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, 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, WATSON AND F. KELLER, JANUARY 27, 2011

AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, APRIL 5, 2011   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in intergovernmental cooperation,

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further providing for competitive bidding of contracts

relating to intergovernmental cooperation, for written or

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telephonic price quotations required and for division of

transactions provided.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2308 of Title 53 of the Pennsylvania

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Consolidated Statutes is amended to read:

Section 1.  Sections 2308, 2311 and 2312 of Title 53 of the

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Pennsylvania Consolidated Statutes are amended to read:

§ 2308.  Bids for certain joint purchases.

(a)  Notice.--All joint purchases involving an expenditure of

more than [$10,000] the base amount of $25,000 subject to annual

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adjustment under subsection (b) shall be made by contract, in

writing, only after notice for bids once a week for two weeks in

at least one and not more than two newspapers of general

circulation in the joining local governments. All contracts

shall be let to the lowest responsible bidder. Every contract

for the construction, reconstruction, alteration, repair,

improvement or maintenance of public works shall comply with the

provisions of the act of March 3, 1978 (P.L.6, No.3), known as

the Steel Products Procurement Act.

(b)  Annual adjustment.--

(1)  The Department of Labor and Industry shall determine

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the percentage change in the Consumer Price Index for All

Urban Consumers for the 12-month period ending September 30

of the calendar year in which this subsection becomes

effective and for each successive 12-month period thereafter.

(2)  The amount at which competitive bidding is required

under subsection (a) shall be adjusted annually. The positive

percentage change, as determined in accordance with paragraph

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

subsection (a) for the current year, and the product thereof

shall be added to the amount applicable under subsection (a)

for the current year with the result rounded to the nearest

multiple of $10.

(3)  The annual determination required under paragraph

(1) and the calculation of the adjustments required under

paragraph (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

paragraph (2) shall become effective January 1 for the

calendar year following the year in which the determination

required under paragraph (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 paragraph (1) and the amounts, whether

adjusted or unadjusted in accordance with paragraph (2), at

which competitive bidding is required under subsection (a)

for the calendar year beginning the first day of January

after publication of the notice.

Adjustments to the base amount specified under subsection (a)

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and sections 2311 (relating to written or telephonic price

quotations required) and 2312 (relating to division of

transactions provided) shall be made as follows:

(1)  The Department of Labor and Industry shall determine

the percentage change in the All Items Consumer Price Index

for All Urban Consumers (CPI-U) for the United States City

Average as published by the United States Department of

Labor, Bureau of Labor Statistics for the 12-month period

ending September 30 of the calendar year in which this

subsection becomes effective, and for each successive 12-

month period thereafter.

(2)  If the department determines that there is no

positive percentage change, then no adjustment to the base

amount shall occur for the relevant time period provided for

in this subsection.

(3)  (i)  If the department determines that there is a

positive percentage change in the first year that the

determination is made under paragraph (1), the positive

percentage change shall be multiplied by the base amount

and the product shall be added to the base amount and the

sums shall be a preliminary adjusted amount.

(ii)  The preliminary adjusted amount shall be

rounded to the nearest $1,000, to determine the final

adjusted base amount for purposes of subsection (a) and

sections 2311 and 2312.

(4)  In each successive year in which there is a positive

percentage change in the CPI-U for the United States City

Average, the positive percentage change shall be multiplied

by the most recent preliminary adjusted amount and the

product shall be added to the most recent preliminary

adjusted amount. The sum thereof shall be rounded to the

nearest $1,000 to determine the new final adjusted base

amount for purposes of subsection (a) and sections 2311 and

2312.

(5)  The determinations and adjustments required under

this subsection 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 year thereafter.

(6)  The final adjusted base amount and new final

adjusted base amount obtained under paragraphs (3) and (4)

shall become effective January 1 for the calendar year

following the year in which the determination required under

paragraph (1) is made.

(7)  The department shall publish notice in the

Pennsylvania Bulletin prior to January 1 of each calendar

year of the annual percentage change determined under

paragraph (1) and the unadjusted or final adjusted base

amount determined under paragraphs (3) and (4) for purposes

of subsection (a) and sections 2311 and 2312 for the calendar

year beginning the first day of January after publication of

the notice. The notice shall include a written and

illustrative explanation of the calculations performed by the

department in establishing the unadjusted or final adjusted

base amount under this subsection for the ensuing calendar

year.

§ 2311.  Written or telephonic price quotations required.

Written or telephonic price quotations from at least three

qualified and responsible contractors shall be requested for all

contracts that exceed [$4,000] the base amount of $10,000

subject to annual adjustment under section 2308(b) (relating to

bids for certain joint purchases) 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.

§ 2312.  Division of transactions provided.

No local government shall evade the provisions of section

2308 (relating to bids for certain joint purchases) as to

advertising for bids or purchasing materials or contracting for

services piecemeal for the purpose of obtaining prices under

[$10,000] $25,000 subject to annual adjustment under section

2308(b) (relating to bids for certain joint purchases) upon

transactions which should in the exercise of reasonable

discretion and prudence be conducted as one transaction

amounting to more than [$10,000] $25,000 subject to annual

adjustment under section 2308(b). 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 such price when

in either case the transaction involved should have been made as

one transaction for one price.

Section 2.  This act shall apply to contracts and purchases

advertised after December 31 of the year in which this section

takes effect.

Section 3.  This act shall take effect immediately.