PILLAR: Core
AGENDA DATE: October 8, 2025
COUNCIL DISTRICT(S): Citywide
DEPARTMENT: Office of Procurement Services
PRIORITY: Government Efficiency
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SUBJECT
Title
An ordinance amending Chapter 2, “Administration,” of the Dallas City Code by amending Sections 2-30, 2-31, 2-32 to (1) raise the thresholds for when a City contracts must be competitively bid from $50,000.00 to $100,000.00, as authorized by state law; (2) increase the threshold for certain administrative actions and contracts from $100,000.00 to $300,000.00 for goods, general, professional, personal, and other services, and $500,000.00 for architecture, engineering and construction services; (3) provide a savings clause; (4) provide a severability clause; and (5) provide an effective date - Financing: No cost consideration to the City
Body
BACKGROUND
The Office of Procurement Services recommends amending the Dallas City Code to improve contracting efficiencies and align with recent changes to State procurement laws.
During the 2025 Texas Legislative Session, Senate Bill 1173 was enacted, amending Chapters 252 and 271 of the Texas Local Government Code to raise the threshold at which municipalities must competitively bid contracts from $50,000 to $100,000. This change, effective September 1, 2025, represents the first increase to the statutory threshold since 2007 and was last adopted by the City of Dallas in 2012. The new threshold applies only to purchases made on or after September 1, 2025; purchases made prior to that date will continue to follow the existing $50,000 requirement.
In conjunction with this change, the Office of Procurement Services also proposes a review of the City Manager’s contract approval authority currently set at $100,000. This recommendation is based on internal efficiency analysis and findings from the City's Procurement Strike Team in partnership with the Children’s Poverty Action Lab (CPAL), which identified that a significant volume of contracts experience delays due to the extended approval process. Raising the threshold would streamline procurement operations, reduce administrative burden, and accelerate the delivery of goods and services without compromising transparency or oversight.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On May 26, 2021, the City Council approved Ordinance No. 31872 amending Chapter 2 of the Dallas City Code.
The Government Performance & Financial Management Committee was briefed on OPS Process Improvement, Contract Management & Authorization Thresholds on March 24, 2025.
The City Council was briefed on Reimagining Procurement Services on June 4, 2025.
The City Council will be briefed regarding this matter on October 1, 2025.
FISCAL INFORMATION
No cost consideration to the City.