PRIOR PRINTER'S NO. 2514 PRINTER'S NO. 3258
No. 1872 Session of 2005
INTRODUCED BY LESCOVITZ, HERMAN, PETRI, HANNA, M. KELLER,
HARHAI, O'NEILL, KAUFFMAN, ROSS, HARPER, HICKERNELL,
T. STEVENSON, McNAUGHTON, GINGRICH, HENNESSEY, BIANCUCCI,
ARMSTRONG, BALDWIN, BOYD, CAPPELLI, DALLY, DENLINGER,
DeWEESE, FRANKEL, GEIST, HARRIS, HERSHEY, McILHATTAN,
PHILLIPS, 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 the act of July 28, 1953 (P.L.723, No.230), entitled,
2 as amended, "An act relating to counties of the second class
3 and second class A; amending, revising, consolidating and
4 changing the laws relating thereto," further regulating
5 contracts and purchases.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The act of July 28, 1953 (P.L.723, No.230), known
9 as the Second Class County Code, is amended by adding a section
10 to read:
11 Section 112. Adjustments Based on Consumer Price Index.--(a)
12 The Department of Labor and Industry shall determine the <--
13 percentage change in the Consumer Price Index for All Urban
14 Consumers for the twelve-month period ending September 30 of the
15 calendar year in which this section becomes effective, and for
16 each successive twelve-month period thereafter. ANNUALLY, <--
17 BEGINNING WITH THE YEAR IN WHICH THIS SUBSECTION BECOMES
1 APPLICABLE TO CONTRACTS AND PURCHASES, THE DEPARTMENT OF LABOR
2 AND INDUSTRY SHALL CALCULATE THE PERCENTAGE CHANGE IN THE
3 CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) FOR THE
4 UNITED STATES CITY AVERAGE FOR ALL ITEMS AS PUBLISHED BY THE
5 UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS,
6 FOR THE TWELVE-MONTH AVERAGE ENDING IN SEPTEMBER OF THE PRIOR
7 YEAR.
8 (b) The amounts at which competitive bidding, separate bids
9 and written or telephonic price quotations are required under
10 this act shall be adjusted annually. The positive percentage
11 change, as determined in accordance with subsection (a), shall
12 be multiplied by the applicable amount for the current year and
13 the product thereof shall be added to the applicable amount for
14 the current year, with the result rounded to the nearest
15 multiple of ten dollars ($10).
16 (c) The annual determination required under subsection (a)
17 and the calculation of the adjustments required under subsection
18 (b) shall be made in the period between October 1 and November
19 15 of the year following the effective date of this section, and
20 annually between October 1 and November 15 of each successive
21 year.
22 (d) The adjusted amounts obtained in accordance with
23 subsection (b) shall become effective January 1 for the calendar
24 year following the year in which the determination required
25 under subsection (a) is made.
26 (e) The Department of Labor and Industry shall give notice
27 in the Pennsylvania Bulletin prior to January 1 of each calendar
28 year of the annual percentage change determined in accordance
29 with subsection (a) and the amounts, whether adjusted or
30 unadjusted in accordance with subsection (b), at which
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1 competitive bidding, separate bids and written or telephonic
2 price quotations are required under this act for the calendar
3 year beginning the first day of January after publication of the
4 notice.
5 Section 2. Section 2001(a) and (d) of the act, amended
6 November 30, 2004 (P.L.1439, No.186), are amended to read:
7 Section 2001. County Commissioners to Make Contracts.--The
8 County Commissioners may make contracts for lawful purposes and
9 for the purposes of carrying into execution the provisions of
10 this section and the laws of the Commonwealth.
11 (a) Except as provided in subsection (a.1), all contracts or
12 purchases in excess of [ten thousand dollars ($10,000)] twenty- <--
13 five thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS <--
14 ($18,000), subject to annual adjustment under section 112, shall
15 be in writing and, except those hereinafter mentioned and except
16 as provided by the act of October 27, 1979 (P.L.241, No.78),
17 entitled "An act authorizing political subdivisions,
18 municipality authorities and transportation authorities to enter
19 into contracts for the purchase of goods and the sale of real
20 and personal property where no bids are received," shall not be
21 made except with and from the lowest responsible and responsive
22 bidder meeting specifications, after due notice in at least one
23 newspaper of general circulation, published or circulating in
24 the county at least two (2) times, at intervals of not less than
25 three (3) days where daily newspapers of general circulation are
26 employed for such publication, or in case weekly newspapers are
27 employed, then the notice shall be published once a week for two
28 (2) successive weeks. The first advertisement shall be published
29 not less than ten (10) days prior to the date fixed for the
30 opening of bids.
