Arkansas Department of Education Division of Elementary and Secondary Education Purchase Price Threshold for Bidding Commodities

Memo Information

Memo Number
FIN-19-040
Memo Date
5/17/2019
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 Coordinators; Test Coordinators; General Business Managers; Teachers; Gifted & Talented Coordinators; Curriculum Coordinators; Bookkeepers; School Counselors; Techstart Coordinators or Contact Name

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Memo Text


Ark. Code Ann. § 6-21-304 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 2019 was 2.0%.  Therefore, the purchasing threshold for bidding under Ark. Code Ann. § 6-21-304 will increase from $20,500 to $20,910 for the 2019-2020 school year.

 

See below for calculation:

 

 

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

CPI – All Urban Consumers

Percentage Change for the 12 month period ending April 2019

2018-2019

$20,500

$250.546

2.0%

2019-2020

$20,910

$255.548

2.0%

 

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 2019 and the category CPI-U to see the 2.0% change for the 12 month period ending April 2019.

 

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

 

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

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