THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M.K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GERBER, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH AND WATSON, JANUARY 27, 2011

REFERRED TO COMMITTEE ON EDUCATION, JANUARY 27, 2011  

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for adjustments based on

Consumer Price Index relating to contracts and purchases; and

further providing for work to be done under contract let on

bids and exception, for purchase of supplies, for contracts

for construction, repair, renovation or maintenance, for

project contracts and for powers and duties of institution

presidents.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding a

section to read:

Section 118.  Adjustments Based on Consumer Price Index.--(a)  

(1)  Annually, beginning with the year in which this subsection

becomes applicable to contracts and purchases, the Department of

Labor and Industry shall calculate the percentage change in the

Consumer Price Index for All Urban Consumers (CPI-U) for the

United States city average for all items as published by the

United States Department of Labor, Bureau of Labor Statistics,

for the twelve-month average ending in September of the prior

year.

(2)  The amounts at which competitive bidding or written or

telephonic price quotations are required under this act shall be

adjusted annually as follows:

(i)  In the case of competitive bidding, the positive

percentage change, as determined in accordance with clause (1),

shall be multiplied by the amount applicable under the provision

requiring competitive bidding for the current year and the

product thereof shall be added to the amount applicable under

the provision requiring competitive bidding for the current

year, with the result rounded to the nearest multiple of ten

dollars ($10).

(ii)  In the case of written or telephonic price quotations,

the positive percentage change, as determined in accordance with

clause (1), shall be multiplied by the amount applicable under

the provision requiring written or telephonic price quotations

for the current year and the product thereof shall be added to

the amount applicable under the provision requiring written or

telephonic price quotations for the current year, with the

result rounded to the nearest multiple of ten dollars ($10).

(3)  The annual determination required under clause (1) and

the calculation of the adjustments required under clause (2)

shall be made in the period between October 1 and November 15 of

the year following the effective date of this subsection, and

annually between October 1 and November 15 of each successive

year.

(4)  The adjusted amounts obtained in accordance with clause

(2) shall become effective January 1 for the calendar year

following the year in which the determination required under

clause (1) is made.

(5)  The Department of Labor and Industry shall give notice

in the Pennsylvania Bulletin prior to January 1 of each calendar

year of the annual percentage change determined in accordance

with clause (1) and the amounts, whether adjusted or unadjusted

in accordance with clause (2), at which competitive bidding or

written or telephonic price quotations are required for the

calendar year beginning the first day of January after

publication of the notice.

Section 2.  Sections 751(a), (a.1), (b) and (f) and 807.1 of

the act, amended or added May 4, 1990 (P.L.164, No.38), are

amended to read:

Section 751.  Work to be Done Under Contract Let on Bids;

Exception.--(a)  All construction, reconstruction, repairs,

maintenance or work of any nature, including the introduction of

plumbing, heating and ventilating, or lighting systems, upon any

school building or upon any school property, or upon any

building or portion of a building leased under the provisions of

section 703.1, made by any school district, where the entire

cost, value, or amount of such construction, reconstruction,

repairs, maintenance or work, including labor and material,

shall exceed [ten thousand dollars ($10,000)] twenty-five

thousand dollars ($25,000), subject to annual adjustment under

section 118, shall be done under separate contracts to be

entered into by such school district with the lowest responsible

bidder, upon proper terms, after due public notice has been

given asking for competitive bids. Whenever a board of school

directors shall approve the use of a prefabricated unit,

complete in itself, for a school building or other proper

structure to be erected upon school property, the board of

school directors may have prepared appropriate specifications

detailing the size and material desired in a particular

prefabricated unit, including all utilities such as plumbing,

heating and ventilating, and electrical work, and may advertise

for a single bid on all the work and award the contract therefor

to the lowest responsible bidder: Provided, That if due to an

emergency a school plant or any part thereof becomes unusable

competitive bids for repairs or replacement may be solicited

from at least three responsible bidders, and upon the approval

of any of these bids by the Secretary of Education, the board of

school directors may proceed at once to make the necessary

repairs or replacements in accordance with the terms of said

approved bid or bids.

