1. (a) The contractor or subcontractor shall be classified according to the type of work and amount of work for which his experience and financial capacity will qualify him to bid. The types of work, as described in Department of Transportation Specifications, Publication 408, are listed as follows:

   WORK	CODE	SECT.	CLASSIFICATION
   EARTHWORK	A	200	CLEARING & GRUBBING
   	B	200	BUILDING DEMOLITION
   	C	200	EXCAVATING & GRADING
   BASE COURSE	D	300	RIGID BASE COURSE
   	E	300	FLEXIBLE BASE COURSE
   PAVEMENT	F	400	BITUMINOUS PAVEMENT
   	F1	400	BITUMINOUS PAVEMENT PATCHING AND REPAIR
   	G	500	RIGID PAVEMENT
   	G1	500	RIGID PAVEMENT PATCHING & REPAIR
   INCIDENTAL CONSTRUCTION	H	600	DRAINAGE, WATER MAIN, STORM SEWER
   	J	600	GUIDE RAIL, STEEL MEDIAN BARRIER, FENCES
   	J1	600	CONCRETE MEDIAN BARRIER
   	K	600	CURBS, SIDEWALKS, INLETS, MANHOLES, ETC.
   	L	600	SLAPJACKING-SUBSEALING
   ROADSIDE DEVELOPMENT	M	800	LANDSCAPING
   TRAFFIC ACCOMMO- DATIONS AND CONTROL	O	900	PAVEMENT MARKINGS
   	P	900	HIGHWAY/SIGN LIGHTING, SIGNAL CONTROL
   	Q	900	MAINTENANCE AND PROTECTION OF TRAFFIC
   	R	900	SIGN PLACEMENT (POST/ STRUCTURE MOUNTED)
   	R1	900	SIGN STRUCTURES
   STRUCTURES	S	1000	CEMENT CONCRETE STRUCTURES
   	S1	1000	CULVERTS & SINGLE SPAN BRIDGES TO 80 FT
   	S2	1000	REPAIR AND REHABILITATION OF STRUCTURES
   	S3	1000	MODIFIED CONCRETE DECK OVERLAYS
   	T	1050	ERECTION (STRUCTURAL MEMBERS)
   	T1	1018	BRIDGE REMOVAL
   	U	1005	PILE DRIVING
   	V	1070	STEEL PAINTING (HIGH PERFORMANCE)
   	V1	1071	STEEL PAINTING (CONVENTIONAL)
   MISCELLANEOUS	Y		OTHERS

2. (b) Miscellaneous work as determined by the Chief Counsel, as not within the purview of the act, will be excluded by the Deputy Secretary for Highway Administration from the requirements of this chapter. When this is done, the bid proposal shall so state.
3. (c) The classifications of work listed in subsection (a) may be further defined by the Contract Management Division, if needed, to provide for additional types of specialties generated with expanded programs.
4. (d) Each prequalified contractor shall be eligible to bid on projects in which the types of work for which he is classified constitute at least 50% of the project.
5. (e) Each contractor or subcontractor shall be classified for one or more types of work in accordance with his adequacy of plant and equipment, organization, prior experience, record of construction and other pertinent, relevant and material facts which may affect the classification. A contractor or subcontractor who has been assigned classifications of excavation and grading; bituminous pavement or rigid pavement; drainage, water mains, storm sewers; and cement concrete structures (all types) will be considered a general highway contractor. A proposal from a contractor with a general highway contractor designation need not be reviewed for the 50% classification requirement unless specialty items predominate. The contractor or subcontractor shall be assigned an ability factor and given a capacity rating which will designate the quantity of work upon which he will be eligible to bid. The Prequalification Office shall give notice of the classification and rating.

6. (f) The maximum capacity rating shall be a flat sum determined as follows:

   1. (1) The formula, Q = F (C+1/2L+1/2E), shall be used to determine the maximum capacity rating. A contractor whose maximum capacity exceeds $100 million as determined by this formula, will be considered to have unlimited financial capacity.
   2. (2) When the contractor elects to exercise the option as specified in § 457.4(a)(5), the contractor shall be assigned in lieu of the Contractor’s Financial Statement, Form 4300, Part 1, a flat sum factor of $50,000; and the formula Q = F ($50,000) shall be used to determine the maximum capacity rating.

   3. (3) The symbols used in the formula in paragraphs (1) and (2) shall have the following meaning:

      1. (i) Q = Maximum capacity rating.
      2. (ii) C = Net working capital.
      3. (iii) F = Assigned ability factor (1 to 15).
      4. (iv) L = Line-of-credit statements.
      5. (v) E = Book value of equipment.

   4. (4) The following limitations apply to the terms in paragraph (3):

      1. (i) Net working capital shall be current assets less current liabilites.
      2. (ii) Current assets shall be easily negotiable assets that may readily be turned into cash.
      3. (iii) Current liabilities shall be obligations due within a 1-year period.
      4. (iv) A Line-of-Credit statement shall be the form, executed by a bank on page number 20 of the financial statement of the contractor.
      5. (v) Book value of equipment shall be total cost less depreciation actually applied. This equipment factor shall include not only book value of company-owned equipment but also the book value of the contractor’s share of equipment owned by a joint venture.
   5. (5) If the maximum capacity rating (Q) is a positive number, a certificate as a prime contractor will be issued. If the contractor has had a negative working capital for 2 consecutive fiscal years, the Department will request additional documentation to support the contractor’s financial capabilities even if the maximum capacity rating (Q) is a positive number as a result of a line of credit or book value of equipment, or both. If the Department still considers the contractor’s financial status to be questionable, the Department will prequalify the contractor to perform work only as a subcontractor.
   6. (6) If the net working capital (C) is a negative amount, the Department has the right to reduce the qualification amount or to reject the application.
7. (g) The qualification amount, determined by the applicable formula in subsection (f) shall establish the maximum capacity rating of the applicant. Award of contract shall be restricted to the assigned maximum capacity rating less monetary value of the uncompleted contract and subcontract work under § 457.16 (relating to sublettings).

Authority

The provisions of this § 457.5 amended under section 404.1 of the State Highway Law (36 P. S. § 670-404.1).

Source

The provisions of this § 457.5 adopted September 21, 1973, effective September 22, 1973, 3 Pa.B. 2133; amended August 8, 1975, effective August 9, 1975, 5 Pa.B. 2035; amended April 13, 1979, effective April 14, 1979, 9 Pa.B. 1308; through August 12, 1983, effective August 13, 1983, 13 Pa.B. 2490; amended April 11, 1997, effective July 1, 1997, 27 Pa.B. 1798; amended April 13, 2007, effective April 14, 2007, 37 Pa.B. 1650. Immediately preceding text appears at serial pages (227766) to (227768) and (314779).

Notes of Decisions

Protest Untimely

Bidder should have known of all pertinent facts giving rise to his bid protest on the date he filed his bid because he knew which classification codes he was prequalified to bid on, as well as the codes the Department of Transportation had assigned to work items involved in the project that he believed were incorrectly classified; therefore, since Bidder’s protest was filed more than 7 days after he filed his bid, the protest was untimely. Cummins v. Department of Transportation, 877 A.2d 550, 554—555 (Pa. Cmwlth. 2005).

Cross References

This section cited in 67 Pa. Code § 457.3 (relating to general requirements); and 67 Pa. Code § 457.4 (relating to statements to be furnished under oath).