PRINTER'S NO. 2503
No. 1861 Session of 2005
INTRODUCED BY O'NEILL, HERMAN, LESCOVITZ, BIANCUCCI, HANNA,
ROSS, HARHAI, HICKERNELL, HARPER, KAUFFMAN, HENNESSEY,
M. KELLER, PETRI, T. STEVENSON, McNAUGHTON, GINGRICH,
ARMSTRONG, BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER,
DeWEESE, FRANKEL, GEIST, HARRIS, HERSHEY, McILHATTAN,
PHILLIPS, PICKETT, SCAVELLO AND WATSON, JULY 3, 2005
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JULY 3, 2005
AN ACT
1 Amending Titles 53 (Municipalities Generally) and 74
2 (Transportation) of the Pennsylvania Consolidated Statutes,
3 further providing for competitive bidding of contracts by
4 intergovernmental units, by parking authorities, by municipal
5 authorities and by metropolitan transportation authorities.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 2308 of Title 53 of the Pennsylvania
9 Consolidated Statutes is amended to read:
10 § 2308. Bids for certain joint purchases.
11 (a) Notice.--All joint purchases involving an expenditure of
12 more than [$10,000] $25,000 subject to annual adjustment under
13 subsection (b) shall be made by contract, in writing, only after
14 notice for bids once a week for two weeks in at least one and
15 not more than two newspapers of general circulation in the
16 joining local governments. All contracts shall be let to the
17 lowest responsible bidder. Every contract for the construction,
1 reconstruction, alteration, repair, improvement or maintenance
2 of public works shall comply with the provisions of the act of
3 March 3, 1978 (P.L.6, No.3), known as the Steel Products
4 Procurement Act.
5 (b) Annual adjustment.--
6 (1) The Department of Labor and Industry shall determine
7 the percentage change in the Consumer Price Index for All
8 Urban Consumers for the 12-month period ending September 30
9 of the calendar year in which this subsection becomes
10 effective and for each successive 12-month period thereafter.
11 (2) The amount at which competitive bidding is required
12 under subsection (a) shall be adjusted annually. The positive
13 percentage change, as determined in accordance with paragraph
14 (1), shall be multiplied by the amount applicable under
15 subsection (a) for the current year, and the product thereof
16 shall be added to the amount applicable under subsection (a)
17 for the current year with the result rounded to the nearest
18 multiple of $10.
19 (3) The annual determination required under paragraph
20 (1) and the calculation of the adjustments required under
21 paragraph (2) shall be made in the period between October 1
22 and November 15 of the year following the effective date of
23 this subsection and annually between October 1 and November
24 15 of each successive year.
25 (4) The adjusted amounts obtained in accordance with
26 paragraph (2) shall become effective January 1 for the
27 calendar year following the year in which the determination
28 required under paragraph (1) is made.
29 (5) The Department of Labor and Industry shall give
30 notice in the Pennsylvania Bulletin prior to January 1 of
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1 each calendar year of the annual percentage change determined
2 in accordance with paragraph (1) and the amounts, whether
3 adjusted or unadjusted in accordance with paragraph (2), at
4 which competitive bidding is required under subsection (a)
5 for the calendar year beginning the first day of January
6 after publication of the notice.
7 Section 2. Section 5511(c) and (h)(1) of Title 53 are
8 amended and the section is amended by adding a subsection to
9 read:
10 § 5511. Competition in award of contracts.
11 * * *
12 (c) Quotations.--Written or telephonic price quotations from
13 at least three qualified and responsible contractors shall be
14 requested for a contract which exceeds [$4,000] $10,000, subject
15 to adjustment under subsection (c.1), but is less than the
16 amount requiring advertisement and competitive bidding. In lieu
17 of price quotations, a memorandum shall be kept on file showing
18 that fewer than three qualified contractors exist in the market
19 area within which it is practicable to obtain quotations. A
20 written record of telephonic price quotations shall be made and
21 shall contain at least the date of the quotation; the name of
22 the contractor and the contractor's representative; the
23 construction, reconstruction, repair, maintenance or work which
24 was the subject of the quotation; and the price. Written price
25 quotations, written records of telephonic price quotations and
26 memoranda shall be retained for a period of three years.
27 (c.1) Adjustments.--
28 (1) The Department of Labor and Industry shall determine
29 the percentage change in the Consumer Price Index for All
30 Urban Consumers for the 12-month period ending September 30
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1 of the calendar year in which this subsection becomes
2 effective and for each successive 12-month period thereafter.
