HOUSE AMENDED
PRIOR PRINTER'S NOS. 815, 1660, 2226 PRINTER'S NO. 2377
No. 751 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 26, 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; AND <--
8 PROVIDING A PENALTY.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2 of the act of April 29, 1937 (P.L.526,
12 No.118), entitled, as reenacted and amended, "An act providing
13 for and regulating joint purchases by counties (other than
14 counties of the first class), cities of the second and third
15 class, boroughs, towns, townships, school districts, institution
16 districts, and poor districts," reenacted and amended July 28,
17 1941 (P.L.544, No.224) and amended December 22, 1981 (P.L.529,
18 No.150), is amended to read:
19 Section 2. (A) All such purchases involving the expenditure <--
1 of over [four thousand dollars ($4,000),] ten thousand dollars <--
2 ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE PARTICIPATING <--
3 JOINT PURCHASERS, TEN THOUSAND DOLLARS ($10,000) shall be in <--
4 writing, and shall be made only after notice, by one of the
5 political subdivisions joining therein, once a week for two
6 weeks in one or more newspapers of general circulation published
7 in the political subdivision advertising the same. All plans and
8 specifications shall be placed on file by each of the political
9 subdivisions joining in such purchase at least fifteen days in
10 advance of opening bids.
11 (B) THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE <--
12 BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
13 TOTAL OF ALL BUDGETS ADMINISTERED BY THE JOINT PURCHASERS, BUT
14 IN NO CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR
15 THOUSAND DOLLARS ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS
16 ($10,000).
17 (C) (B) WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST <--
18 THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
19 FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
20 ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
21 BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
22 KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
23 EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
24 OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
25 QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
26 THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
27 REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
28 MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
29 THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
30 TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
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1 A PERIOD OF THREE YEARS.
2 (D) (C) No county or municipal government shall evade the <--
3 provisions of this section as to advertising for bids or
4 purchasing materials or contracting for services piece-meal, for
5 the purpose of obtaining prices under ten thousand dollars <--
6 ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE JOINT PURCHASERS <--
7 TEN THOUSAND DOLLARS ($10,000) upon transactions which should in <--
8 the exercise of reasonable discretion and prudence be conducted
9 as one transaction amounting to more than ten thousand dollars <--
10 ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE JOINT PURCHASERS <--
11 TEN THOUSAND DOLLARS ($10,000). This provision is intended to <--
12 make unlawful the practice of evading advertising requirements
13 by making a series of purchases or contracts each for less than
14 the advertising requirement price, or by making several
15 simultaneous purchases or contracts each below said price, when
16 in either case the transaction involved should have been made as
17 one transaction for one price.
18 (D) ANY MEMBER OF A GOVERNING BODY OF A COUNTY OR <--
19 MUNICIPALITY WHO VOTES TO UNLAWFULLY EVADE THE PROVISIONS OF
20 THIS SECTION AND WHO KNOWS THAT THE TRANSACTION UPON WHICH HE SO
21 VOTES IS OR OUGHT TO BE A PART OF A LARGER TRANSACTION AND THAT
22 IT IS BEING DIVIDED IN ORDER TO EVADE THE REQUIREMENTS AS TO
23 ADVERTISING FOR BIDS, COMMITS A MISDEMEANOR OF THE THIRD DEGREE
24 FOR EACH CONTRACT ENTERED INTO AS A DIRECT RESULT OF THAT VOTE.
25 (E) Every contract for the construction, reconstruction,
26 alteration, repair, improvement or maintenance of public works
27 shall comply with the provisions of the act of March 3, 1978
28 (P.L.6, No.3), known as the "Steel Products Procurement Act."
29 Section 2. This act shall take effect in 60 days.
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