PRIOR PRINTER'S NO. 4039 PRINTER'S NO. 4216
No. 2694 Session of 2004
INTRODUCED BY O'NEILL, ARGALL, ARMSTRONG, BARRAR, BASTIAN, BUNT,
CAPPELLI, CAUSER, CIVERA, CLYMER, S. E. CORNELL, CRAHALLA,
DALLY, J. EVANS, FAIRCHILD, FEESE, FORCIER, GINGRICH, GOOD,
HARHART, HERMAN, HERSHEY, HICKERNELL, HUTCHINSON, KILLION,
LEWIS, MARKOSEK, MARSICO, McNAUGHTON, R. MILLER, S. MILLER,
NAILOR, PAYNE, PETRI, PICKETT, REED, SATHER, SCAVELLO,
B. SMITH, SOLOBAY, STEIL, STERN, R. STEVENSON, T. STEVENSON,
E. Z. TAYLOR, THOMAS, WATSON, WEBER, WILT, ZUG, McILHINNEY,
YOUNGBLOOD, SAYLOR, BALDWIN, GABIG, HENNESSEY, BOYD AND
DENLINGER, JUNE 14, 2004
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 29, 2004
AN ACT
1 Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2 Statutes, providing for consolidated contracts and, for a <--
3 transfer of funds to the Commonwealth Financing Authority AND <--
4 FOR THE DEFINITION OF "PARTICIPATION AGREEMENT"; AND FURTHER
5 PROVIDING FOR COOPERATIVE USE OF SUPPLIES OR SERVICES.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 103 of Title 62 of the Pennsylvania
9 Consolidated Statutes is amended by adding a definition to read:
10 § 103. Definitions.
11 Subject to additional definitions contained in subsequent
12 provisions of this part which are applicable to specific
13 provisions of this part, the following words and phrases when
14 used in this part shall have the meanings given to them in this
15 section unless the context clearly indicates otherwise:
1 * * *
2 "Consolidated contract." A contract for supplies or services
3 that does any of the following:
4 (1) Combines discrete procurement requirements from not
5 less than two existing contracts.
6 (2) Adds new discrete procurement requirements to an
7 existing contract.
8 (3) Includes two or more discrete procurement
9 requirements.
10 * * *
11 Section 2. Chapter 7 heading of Title 62 is amended and the
12 chapter is amended by adding sections to read:
13 CHAPTER 7
14 [(Reserved)]
15 CONSOLIDATED CONTRACTS
16 Sec.
17 701. Consolidated contracts authorized.
18 702. Acceptance of bids or proposals.
19 703. Written determinations.
20 704. Small business and disadvantaged business participation. <--
21 705. Certification and audit of savings.
22 704. SMALL BUSINESS COUNCIL REVIEW. <--
23 705. SMALL BUSINESS AND DISADVANTAGED BUSINESS PARTICIPATION.
24 706. CERTIFICATION AND AUDIT OF SAVINGS.
25 § 701. Consolidated contracts authorized.
26 The department and other Commonwealth agencies are hereby
27 authorized to enter into consolidated contracts for the purpose
28 of procuring supplies and services.
29 § 702. Acceptance of bids or proposals.
30 If the department or any other Commonwealth agency issues an
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1 invitation for bids or a request for proposals for the purpose
2 of awarding and entering into a consolidated contract, the
3 department or agency shall establish a time and date for receipt
4 of bids or proposals that is not less than 60 days after the
5 issuance of the invitation for bids or the request for
6 proposals.
7 § 703. Written determinations.
8 (a) Contracts exceeding $500,000.--No consolidated contract
9 valued at more than $500,000 but less than $2,000,000 may be
10 awarded unless the department or the Commonwealth agency has
11 first issued and published in the Pennsylvania Bulletin a
12 written determination that the proposed consolidation is
13 necessary and the anticipated benefits of the consolidation
14 justify its use. The written determination shall identify the
15 specific benefits anticipated from consolidation and any
16 alternative contracting approaches that would involve a lesser
17 degree of contract consolidation.