3 (2) The amount at which competitive bidding is required
4 under subsection (a) or (b) and the amount at which written
5 or telephonic price quotations are required under subsection
6 (c) shall be adjusted annually as follows:
7 (i) For subsections (a) and (b):
8 (A) Multiply the positive percentage change
9 under paragraph (1) by the amount applicable under
10 subsection (a) or (b) for the current year.
11 (B) Add the product under clause (A) to the
12 amount applicable under subsection (a) or (b) for the
13 current year.
14 (C) Round the sum under clause (B) to the
15 nearest multiple of $10.
16 (ii) For subsection (c):
17 (A) Multiply the positive percentage change, as
18 determined under paragraph (1) by the amount
19 applicable under subsection (c) for the current year.
20 (B) Add the product under clause (A) to the
21 amount applicable under subsection (c) for the
22 current year.
23 (C) Round the sum under clause (B) to the
24 nearest multiple of $10.
25 (3) The annual determination required under paragraph
26 (1) and the calculation of the adjustments required under
27 paragraph (2) shall be made in the period between October 1
28 and November 15 of the year following the effective date of
29 this subsection and annually between October 1 and November
30 15 of each successive year.
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1 (4) The adjusted amounts obtained under paragraph (2)
2 shall become effective January 1 for the calendar year
3 following the year in which the determination required under
4 paragraph (1) is made.
5 (5) The department shall give notice in the Pennsylvania
6 Bulletin prior to January 1 of each calendar year of the
7 annual percentage change determined in accordance with
8 paragraph (1) and the amounts, whether adjusted or unadjusted
9 in accordance with paragraph (2), at which competitive
10 bidding is required under subsection (a) or (b) and written
11 or telephonic price quotations are required under subsection
12 (c) for the calendar year beginning the first day of January
13 after publication of the notice.
14 * * *
15 (h) Evasion.--
16 (1) An authority may not evade the provisions of this
17 section as to bids or purchasing materials or contracting for
18 services piecemeal for the purpose of obtaining prices under
19 [$25,000] the amount required by this section upon
20 transactions which should, in the exercise of reasonable
21 discretion and prudence, be conducted as one transaction
22 amounting to more than [$25,000] the amount required by this
23 section.
24 * * *
25 Section 3. Section 5614(a)(1), (b), (c) and (h)(1) of Title
26 53 are amended and the section is amended by adding a subsection
27 to read:
28 § 5614. Competition in award of contracts.
29 (a) Services.--
30 (1) Except as set forth in paragraph (2), all
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1 construction, reconstruction, repair or work of any nature
2 made by an authority if the entire cost, value or amount,
3 including labor and materials, exceeds [$10,000] $25,000,
4 subject to adjustment under subsection (c.1), shall be done
5 only under contract to be entered into by the authority with
6 the lowest responsible bidder upon proper terms after public
7 notice asking for competitive bids as provided in this
8 section.
9 * * *
10 (b) Supplies and materials.--All supplies and materials
11 costing at least [$10,000] $25,000, subject to adjustment under
12 subsection (c.1), shall be purchased only after advertisement as
13 provided in this section. The authority shall accept the lowest
14 bid, kind, quality and material being equal, but the authority
15 shall have the right to reject any or all bids or select a
16 single item from any bid. The provisions as to bidding shall not
17 apply to the purchase of patented and manufactured products
18 offered for sale in a noncompetitive market or solely by a
19 manufacturer's authorized dealer.
20 (c) Quotations.--Written or telephonic price quotations from
21 at least three qualified and responsible contractors shall be
22 requested for a contract which exceeds [$4,000] $10,000, subject
23 to adjustment under subsection (c.1), but is less than the
24 amount requiring advertisement and competitive bidding. In lieu
25 of price quotations, a memorandum shall be kept on file showing
26 that fewer than three qualified contractors exist in the market
27 area within which it is practicable to obtain quotations. A
28 written record of telephonic price quotations shall be made and
29 shall contain at least the date of the quotation; the name of
30 the contractor and the contractor's representative; the
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1 construction, reconstruction, repair, maintenance or work which
2 was the subject of the quotation; and the price. Written price
3 quotations, written records of telephonic price quotations and
4 memoranda shall be retained for a period of three years.
