PRIOR PRINTER'S NO. 2503 PRINTER'S NO. 3247
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
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 6, 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 $18,000 subject to annual adjustment <--
13 under subsection (b) shall be made by contract, in writing, only
14 after notice for bids once a week for two weeks in at least one
15 and 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 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
12 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
13 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE
14 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
15 CONSUMERS (CPI-U) FOR THE UNITED STATES CITY AVERAGE FOR ALL
16 ITEMS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
17 BUREAU OF LABOR STATISTICS, FOR THE TWELVE-MONTH AVERAGE
18 ENDING IN SEPTEMBER OF THE PRIOR YEAR.
19 (2) The amount at which competitive bidding is required
20 under subsection (a) shall be adjusted annually. The positive
21 percentage change, as determined in accordance with paragraph
22 (1), shall be multiplied by the amount applicable under
23 subsection (a) for the current year, and the product thereof
24 shall be added to the amount applicable under subsection (a)
25 for the current year with the result rounded to the nearest
26 multiple of $10.
27 (3) The annual determination required under paragraph
28 (1) and the calculation of the adjustments required under
29 paragraph (2) shall be made in the period between October 1
30 and November 15 of the year following the effective date of
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1 this subsection and annually between October 1 and November
2 15 of each successive year.
3 (4) The adjusted amounts obtained in accordance with
4 paragraph (2) shall become effective January 1 for the
5 calendar year following the year in which the determination
6 required under paragraph (1) is made.
7 (5) The Department of Labor and Industry shall give
8 notice in the Pennsylvania Bulletin prior to January 1 of
9 each calendar year of the annual percentage change determined
10 in accordance with paragraph (1) and the amounts, whether
11 adjusted or unadjusted in accordance with paragraph (2), at
12 which competitive bidding is required under subsection (a)
13 for the calendar year beginning the first day of January
14 after publication of the notice.
15 Section 2. Section 5511(c) and (h)(1) of Title 53 are
16 amended and the section is amended by adding a subsection to
17 read:
18 § 5511. Competition in award of contracts.
19 * * *
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 $7,000, <--
23 subject to adjustment under subsection (c.1), but is less than
24 the amount requiring advertisement and competitive bidding. In
25 lieu of price quotations, a memorandum shall be kept on file
26 showing that fewer than three qualified contractors exist in the
27 market area within which it is practicable to obtain quotations.
28 A written record of telephonic price quotations shall be made
29 and shall contain at least the date of the quotation; the name
30 of 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 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
12 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
13 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE
14 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
15 CONSUMERS (CPI-U) FOR THE UNITED STATES CITY AVERAGE FOR ALL
16 ITEMS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
17 BUREAU OF LABOR STATISTICS, FOR THE TWELVE-MONTH AVERAGE
18 ENDING IN SEPTEMBER OF THE PRIOR YEAR.
19 (2) The amount at which competitive bidding is required
20 under subsection (a) or (b) and the amount at which written
21 or telephonic price quotations are required under subsection
22 (c) shall be adjusted annually as follows:
23 (i) For subsections (a) and (b):
24 (A) Multiply the positive percentage change
25 under paragraph (1) by the amount applicable under
26 subsection (a) or (b) for the current year.
27 (B) Add the product under clause (A) to the
28 amount applicable under subsection (a) or (b) for the
29 current year.
30 (C) Round the sum under clause (B) to the
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1 nearest multiple of $10.
2 (ii) For subsection (c):
3 (A) Multiply the positive percentage change, as
4 determined under paragraph (1) by the amount
5 applicable under subsection (c) for the current year.
6 (B) Add the product under clause (A) to the
7 amount applicable under subsection (c) for the
8 current year.
9 (C) Round the sum under clause (B) to the
10 nearest multiple of $10.
11 (3) The annual determination required under paragraph
12 (1) and the calculation of the adjustments required under
13 paragraph (2) shall be made in the period between October 1
14 and November 15 of the year following the effective date of
15 this subsection and annually between October 1 and November
16 15 of each successive year.
17 (4) The adjusted amounts obtained under paragraph (2)
18 shall become effective January 1 for the calendar year
19 following the year in which the determination required under
20 paragraph (1) is made.