18 (b) Contracts exceeding $2,000,000.--No consolidated
19 contract valued at more than $2,000,000 may be awarded unless
20 the department or the applicable Commonwealth agency has first
21 met the requirements of subsection (a) and issued and published
22 in the Pennsylvania Bulletin an additional written determination
23 that the proposed consolidation is supported by current market
24 research which demonstrates that the consolidated contract will
25 result in cost savings, quality improvements, reduction in
26 acquisition cycle times or better terms and conditions. The
27 written determination required under this subsection shall
28 include an assessment of the specific impediments to <--
29 participation by small business concerns as prime contractors,
30 which result from the contract consolidation and shall identify
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1 specific actions that the department or the Commonwealth agency
2 will take to maximize small business participation as
3 subcontractors, suppliers and contractors participating in
4 cooperative purchasing under Chapter 19 (relating to
5 intergovernmental relations). ANY RECOMMENDATIONS MADE BY THE <--
6 SMALL BUSINESS COUNCIL UNDER SECTION 704 (RELATING TO SMALL
7 BUSINESS COUNCIL REVIEW) AND AN ENUMERATION OF THE SPECIFIC
8 ACTIONS THAT THE DEPARTMENT OR COMMONWEALTH AGENCY WILL TAKE
9 PURSUANT TO THE RECOMMENDATIONS.
10 § 704. SMALL BUSINESS COUNCIL REVIEW.
11 UPON THE ISSUANCE OF AN INVITATION FOR BIDS OR REQUEST FOR
12 PROPOSALS FOR ANY CONSOLIDATED CONTRACT DESCRIBED IN SECTION
13 703(B) (RELATING TO WRITTEN DETERMINATIONS), THE DEPARTMENT OR
14 COMMONWEALTH AGENCY SHALL TRANSMIT THE INVITATION FOR BIDS OR
15 REQUEST FOR PROPOSALS TO THE SMALL BUSINESS COUNCIL. NO LATER
16 THAN 20 DAYS AFTER THE ISSUANCE OF THE INVITATION FOR BIDS OR
17 REQUEST FOR PROPOSALS, THE COUNCIL SHALL CONDUCT A PUBLIC
18 HEARING REGARDING THE PROPOSED CONSOLIDATED CONTRACT, AT WHICH
19 PUBLIC COMMENT SHALL BE RECEIVED. NO LATER THAN 20 DAYS AFTER
20 THE PUBLIC HEARING, THE COUNCIL SHALL TRANSMIT ALL OF THE
21 FOLLOWING INFORMATION TO THE DEPARTMENT OR COMMONWEALTH AGENCY:
22 (1) A RECORD OF THE HEARING, INCLUDING PUBLIC COMMENT
23 RECEIVED.
24 (2) AN ASSESSMENT OF THE SPECIFIC IMPEDIMENTS TO
25 PARTICIPATION BY SMALL BUSINESS CONCERNS AS PRIME CONTRACTORS
26 WHICH RESULT FROM THE CONTRACT CONSOLIDATION.
27 (3) RECOMMENDATIONS AS TO WHAT SPECIFIC ACTIONS THE
28 DEPARTMENT OR COMMONWEALTH AGENCY MAY TAKE TO MAXIMIZE SMALL
29 BUSINESS PARTICIPATION AS SUBCONTRACTORS, SUPPLIERS AND
30 CONTRACTORS PARTICIPATING IN COOPERATIVE PURCHASING UNDER
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1 CHAPTER 19 (RELATING TO INTERGOVERNMENTAL RELATIONS).
2 § 704 705. Small business and disadvantaged business <--
3 participation.
4 In accordance with the provisions of Chapter 21 (relating to
5 small and disadvantaged businesses) and regulations promulgated
6 pursuant thereto, the department and Commonwealth agencies shall
7 assist small businesses and disadvantaged businesses in their
8 efforts to participate in consolidated contracts as contractors,
9 subcontractors and suppliers.
