# Private Contractors

### **Three (3) Bids for Subcontracts Exceeding the Amount Stated in Annual Contract.**

Private contractors shall obtain at least three (3) bids or estimates for subcontracts that exceed the amount stated for subcontract bid requirements in the annual child development contract. 

(a) The subcontract shall be awarded to the lowest responsible bidder. 

(b) If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish: 

              (1) The reasons why three (3) bids or estimates could not be obtained; and 

              (2) The reasonableness of the proposed expenditure without three 

              (3) bids or estimates. 

(c) The contractor shall not split subcontracts to avoid competitive bidding requirements.

> NOTE: Authority cited: Section 8261, Education Code. Reference: Section 8261, Education Code.