21 (5) The department shall give notice in the Pennsylvania
22 Bulletin prior to January 1 of each calendar year of the
23 annual percentage change determined in accordance with
24 paragraph (1) and the amounts, whether adjusted or unadjusted
25 in accordance with paragraph (2), at which competitive
26 bidding is required under subsection (a) or (b) and written
27 or telephonic price quotations are required under subsection
28 (c) for the calendar year beginning the first day of January
29 after publication of the notice.
30 * * *
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1 (h) Evasion.--
2 (1) An authority may not evade the provisions of this
3 section as to bids or purchasing materials or contracting for
4 services piecemeal for the purpose of obtaining prices under
5 [$25,000] the amount required by this section upon
6 transactions which should, in the exercise of reasonable
7 discretion and prudence, be conducted as one transaction
8 amounting to more than [$25,000] the amount required by this
9 section.
10 * * *
11 Section 3. Section 5614(a)(1), (b), (c) and (h)(1) of Title
12 53 are amended and the section is amended by adding a subsection
13 to read:
14 § 5614. Competition in award of contracts.
15 (a) Services.--
16 (1) Except as set forth in paragraph (2), all
17 construction, reconstruction, repair or work of any nature
18 made by an authority if the entire cost, value or amount,
19 including labor and materials, exceeds [$10,000] $25,000 <--
20 $18,000, subject to adjustment under subsection (c.1), shall
21 be done only under contract to be entered into by the
22 authority with the lowest responsible bidder upon proper
23 terms after public notice asking for competitive bids as
24 provided in this section.
25 * * *
26 (b) Supplies and materials.--All supplies and materials
27 costing at least [$10,000] $25,000 $18,000, subject to <--
28 adjustment under subsection (c.1), shall be purchased only after
29 advertisement as provided in this section. The authority shall
30 accept the lowest bid, kind, quality and material being equal,
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1 but the authority shall have the right to reject any or all bids
2 or select a single item from any bid. The provisions as to
3 bidding shall not apply to the purchase of patented and
4 manufactured products offered for sale in a noncompetitive
5 market or solely by a manufacturer's authorized dealer.
6 (c) Quotations.--Written or telephonic price quotations from
7 at least three qualified and responsible contractors shall be
8 requested for a contract which exceeds [$4,000] $10,000 $7,000, <--
9 subject to adjustment under subsection (c.1), but is less than
10 the amount requiring advertisement and competitive bidding. In
11 lieu of price quotations, a memorandum shall be kept on file
12 showing that fewer than three qualified contractors exist in the
13 market area within which it is practicable to obtain quotations.
14 A written record of telephonic price quotations shall be made
15 and shall contain at least the date of the quotation; the name
16 of the contractor and the contractor's representative; the
17 construction, reconstruction, repair, maintenance or work which
18 was the subject of the quotation; and the price. Written price
19 quotations, written records of telephonic price quotations and
20 memoranda shall be retained for a period of three years.
21 (c.1) Adjustments.--
22 (1) The Department of Labor and Industry shall determine <--
23 the percentage change in the Consumer Price Index for All
24 Urban Consumers for the 12-month period ending September 30
25 of the calendar year in which this subsection becomes
26 effective and for each successive 12-month period thereafter.
27 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
28 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
29 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE
30 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
20050H1861B3247 - 7 -
1 CONSUMERS (CPI-U) FOR THE UNITED STATES CITY AVERAGE FOR ALL
2 ITEMS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
3 BUREAU OF LABOR STATISTICS, FOR THE TWELVE-MONTH AVERAGE
4 ENDING IN SEPTEMBER OF THE PRIOR YEAR.
5 (2) The amount at which competitive bidding is required
6 under subsection (a)(1) and the amount at which written or
7 telephonic price quotations are required under subsection (b)
8 shall be adjusted annually as follows:
9 (i) For subsection (a)(1):
10 (A) Multiply the positive percentage change
11 under paragraph (1) by the amount applicable under
12 subsection (a) for the current year.
13 (B) Add the product under clause (A) to the
14 amount applicable under subsection (a)(1) for the
15 current year.
16 (C) Round the sum under clause (B) to the
17 nearest multiple of $10.
18 (ii) For subsection (b):
19 (A) Multiply the positive percentage change, as
20 determined under paragraph (1) by the amount
21 applicable under subsection (a.1) for the current
22 year.
23 (B) Add the product under clause (A) to the
24 amount applicable under subsection (b) for the
25 current year.
26 (C) Round the sum under clause (B) to the
27 nearest multiple of $10.
