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        PRIOR PRINTER'S NO. 877                       PRINTER'S NO. 3619

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 786 Session of 1989


        INTRODUCED BY TRELLO, COWELL, COLAFELLA, WOZNIAK, HALUSKA,
           MELIO, LAUGHLIN, NAHILL, MERRY, HECKLER, BARLEY, DISTLER,
           ADOLPH, VAN HORNE, DOMBROWSKI, LEH, FARGO, BELFANTI,
           PISTELLA, HERMAN, ROBBINS, RITTER, STEIGHNER, HAGARTY, NOYE,
           McCALL, FLICK, ROBINSON, CORNELL, VEON, GLADECK, McVERRY,
           CLYMER, OLASZ, BIRMELIN, GEIST, S. H. SMITH, BILLOW,
           GIGLIOTTI, E. Z. TAYLOR, R. C. WRIGHT, BURD, REBER AND
           CORRIGAN, MARCH 14, 1989

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 30, 1990

                                     AN ACT

     1  Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
     2     act relating to the public school system, including certain
     3     provisions applicable as well to private and parochial
     4     schools; amending, revising, consolidating and changing the
     5     laws relating thereto," increasing the amount of work of any
     6     nature which can be performed on property owned by a school
     7     district without advertising and without competitive bids;
     8     and increasing the amount of furniture, equipment and
     9     supplies that can be purchased without advertisement.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 751(a) and (b) of the act of March 10,
    13  1949 (P.L.30, No.14), known as the Public School Code of 1949,
    14  amended February 4, 1982 (P.L.1, No.1) and June 29, 1984          <--
    15  (P.L.438, No.93) MAY 4, 1990 (P.L.164, NO.38), are amended AND    <--
    16  THE SECTION IS AMENDED BY ADDING A SUBSECTION to read:
    17     Section 751.  Work to be Done Under Contract Let on Bids;
    18  Exception.--(a)  All construction, reconstruction, repairs,

     1  maintenance or work of any nature, including the introduction of
     2  plumbing, heating and ventilating, or lighting systems, upon any
     3  school building or upon any school property, or upon any
     4  building or portion of a building leased under the provisions of
     5  section 703.1, made by any school district, where the entire
     6  cost, value, or amount of such construction, reconstruction,
     7  repairs, maintenance or work, including labor and material,
     8  shall exceed [four thousand dollars ($4,000)] ten thousand        <--
     9  dollars ($10,000) [TEN THOUSAND DOLLARS ($10,000)] THE MONETARY   <--
    10  THRESHOLD LEVEL FOR THE SCHOOL DISTRICT, shall be done under
    11  separate contracts to be entered into by such school district
    12  with the lowest responsible bidder, upon proper terms, after due
    13  public notice has been given asking for competitive bids.
    14  Whenever a board of school directors shall approve the use of a
    15  prefabricated unit, complete in itself, for a school building or
    16  other proper structure to be erected upon school property, the
    17  board of school directors may have prepared appropriate
    18  specifications detailing the size and material desired in a
    19  particular prefabricated unit, including all utilities such as
    20  plumbing, heating and ventilating, and electrical work, and may
    21  advertise for a single bid on all the work and award the
    22  contract therefor to the lowest responsible bidder: Provided,
    23  That if due to an emergency a school plant or any part thereof
    24  becomes unusable competitive bids for repairs or replacement may
    25  be solicited from at least three responsible bidders, and upon
    26  the approval of any of these bids by the Secretary of Education,
    27  the board of school directors may proceed at once to make the
    28  necessary repairs or replacements in accordance with the terms
    29  of said approved bid or bids.
    30     * * *                                                          <--
    19890H0786B3619                  - 2 -

     1     (A.2)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE    <--
     2  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
     3  TOTAL OF ALL BUDGETS ADMINISTERED BY THE SCHOOL DISTRICT, BUT IN
     4  NO CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND
     5  DOLLARS ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS ($10,000).
     6     (b)  The board of school directors in any school district may
     7  perform any construction, reconstruction, repairs, or work of
     8  any nature, where the entire cost or value, including labor and
     9  material, is less than [five thousand dollars ($5000)] THE        <--
    10  MONETARY THRESHOLD LEVEL FOR THE SCHOOL DISTRICT, by its own
    11  maintenance personnel. [The board may have any such               <--
    12  construction, reconstruction, repairs, or work up to ten
    13  thousand dollars ($10,000) performed by contract after
    14  soliciting bids from at least three responsible bidders:
    15  Provided, That the] The THE board of school directors in any      <--
    16  school district may authorize the secretary of the board or
    17  other executive to award contracts for construction,
    18  reconstruction, repairs, or work of any nature, where the entire
    19  cost or value, including labor and material, is [four thousand    <--
    20  dollars ($4,000)] ten thousand dollars ($10,000) [TEN THOUSAND    <--
    21  DOLLARS ($10,000)] THE MONETARY THRESHOLD LEVEL FOR THE SCHOOL    <--
    22  DISTRICT or less, without soliciting competitive bids, SUBJECT,   <--
    23  HOWEVER, TO THE PROVISIONS OF SUBSECTION (A.1). WRITTEN OR        <--
    24  TELEPHONIC PRICE QUOTATIONS FROM AT LEAST THREE QUALIFIED AND
    25  RESPONSIBLE CONTRACTORS SHALL BE REQUESTED FOR ALL CONTRACTS
    26  THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT ARE LESS THAN THE
    27  AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE BIDDING OR, IN
    28  LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE KEPT ON FILE
    29  SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS EXIST IN THE
    30  MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN QUOTATIONS.
    19890H0786B3619                  - 3 -

