THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BRUBAKER, EICHELBERGER, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, RAFFERTY, YAW, M. WHITE, D. WHITE, ERICKSON, BAKER, ALLOWAY, GREENLEAF, SMUCKER, FERLO, ROBBINS, VANCE, EARLL, SCARNATI, McILHINNEY AND PICCOLA, JANUARY 26, 2011

REFERRED TO LOCAL GOVERNMENT, JANUARY 26, 2011  

AN ACT

Amending the act of April 29, 1937 (P.L.526, No.118), entitled,

as reenacted and amended, "An act providing for and

regulating joint purchases by counties (other than counties

of the first class), cities of the second and third class,

boroughs, towns, townships, school districts, institution

districts, and poor districts," increasing the amount of

purchases that may be made subject to certain conditions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2 of the act of April 29, 1937 (P.L.526,

No.118), referred to as the Political Subdivision Joint

Purchases Law, reenacted and amended July 28, 1941 (P.L.544, No.

224) and amended July 10, 1990 (P.L.398, No.95), is amended to

read:

Section 2.  (a)  All such purchases involving the expenditure

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

dollars ($25,000) subject to adjustment under subsection (b.1) 

shall be in writing, and shall be made only after notice, by one

of the political subdivisions joining therein, once a week for

two weeks in one or more newspapers of general circulation

published in the political subdivision advertising the same. All

plans and specifications shall be placed on file by each of the

political subdivisions joining in such purchase at least fifteen

days in advance of opening bids.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts that exceed [four thousand dollars ($4,000)]

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

subsection (b.1) 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.1)  (1)  Every five years, beginning with the year in

which this subsection becomes applicable to contracts and

purchases, the Department of Labor and Industry shall calculate

the average 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 preceding five-year

period.

(2)  The amount at which competitive bidding is required

under subsection (a) and the amount at which written or

telephonic price quotations are required under subsection (b)

shall be adjusted every five years as follows:

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

percentage change, as determined in accordance with paragraph

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

subsection (a) for the current five-year period and the product

thereof shall be added to the amount applicable under subsection

(a) for the current five-year period, with the result rounded to

the nearest multiple of one hundred dollars ($100).

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

the positive percentage change, as determined in accordance with

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

under subsection (b) for the current five-year period and the

product thereof shall be added to the amount applicable under

subsection (b) for the current five-year period, with the result

rounded to the nearest multiple of one hundred dollars ($100).

(3)  The 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

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 five-year

period 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 in which the 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) and written

or telephonic price quotations are required under subsection (b)

for the five-year period beginning the first day of January

after publication of the notice.

(c)  No county or municipal government 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

adjustment under subsection (b.1) 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 adjustment under subsection (b.1). 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.

(d)  Any member of a governing body of a county or

municipality who votes to unlawfully evade the provisions of

this section and who knows that the transaction upon which he so

votes is or ought to be a part of a larger transaction and that

it is being divided in order to evade the requirements as to

advertising for bids commits a misdemeanor of the third degree

for each contract entered into as a direct result of that vote.

(e)  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."

Section 2.  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 3.  This act shall take effect immediately.