28 (3) The annual determination required under paragraph
29 (1) and the calculation of the adjustments required under
30 paragraph (2) shall be made in the period between October 1
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1 and November 15 of the year following the effective date of
2 this subsection and annually between October 1 and November
3 15 of each successive year.
4 (4) The adjusted amounts obtained under paragraph (2)
5 shall become effective January 1 for the calendar year
6 following the year in which the determination required under
7 paragraph (1) is made.
8 (5) The department shall give notice in the Pennsylvania
9 Bulletin prior to January 1 of each calendar year of the
10 annual percentage change determined in accordance with
11 paragraph (1) and the amounts, whether adjusted or unadjusted
12 in accordance with paragraph (2), at which competitive
13 bidding is required under subsection (a)(1) and written or
14 telephonic price quotations are required under subsection (b)
15 for the calendar year beginning the first day of January
16 after publication of the notice.
17 * * *
18 (h) Evasion.--
19 (1) An authority may not evade the provisions of this
20 section as to bids or purchasing materials or contracting for
21 services piecemeal for the purpose of obtaining prices under
22 [$10,000] the amount required by this section upon
23 transactions which should, in the exercise of reasonable
24 discretion and prudence, be conducted as one transaction
25 amounting to more than [$10,000] the amount required by this
26 section.
27 * * *
28 Section 4. Section 1750 of Title 74 is amended to read:
29 § 1750. Contracts, procurement and sale of property.
30 (a) Competitive bids.--Except in the purchase of unique
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1 articles or articles which, for any other reason, cannot be
2 obtained in the open market and except as provided in section
3 1741 (relating to general powers) and as provided in this
4 chapter, competitive bids shall be secured before any purchase
5 or sale, by contract or otherwise, is made or before any
6 contract is awarded for construction, alterations, supplies,
7 equipment, repairs or maintenance or for rendering any services
8 to the authority other than professional services. Purchases
9 shall be made from or the contract shall be awarded to the
10 lowest responsive, responsible bidder. Sales shall be made to
11 the highest responsive, responsible bidder. No purchase of any
12 unique article or other articles which cannot be obtained in the
13 open market shall be made without express approval of the board
14 where the amount involved is in excess of $25,000. The authority
15 shall not be subject to the act of November 26, 1978 (P.L.1309,
16 No.317), referred to as the Public Works Contract Regulation
17 Law. Nothing in this section or any other law of this
18 Commonwealth shall require the authority to competitively bid
19 architectural design, engineering, construction management or
20 other professional services required by the authority.
21 (b) Procedure.--All purchases and sales in excess of $25,000
22 shall be awarded after advertising in a local newspaper of
23 general circulation in the metropolitan area at least two weeks
24 prior to the bid opening. Bids shall be publicly opened and read
25 aloud at a date, time and place designated in the invitation to
26 bid. Invitations to bid shall be sent at least one week prior to
27 the bid opening to at least three potential bidders who are
28 qualified technically and financially to submit bids, or, in
29 lieu thereof, a memorandum shall be kept on file showing that
30 less than three potential bidders so qualified exist in the
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1 market area within which it is practicable to obtain bids.
2 [(c) Qualified vendors.--Written price quotations from at
3 least three qualified and responsible vendors shall be solicited
4 for all purchases and sales under $25,000 and over $10,000, or,
5 in lieu thereof, a memorandum approved by the general manager
6 shall be kept on file showing that less than three vendors so
7 qualified exist in the market area within which it is
8 practicable to obtain quotations, except as provided in this
9 chapter.]
10 (d) Small purchases.--[Purchases] EXCEPT AS SET FORTH IN 62 <--
11 PA.C.S. § 3742 (RELATING TO PROCUREMENT LIMITS FOR MASS
12 TRANSPORTATION AUTHORITIES), PURCHASES or sales under [$10,000]
13 $25,000 $18,000, subject to annual adjustment under subsection <--
14 (l), may be negotiated with or without competitive bidding under
15 sound procurement procedures as promulgated and established by
16 the general manager.
17 (e) Waiver.--Competitive bidding requirements may be waived
18 if it is determined by the general manager, or in such other
19 manner as the board may provide, that an emergency directly and
20 immediately affecting customer service or public health, safety
21 or welfare requires immediate delivery of supplies, materials,
22 equipment or services. A record of circumstances explaining the
23 emergency shall be submitted to the board at its next regular
24 meeting and thereafter kept on file.
