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$35,000.2 If an original construction contract is subject to competitive bidding and district officials and a contractor are considering adding work that materially varies from the original contract specifications, then officials should subject the additional work to a competitive process. By doing so, unsuccessful bidders and potential additional vendors are given the opportunity to compete on the additional work. When determining whether the competitive bidding dollar threshold will be exceeded, the board must consider the aggregate amount reasonably expected to be spent on all purchases that are similar or essentially interchangeable within a 12-month period, commencing on the date of purchase, whether the purchases are from a single vendor or multiple vendors. If, in the aggregate, the purchase contract or contract for public work exceeds the dollar threshold, competitive bidding is required. Purchase contracts or public works contracts may not be artificially divided by making a series of purchases for lesser amounts to avoid procurement requirements. Because the board authorizes construction contracts, it also should review and approve proposed changes to the contracts. Change orders should be presented to the board for approval in a timely manner and reviewed promptly to ensure each change order is formally approved before any additional work is started. All change orders should be properly approved by district officials, including the board president, as required by SED. In the interest of transparency, the board should document its review and approval of change orders in its meeting minutes. SED requires certain additional reporting on change orders that exceed the statutory competitive bidding threshold of $35,000. In these cases, on the change order certification, the district must include an explanation of why it is in the best interest of the district and the public to award a change order instead of placing the work out for public bid. Change orders should be limited to those items needed to implement the project that was originally proposed by the district and approved by district voters and the SED Commissioner. Change orders for work not included in the original plans and specifications might not be approved by SED and, consequently, might not be eligible for building aid. Therefore, it is a best practice for districts to consult with SED before seeking approval for large change orders. Officials Could Be More Transparent When Presenting Project Details to the Public We identified instances where the Board and District officials could have been more transparent when presenting the project’s scope to the public. While the project’s total costs are not expected to exceed the voter-approved budget of $15.9 million, officials had an opportunity to complete the project for less than the approved amount. However, officials completed additional work, adjusted the project’s scope and did not inform the voters of the choices they made. The District mailed a newsletter to residents that contained a general description of the work to be completed, and the project proposition was included in the Board’s meeting minutes. The proposition included a list of items to be completed and description of how the project would be funded. It also 2 GML, Section 103 Of f ic e of t he New York State Comptroller 3