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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 68, 406, 774             PRINTER'S NO. 1050

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, KITCHEN,
           WAUGH AND LOGAN, JANUARY 31, 2005

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 30, 2005

                                     AN ACT

     1  Amending Title 62 (Procurement) of the Pennsylvania Consolidated
     2     Statutes, further providing for POWERS AND DUTIES OF THE       <--
     3     DEPARTMENT OF GENERAL SERVICES AND FOR application of part;
     4     and providing for electronic bidding by local government
     5     units.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  Section 3101 of Title 62 of the Pennsylvania       <--
     9  Consolidated Statutes is amended to read:
    10     SECTION 1.  SECTIONS 321 AND 3101 OF TITLE 62 OF THE           <--
    11  PENNSYLVANIA CONSOLIDATED STATUTES ARE AMENDED TO READ:
    12  § 321.  POWERS AND DUTIES.
    13     (A)  GENERAL RULE.--EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
    14  IN THIS PART, THE DEPARTMENT SHALL HAVE THE FOLLOWING POWERS AND
    15  DUTIES:
    16         (1)  PROCURE OR SUPERVISE THE PROCUREMENT OF ALL
    17     SUPPLIES, SERVICES AND CONSTRUCTION NEEDED BY EXECUTIVE
    18     AGENCIES AND THOSE INDEPENDENT AGENCIES FOR WHICH THE

     1     DEPARTMENT ACTS AS PURCHASING AGENCY. PROCUREMENT AUTHORITY
     2     MAY BE DELEGATED IN WRITING BY THE SECRETARY OF GENERAL
     3     SERVICES.
     4         (2)  EXERCISE GENERAL SUPERVISION AND CONTROL OVER ALL
     5     INVENTORIES OF SUPPLIES BELONGING TO EXECUTIVE AGENCIES.
     6         (3)  SELL, TRADE OR OTHERWISE DISPOSE OF SURPLUS SUPPLIES
     7     BELONGING TO EXECUTIVE OR INDEPENDENT AGENCIES.
     8         (4)  COORDINATE PROGRAMS OF EXECUTIVE AND INDEPENDENT
     9     AGENCIES FOR THE INSPECTION, TESTING AND ACCEPTANCE OF
    10     SUPPLIES AND CONSTRUCTION TO ENSURE AVAILABILITY OF
    11     FACILITIES AND TO AVOID A DUPLICATION OF FUNCTIONS.
    12         (5)  ESTABLISH AND MAINTAIN A CENTRAL OFFICE WHERE
    13     BUSINESSES OPERATING IN THIS COMMONWEALTH MAY OBTAIN
    14     INFORMATION PERTAINING TO THE PROCUREMENT NEEDS OF
    15     COMMONWEALTH AGENCIES.
    16         (6)  PARTICIPATE IN THE MANAGEMENT AND MAINTENANCE OF A
    17     CONTRACTOR RESPONSIBILITY PROGRAM IN COORDINATION WITH THE
    18     OFFICE OF THE BUDGET AND OTHER AGENCIES AS MAY BE DIRECTED BY
    19     THE GOVERNOR.
    20         (7)  RECEIVE, ASSESS AND RESPOND TO ALL COMMONWEALTH
    21     PURCHASE PROPOSALS, SUBMITTED BY ANY PERSON, FOR THE
    22     PROCUREMENT OF SUPPLIES, SERVICES OR CONSTRUCTION UNDER THIS
    23     PART. THE DEPARTMENT SHALL PROVIDE NOTIFICATION TO THE PERSON
    24     WHO SUBMITTED THE COMMONWEALTH PURCHASE PROPOSAL WITHIN 60
    25     DAYS OF RECEIVING THE PROPOSAL. THE NOTIFICATION SHALL
    26     INDICATE THAT THE DEPARTMENT IS IN RECEIPT OF THE
    27     COMMONWEALTH PURCHASE PROPOSAL AND THAT THE DEPARTMENT WILL
    28     PROVIDE A WRITTEN ASSESSMENT OF THE MERITS OF THE PROPOSAL TO
    29     THE PERSON WHO SUBMITTED THE PROPOSAL WITHIN 90 DAYS OF THE
    30     NOTICE. THE DEPARTMENT SHALL PROVIDE THE FOLLOWING IN ITS
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     1     ASSESSMENT OF THE COMMONWEALTH PURCHASE PROPOSAL:
     2             (I)  A COST BENEFIT ANALYSIS OF THE PROPOSAL,
     3         INCLUDING, BUT NOT LIMITED TO, AN ESTIMATION OF THE
     4         NUMBER OF JOBS CREATED BY THE PROPOSAL.
     5             (II)  THE ANTICIPATED REQUIREMENTS OF THE PROPOSAL.
     6             (III)  A PROPOSED INVITATION FOR BIDS OR REQUESTS FOR
     7         PROPOSALS RELATING TO THE PROPOSAL.
     8     (B)  PUBLICATION OF ASSESSMENTS.--THE DEPARTMENT SHALL
     9  PUBLISH ANY ASSESSMENT PREPARED UNDER THIS SECTION IN THE
    10  PENNSYLVANIA BULLETIN.
    11     (C)  DEFINITION.--AS USED IN THIS SECTION, THE TERM
    12  "COMMONWEALTH PURCHASE PROPOSAL" MEANS A SUGGESTION MADE TO THE
    13  DEPARTMENT OF GENERAL SERVICES, WHICH INCLUDES A RECOMMENDATION
    14  THAT THE COMMONWEALTH PROCURE A SPECIFIC SUPPLY, SERVICE OR
    15  CONSTRUCTION.
    16  § 3101.  Application of part.
    17     [This] Except for Chapter 46 (relating to electronic bidding
    18  by local government units), which applies only to local
    19  government units, this part applies to government agencies. In
    20  the case of Commonwealth agencies, this part shall be read in
    21  pari materia with Part I (relating to Commonwealth Procurement
    22  Code).
    23     Section 2.  Title 62 is amended by adding a chapter to read:
    24                             CHAPTER 46
    25            ELECTRONIC BIDDING BY LOCAL GOVERNMENT UNITS
    26  Sec.
    27  4601.  Short title of chapter.
    28  4602.  Definitions.
    29  4603.  Electronic bidding.
    30  4604.  Competitive electronic auction bidding.
    20050S0062B1050                  - 3 -     

