News & Insights

It’s the start of the new year, and for many contractors this means it is the start of the transportation contract bidding and renewal season. During this period, many contractors often seek clarity on legal requirements regarding school district Request for Proposals (RFPs), and the obligations of contractors responding to such RFPs.

 In Pennsylvania, courts have agreed that the Public School Code does not establish any requirements that school districts must comply with before entering into a contract with a transportation provider. Hahn v. Palmerton Area School Dist., 32 Pa D. & C.2d 91, 93 (Pa C.P. Aug. 22, 1963). Pennsylvania courts have also held that schools are not required to publicly advertise bids, or even select the lowest bidder. Id. Notably, Pennsylvania Department of Education regulations provide that school boards are responsible for all aspects of transportation programs, which includes the “negotiation and execution of contracts or agreements with contractors”. 22 Pa. Code §23.4. While school districts in Pennsylvania have broad discretion in how transportation contracts are bid and negotiated, they are not permitted to act in a manner that a court would consider “arbitrary and capricious”. The school board must act in accordance with applicable laws to achieve the best overall value to the school district, even if it is not the lowest price.  

Contractors interested in responding to an RFP should ensure that they read the RFP carefully and comply with all instructions. Contractors reviewing an RFP should take note of any terms or conditions that are either operationally risky or cost-prohibitive. If the RFP permits questions, contractors are encouraged to dialog with the school district on such terms. At the time of bid, if there are any unresolved concerns regarding certain terms, contractors may consider taking an exception or making a clarification to the terms. There is no general rule that prohibits contractors from submitting exceptions or clarifications with their bid; however, contractors should be mindful of quality over quantity, as too many exceptions may make other bids more attractive. If you are working through an RFP, or have any questions regarding exceptions or clarifications, contact us at 215-896-3846 or email help@rckelly.com.