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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 815, 1660                PRINTER'S NO. 2226

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 751 Session of 1989


        INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
           PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
           MARCH 23, 1989

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

                                     AN ACT

     1  Amending the act of April 29, 1937 (P.L.526, No.118), entitled,
     2     as reenacted and amended, "An act providing for and
     3     regulating joint purchases by counties (other than counties
     4     of the first class), cities of the second and third class,
     5     boroughs, towns, townships, school districts, institution
     6     districts, and poor districts," increasing the amount of
     7     purchases that may be made without advertisement.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  Section 2 of the act of April 29, 1937 (P.L.526,
    11  No.118), entitled, as reenacted and amended, "An act providing
    12  for and regulating joint purchases by counties (other than
    13  counties of the first class), cities of the second and third
    14  class, boroughs, towns, townships, school districts, institution
    15  districts, and poor districts," reenacted and amended July 28,
    16  1941 (P.L.544, No.224) and amended December 22, 1981 (P.L.529,
    17  No.150), is amended to read:
    18     Section 2.  (A)  All such purchases involving the expenditure  <--
    19  of over [four thousand dollars ($4,000)] ten thousand dollars     <--

     1  ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE PARTICIPATING      <--
     2  JOINT PURCHASERS, shall be in writing, and shall be made only
     3  after notice, by one of the political subdivisions joining
     4  therein, once a week for two weeks in one or more newspapers of
     5  general circulation published in the political subdivision
     6  advertising the same. All plans and specifications shall be
     7  placed on file by each of the political subdivisions joining in
     8  such purchase at least fifteen days in advance of opening bids.
     9     (B)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE      <--
    10  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
    11  TOTAL OF ALL BUDGETS ADMINISTERED BY THE JOINT PURCHASERS, BUT
    12  IN NO CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR
    13  THOUSAND DOLLARS ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS
    14  ($10,000).
    15     (C)  WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST
    16  THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
    17  FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
    18  ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
    19  BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
    20  KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
    21  EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
    22  OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
    23  QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
    24  THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
    25  REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
    26  MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
    27  THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
    28  TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
    29  A PERIOD OF THREE YEARS.
    30     (D)  No county or municipal government shall evade the         <--
    19890S0751B2226                  - 2 -

     1  provisions of this section as to advertising for bids or
     2  purchasing materials or contracting for services piece-meal, for
     3  the purpose of obtaining prices under ten thousand dollars        <--
     4  ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE JOINT PURCHASERS   <--
     5  upon transactions which should in the exercise of reasonable
     6  discretion and prudence be conducted as one transaction
     7  amounting to more than ten thousand dollars ($10,000) THE         <--
     8  MONETARY THRESHOLD LEVEL FOR THE JOINT PURCHASERS. This
     9  provision is intended to make unlawful the practice of evading
    10  advertising requirements by making a series of purchases or
    11  contracts each for less than the advertising requirement price,
    12  or by making several simultaneous purchases or contracts each
    13  below said price, when in either case the transaction involved
    14  should have been made as one transaction for one price.
    15     (E)  Every contract for the construction, reconstruction,      <--
    16  alteration, repair, improvement or maintenance of public works
    17  shall comply with the provisions of the act of March 3, 1978
    18  (P.L.6, No.3), known as the "Steel Products Procurement Act."
    19     Section 2.  This act shall take effect in 60 days.








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