School leaders everywhere know that every dollar matters. As federal relief funds expire and education budgets tighten, districts face growing pressure to stretch resources without compromising quality. A new report from Pittsburgh’s Office of the City Controller offers a timely reminder: strong procurement practices—how schools buy goods and services—can unlock millions in savings, improve service quality, and strengthen public trust.
The report, led by City Controller Rachael Heisler, examines how Pittsburgh Public Schools (PPS) awards contracts for supplies, services, and professional work. Its message to school leaders is clear: transparent, competitive procurement isn’t just good policy—it’s essential for fiscal health and community confidence.
The Stakes: Millions in Contracts, Limited Competition
Between January 2024 and August 2025, PPS awarded 498 contracts worth over $96 million. Yet only 44 of those were competitively bid, and just four involved Requests for Proposals (RFPs)—the process designed to ensure fairness and cost efficiency for large contracts.
That means most multimillion-dollar service agreements were awarded without competition. Based on Controller Heisler’s analysis, that lack of competition may have cost the district up to $15 million in potential savings—the equivalent of a tax increase that could have been avoided through better purchasing practices.
Competitive bidding works because it creates a market: vendors must sharpen their prices and proposals. Without it, districts risk overpaying or missing out on more innovative, higher-quality partners.
Why Procurement Matters More Than Ever
This report lands at a critical moment for Pennsylvania schools. In 2023, the state’s Commonwealth Court ruled that the education funding system was unconstitutional because wealthier districts received far more than poorer ones. Lawmakers estimated an additional $4.5 billion would be needed to close that gap.
Although Pittsburgh is not one of the “underfunded” districts slated to receive new adequacy funding, it still faces financial headwinds: declining enrollment, the sunset of pandemic-era federal aid, and uncertainty about how state funding formulas may shift in the future.
In this climate, how districts manage procurement isn’t just about paperwork—it’s about stewardship. Every contract choice has real consequences for classrooms, staff, and the community’s faith in how schools manage taxpayer dollars.
Lessons from the Data: Short Windows, Few Bidders, Missed Opportunities
Pittsburgh’s procurement policies technically align with state law: competitive bids are required for projects and purchases above $23,800. But professional services—such as staffing agencies, consultants, or specialized contractors—can be awarded without bidding, at the district’s discretion.
That discretion has become the rule rather than the exception. Of the 342 contracts above the $23,800 threshold, only a handful were publicly competed. Even more concerning, most RFPs were open for just 27 days, compared to a national K–12 average of 51 days. Short RFP windows limit who can realistically apply, especially small or local vendors unfamiliar with district processes.
Some multimillion-dollar deals were approved after only a week of bidding. For example, a $1.9 million contract for digital math interventions had an RFP open for just six days, and an $18.4 million staffing contract was awarded after 11. These timelines make true competition nearly impossible—and can create the perception that outcomes are pre-decided.
By contrast, the School District of Philadelphia requires an RFP for all contracts above $100,000 and publicly posts every step: bid announcements, vendor Q&As, and board approvals. This transparency not only strengthens accountability but also attracts a larger pool of bidders.
A Case Study in Doing It Right: Mental Health Services
The report spotlights one success story: how PPS improved its mental health services through a more strategic RFP process.
In earlier years, the district paid $300,000 annually to an out-of-state tele-mental-health vendor for just two full-time therapists. When new leaders in Student Support Services restructured the RFP to target local, qualified providers, they achieved remarkable results.
By partnering with Pittsburgh-based organizations experienced in trauma-informed care and eligible for insurance reimbursement, the same $300,000 grant now funds 11 in-person therapists—an 84% cost reduction per staff member.
The shift also improved service quality: in-person care enabled better coordination with families and school teams while keeping dollars circulating in the local economy. This example demonstrates what’s possible when districts use RFPs not as a formality, but as a tool for innovation and partnership.
Five Key Takeaways for School Leaders
Controller Heisler’s office offers practical recommendations that any district can adapt:
- Set clear thresholds for professional services. Require RFPs above a specific dollar amount (e.g., $100,000) to avoid discretionary decisions that favor convenience over competition.
- Lengthen RFP windows. Extending the average open period to around 50 days allows new vendors—especially smaller, local ones—to prepare strong proposals, driving both innovation and lower costs.
- Increase transparency. Create a centralized online portal showing all district contracts, bids, and RFPs in one place. Visibility builds community trust and reduces suspicion of back-room deals.
- Publicize bid opportunities broadly. Announce them at school board and community meetings, and through local networks. Many potential partners never apply simply because they don’t know when opportunities arise.
- Build relationships with local service providers. Hospitals, nonprofits, and universities often offer higher quality, culturally competent, and insurable services at lower costs. Partnering locally keeps dollars in the community and improves accountability.
The Bottom Line: Accountability is Opportunity
For Pittsburgh Public Schools—and for districts across the country—procurement is no longer a back-office function. It’s a leadership strategy. Transparent, competitive contracting can yield the equivalent of a tax windfall, free up resources for classrooms, and deepen trust with families and staff.
As Controller Heisler writes, improving procurement “could yield cost savings comparable to those generated by a tax increase, without burdening taxpayers.” For education leaders facing tight budgets, that’s an opportunity too important to ignore.
Leslie Stebbins is the director of Research4Ed. She has more than twenty-five years of experience in higher education and K-12 learning. Her clients include Harvard University, the U.S. Department of Education, Tufts University, and the Gates Foundation. She has an M.Ed. from the Technology Innovation & Education Program at the Harvard Graduate School of Education and a Master’s in Library and Information Science from Simmons College. https://www.linkedin.com/in/lesliestebbins/