5 (c.1) Adjustments.--
6 (1) The Department of Labor and Industry shall determine
7 the percentage change in the Consumer Price Index for All
8 Urban Consumers for the 12-month period ending September 30
9 of the calendar year in which this subsection becomes
10 effective and for each successive 12-month period thereafter.
11 (2) The amount at which competitive bidding is required
12 under subsection (a)(1) and the amount at which written or
13 telephonic price quotations are required under subsection (b)
14 shall be adjusted annually as follows:
15 (i) For subsection (a)(1):
16 (A) Multiply the positive percentage change
17 under paragraph (1) by the amount applicable under
18 subsection (a) for the current year.
19 (B) Add the product under clause (A) to the
20 amount applicable under subsection (a)(1) for the
21 current year.
22 (C) Round the sum under clause (B) to the
23 nearest multiple of $10.
24 (ii) For subsection (b):
25 (A) Multiply the positive percentage change, as
26 determined under paragraph (1) by the amount
27 applicable under subsection (a.1) for the current
28 year.
29 (B) Add the product under clause (A) to the
30 amount applicable under subsection (b) for the
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1 current year.
2 (C) Round the sum under clause (B) to the
3 nearest multiple of $10.
4 (3) The annual determination required under paragraph
5 (1) and the calculation of the adjustments required under
6 paragraph (2) shall be made in the period between October 1
7 and November 15 of the year following the effective date of
8 this subsection and annually between October 1 and November
9 15 of each successive year.
10 (4) The adjusted amounts obtained under paragraph (2)
11 shall become effective January 1 for the calendar year
12 following the year in which the determination required under
13 paragraph (1) is made.
14 (5) The department shall give notice in the Pennsylvania
15 Bulletin prior to January 1 of each calendar year of the
16 annual percentage change determined in accordance with
17 paragraph (1) and the amounts, whether adjusted or unadjusted
18 in accordance with paragraph (2), at which competitive
19 bidding is required under subsection (a)(1) and written or
20 telephonic price quotations are required under subsection (b)
21 for the calendar year beginning the first day of January
22 after publication of the notice.
23 * * *
24 (h) Evasion.--
25 (1) An authority may not evade the provisions of this
26 section as to bids or purchasing materials or contracting for
27 services piecemeal for the purpose of obtaining prices under
28 [$10,000] the amount required by this section upon
29 transactions which should, in the exercise of reasonable
30 discretion and prudence, be conducted as one transaction
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1 amounting to more than [$10,000] the amount required by this
2 section.
3 * * *
4 Section 4. Section 1750 of Title 74 is amended to read:
5 § 1750. Contracts, procurement and sale of property.
6 (a) Competitive bids.--Except in the purchase of unique
7 articles or articles which, for any other reason, cannot be
8 obtained in the open market and except as provided in section
9 1741 (relating to general powers) and as provided in this
10 chapter, competitive bids shall be secured before any purchase
11 or sale, by contract or otherwise, is made or before any
12 contract is awarded for construction, alterations, supplies,
13 equipment, repairs or maintenance or for rendering any services
14 to the authority other than professional services. Purchases
15 shall be made from or the contract shall be awarded to the
16 lowest responsive, responsible bidder. Sales shall be made to
17 the highest responsive, responsible bidder. No purchase of any
18 unique article or other articles which cannot be obtained in the
19 open market shall be made without express approval of the board
20 where the amount involved is in excess of $25,000. The authority
21 shall not be subject to the act of November 26, 1978 (P.L.1309,
22 No.317), referred to as the Public Works Contract Regulation
23 Law. Nothing in this section or any other law of this
24 Commonwealth shall require the authority to competitively bid
25 architectural design, engineering, construction management or
26 other professional services required by the authority.
27 (b) Procedure.--All purchases and sales in excess of $25,000
28 shall be awarded after advertising in a local newspaper of
29 general circulation in the metropolitan area at least two weeks
30 prior to the bid opening. Bids shall be publicly opened and read
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1 aloud at a date, time and place designated in the invitation to
2 bid. Invitations to bid shall be sent at least one week prior to
3 the bid opening to at least three potential bidders who are
4 qualified technically and financially to submit bids, or, in
5 lieu thereof, a memorandum shall be kept on file showing that
6 less than three potential bidders so qualified exist in the
7 market area within which it is practicable to obtain bids.
