PRINTER'S NO. 810
No. 746 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
REFERRED TO LOCAL GOVERNMENT, MARCH 23, 1989
AN ACT
1 Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An
2 act relating to and regulating the contracts of incorporated
3 towns and providing penalties," further regulating contracts;
4 and further providing for advertising requirements.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections 2(a) and (d), 3, 3.1 and 5 of the act of
8 May 27, 1953 (P.L.244, No.34), entitled "An act relating to and
9 regulating the contracts of incorporated towns and providing
10 penalties," amended December 22, 1981 (P.L.542, No.157), are
11 amended to read:
12 Section 2. Regulation of Contracts.--(a) All contracts or
13 purchases of incorporated towns in excess of [four thousand
14 dollars] ten thousand dollars, except those hereinafter
15 mentioned, shall not be made except with and from the lowest
16 responsible bidder, after due notice in one newspaper of general
17 circulation published or circulated in the county in which the
18 town is situated at least three times at intervals of not less
1 than three days where daily newspapers of general circulation
2 are available for such publication, and in case of weekly
3 newspapers shall be published once a week for two successive
4 weeks. The first advertisement shall be published not less than
5 ten days prior to the date fixed for the opening of bids. The
6 amount of the contract shall in all cases, whether of straight
7 sale price, conditional sale, bailment lease or otherwise, be
8 the entire amount which the town pays to the successful bidder
9 or his assigns in order to obtain the services or property or
10 both, and shall not be construed to mean only the amount which
11 is paid to acquire title or to receive any other particular
12 benefit or benefits of the whole bargain.
13 * * *
14 (d) The contracts or purchases made by council involving an
15 expenditure of over [four thousand dollars] ten thousand dollars
16 which shall not require advertising or bidding as hereinbefore
17 provided are as follows:
18 (1) Those for maintenance, repairs or replacements for
19 water, sewer, electric light or other public works of the
20 incorporated town, provided they do not constitute new
21 additions, extensions or enlargements of existing facilities and
22 equipment, but a bond may be required by council as in other
23 cases of work done.
24 (2) Those made for improvements, repairs and maintenance of
25 any kind made or provided by any incorporated town through its
26 own employes: Provided, That all materials used for street
27 improvement, maintenance and/or construction in excess of [four
28 thousand dollars] ten thousand dollars be subject to the
29 advertising requirements contained herein.
30 (3) Those where particular types, models or pieces of new
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1 equipment, articles, apparatus, appliances, vehicles or parts
2 thereof are desired by council, which are patented and
3 manufactured or copyrighted products.
4 (4) Those involving any policies of insurance or surety
5 company bonds; those made for public utility service under
6 tariffs on file with the Pennsylvania Public Utility Commission;
7 those made with another political subdivision, or a county, the
8 Commonwealth of Pennsylvania, the Federal Government, any agency
9 of the Commonwealth or the Federal Government, or any municipal
10 authority, including the sale, leasing or loan of any supplies
11 or material by the Commonwealth or the Federal Government or
12 their agencies. But the price thereof shall not be in excess of
13 that fixed by the Commonwealth, the Federal Government, or their
14 agencies.
15 (5) Those involving personal or professional services.
16 * * *
17 Section 3. Evasion of Advertising Requirements.--No member
18 or members of council shall evade the provisions of Section two
19 hereof by purchasing or contracting for services and personal
20 properties piecemeal for the purpose of obtaining prices under
21 [four thousand dollars] ten thousand dollars upon transactions
22 which transaction should, in the exercise of reasonable
23 discretion and prudence, be conducted as one transaction
24 amounting to more than [four thousand dollars] ten thousand
25 dollars. This provision is intended to make unlawful the evading
26 of advertising requirements by making a series of purchases or
27 contracts each for less than the advertising requirement of
28 price, or by making several simultaneous purchases or contracts
29 each below said price, when, in either case, the transactions
30 involved should have been made as one transaction for one price.
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1 Any members of council who so vote in violation of this
2 provision and who know that the transaction upon which they so
3 vote is or ought to be a part of a larger transaction and that
4 it is being divided in order to evade the requirements as to
5 advertising for bids shall be jointly and severally subject to
6 surcharge for ten per centum of the full amount of the contract
7 or purchase.
8 Whenever it shall appear that a member of council may have
9 voted in violation of this section but the purchase or contract
10 on which he so voted was not approved by council, this section
11 shall be inapplicable.
12 Section 3.1. Contracts between Seven Hundred Fifty Dollars
13 and [Four Thousand Dollars] Ten Thousand Dollars; Written
14 Bids.--In all cases of contracts or purchases, other than the
15 kinds mentioned in clauses (1) to (5) inclusive of subsection
16 (d) of section 2 of this act, from seven hundred fifty dollars
17 to [four thousand dollars] ten thousand dollars inclusive,
18 whether made by the town council or by an officer or appointee
19 of the town, written bids shall be solicited therefor; and no
20 such contract or purchase shall be made for the town except upon
21 at least three such written bids. The specifications upon which
22 bids are solicited shall be uniform in so far as possible to
23 afford equal opportunity for bidding. Catalogues and circulars
24 of firm prices shall be acceptable as bids upon the contracts or
25 purchases herein regulated. All such bids shall be retained in
26 the proper department or office for a period of at least two
27 months, and shall be reported monthly to the person designated
28 by the town council, who shall make a consolidated monthly
29 report thereof to council. The town council and the person
30 designated by the town council shall have access to the bids in
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1 all departments and offices of the town for the enforcement of
2 this provision. Any official or appointee of the town
3 contracting or purchasing in violation of the provision of this
4 section shall be liable upon his bond, if any, or personally, in
5 the full amount of the purchase or contract so made, and the
6 town council may avoid any such purchase or contract.
7 Section 5. Separate Bids for Plumbing, Heating, Ventilating
8 and Electrical Work.--In the preparation for the erection,
9 construction and alteration of any public building of an
10 incorporated town, when the entire cost of such work shall
11 exceed [four thousand dollars] ten thousand dollars, the
12 architect, engineer or other person preparing such
13 specifications shall prepare separate specifications for the
14 plumbing, heating, ventilating and electrical work. The person
15 or persons authorized to enter into contracts for the erection,
16 construction or alteration of such public buildings shall
17 receive separate bids upon each of the said branches of work and
18 award the contract for the same to the lowest responsible bidder
19 for each of said branches.
20 Section 2. This act shall take effect in 60 days.
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