PRIOR PRINTER'S NO. 814 PRINTER'S NO. 1659
No. 750 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
SENATOR PECORA, LOCAL GOVERNMENT, AS AMENDED, OCTOBER 24, 1989
AN ACT
1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
2 act providing for the incorporation as bodies corporate and
3 politic of 'Authorities' for municipalities, counties and
4 townships; prescribing the rights, powers and duties of such
5 Authorities heretofore or hereafter incorporated; authorizing
6 such Authorities to acquire, construct, improve, maintain and
7 operate projects, and to borrow money and issue bonds
8 therefor; providing for the payment of such bonds, and
9 prescribing the rights of the holders thereof; conferring the
10 right of eminent domain on such Authorities; authorizing such
11 Authorities to enter into contracts with and to accept grants
12 from the Federal Government or any agency thereof; and
13 conferring exclusive jurisdiction on certain courts over
14 rates," further providing for contract procedures, purchases
15 and advertising for bids.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. Subsections A and B of section SECTION 10 of the <--
19 act of May 2, 1945 (P.L.382, No.164), known as the Municipality
20 Authorities Act of 1945, amended OR ADDED JUNE 28, 1979 (P.L.53, <--
21 NO.22) AND February 18, 1982 (P.L.86, No.31), are IS amended to <--
22 read:
23 Section 10. Competition in Award of Contracts.--A. All
24 construction, reconstruction, repairs or work of any nature made
1 by any Authority, where the entire cost, value or amount of such
2 construction, reconstruction, repairs or work, including labor
3 and materials, shall exceed [four thousand dollars ($4,000)] ten
4 thousand dollars ($10,000), except construction, reconstruction,
5 repairs or work done by employes of said Authority, or by labor
6 supplied under agreement with any Federal or State agency, with
7 supplies and materials purchased as hereinafter provided, shall
8 be done only under contract or contracts to be entered into by
9 the Authority with the lowest responsible bidder upon proper
10 terms, after due public notice has been given asking for
11 competitive bids as hereinafter provided. No contract shall be
12 entered into for construction or improvement or repair of any
13 project or portion thereof, unless the contractor shall give an
14 undertaking with a sufficient surety or sureties approved by the
15 Authority, and in an amount fixed by the Authority, for the
16 faithful performance of the contract. All such contracts shall
17 provide among other things that the person or corporation
18 entering into such contract with the Authority will pay for all
19 materials furnished and services rendered for the performance of
20 the contract, and that any person or corporation furnishing such
21 materials or rendering such services may maintain an action to
22 recover for the same against the obligor in the undertaking, as
23 though such person or corporation was named therein, provided
24 the action is brought within one year after the time the cause
25 of action accrued. Nothing in this section shall be construed to
26 limit the power of the Authority to construct, repair or improve
27 any project or portion thereof, or any addition, betterment or
28 extension thereto, directly by the officers, agents and employes
29 of the Authority, or otherwise than by contract.
30 B. All supplies and materials costing [four thousand dollars
19890S0750B1659 - 2 -
1 ($4,000)] ten thousand dollars ($10,000), or more, shall be
2 purchased only after due advertisement as hereinafter provided.
3 Authority shall accept the lowest bid or bids, kind, quality and
4 material being equal, but the Authority shall have the right to
5 reject any or all bids or select a single item from any bid. The
6 provisions as to bidding shall not apply to the purchase of
7 patented and manufactured products offered for sale in a
8 noncompetitive market or solely by a manufacturer's authorized
9 dealer.