     1  A WRITTEN RECORD OF TELEPHONIC PRICE QUOTATIONS SHALL BE MADE
     2  AND SHALL CONTAIN AT LEAST THE DATE OF THE QUOTATION, THE NAME
     3  OF THE CONTRACTOR AND THE CONTRACTOR'S REPRESENTATIVE, THE
     4  CONSTRUCTION, RECONSTRUCTION, REPAIR, MAINTENANCE OR WORK WHICH
     5  WAS THE SUBJECT OF THE QUOTATION AND THE PRICE. WRITTEN PRICE
     6  QUOTATIONS, WRITTEN RECORDS OF TELEPHONIC PRICE QUOTATIONS AND
     7  MEMORANDA SHALL BE RETAINED FOR A PERIOD OF THREE YEARS.
     8     * * *
     9     Section 2.  Section 807.1 (A) AND (B) of the act, amended      <--
    10  February 4, 1982 (P.L.1, No.1), is MAY 4, 1990 (P.L.164, NO.38),  <--
    11  ARE amended to read:
    12     Section 807.1.  Purchase of Supplies.--(A)  All furniture,     <--
    13  equipment, textbooks, school supplies and other appliances for
    14  the use of the public schools, costing [four thousand dollars     <--
    15  ($4,000)] ten thousand dollars ($10,000) [TEN THOUSAND DOLLARS    <--
    16  ($10,000)] THE MONETARY THRESHOLD LEVEL FOR THE SCHOOL DISTRICT   <--
    17  or more shall be purchased by the board of school directors only
    18  after due advertisement as hereinafter provided. Supplies
    19  costing [four thousand dollars ($4,000)] ten thousand dollars     <--
    20  ($10,000) [TEN THOUSAND DOLLARS ($10,000)] THE MONETARY           <--
    21  THRESHOLD LEVEL FOR THE SCHOOL DISTRICT or more shall be
    22  purchased by the board of school directors only after public
    23  notice has been given by advertisement once a week for three (3)
    24  weeks in not less than two (2) newspapers of general
    25  circulation. In any district where no newspaper is published,
    26  said notice may, in lieu of such publication, be posted in at
    27  least five (5) public places.
    28     * * *                                                          <--
    29     (B)  The board of school directors shall accept the bid of     <--
    30  the lowest responsible bidder, kind, quality, and material being
    19890H0786B3619                  - 4 -

     1  equal, but shall have the right to reject any and all bids, or
     2  select a single item from any bid. The board of school directors
     3  in any district may authorize or appoint the secretary of the
     4  board or other executive as purchasing agent for the district,
     5  with authority to purchase supplies costing less than [four       <--
     6  thousand dollars ($4,000)] ten thousand dollars ($10,000) [TEN    <--
     7  THOUSAND DOLLARS ($10,000).] THE MONETARY THRESHOLD LEVEL FOR     <--
     8  THE SCHOOL DISTRICT. WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM
     9  AT LEAST THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE
    10  REQUESTED FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS
    11  ($4,000) BUT ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT
    12  AND COMPETITIVE BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A
    13  MEMORANDUM SHALL BE KEPT ON FILE SHOWING THAT FEWER THAN THREE
    14  QUALIFIED CONTRACTORS EXIST IN THE MARKET AREA WITHIN WHICH IT
    15  IS PRACTICABLE TO OBTAIN QUOTATIONS. A WRITTEN RECORD OF
    16  TELEPHONIC PRICE QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT
    17  LEAST THE DATE OF THE QUOTATION, THE NAME OF THE CONTRACTOR AND
    18  THE CONTRACTOR'S REPRESENTATIVE, THE CONSTRUCTION,
    19  RECONSTRUCTION, REPAIR, MAINTENANCE OR WORK WHICH WAS THE
    20  SUBJECT OF THE QUOTATION AND THE PRICE. WRITTEN PRICE
    21  QUOTATIONS, WRITTEN RECORDS OF TELEPHONIC PRICE QUOTATIONS AND
    22  MEMORANDA SHALL BE RETAINED FOR A PERIOD OF THREE YEARS.
    23     The following shall be exempt from the above provisions:       <--
    24  maps, music, globes, charts, educational films, filmstrips,
    25  prepared transparencies and slides, pre-recorded magnetic tapes
    26  and disc recordings, textbooks, games, toys, prepared kits,
    27  flannel board materials, flash cards, models, projectuals and
    28  teacher demonstration devices necessary for school use.
    29     * * *                                                          <--
    30     Section 3.  This act shall take effect in 60 days.
    A27L24CHF/19890H0786B3619        - 5 -