non-competitive basis. Agencies are expected to follow the same laws, principles, procedures, and practices in awarding noncompetitive contracts with ARRA funds as they do with other funds. The benefits of competition are
