THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY KRIEGER, MARSICO, CALTAGIRONE, MAHONEY, VULAKOVICH, GINGRICH, HUTCHINSON, EVANKOVICH, REICHLEY, DUNBAR, REESE, TALLMAN, PETRARCA, HARRIS, MANN, ELLIS, BAKER, PICKETT, REED, EVERETT, GROVE, COHEN, METCALFE, METZGAR, GRELL, CREIGHTON, PYLE, ROAE, CUTLER, MUSTIO, SCHRODER, MILLER AND SONNEY, MARCH 14, 2011

REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 14, 2011  

AN ACT

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, further providing for competitive selection

procedures for certain services.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 518 of Title 62 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 518.  Competitive selection procedures for certain services.

(a)  Conditions for use.--The services of accountants,

clergy, physicians, lawyers, dentists and other professional

services which are not performed by other Commonwealth employees

shall be procured in accordance with this section except as

authorized under section 514 (relating to small procurements)[,

515 (relating to sole source procurement)] or 516 (relating to

emergency procurement).

(b)  Statement of qualifications.--Persons engaged in

providing the types of services specified in subsection (a) may

submit statements of qualifications and expressions of interest

in providing these services. The contracting officer may specify

a uniform format for statements of qualifications. Persons may

amend these statements at any time by filing a new statement.

(c)  Request for proposals.--[Adequate notice of] When the

need for the services specified in subsection (a) [shall be

given by] exists, the purchasing agency shall solicit the

services through a request for proposals. The request for

proposals shall describe the services required, list the type of

information required of each offeror [and], state the relative

importance of the particular information and disclose the method

of compensation.

(c.1)  Method of compensation.--If the head of the

contracting agency determines in writing that it is in the best

interests of the Commonwealth for the services to be provided on

a contingent fee basis, the head of the purchasing agency shall

disclose in the request for proposals required by subsection (c)

that the method of compensation for the procurement shall be on

a contingent fee basis.

(c.2)  Evaluation.--The relative importance of the evaluation

factors shall be fixed prior to opening the proposals.

(d)  Discussions.--The contracting officer may conduct

discussions with any responsible offeror to determine the

offeror's qualifications for further consideration. Discussions

shall not disclose any information derived from proposals

submitted by other offerors.

(e)  [Award.--Award shall be made to the] Selection for

negotiation.--The responsible offeror determined in writing by

the contracting officer to be best qualified based on the

evaluation factors set forth in the request for proposals[.

Fair] shall be selected for contract negotiations.

(f)  Fee for services compensation.--If the offeror is to be

compensated on a fee for services basis, fair and reasonable

compensation shall be determined through negotiation. The rate

of compensation shall not exceed the rate charged to other

governmental entities. If compensation cannot be agreed upon

with the best qualified responsible offeror, then negotiations

will be formally terminated with the offeror. If proposals were

submitted by one or more other responsible offerors,

negotiations may be conducted with the other responsible offeror

or responsible offerors in the order of their respective

qualification ranking. [The contract may be awarded to the

responsible offeror then ranked as best qualified if the amount

of compensation is determined to be fair and reasonable.]

(g)  Contingent fee compensation.--If the offeror is to be

compensated on a contingent fee basis, fair and reasonable

compensation shall be determined through negotiation.

Compensation shall not exceed 20% of a portion of an award or

settlement, or $25,000,000, whichever is less. If compensation

cannot be agreed upon with the best qualified responsible

offeror, then negotiations will be formally terminated with the

offeror. If proposals were submitted by one or more other

responsible offerors, negotiations may be conducted with the

other responsible offeror or responsible offerors in the order

of their respective qualification ranking. By February 1 of each

year, if a Commonwealth agency is party to contract in which the

method of compensation is on a contingent fee basis, the head of

that Commonwealth agency shall submit a report to the President

Pro tempore of the Senate and the Speaker of the House of

Representatives. The report shall list for each contingent fee

contract the parties to the contract, the nature of the

contract, the date the contract was entered into, the date of

termination, if any, and the rate of compensation.

(h)  Contracts.--If an agreement was reached during

negotiations, a contract may be entered into between the

purchasing agency and the offeror. All contracts procuring

services under this section shall be in writing and posted in

accordance with Chapter 17 of the act of February 14, 2008

(P.L.6, No.3) known as the Right-to-Know Law.

(i)  Legal services contracts.--If the procurement is for

legal services, in addition to the requirements of subsection

(h), each contract for legal services shall do the following:

(1)  Commonwealth attorneys shall retain control over the

course and conduct of any legal action, retain the ability to

have direct contact with any party to the action and

participate in any conference call, hearing, trial or

settlement conference.

(2)  The contracting agency maintains the exclusive power

to accept a settlement.

(j)  Definition.--As used in this section, the term

"commonwealth attorney" means an attorney employed by the

contracting agency who is eligible to participate in the

retirement system established by 71 Pa.C.S. Pt. XXV (relating to

retirement for State employees and officers).

Section 2.  This act shall take effect in 60 days.