(a.1)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

by the board of school directors for all contracts that exceed

[four thousand dollars ($4,000)] seven thousand dollars

($7,000), subject to annual adjustment under section 118, but

are less than the amount requiring advertisement and competitive

bidding, or, in lieu of price quotations, a memorandum shall be

kept on file showing that fewer than three qualified contractors

exist in the market area within which it is practicable to

obtain quotations. A written record of telephonic price

quotations shall be made and shall contain at least the date of

the quotation, the name of the contractor and the contractor's

representative, the construction, reconstruction, repair,

maintenance or work which was the subject of the quotation and

the price. Written price quotations, written records of

telephonic price quotations and memoranda shall be retained for

a period of three years.

(b)  The board of school directors in any school district may

perform any construction, reconstruction, repairs, or work of

any nature, where the entire cost or value, including labor and

material, is less than [five thousand dollars ($5000)] seven

thousand dollars ($7,000), subject to annual adjustment under

section 118, by its own maintenance personnel. The board of

school directors in any school district may authorize the

secretary of the board or other executive to award contracts for

construction, reconstruction, repairs, or work of any nature,

where the entire cost or value, including labor and material,

[is ten thousand dollars ($10,000)] subject to annual adjustment

under section 118, is twenty-five thousand dollars ($25,000) or

less, without soliciting competitive bids, subject, however, to

the provisions of subsection (a.1).

* * *

(f)  No board of school directors shall evade the provisions

of this section as to advertising for bids or purchasing

materials or contracting for services piecemeal for the purpose

of obtaining prices under [ten thousand dollars ($10,000)]

twenty-five thousand dollars ($25,000), subject to annual

adjustment under section 118, upon transactions which should, in

the exercise of reasonable discretion and prudence, be conducted

as one transaction amounting to more than [ten thousand dollars

($10,000)] twenty-five thousand dollars ($25,000), subject to

annual adjustment under section 118. This provision is intended

to make unlawful the practice of evading advertising

requirements by making a series of purchases or contracts each

for less than the advertising requirement price, or by making

several simultaneous purchases or contracts each below said

price, when in either case the transaction involved should have

been made as one transaction for one price.

Section 807.1.  Purchase of Supplies.--(a)  All furniture,

equipment, textbooks, school supplies and other appliances for

the use of the public schools, costing [ten thousand dollars

($10,000)], subject to annual adjustment under section 118,

twenty-five thousand dollars ($25,000) or more shall be

purchased by the board of school directors only after due

advertisement as hereinafter provided. Supplies, subject to

annual adjustment under section 118, costing [ten thousand

dollars ($10,000)] twenty-five thousand dollars ($25,000) or

more shall be purchased by the board of school directors only

after public notice has been given by advertisement once a week

for three (3) weeks in not less than two (2) newspapers of

general circulation. In any district where no newspaper is

published, said notice may, in lieu of such publication, be

posted in at least five (5) public places.

(a.1)  Written or telephonic price quotations from at least

three qualified and responsible vendors shall be requested by

the board of school directors for all purchases of supplies that

exceed [four thousand dollars ($4,000)] seven thousand dollars

($7,000), subject to annual adjustment under section 118, but

are less than the amount requiring advertisement and competitive

bidding, or, in lieu of price quotations, a memorandum shall be

kept on file showing that fewer than three qualified vendors

exist in the market area within which it is practicable to

obtain quotations. A written record of telephonic price

quotations shall be made and shall contain at least the date of

the quotation, the name of the vendor and the vendor's

representative, the supplies which were the subject of the

quotation and the price of the supplies. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(b)  The board of school directors shall accept the bid of

the lowest responsible bidder, kind, quality, and material being

equal, but shall have the right to reject any and all bids, or

select a single item from any bid. The board of school directors

in any district may authorize or appoint the secretary of the

board or other executive as purchasing agent for the district,

with authority to purchase supplies costing less than [ten

thousand dollars ($10,000)] twenty-five thousand dollars

($25,000), subject to annual adjustment under section 118.

(c)  The following shall be exempt from the above provisions:

maps, music, globes, charts, educational films, filmstrips,

prepared transparencies and slides, pre-recorded magnetic tapes

and disc recordings, textbooks, games, toys, prepared kits,

flannel board materials, flash cards, models, projectuals and

teacher demonstration devices necessary for school use.

