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How to sell to Oregon counties

Oregon counties follow the state Public Contracting Code. Goods and services up to $25,000 can be bought directly, from $25,000 to $250,000 with at least three quotes, and above that by formal bids or proposals. Public improvements over $100,000 are formally bid, with bid security up to 10% and 100% bonds. Prevailing wage applies to public works over $50,000.

Oregon has 36 counties. Counties buy under the Oregon Public Contracting Code: ORS chapter 279A for general rules, 279B for goods and services and 279C for public improvements. Counties are "local contracting agencies." Each county uses the Attorney General's model rules unless it adopts its own, and many counties do, sometimes with lower thresholds than the statute. Read the county's contracting rules alongside the code.

At a glance

Topic Rule Source
Who buys Board of county commissioners acts as local contract review board unless it designates another body ORS 279A.060
Goods and services Direct to $25,000; three quotes to $250,000; formal bids or proposals above ORS 279B.065; 279B.070
Construction Competitive quotes to $100,000; formal bids above unless exempted ORS 279C.335
Notice Goods: newspaper, 7 days. Construction: newspaper, plus trade paper over $125,000 ORS 279B.055; 279C.360
Award Construction: lowest responsible bidder after 7-day intent notice ORS 279C.375
Bid security Construction over $100,000 ($50,000 roads): up to 10%. Goods: optional ORS 279C.365; 279B.055
Bonds 100% performance and payment over $100,000 ($50,000 roads) ORS 279C.380
Prevailing wage Public works over $50,000 ORS 279C.810
Retainage 5% maximum ORS 279C.570
Prompt payment Construction: interest after 30 days from invoice or 15 days from approval ORS 279C.570
Cooperative purchasing Allowed for goods and services; 7-day comment notice over $250,000 ORS 279A.215; 279A.220
Preferences and certifications Reciprocal resident preference; optional Oregon preference up to 10% ORS 279A.120; 279A.128
Architects and engineers Qualifications-based selection; price weighted 15% max ORS 279C.110

Who buys

Most counties are governed by an elected Board of County Commissioners. That board is the county's local contract review board unless the charter or an ordinance names another body (ORS 279A.060). The board adopts contracting rules or uses the Attorney General's model rules (ORS 279A.065) and approves special procurements (ORS 279B.085). We did not confirm any difference in procurement law between home rule and general law counties.

Goods and services

Contract amount Method
Up to $25,000 Small procurement, in any practical manner, including direct selection (ORS 279B.065)
Over $25,000 to $250,000 Intermediate procurement: at least three informal quotes or proposals, or a written record if fewer are available (ORS 279B.070)
Over $250,000 Competitive sealed bids (ORS 279B.055) or sealed proposals (ORS 279B.060)

The small procurement limit rose from $10,000 to $25,000 on Jan. 1, 2024 (2023 SB 1047). Contracts may not be split to stay under a limit (ORS 279B.065).

For sealed bids, notice runs at least once in a newspaper of general circulation in the area, at least 7 days before closing unless rules provide otherwise; electronic notice may be authorized by rule. Bid security is optional (ORS 279B.055). For sealed proposals (RFPs), the award goes to the responsible proposer whose proposal is "most advantageous" under the stated factors (ORS 279B.060).

Construction and public works

  • Small and intermediate: public improvements under $25,000 are exempt from competitive bidding, and those of $100,000 or less may use competitive quotes (ORS 279C.335). Intermediate quotes need at least three; award goes to the quote that best serves the county's interest, with documentation if it is not the lowest (ORS 279C.414).
  • Formal bids: above $100,000, competitive bidding unless the board grants an exemption with findings. A proposed exemption is published in a statewide trade newspaper 14 days before action (ORS 279C.335).
  • Bid security: required over $100,000 (over $50,000 for highway, bridge and transportation projects), at no more than 10% of the bid (ORS 279C.365). See bid bond.
  • Bonds: a performance bond and a payment bond, each for 100% of the contract price, at the same thresholds. The performance bond may be waived. The surety must be authorized in Oregon (ORS 279C.380).

Notice and award

Public improvement notice: at least once in a newspaper of general circulation in the area, plus a trade newspaper of statewide circulation if the contract is estimated over $125,000. Bids may not be received until at least 5 days after the last publication. Electronic advertising is allowed if the review board authorizes it (ORS 279C.360).

Award: public improvements go to the lowest responsible bidder. The county issues a notice of intent to award at least 7 days before award, checks the Construction Contractors Board disqualification list and files a responsibility form with the CCB within 30 days (ORS 279C.375).

Prevailing wage

Oregon's prevailing wage law (ORS 279C.800 to 279C.870), enforced by the Bureau of Labor and Industries, applies to public works. Contracts of $50,000 or less are exempt (ORS 279C.810(2)(a)). Bids for covered work must include a statement that the contractor will comply (ORS 279C.365(1)(g)). The 2026 session amended this area (2026 HB 4027); check the current statute. See prevailing wage.

