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                                                        PRINTER'S NO. 68

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 62 Session of 2005


        INTRODUCED BY EARLL, THOMPSON, ARMSTRONG, CORMAN, WONDERLING,
           ERICKSON, LEMMOND, COSTA, PILEGGI, GORDNER, ORIE AND KITCHEN,
           JANUARY 31, 2005

        REFERRED TO LOCAL GOVERNMENT, JANUARY 31, 2005

                                     AN ACT

     1  Amending Title 62 (Procurement) of the Pennsylvania Consolidated
     2     Statutes, further providing for application of part and for
     3     definitions; and providing for electronic bidding by local
     4     government units.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 3101 of Title 62 of the Pennsylvania
     8  Consolidated Statutes is amended to read:
     9  § 3101.  Application of part.
    10     [This] Except for Chapter 46 (relating to electronic bidding
    11  by local government units), which applies only to local
    12  government units, this part applies to government agencies. In
    13  the case of Commonwealth agencies, this part shall be read in
    14  pari materia with Part I (relating to Commonwealth Procurement
    15  Code).
    16     Section 2.  Section 3102 of Title 62 is amended by adding a
    17  definition to read:
    18  § 3102.  Definitions.


     1     Subject to additional definitions contained in subsequent
     2  provisions of this part which are applicable to specific
     3  provisions of this part, the following words and phrases when
     4  used in this part shall have the meanings given to them in this
     5  section unless the context clearly indicates otherwise:
     6     * * *
     7     "Local government unit."  A county, city, borough,
     8  incorporated town, township, school district, vocational school
     9  district, county institution district, home rule municipality,
    10  local authority or any joint or cooperative body of local
    11  government units or any instrumentality, authority or
    12  corporation which has authority to enter into a contract.
    13     Section 3.  Title 62 is amended by adding a chapter to read:
    14                             CHAPTER 46
    15            ELECTRONIC BIDDING BY LOCAL GOVERNMENT UNITS
    16  Sec.
    17  4601.  Short title of chapter.
    18  4602.  Electronic bidding.
    19  4603.  Competitive electronic auction bidding.
    20  § 4601.  Short title of chapter.
    21     This chapter shall be known and may be cited as the Local
    22  Government Unit Electronic Bidding Act.
    23  § 4602.  Electronic bidding.
    24     Notwithstanding any other provision of law concerning the
    25  requirements for competitive bidding for purchases and contracts
    26  by a local government unit, a local government unit may permit
    27  the electronic submission of bids and may receive bids
    28  electronically if the local government unit has the electronic
    29  capability to maintain the confidentiality of the bid until the
    30  bid opening time.
    20050S0062B0068                  - 2 -     

     1  § 4603.  Competitive electronic auction bidding.
     2     (a)  Conditions for use.--Notwithstanding any other provision
     3  of law concerning the requirements for competitive bidding for
     4  purchases and contracts, if a local government unit determines
     5  by resolution that use of competitive electronic auction bidding
     6  is in the best interests of the local government unit, a
     7  contract for supplies or services, but not for construction or
     8  design professional services, may be entered into by competitive
     9  electronic auction bidding.
    10     (b)  Invitation for bids.--An invitation for bids shall be
    11  issued and shall include a procurement description and all
    12  contractual terms, whenever practical, and conditions applicable
    13  to the procurement, including a notice that bids will be
    14  received in an electronic auction manner.
    15     (c)  Public notice.--
    16         (1)  Except as otherwise provided for under paragraph
    17     (2), public notice and advertisement of the invitation for
    18     bids shall be given in the same manner as provided in the law
    19     otherwise applicable to the local government unit.
    20         (2)  In cases where prequalification is a requirement of
    21     submitting a bid, notification to all potential bidders who
    22     have been prequalified by the local government unit shall
    23     serve as public notice.
    24     (d)  Auctions.--Bids shall be accepted electronically at the
    25  time and in the manner designated in the invitation for bids.
    26  During the auction, each bidder shall have the capability to
    27  view their bid rank or the low bid price. Bidders may reduce
    28  their bid prices during the auction. At the conclusion of the
    29  auction, the record of the bid prices received and the name of
    30  each bidder shall be open to public inspection.
    20050S0062B0068                  - 3 -     

     1     (e)  Withdrawal of bids.--After the auction period has
     2  terminated, withdrawal of bids shall be permitted by the written
     3  determination of the local government unit when the bidder
     4  requests relief and presents credible evidence that the reason
     5  for the lower bid price was a clerical mistake, as opposed to a
     6  judgment mistake, and was actually due to an unintentional
     7  arithmetical error or an unintentional omission of a substantial
     8  quantity of work, labor, material or services made directly in
     9  the compilation of the bid. The request for relief and the
    10  supporting evidence must be received by the local government
    11  unit within a reasonable time period after the bid opening. The
    12  time period shall be specified by the local government unit.
    13     (f)  Award.--The contract shall be awarded within 60 days of
    14  the auction by written notice to the lowest responsible bidder,
    15  or all bids shall be rejected, except as otherwise provided in
    16  this section. Extensions of the date for the award may be made
    17  by mutual written consent of the local government unit and the
    18  lowest responsible bidder.
    19     Section 4.  This act shall take effect in 60 days.








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