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1 * * *
2 (d) The contracts or purchases made by the commissioners
3 involving an expenditure of over [ten thousand dollars
4 ($10,000)] twenty-five thousand dollars ($25,000) EIGHTEEN <--
5 THOUSAND DOLLARS ($18,000), subject to annual adjustment under
6 section 112, which shall not require advertising or bidding as
7 hereinbefore provided are as follows:
8 (1) Those for maintenance, repairs or replacements for
9 water, electric light, or other public works: Provided, That
10 they do not constitute new additions, extensions or enlargements
11 of existing facilities and equipment. Security may be required
12 by the county commissioners as in other cases of work done.
13 (2) Those made for improvements, repairs and maintenance of
14 any kind made or provided by the county through its own
15 employes. This paragraph shall not apply to construction
16 materials used in a street improvement.
17 (3) Those where particular types, models or pieces of new
18 equipment, articles, apparatus, appliances, vehicles or parts
19 thereof are desired by the county commissioners, which are
20 patented and manufactured products or copyrighted products.
21 (4) Those involving any policies of insurance or surety
22 company bonds, those made for public utility service and
23 electricity, natural gas or telecommunication services:
24 Provided, That, in the case of utilities not under tariffs on
25 file with the Pennsylvania Public Utility Commission, contracts
26 made without advertising and bidding shall be made only after
27 receiving written or telephonic price quotations from at least
28 three (3) qualified and responsible contractors, or in lieu of
29 price quotations a memorandum shall be kept on file showing that
30 fewer than three (3) qualified contractors exist in the market
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1 area within which it is practicable to obtain quotations. A
2 written record of telephonic price quotations shall be made and
3 contain at least the date of the quotation, the name of the
4 contractor and the contractor's representative.
5 (5) Those involving personal or professional services,
6 including, but not limited to, services of members of the
7 medical or legal profession, registered architects, engineers,
8 certified public accountants or other personal services
9 involving professional expertise.
10 (6) Those involving tangible client services provided by
11 nonprofit agencies. For the purposes of this clause, the term
12 "tangible client services" shall mean congregate meals, home-
13 delivered meals, transportation and chore services provided
14 through area agencies on aging.
15 (6.1) Those involving contracts entered into by nonprofit
16 cooperative hospital service associations for hospitals and
17 nursing homes which are part of the institutional district or
18 which are owned by the county, operated by the county or
19 affiliated with the county by the purchasing of or participating
20 in contracts for materials, supplies and equipment.
21 (7) Those involving the purchase of milk.
22 (8) Those made with any public body, including, but not
23 limited to, the sale, lease or loan of any supplies or materials
24 to the county by a public body, provided that the price thereof
25 shall not be in excess of that fixed by the public body. The
26 requirements of 53 Pa.C.S. Ch. 23 Subch. A (relating to
27 intergovernmental cooperation) shall not apply when a county
28 purchases cooperatively with another public body which has
29 entered into a contract for supplies or materials. As used in
30 this paragraph, "public body" shall mean any of the following:
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1 (i) the Federal Government;
2 (ii) the Commonwealth of Pennsylvania;
3 (iii) any other state;
4 (iv) a political subdivision, local or municipal authority
5 or other similar local entity of the Commonwealth or any other
6 state; or
7 (v) an agency of the Federal Government, the Commonwealth or
8 any other state.
9 (9) Those exclusively involving construction management
10 services.
11 (10) Those involving computer software.
12 * * *
13 Section 3. Section 2517(a) of the act, amended December 9,
14 2002 (P.L.1383, No.170), is amended to read:
15 Section 2517. Separate Specifications and Contracts for
16 Certain Items.--(a) In the preparation of specifications for
17 the erection, construction and alteration of any public
18 building, when the entire cost of such work shall exceed [ten
19 thousand dollars ($10,000)] twenty-five thousand dollars <--
20 ($25,000) EIGHTEEN THOUSAND DOLLARS ($18,000), subject to annual <--
21 adjustment under section 112, the architect, engineer or other
22 person preparing such specifications shall prepare separate
23 specifications for the plumbing, heating, ventilating and
24 electrical work. The board of commissioners shall receive
25 separate bids upon each of the said branches of work and award
26 the contract for the same to the lowest responsible bidder for
27 each of said branches.