     1  § 4601.  Short title of chapter.
     2     This chapter shall be known and may be cited as the Local
     3  Government Unit Electronic Bidding Act.
     4  § 4602.  Definitions.
     5     The following words and phrases when used in this chapter
     6  shall have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     "Local government unit."  A county, city, borough,
     9  incorporated town, township, school district, vocational school
    10  district, county institution district, home rule municipality,
    11  local authority or any joint or cooperative body of local
    12  government units or any instrumentality, authority or
    13  corporation thereof which has authority to enter into a
    14  contract.
    15  § 4603.  Electronic bidding.
    16     Notwithstanding any other provision of law concerning the
    17  requirements for competitive bidding for purchases and contracts
    18  by a local government unit, a local government unit may permit
    19  the electronic submission of bids and may receive bids
    20  electronically if the local government unit has the electronic
    21  capability to maintain the confidentiality of the bid until the
    22  bid opening time.
    23  § 4604.  Competitive electronic auction bidding.
    24     (a)  Conditions for use.--Notwithstanding any other provision
    25  of law concerning the requirements for competitive bidding for
    26  purchases and contracts, if a local government unit determines
    27  by resolution that use of competitive electronic auction bidding
    28  is in the best interests of the local government unit, a
    29  contract for supplies or services, but not for construction or
    30  design professional services, may be entered into by competitive
    20050S0062B1050                  - 4 -     

     1  electronic auction bidding.
     2     (b)  Invitation for bids.--An invitation for bids shall be
     3  issued and shall include a procurement description and all
     4  contractual terms, whenever practical, and conditions applicable
     5  to the procurement, including a notice that bids will be
     6  received in an electronic auction manner.
     7     (c)  Public notice.--Public notice and advertisement of the
     8  invitation for bids shall be given in the same manner as
     9  provided in the law otherwise applicable to the local government
    10  unit.
    11     (d)  Auctions.--Bids shall be accepted electronically at the
    12  time and in the manner designated in the invitation for bids.
    13  During the auction, each bidder shall have the capability to
    14  view their bid rank or the low bid price. Bidders may reduce
    15  their bid prices during the auction. At the conclusion of the
    16  auction, the record of the bid prices received and the name of
    17  each bidder shall be open to public inspection.
    18     (e)  Withdrawal of bids.--After the auction period has
    19  terminated, withdrawal of bids shall be permitted by the written
    20  determination of the local government unit when the bidder
    21  requests relief and presents credible evidence that the reason
    22  for the lower bid price was a clerical mistake, as opposed to a
    23  judgment mistake, and was actually due to an unintentional
    24  arithmetical error or an unintentional omission of a substantial
    25  quantity of work, labor, material or services made directly in
    26  the compilation of the bid. The request for relief and the
    27  supporting evidence must be received by the local government
    28  unit within a reasonable time period after the bid opening. The
    29  time period shall be specified by the local government unit.
    30     (f)  Award.--The contract shall be awarded within 60 days of
    20050S0062B1050                  - 5 -     

     1  the auction by written notice to the lowest responsible bidder,
     2  or all bids shall be rejected, except as otherwise provided in
     3  this section. Extensions of the date for the award may be made
     4  by mutual written consent of the local government unit and the
     5  lowest responsible bidder.
     6     Section 3.  This act shall take effect in 60 days.
















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