State College Council Weighs Suspension of Controversial Ordinance Affecting Project Bids

The Challenge of the Responsible Contractor Ordinance

The State College borough council is considering suspending its Responsible Contractor Ordinance (RCO) next month due to a significant issue: a lack of qualified bids for upcoming projects. This decision comes as the borough faces pressure to meet deadlines and avoid losing millions in grant funding.

The RCO, adopted in 2024, was designed to ensure that contracts are awarded to responsible bidders who meet specific criteria beyond just cost. It mirrors an ordinance passed by the county government in 2023. Under state law and the borough’s previous purchasing code, contracts must go to the lowest, responsible bidder. The RCO adds clarity on what "responsible" means in terms of public contracts requiring competitive bidding.

One of the key aspects of the RCO is that it allows the borough to consider factors other than price when selecting contractors. For projects valued at $250,000 or more, the RCO requires that contractors have the necessary experience, equipment, technical skills, qualifications, and resources. Additionally, it mandates that 70% of craft labor workers on the project must be either journeypersons who have completed apprenticeship programs or registered apprentices enrolled in such programs.

However, these requirements are proving difficult for the borough to meet. The current situation has led to delays and potential financial losses. Borough Manager Tom Fountaine explained during a recent council meeting that a temporary suspension of the RCO would allow the borough to proceed with critical projects.

“We're expecting potentially two bids this year,” Fountaine said. “One is for the Calder Way Phase 2 project, which is the one where the grants are at risk, and the other is the annual repaving contract. Those would be the two that we know would be impacted immediately.”

Fountaine also mentioned that there could be additional projects coming up before the end of the year, but these two are currently on the calendar. The council had previously discussed the lack of qualified bidders during a meeting earlier this month when they had to waive the RCO requirements for a road reconstruction project. This marked the second time a waiver was approved.

Borough staff is working on creating an amendment to the RCO that would streamline the process for approving waivers, reducing delays caused by re-bidding. The main issue, according to Fountaine, is the workforce requirement. The current standard makes it challenging for contractors to qualify, leading to fewer bids.

Borough solicitor Terry Williams noted that staff is struggling to find a solution that avoids constant re-bidding. Council president Evan Myers emphasized that the RCO was well-intentioned and the right approach. He suggested that the staff explore a provision allowing for the selection of a responsible contractor if one exists, while also enabling the borough to move forward without delays if no qualified bidders are available.

“This would accomplish both things,” Myers said. “It stands by our principles while also ensuring that we get things done for everyone.”

Williams, however, warned that any changes to the selection process must be carefully reviewed to avoid conflicts with existing bidding requirements. “When you talk about a selection process based on something other than the lowest, responsible bidder, we’d have to look at that very closely because I think that will probably run afoul of the bidding requirements,” he said.

Fountaine anticipates that a temporary suspension of the RCO will be included on the agenda for the Aug. 4 council meeting. The decision will have significant implications for the borough's ability to manage its construction projects and secure funding. As the council deliberates, the balance between maintaining high standards and ensuring timely project completion remains a central challenge.