10 * * * <--
11 C. THE TERMS ADVERTISEMENT OR DUE PUBLIC NOTICE WHEREVER <--
12 USED IN THIS SECTION, SHALL MEAN A NOTICE PUBLISHED AT LEAST TEN
13 (10) DAYS BEFORE THE AWARD OF ANY CONTRACT, IN A NEWSPAPER OF
14 GENERAL CIRCULATION PUBLISHED IN THE MUNICIPALITY WHERE THE
15 AUTHORITY HAS ITS PRINCIPAL OFFICE, AND IF NO NEWSPAPER IS
16 PUBLISHED THEREIN THEN BY PUBLICATION IN A NEWSPAPER IN THE
17 COUNTY WHERE THE AUTHORITY HAS ITS PRINCIPAL OFFICE: PROVIDED,
18 THAT SUCH NOTICE MAY BE WAIVED WHERE THE AUTHORITY DETERMINES AN
19 EMERGENCY EXISTS, AND SUCH SUPPLIES AND MATERIALS MUST BE
20 IMMEDIATELY PURCHASED BY THE SAID AUTHORITY.
21 D. NO MEMBER OF THE AUTHORITY OR OFFICER OR EMPLOYE THEREOF
22 SHALL EITHER DIRECTLY OR INDIRECTLY BE A PARTY TO OR BE IN ANY
23 MANNER INTERESTED IN ANY CONTRACT OR AGREEMENT WITH THE
24 AUTHORITY FOR ANY MATTER, CAUSE OR THING WHATSOEVER BY REASON
25 WHEREOF ANY LIABILITY OR INDEBTEDNESS SHALL IN ANY WAY BE
26 CREATED AGAINST SUCH AUTHORITY. IF ANY CONTRACT OR AGREEMENT
27 SHALL BE MADE IN VIOLATION OF THE PROVISIONS OF THIS SECTION THE
28 SAME SHALL BE NULL AND VOID AND NO ACTION SHALL BE MAINTAINED
29 THEREON AGAINST SUCH AUTHORITY.
30 E. SUBJECT TO THE AFORESAID ANY AUTHORITY MAY (BUT WITHOUT
19890S0750B1659 - 3 -
1 INTENDING BY THIS PROVISION TO LIMIT ANY POWERS OF SUCH
2 AUTHORITY) ENTER INTO AND CARRY OUT SUCH CONTRACTS, OR ESTABLISH
3 OR COMPLY WITH SUCH RULES AND REGULATIONS CONCERNING LABOR AND
4 MATERIALS AND OTHER RELATED MATTERS IN CONNECTION WITH ANY
5 PROJECT OR PORTION THEREOF, AS THE AUTHORITY MAY DEEM DESIRABLE,
6 OR AS MAY BE REQUESTED BY ANY FEDERAL AGENCY THAT MAY ASSIST IN
7 THE FINANCING OF SUCH PROJECT OR ANY PART THEREOF: PROVIDED,
8 HOWEVER, THAT THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO
9 ANY CASE IN WHICH THE AUTHORITY HAS TAKEN OVER BY TRANSFER OR
10 ASSIGNMENT ANY CONTRACT AUTHORIZED TO BE ASSIGNED TO IT UNDER
11 THE PROVISIONS OF SECTION NINE OF THIS ACT, NOR TO ANY CONTRACT
12 IN CONNECTION WITH THE CONSTRUCTION OF ANY PROJECT WHICH THE
13 AUTHORITY MAY HAVE HAD TRANSFERRED TO IT BY ANY PERSON OR
14 PRIVATE CORPORATION.
15 F. EVERY CONTRACT FOR THE CONSTRUCTION, RECONSTRUCTION,
16 REPAIR, IMPROVEMENT OR MAINTENANCE OF PUBLIC WORKS SHALL CONTAIN
17 A PROVISION THAT ANY STEEL PRODUCTS USED OR SUPPLIED IN THE
18 PERFORMANCE OF THE CONTRACT OR ANY SUBCONTRACTS THEREUNDER SHALL
19 BE FROM STEEL MADE IN THE UNITED STATES.
20 G. AN AUTHORITY SHALL NOT EVADE THE PROVISIONS OF THIS
21 SECTION AS TO BIDS OR PURCHASING MATERIALS OR CONTRACTING FOR
22 SERVICES PIECE-MEAL, FOR THE PURPOSE OF OBTAINING PRICES UNDER
23 TEN THOUSAND DOLLARS ($10,000) UPON TRANSACTIONS WHICH SHOULD IN
24 THE EXERCISE OF REASONABLE DISCRETION AND PRUDENCE BE CONDUCTED
25 AS ONE TRANSACTION AMOUNTING TO MORE THAN TEN THOUSAND DOLLARS
26 ($10,000). THIS PROVISION IS INTENDED TO MAKE UNLAWFUL THE
27 PRACTICE OF EVADING CONTRACTING REQUIREMENTS BY MAKING A SERIES
28 OF PURCHASES OR CONTRACTS EACH FOR LESS THAN THE ADVERTISING
29 REQUIREMENT PRICE, OR BY MAKING SEVERAL SIMULTANEOUS PURCHASES
30 OR CONTRACTS EACH BELOW SAID PRICE, WHEN IN EITHER CASE THE
19890S0750B1659 - 4 -
1 TRANSACTION INVOLVED SHOULD HAVE BEEN MADE AS ONE TRANSACTION
2 FOR ONE PRICE.
3 Section 2. This act shall take effect in 60 days.
B13L64JRW/19890S0750B1659 - 5 -