10 § 705 706. Certification and audit of savings. <--
11 (a) Certification.--No later than September 30 of each year,
12 the Secretary of the Budget shall calculate and certify to the
13 State Treasurer any savings produced by each consolidated
14 contract in effect during the immediately preceding fiscal year
15 and publish the methodology by which the savings are calculated,
16 the individual contract savings and the total amount of the
17 savings in the Pennsylvania Bulletin. The State Treasurer shall
18 transfer an amount equal to the total savings from the General
19 Fund to an account established by the Commonwealth Financing
20 Authority, under 64 Pa.C.S. Ch. 15 (relating to Commonwealth
21 Financing Authority), for the purpose of making payment of
22 principal of and interest on bonds or other debts or obligations
23 of the Commonwealth Financing Authority.
24 (b) Audit.--The Auditor General shall conduct an annual
25 audit of the administration of consolidated contracts under this
26 chapter.
27 Section 3. Section 2107 of Title 62 is amended to read: <--
28 SECTION 3. SECTION 1901 OF TITLE 62 IS AMENDED BY ADDING A <--
29 DEFINITION TO READ:
30 § 1901. DEFINITIONS.
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1 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
2 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
3 CONTEXT CLEARLY INDICATES OTHERWISE:
4 * * *
5 "PARTICIPATION AGREEMENT." AN AGREEMENT ENTERED INTO BETWEEN
6 A LOCAL PUBLIC PROCUREMENT UNIT AND A PUBLIC PROCUREMENT UNIT,
7 PURCHASING AGENCY OR EXTERNAL PROCUREMENT ACTIVITY TO
8 COOPERATIVELY PURCHASE SUPPLIES AND SERVICES.
9 * * *
10 SECTION 4. SECTIONS 1904 AND 2107 OF TITLE 62 ARE AMENDED TO
11 READ:
12 § 1904. COOPERATIVE USE OF SUPPLIES OR SERVICES.
13 A LOCAL PUBLIC PROCUREMENT UNIT MAY ENTER INTO [AN AGREEMENT,
14 INDEPENDENT OF THE REQUIREMENTS OF CHAPTERS 5 (RELATING TO
15 SOURCE SELECTION AND CONTRACT FORMATION) AND 15 (RELATING TO
16 SUPPLY MANAGEMENT),] A PARTICIPATION AGREEMENT FOR SUPPLIES OR
17 SERVICES WITH ANY OTHER PUBLIC PROCUREMENT UNIT, PURCHASING
18 AGENCY OR EXTERNAL PROCUREMENT ACTIVITY FOR THE COOPERATIVE USE
19 OF SUPPLIES OR SERVICES UNDER THE TERMS AGREED UPON BETWEEN THE
20 PARTIES IF THE METHOD OF SOURCE SELECTION BY THE PUBLIC
21 PROCUREMENT UNIT, PURCHASING AGENCY OR EXTERNAL PROCUREMENT
22 ACTIVITY IS CONSISTENT WITH SECTION 512 (RELATING TO COMPETITIVE
23 SEALED BIDDING) OR 517 (RELATING TO MULTIPLE AWARDS) WHEN
24 CONTRACTING FOR THE SUPPLIES OR SERVICES.
25 § 2107. Report to General Assembly.
26 The department shall annually, before October 1, report in
27 writing to the General Assembly concerning the awarding of
28 contracts to small and disadvantaged businesses during the
29 preceding fiscal year. The report shall include a list of all
30 small businesses and disadvantaged businesses that participated
20040H2694B4216 - 6 -
1 in consolidated contracts as contractors, subcontractors or
2 suppliers during the preceding fiscal year. In preparing the
3 report, the department shall verify whether commitments made to
4 small businesses and disadvantaged businesses in the course of
5 awarding consolidated contracts have been maintained.
6 Section 4 5. This act shall take effect Immediately. <--
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