8 [(c) Qualified vendors.--Written price quotations from at
9 least three qualified and responsible vendors shall be solicited
10 for all purchases and sales under $25,000 and over $10,000, or,
11 in lieu thereof, a memorandum approved by the general manager
12 shall be kept on file showing that less than three vendors so
13 qualified exist in the market area within which it is
14 practicable to obtain quotations, except as provided in this
15 chapter.]
16 (d) Small purchases.--Purchases or sales under [$10,000]
17 $25,000, subject to annual adjustment under subsection (l), may
18 be negotiated with or without competitive bidding under sound
19 procurement procedures as promulgated and established by the
20 general manager.
21 (e) Waiver.--Competitive bidding requirements may be waived
22 if it is determined by the general manager, or in such other
23 manner as the board may provide, that an emergency directly and
24 immediately affecting customer service or public health, safety
25 or welfare requires immediate delivery of supplies, materials,
26 equipment or services. A record of circumstances explaining the
27 emergency shall be submitted to the board at its next regular
28 meeting and thereafter kept on file.
29 (f) Sale or lease of real property.--Contracts for the sale
30 or lease of real property owned by the authority shall be
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1 awarded after competitive bidding as shown in subsection (b),
2 except as provided in section 1741(a)(22) where the contract is
3 entered into with the Commonwealth or any government agency or
4 with the United States government or any agency or
5 instrumentality thereof or as provided in section 1741(a)(24).
6 (g) Property management contracts.--Contracts for the
7 management of authority-owned property, such as bus routes or
8 subway systems, may be negotiated and awarded by an affirmative
9 vote of one more than a majority of all members of the board.
10 (h) Avoidance prohibited.--Requirements shall not be split
11 into parts for the purpose of avoiding the provisions of this
12 section.
13 (i) Rejection of bids.--The authority shall have the right
14 to reject any or all bids or parts of any or all bids, whenever,
15 in the opinion of the board, rejection is necessary for the
16 protection of the interests of the authority. In every case, a
17 record shall be made setting forth the reason for the rejection,
18 which record shall thereafter be kept on file.
19 (j) Rules and regulations.--The board may by resolution
20 adopt policies to effectuate the provisions of this section.
21 (k) Concessions.--All concessions granted by the authority
22 for the sale of products or the rendition of services for a
23 consideration on authority property shall be awarded only under
24 written specifications after competitive bidding and to the
25 highest responsive, responsible bidder in a manner similar to
26 that required by subsection (b) [or (c) as appropriate]. This
27 requirement for competitive bidding shall not apply to any
28 concession which has been granted by a transportation system
29 acquired by the authority and which by the terms of the
30 agreement granting it will terminate within one year from date
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1 of the acquisition of the transportation system by the authority
2 nor to any concession involving the estimated receipt by the
3 authority of less than [$10,000] $25,000, subject to annual
4 adjustment under subsection (l), over the period for which the
5 concession is granted.
6 (l) Consumer Price Index adjustments.--
7 (1) The Department of Labor and Industry shall determine
8 the percentage change in the Consumer Price Index for All
9 Urban Consumers for the 12-month period ending September 30
10 of the calendar year in which this subsection becomes
11 effective and for each successive 12-month period thereafter.
12 (2) The amount at which competitive bidding is required
13 under subsection (b) shall be adjusted annually. The positive
14 percentage change as determined in accordance with paragraph
15 (1) shall be multiplied by the amount applicable under
16 subsection (b) for the current year, and the product thereof
17 shall be added to the amount applicable under subsection (b)
18 for the current year, with the result rounded to the nearest
19 multiple of $10.
20 (3) The annual determination required under paragraph
21 (1) and the calculation of the adjustments required under
22 paragraph (2) shall be made in the period between October 1
23 and November 15 of the year following the effective date of
24 this subsection and annually between October 1 and November
25 15 of each successive year.
26 (4) The adjusted amounts obtained in accordance with
27 paragraph (2) shall become effective January 1 for the
28 calendar year following the year in which the determination
29 required under paragraph (1) is made.
30 (5) The Department of Labor and Industry shall give
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1 notice in the Pennsylvania Bulletin prior to January 1 of
2 each calendar year of the annual percentage change determined
3 in accordance with paragraph (1) and the amounts, whether
4 adjusted or unadjusted in accordance with paragraph (2), at
5 which competitive bidding is required under subsection (b)
6 for the calendar year beginning the first day of January
7 after publication of the notice.
8 Section 5. This act shall apply to contracts and purchases
9 advertised after December 31 of the year in which this section
10 takes effect.
11 Section 6. This act shall take effect immediately.
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