Arkansas Department of Education Division of Elementary and Secondary Education Act 1124 of 2017 - Purchase Price Threshold for Bidding Commodities

Memo Information

Memo Number
FIN-18-047
Memo Date
5/22/2018
Memo Type
Informational
Unit
Fiscal & Administrative Services
Regulatory Authority
Ark. Code Ann. ยง 6-21-304
Response Required
NO
Attention
Federal Programs; Superintendents; Principals; Technology Coordinator; Test Coordinator; General Business Manager; Teachers; Gifted & Talented Coordinator; Curriculum Coordinator; School Counselor; Techstart Coordinator or Contact Name

Primary Contact Information

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Memo Text

Ark. Code Ann. § 6-21-304, as amended by Act 1124 of 2017, requires the Commissioner of Education to adjust the purchasing threshold for bidding amounts under Ark. Code Ann. § 6-21-304(a)(1)(A) by the percentage change in the Consumer Price Index (CPI) for All Urban Consumers or its successor.  This adjustment shall be done by July 1 of each year.

 

The increase in the CPI for this category during the 12 month period ending April 2018 was  2.5%. Therefore, the purchasing threshold for bidding under Ark. Code Ann. § 6-21-304 will increase from $20,000 to $20,500 for the 2018-2019 school year.  

 

See below for calculation: 

 

 

Purchasing threshold for bidding under Ark. Code Ann.           § 6-21-304

CPI - All Urban Consumers

Percentage Change for the 12 month period ending April 2018

2017-2018

$20,000

$244.524

2.5%

2018-2019

$20,500

$250.546

2.5%

 

While the legislation does not provide a specific source for the CPI data, the Arkansas Department of Education (ADE) recognizes the Bureau of Labor Statistics' as a valid source of CPI data. 

 

The CPI data used for the percentage increase calculation is found at https://www.bls.gov/cpi/tables/supplemental-files/home.htm. Choose April 2018 and the category CPI-U to see the 2.5% change for the 12 month period ending April 2018.

 

For more information on the CPI, go to the following website: http://www.bls.gov/cpi/cpifaq.htm.

 

If you cannot click on the above links, copy and paste the URLs into the Internet browser address bar.

 


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