(d)  No board of school directors shall evade the provisions

of this section as to advertising for bids or purchasing

materials piecemeal for the purpose of obtaining prices under

[ten thousand dollars ($10,000)] twenty-five thousand dollars

($25,000), subject to annual adjustment under section 118, upon

transactions which should, in the exercise of reasonable

discretion and prudence, be conducted as one transaction

amounting to more than [ten thousand dollars ($10,000)] twenty-

five thousand dollars ($25,000), subject to annual adjustment

under section 118. This provision is intended to make unlawful

the practice of evading advertising requirements by making a

series of purchases or contracts each for less than the

advertising requirement price, or by making several simultaneous

purchases or contracts each below said price, when in either

case the transaction involved should have been made as one

transaction for one price.

Section 3.  Section 1913-B.1(c) of the act, added December 9,

2002 (P.L.1472, No.187), is amended to read:

Section 1913-B.1.  Contracts for Construction, Repair,

Renovation or Maintenance.--* * *

(c)  All contracts, other than contracts for the retention of

architects and engineers, authorized by this section which

exceed [ten thousand dollars ($10,000) or any larger amount as

otherwise provided for in 62 Pa.C.S. (relating to procurement)]

twenty-five thousand dollars ($25,000), subject to annual

adjustment under section 118, shall be advertised in the manner

provided by law and competitively bid and awarded to the lowest

responsible bidder. In case of emergencies and notwithstanding

any other provision of this section to the contrary, the board

of trustees may make or authorize others to make an emergency

procurement whenever a threat exists to public health, welfare

or safety or circumstances outside the control of the college

and creates an urgency of need which does not permit the delay

involved in using more formal competitive methods. Whenever

practical, in the case of a procurement of a supply, at least

two (2) bids shall be solicited. A written determination of the

basis for the emergency and for the selection of the particular

contractor shall be included in the contract file.

* * *

Section 4.  Sections 2003-A.1(c) and 2010-A(10) of the act,

amended April 27, 1998 (P.L.270, No.46), are amended to read:

Section 2003-A.1.  Project Contracts.--* * *

(c)  All contracts, other than contracts for the retention of

architects and engineers, authorized by this section which

exceed [ten thousand dollars ($10,000)] twenty-five thousand

dollars ($25,000), subject to annual adjustment under section

118, shall be advertised in the manner provided by law and

competitively bid and awarded to the lowest responsible bidder.

In case of emergencies and notwithstanding any other provision

of this section to the contrary, the chancellor may make or

authorize others to make an emergency procurement whenever a

threat exists to public health, welfare or safety or

circumstances outside the control of the State system and

creates an urgency of need which does not permit the delay

involved in using more formal competitive methods. Whenever

practical, in the case of a procurement of a supply, at least

two (2) bids shall be solicited. A written determination of the

basis for the emergency and for the selection of the particular

contractor shall be included in the contract file.

* * *

Section 2010-A.  Power and Duties of Institution

Presidents.--The president of each institution shall be

appointed by the board. The president shall be the chief

executive officer of that institution. He shall have the right

to attend all meetings of the council of that institution and

shall have the right to speak on all matters before the council

but not to vote. Subject to the stated authority of the board

and the council, each president shall have the following powers

and duties:

* * *

(10)  Within the limitations of the operating budget and

other available funds in accordance with the procedures

established by the board and with the approval of the local

council, to negotiate and award all contracts for equipment,

services and supplies in excess of a cost of [ten thousand

dollars ($10,000)] twenty-five thousand dollars ($25,000),

subject to annual adjustment under section 118, on a competitive

bid basis and to purchase instructional, educational,

extracurricular, technical, administrative, custodial and

maintenance equipment and supplies not in excess of a cost of

[ten thousand dollars ($10,000)] twenty-five thousand dollars

($25,000), subject to annual adjustment under section 118, 

without competitive bidding, except that such items shall not be

bought in series to avoid the dollar ceiling.

* * *

Section 5.  This act shall apply to contracts and purchases

advertised on or after January 1 of the year following the

effective date of this section.

Section 6.  This act shall take effect in 60 days.