1Amending Title 62 (Procurement) of the Pennsylvania Consolidated
2Statutes, further providing for sole source procurement and 
3for competitive selection procedures for certain services.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Sections 515 and 518 of Title 62 of the
7Pennsylvania Consolidated Statutes are amended to read:

8§ 515. Sole source procurement.

9(a) Determination.--A contract may be awarded for a supply,
10service or construction item without competition if the
11contracting officer first determines in writing that one of the
12following conditions exists:

13(1) Only a single contractor is capable of providing the
14supply, service or construction.

15(2) A Federal or State statute or Federal regulation
16exempts the supply, service or construction from the
17competitive procedure.

18(3) The total cost of the supply, service or

1construction is less than the amount established by the
2department for small, no-bid procurements under section 514
3(relating to small procurements).

4(4) It is clearly not feasible to award the contract for
5supplies or services on a competitive basis.

6(5) The services are to be provided by attorneys or
7litigation consultants selected by the Office of General
8Counsel, the Office of Attorney General, the Department of
9the Auditor General or the Treasury Department.

10(6) The services are to be provided by expert witnesses.

11(7) The services involve the repair, modification or
12calibration of equipment and they are to be performed by the
13manufacturer of the equipment or by the manufacturer's
14authorized dealer, provided the contracting officer
15determines that bidding is not appropriate under the
16circumstances.

17(8) The contract is for investment advisors or managers
18selected by the Public School Employees' Retirement System,
19the State Employees' Retirement System or a State-affiliated
20entity.

21(9) The contract is for financial or investment experts
22to be used and selected by the Treasury Department or
23financial or investment experts selected by the Secretary of
24the Budget.

25(10) The contract for supplies or services is in the
26best interest of the Commonwealth.

27The written determination authorizing sole source procurement
28shall be included in the contract file. With the exception of
29small procurements under section 514 and emergency procurements
30under section 516 (relating to emergency procurement), if the

1sole source procurement is for a supply, except for computer
2software updates under $50,000, for which the department acts as
3purchasing agency, it must be approved by the Board of
4Commissioners of Public Grounds and Buildings prior to the award
5of a contract.

6(b) Legal services contract.--The following shall apply in
7the case of legal services procured under subsection (a)(5), in
8which the attorneys or litigation consultants will be
9compensated on a contingent fee basis:

10(1) Compensation shall not exceed 20% of a portion of an
11award or settlement.

12(2) By February 1 of each year, the head of any
13purchasing agency that is party to a contract in which the
14method of compensation is on a contingent fee basis shall
15submit a report to the chairman and minority chairman of the
16State Government Committee of the Senate and the chairman and
17the minority chairman of the State Government Committee of
18the House of Representatives. The report shall list for each
19contingent fee contract the parties to the contract, the
20nature of the contract, the date the contract was entered
21into, the date of termination, if any, and the rate of
22compensation.

23(3) In addition to the requirements of paragraphs (1)
24and (2) each contract for legal services shall include the
25following provisions:

26(i) Commonwealth attorneys designated by the head of
27the purchasing agency shall retain control over the
28course and conduct of any legal action, retain the
29ability to have direct contact with any party to the
30action and participate in any conference call, hearing,

1trial or settlement conference.

2(ii) The purchasing agency shall maintain the
3exclusive power to accept a settlement.

4(iii) Notwithstanding the provisions of
5subparagraphs (i) and (ii), Commonwealth attorneys shall
6be subject to the Rules of Professional Conduct as set
7forth by the Supreme Court in accordance with section
810(c) of Article V of the Constitution of Pennsylvania.

9(c) Definition.--As used in this section, the term
10"Commonwealth attorney" means an attorney employed by the
11purchasing agency who is eligible to participate in the
12retirement system established under 71 Pa.C.S. Pt. XXV (relating
13to retirement for State employees and officers).

14§ 518. Competitive selection procedures for certain services.

15(a) Conditions for use.--The services of accountants,
16clergy, physicians, lawyers, dentists and other professional
17services which are not performed by other Commonwealth employees
18shall be procured in accordance with this section except as
19authorized under section 514 (relating to small procurements),
20515 (relating to sole source procurement) or 516 (relating to
21emergency procurement).

22(b) Statement of qualifications.--Persons engaged in
23providing the types of services specified in subsection (a) may
24submit statements of qualifications and expressions of interest
25in providing these services. The contracting officer may specify
26a uniform format for statements of qualifications. Persons may
27amend these statements at any time by filing a new statement.

