# 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.&#x20;

(a) The subcontract shall be awarded to the lowest responsible bidder.&#x20;

(b) If three (3) bids or estimates cannot be obtained, the private contractor shall maintain documents in its records that establish:&#x20;

&#x20;             (1) The reasons why three (3) bids or estimates could not be obtained; and&#x20;

&#x20;             (2) The reasonableness of the proposed expenditure without three&#x20;

&#x20;             (3) bids or estimates.&#x20;

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

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


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