25 (f) Sale or lease of real property.--Contracts for the sale
26 or lease of real property owned by the authority shall be
27 awarded after competitive bidding as shown in subsection (b),
28 except as provided in section 1741(a)(22) where the contract is
29 entered into with the Commonwealth or any government agency or
30 with the United States government or any agency or
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1 instrumentality thereof or as provided in section 1741(a)(24).
2 (g) Property management contracts.--Contracts for the
3 management of authority-owned property, such as bus routes or
4 subway systems, may be negotiated and awarded by an affirmative
5 vote of one more than a majority of all members of the board.
6 (h) Avoidance prohibited.--Requirements shall not be split
7 into parts for the purpose of avoiding the provisions of this
8 section.
9 (i) Rejection of bids.--The authority shall have the right
10 to reject any or all bids or parts of any or all bids, whenever,
11 in the opinion of the board, rejection is necessary for the
12 protection of the interests of the authority. In every case, a
13 record shall be made setting forth the reason for the rejection,
14 which record shall thereafter be kept on file.
15 (j) Rules and regulations.--The board may by resolution
16 adopt policies to effectuate the provisions of this section.
17 (k) Concessions.--All concessions granted by the authority
18 for the sale of products or the rendition of services for a
19 consideration on authority property shall be awarded only under
20 written specifications after competitive bidding and to the
21 highest responsive, responsible bidder in a manner similar to
22 that required by subsection (b) [or (c) as appropriate]. This
23 requirement for competitive bidding shall not apply to any
24 concession which has been granted by a transportation system
25 acquired by the authority and which by the terms of the
26 agreement granting it will terminate within one year from date
27 of the acquisition of the transportation system by the authority
28 nor to any concession involving the estimated receipt by the
29 authority of less than [$10,000] $25,000 $18,000, subject to <--
30 annual adjustment under subsection (l), over the period for
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1 which the concession is granted.
2 (l) Consumer Price Index adjustments.--
3 (1) The Department of Labor and Industry shall determine <--
4 the percentage change in the Consumer Price Index for All
5 Urban Consumers for the 12-month period ending September 30
6 of the calendar year in which this subsection becomes
7 effective and for each successive 12-month period thereafter.
8 (1) ANNUALLY, BEGINNING WITH THE YEAR IN WHICH THIS <--
9 SUBSECTION BECOMES APPLICABLE TO CONTRACTS AND PURCHASES, THE
10 DEPARTMENT OF LABOR AND INDUSTRY SHALL CALCULATE THE
11 PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR ALL URBAN
12 CONSUMERS (CPI-U) FOR THE UNITED STATES CITY AVERAGE FOR ALL
13 ITEMS AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR,
14 BUREAU OF LABOR STATISTICS, FOR THE TWELVE-MONTH AVERAGE
15 ENDING IN SEPTEMBER OF THE PRIOR YEAR.
16 (2) The amount at which competitive bidding is required
17 under subsection (b) shall be adjusted annually. The positive
18 percentage change as determined in accordance with paragraph
19 (1) shall be multiplied by the amount applicable under
20 subsection (b) for the current year, and the product thereof
21 shall be added to the amount applicable under subsection (b)
22 for the current year, with the result rounded to the nearest
23 multiple of $10.
24 (3) The annual determination required under paragraph
25 (1) and the calculation of the adjustments required under
26 paragraph (2) shall be made in the period between October 1
27 and November 15 of the year following the effective date of
28 this subsection and annually between October 1 and November
29 15 of each successive year.
30 (4) The adjusted amounts obtained in accordance with
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1 paragraph (2) shall become effective January 1 for the
2 calendar year following the year in which the determination
3 required under paragraph (1) is made.
4 (5) The Department of Labor and Industry shall give
5 notice in the Pennsylvania Bulletin prior to January 1 of
6 each calendar year of the annual percentage change determined
7 in accordance with paragraph (1) and the amounts, whether
8 adjusted or unadjusted in accordance with paragraph (2), at
9 which competitive bidding is required under subsection (b)
10 for the calendar year beginning the first day of January
11 after publication of the notice.
12 Section 5. This act shall apply to contracts and purchases
13 advertised after December 31 of the year in which this section
14 takes effect.
15 Section 6. This act shall take effect immediately.
E25L53VDL/20050H1861B3247 - 14 -