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KEY COMPLIANCE GUIDELINES

It is suggested that a copy of this complete document be given to your Project, Construction Manager,

and/or Architect so that they are fully aware of the RACP requirements related to each. This document

should be included in your bid packages and should be made an addendum to any and all construction

contracts, plans and specifications related to the RACP project.

Compliance with all RACP requirements, including the key items in these guidelines will be monitored

frequently throughout the construction phase of your project and will be reviewed once more during

projects shall be the sole requirement for the composition, solicitation, opening and award of bids on

such projects.” Unless the terms of the law change, the Office of the Budget cannot grant waivers for

bidding requirements to Grantees.

RACP projects are not subject to separation of trades. You are REQUIRED to solicit a minimum of three

(3) bids for "all generally contracted work" being performed within the RACP defined scope of work.

You are not required to receive three (3) bid responses. However, you should provide documentation to

prove that at least three bids were solicited by providing copies of the solicitation letters (preferably on

letterhead of the bidding entity) used in the bidding process. You are not required to select the lowest

bidder, but if you do not, you will have to provide a brief written justification for your selection. Note:

there is NO threshold level under the RACP program regardless of the size or dollar amount associated

construction work. The dollar amount bid on the project must include 100% of the work to be

performed by the GC and the sub-contractors. Bidding at the GC level will require submission of

bidding and construction related documents at the GC level only (see Sub-Contractor level

below for a distinction)

• Sub-Contractor Level - If you choose not to solicit three bids for a General Contractor, then you

are required to solicit a minimum of three bids for EACH Sub-Contractor covering all trades

involved in the project. Note that any self-performed work by a non-bid GC is NOT an eligible

cost for reimbursement OR match purposes. Bidding at the Sub-Contractor level will require

submission of bidding and construction related documents at the sub level…meaning proof of

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contract. If a change order is for work beyond the RACP scope of work originally bid, the Grantee will be

required to competitively bid out the new scope of work in order to be considered RACP eligible.

The Office of the Budget (OB) cannot grant waivers to the Pennsylvania Steel Products Procurement Act

(SPPA) unless the terms of the law change. All RACP Grantees must comply with the SPPA. If a

Grantee/RACP project fails to abide by the SPPA, it does so at its own risk.

A full explanation on the RACP steel requirements is available as a PDF download.

Up to 2011, OB only accepted the ST-4 Form (justification for the use of foreign steel) that the

2023, 2022) as part of the RACP steel policy. DGS published a Statement of Policy - Steel Products

Procurement in the Pennsylvania Bulletin Volume 43, Number 6 dated February 9, 2013 (See PA Bulletin

#43, pages 85-86) that discussed their production of an annual list, based on their analysis of submitted

ST-4 forms, which exempts certain steel products not produced domestically in sufficient quantity. DGS

publishes an updated "Exemption List" annually.

Please be aware that ST forms are acceptable only in cases where nonstructural steel needs to be

addressed. The DGS ST forms do not replace the steel certification forms associated with structural

steel. OB will continue to require the submission of steel mill certifications to demonstrate compliance

with the steel requirements for structural steel.

to be exempted that are not found on the current year's List of Exempt Machinery and

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necessary, has been met.

of steel certifications for Structural Steel and for Non-structural Steel the submission of steel

certifications and/or ST forms and/or DGS Exempt Machinery and Equipment Steel Products List.

Therefore, the value of construction contracts associated with non-compliant steel will be removed

(both materials and labor costs) from the scope of the project, which may in turn affect the project's

ability to leverage their full grant amount (project may not receive its full grant).

Recycled products, melted from previously used steel, are acceptable, providing that adequate

documentation from the supplier has been furnished. The supplier shall certify that the recycled steel

product was produced in the USA.

purchase or use of those countries' products, as listed below, is not permitted:

• Argentina: carbon steel wire rod and cold-rolled carbon steel sheet.

• Brazil: welded carbon steel pipes and tubes; carbon steel wire rod; tool steel; certain stainless

steel products, including hot-rolled stainless steel bar; stainless steel wire rod and cold-formed

stainless steel bar; pre-stressed concrete steel wire strand; hot-rolled carbon steel plate in coil;

hot-rolled carbon steel sheet; and cold-rolled carbon steel sheet.

• South Korea: welded carbon steel pipes and tubes; hot-rolled carbon steel plate; hot-rolled

carbon steel sheet; and galvanized steel sheet.

• Spain: certain stainless steel products, including stainless steel wire rod, hot-rolled stainless

steel bars; and cold-formed stainless steel bars; pre-stressed concrete steel wire strand; and

prohibit the use of foreign-made steel and cast iron products.

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The requirement for 100% payment and performance (P&P) bonds is a state law; the Office of the

A performance bond must be obtained at 100% of the contract amount, conditioned upon the faithful

performance of the contract in accordance with the plans, specifications, and conditions of the contract.

Such bond shall be solely for the protection of the contracting body which awarded said contract.

A payment bond must be obtained at 100% of the contract amount. Such bond shall be solely for the

protection of claimants supplying labor or materials to the Grantee, its contractor or to any of its

subcontractors, in the prosecution of the work provided for in such contract, and shall be conditioned

with the act. Grantees that fail to abide by the Prevailing Wage Act do so at their own risk. Please do

not assume that PA Prevailing Wage is always consistent with your local union wages.

All projects should apply for a wage determination letter prior to the start of construction by registering

the project with the PA Department of Labor and Industry to obtain the prevailing wage rates relevant

to your project. This determination sheet will provide the necessary trade classifications for the project,

along with their corresponding hourly wage and hourly fringe rates that are required for the certified

payrolls required as part of RACP. The wage determination should be obtained within 120 days of the

award of construction contracts. If necessary, the Department of Labor and Industry can issue

determinations letters after construction has begun.

The prevailing wage information and forms can be found on the

with Disabilities Act which are applicable to all benefits, services, programs, and activities provided by

the commonwealth through contracts.

FIDELITY BONDS

The Grantee shall procure and furnish evidence to OB, of fidelity bonds with coverage to be maintained

under the administrative title of the position, in amounts and for such positions as are reasonably

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coverage amount meets or exceeds the RACP grant amount, or the coverage amount meets or exceeds

the monthly project funding schedule contained in Appendix C of the grant agreement. For Grantees

with multiple projects and/or grants larger than $5,000,000 the coverage amount can be the lesser of