PRINTER'S NO. 4276
No. 2790 Session of 2004
INTRODUCED BY McGEEHAN, BELFANTI, DALEY, DeLUCA, DeWEESE, GOOD,
GOODMAN, JOSEPHS, KENNEY, LEACH, LEDERER, O'NEILL, TANGRETTI,
THOMAS, TIGUE AND WALKO, JULY 2, 2004
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JULY 2, 2004
AN ACT
1 Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2 Statutes, providing for construction quality assurance and
3 for penalties.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The General Assembly finds and declares as
7 follows:
8 (1) Bid shopping is a pervasive problem in the
9 construction industry in this Commonwealth.
10 (2) When bid shopping occurs, the cost savings gained
11 are not passed on to the Commonwealth; rather the
12 simultaneous reductions in quality and value are what are
13 passed on.
14 (3) The practice of bid shopping on State construction
15 contracts needs to be prohibited and sanctions should be
16 imposed on a business that is shown to have engaged in bid
17 shopping.
18 Section 2. Title 62 of the Pennsylvania Consolidated
1 Statutes is amended by adding a section to read:
2 § 908. Construction quality assurance.
3 (a) Prohibition against bid shopping.--The following shall
4 apply:
5 (1) A Commonwealth agency, a contractor or a
6 subcontractor shall not participate in the practice of bid
7 shopping with respect to a contract.
8 (2) Any invitation for bid or request for proposal
9 issued by a Commonwealth agency shall include a clause
10 explicitly prohibiting the practice of bid shopping and
11 specifying the penalties for violating the prohibition
12 against bid shopping.
13 (b) Penalties.--The following shall apply:
14 (1) A contract shall provide for termination of the
15 contract or the imposition of liquidated damages in the
16 amount described in paragraph (2) upon a determination by the
17 contracting officer that a violation of subsection (a)(1) has
18 occurred.
19 (2) The amount of liquidated damages that may be imposed
20 pursuant to paragraph (1) shall be an amount equal to the
21 greater of three times:
22 (i) the final bid on the contract, before the award
23 of the contract, by either a contractor or subcontractor;
24 or
25 (ii) the price paid to the contractor or any
26 subcontractor for work performed.
27 (3) The imposition of liquidated damages under paragraph
28 (1) on a contractor or subcontractor with respect to two
29 contracts within a five-year period shall result in the
30 suspension and debarment of the contractor or subcontractor
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1 from present and future contracts.
2 (c) Definitions.--As used in this section, the following
3 words and phrases shall have the meanings given to them in this
4 subsection unless the context clearly indicates otherwise:
5 "Bid shopping." The practice of divulging a contractor's or
6 subcontractor's bid or proposal or requiring a contractor or
7 subcontractor to divulge its bid or proposal to another
8 prospective contractor or subcontractor before the award of a
9 contract or subcontract in order to secure a lower bid or
10 proposal.
11 "Contract." A contract for construction.
12 "Subcontractor." An individual or entity with which an
13 offeror on a contract proposes to enter into a subcontract for
14 manufacturing, supplying, fabricating, installing or otherwise
15 performing with respect to the contract, whether the work is to
16 be performed by the subcontractor at the construction site or
17 off the site.
18 Section 3. Within 120 days of the effective date of this
19 act, the Department of General Services shall promulgate
20 regulations to provide appropriate solicitation provisions,
21 contract clauses and investigatory procedures to implement the
22 addition of 62 Pa.C.S. § 908.
23 Section 4. The addition of 62 Pa.C.S. § 908 shall apply to
24 contracts awarded on or after the date of the beginning of the
25 first fiscal quarter beginning more than 120 days after the
26 effective date of this act.
27 Section 5. This act shall take effect in 60 days.
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