28 * * *
29 Section 4. Section 2511-A(a), (b), (b.1) and (h) of the act,
30 added October 30, 2000 (P.L.616, No.85), are amended to read:
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1 Section 2511-A. Competition in Award of Contracts.--(a) All
2 construction, reconstruction, repairs or work of any nature made
3 by any Authority, where the entire cost, value or amount of such
4 construction, reconstruction, repairs or work, including labor
5 and materials, shall exceed [ten thousand dollars ($10,000)]
6 twenty-five thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS <--
7 ($18,000), subject to annual adjustment under section 112,
8 except construction, reconstruction, repairs or work done by
9 employes of said Authority or by labor supplied under agreement
10 with any Federal or State agency with supplies and materials
11 purchased, as hereinafter provided, shall be done only under
12 contract or contracts to be entered into by the Authority with
13 the lowest responsible bidder upon proper terms, after due
14 public notice has been given asking for competitive bids
15 hereinafter provided. No contract shall be entered into for
16 construction or improvement or repair of any project or portion
17 thereof unless the contractor shall give an undertaking, with a
18 sufficient surety or sureties approved by the Authority and in
19 an amount fixed by the Authority, for the faithful performance
20 of the contract. All such contracts shall provide, among other
21 things, that the person or corporation entering into such
22 contract with the Authority will pay for all materials furnished
23 and services rendered for the performance of the contract and
24 that any person or corporation furnishing such materials or
25 rendering such services may maintain an action to recover for
26 the same against the obligor in the undertaking as though such
27 person or corporation was named therein, provided the action is
28 brought within one (1) year after the time the cause of action
29 accrued. Nothing in this section shall be construed to limit the
30 power of the Authority to construct, repair or improve any
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1 project or portion thereof or any addition, betterment or
2 extension thereto directly by the officers, agents and employes
3 of the Authority or otherwise than by contract.
4 (b) All supplies and materials costing [ten thousand dollars
5 ($10,000)] twenty-five thousand dollars ($25,000) EIGHTEEN <--
6 THOUSAND DOLLARS ($18,000), subject to annual adjustment under
7 section 112, or more shall be purchased only after due
8 advertisement as hereinafter provided. The Authority shall
9 accept the lowest bid or bids, kinds, quality and material being
10 equal, but the Authority shall have the right to reject any or
11 all bids or select a single item from any bid. The provisions as
12 to bidding shall not apply to the purchase of patented and
13 manufactured products offered for sale in a non-competitive
14 market or solely by a manufacturer's authorized dealer.
15 (b.1) Written or telephonic price quotations from at least
16 three (3) qualified and responsible contractors shall be
17 requested for all contracts that exceed [four thousand dollars
18 ($4,000)] ten thousand dollars ($10,000) SEVEN THOUSAND DOLLARS <--
19 ($7,000), subject to annual adjustment under section 112, but
20 are less than the amount requiring advertisement and competitive
21 bidding, or, in lieu of price quotations, a memorandum shall be
22 kept on file showing that fewer than three (3) qualified
23 contractors exist in the market area within which it is
24 practicable to obtain quotations. A written record of telephonic
25 price quotations shall be made and shall contain at least the
26 date of the quotation, the name of the contractor and the
27 contractor's representative, the construction, reconstruction,
28 repair, maintenance or work which was the subject of the
29 quotation and the price. Written price quotations, written
30 records of telephonic price quotations and memoranda shall be
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1 retained for a period of three (3) years.
2 * * *
3 (h) An Authority shall not evade the provisions of this
4 section as to advertising for bids or purchasing materials or
5 contracting for services piecemeal for the purpose of obtaining
6 prices under [ten thousand dollars ($10,000)] twenty-five <--
7 thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS ($18,000), <--
8 subject to annual adjustment under section 112, upon
9 transactions which should, in the exercise of reasonable
10 discretion and prudence, be conducted as one transaction
11 amounting to more than [ten thousand dollars ($10,000)] twenty- <--
12 five thousand dollars ($25,000) EIGHTEEN THOUSAND DOLLARS <--
13 ($18,000), subject to annual adjustment under section 112. This
14 provision is intended to make unlawful the practice of evading
15 advertising requirements by making a series of purchases or
16 contracts each for less than the advertising requirement price
17 or by making several simultaneous purchases or contracts each
18 below said price when in either case the transaction involved
19 should have been made as one transaction for one price.
20 * * *
21 Section 5. This act shall apply to contracts and purchases
22 advertised on or after January 1 of the year following the
23 effective date of this section.
24 Section 6. This act shall take effect immediately.
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