Getting paid

On public improvement contracts (ORS 279C.570):

  • Retainage: no more than 5% of progress payments. It may be eliminated after 50% completion on the contractor's request with surety approval. On contracts over $500,000, retainage goes to escrow on request. A surety bond may replace retainage (2024 HB 4006). Retainage is paid with final payment.
  • Late payment: interest on progress payments starts 30 days after the invoice is received or 15 days after approval, whichever is earlier. The rate is three times the Federal Reserve 90-day commercial paper rate, capped at 30%. Interest on final payment and retainage is 1.5% per month starting 30 days after acceptance.

We did not confirm a county prompt payment rule for goods and services.

Cooperative purchasing and state contracts

The code authorizes joint, permissive and interstate cooperative procurement (ORS 279A.200 to 279A.225). Permissive use, or piggybacking, covers goods and services only. The original solicitation must be substantially equivalent to Oregon's sealed bid or proposal process and must allow other agencies to buy. For purchases over $250,000, the county publishes notice of intent with a 7-day vendor comment period and makes a written best-interest finding if comments come in (ORS 279A.215; 279A.220).

Preferences and required certifications

  • Reciprocal resident preference: a nonresident bid is increased by the percentage preference its home state gives. Oregon goods and services win ties (ORS 279A.120).
  • Optional Oregon preference: a county may prefer Oregon goods or services by up to 10%, or more by written good-cause order, and 5% for benefit companies and employee-owned entities (ORS 279A.128).
  • Recycled materials: preference up to 5% (ORS 279A.125).
  • Disabled veterans: a preference is permitted (ORS 279A.100(2)).
  • Construction responsibility: CCB disqualification check and integrity record (ORS 279C.375).
  • E-Verify, Israel boycott and Iran divestment: none found in ORS 279A; other sources not confirmed. Check the solicitation.

Architects and engineers

Yes. Oregon's qualifications-based selection law covers local agencies. Firms are ranked on qualifications. Local agencies may request price proposals from up to the three top-ranked firms, with price weighted no more than 15%. Direct appointment is allowed when the estimated fee is $100,000 or less (ORS 279C.110).

Recent changes

  • Jan. 1, 2024: the small procurement limit for goods and services and the public improvement bidding exemption rose from $10,000 to $25,000 (2023 SB 1047).
  • 2024: HB 4006 allowed a surety bond in place of retainage on public improvements (ORS 279C.570, per Public.Law).
  • 2026: HB 4016 (2026 c.102) amended bidder responsibility in ORS 279B.110, and HB 4027 (2026 c.30) amended prevailing wage provisions in ORS 279C.800 to 279C.870 (2026 Amendments and Repeals table). Details not reviewed here.

Practical tips for Oregon

  • Ask for quote opportunities. Goods and services up to $250,000 use three quotes, and many counties keep vendor lists.
  • Read the county's local contracting rules. They can set lower thresholds than the statute (ORS 279A.065).
  • Register with the CCB and watch the statewide trade newspaper for public improvement bids over $125,000.
  • Use the 7-day intent-to-award window to review results before contracts are signed (ORS 279C.375).
  • Check Oregon counties for each county's bid platform, contacts and agendas.

Questions

What are the purchasing thresholds for Oregon counties?

Goods and services up to $25,000: any practical method, including direct selection. Over $25,000 to $250,000: at least three informal quotes or proposals. Above $250,000: formal competitive sealed bids or proposals (ORS 279B.065; 279B.070).

How are Oregon county bids advertised?

Goods and services: at least once in a newspaper of general circulation, at least 7 days before closing unless rules say otherwise (ORS 279B.055). Public improvements: a local newspaper, plus a statewide trade newspaper over $125,000, with bids due at least 5 days after the last notice (ORS 279C.360).

What bid security and bonds do Oregon counties require on construction?

On public improvements over $100,000 (over $50,000 for highway, bridge and transportation work): bid security of no more than 10%, and performance and payment bonds each for 100% of the contract price (ORS 279C.365; 279C.380).

When does Oregon prevailing wage apply to county projects?

On public works over $50,000. Bids for covered work must include a statement that the contractor will pay prevailing wages (ORS 279C.810; 279C.365).

How much retainage can an Oregon county hold?

No more than 5% of progress payments. Retainage may be eliminated after 50% completion with the surety's approval, and must go to escrow on contracts over $500,000 if requested (ORS 279C.570).

Can Oregon counties use cooperative contracts?

Yes, for goods and services. Over $250,000, the county must publish notice of intent and allow 7 days for vendor comments (ORS 279A.205 to 279A.220).

Do Oregon counties use qualifications-based selection for engineers?

Yes. Firms are ranked on qualifications; local agencies may ask the top three for price, weighted no more than 15%. Direct appointment is allowed up to $100,000 (ORS 279C.110).

Sources

Last reviewed Oct 31, 2026. This is general information, not legal advice. Laws and thresholds change; check the current statute and the bid documents.

How to sell to Oregon counties | FactWise