28(c) Request for proposals.--[Adequate notice of] When the
29need for the services specified in subsection (a) [shall be
30given by] exists, the purchasing agency shall solicit the 

1services through a request for proposals. The request for
2proposals shall describe the services required, list the type of
3information required of each offeror [and], state the relative
4importance of the particular information and disclose the method 
5of compensation.

6(c.1) Method of compensation.--If the head of the purchasing 
7agency determines in writing that it is in the best interests of 
8the Commonwealth for the services to be provided on a contingent 
9fee basis, the head of the purchasing agency shall disclose in 
10the request for proposals required by subsection (c) that the 
11method of compensation for the procurement shall be on a 
12contingent fee basis.

13(c.2) Evaluation.--The relative importance of the evaluation
14factors shall be fixed prior to opening the proposals.

15(d) Discussions.--The contracting officer may conduct
16discussions with any responsible offeror to determine the
17offeror's qualifications for further consideration. Discussions
18shall not disclose any information derived from proposals
19submitted by other offerors.

20(e) [Award.--Award shall be made to the] Selection for 
21negotiation.--The responsible offeror determined in writing by
22the contracting officer to be best qualified based on the
23evaluation factors set forth in the request for proposals[.
24Fair] shall be selected for contract negotiations.

25(f) Fee for services compensation.--If the offeror is to be 
26compensated on a fee for services basis, fair and reasonable
27compensation shall be determined through negotiation. If
28compensation cannot be agreed upon with the best qualified
29responsible offeror, then negotiations will be formally
30terminated with the offeror. If proposals were submitted by one

1or more other responsible offerors, negotiations may be
2conducted with the other responsible offeror or responsible
3offerors in the order of their respective qualification ranking.
4[The contract may be awarded to the responsible offeror then
5ranked as best qualified if the amount of compensation is
6determined to be fair and reasonable.]

7(g) Contingent fee compensation.--If the offeror is to be 
8compensated on a contingent fee basis, fair and reasonable 
9compensation shall be determined through negotiation. 
10Compensation shall not exceed 20% of a portion of an award or 
11settlement. If compensation cannot be agreed upon with the best 
12qualified responsible offeror, then negotiations will be 
13formally terminated with the offeror. If proposals were 
14submitted by one or more other responsible offerors, 
15negotiations may be conducted with the other responsible offeror 
16or responsible offerors in the order of their respective 
17qualification ranking. By February 1 of each year, the head of 
18any purchasing agency that is party to contract in which the 
19method of compensation is on a contingent fee basis shall submit 
20a report to the chairman and minority chairman of the State 
21Government Committee of the Senate and the chairman and minority 
22chairman of the State Government Committee of the House of 
23Representatives. The report shall list for each contingent fee 
24contract the parties to the contract, the nature of the 
25contract, the date the contract was entered into, the date of 
26termination, if any, and the rate of compensation.

27(h) Contracts.--If an agreement was reached during
28negotiations, a contract may be entered into between the
29purchasing agency and the offeror. All contracts procuring
30services under this section shall be in writing and posted in

1accordance with Chapter 17 of the act of February 14, 2008
2(P.L.6, No.3), known as the Right-to-Know Law.

3(i) Legal services contracts.--If the procurement is for 
4legal services, in addition to the requirements of subsection 
5(h), each contract for legal services shall include the 
6following provisions:

7(1) Commonwealth attorneys designated by the head of the 
8purchasing agency shall retain control over the course and 
9conduct of any legal action, retain the ability to have 
10direct contact with any party to the action and participate 
11in any conference call, hearing, trial or settlement 
12conference.

13(2) The purchasing agency shall maintain the exclusive 
14power to accept a settlement.

15(3) Notwithstanding the provisions of paragraphs (1) and
16(2), Commonwealth attorneys shall be subject to the Rules of
17Professional Conduct as set forth by the Supreme Court in
18accordance with section 10(c) of Article V of the
19Constitution of Pennsylvania.

20(j) Definition.--As used in this section, the term
21"Commonwealth attorney" means an attorney employed by the
22contracting agency who is eligible to participate in the
23retirement system established by 71 Pa.C.S. Pt. XXV (relating to
24retirement for State employees and officers).

25Section 2. The amendment of 62 Pa.C.S. §§ 515 and 518 shall
26apply to contracts solicited or entered into on or after the
27effective date of this section.

28Section 3. This act shall take effect in 60 days.