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, PICCOLA, WARD AND BROWNE, JANUARY 26, 2011

AS AMENDED ON THIRD CONSIDERATION, SEPTEMBER 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)] the base amount of

eighteen thousand five hundred dollars ($18,500) 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)] 

the base amount of ten thousand dollars ($10,000) 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)  Adjustments to the base amounts specified under

subsections (a) and (b) 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 twelve-month period ending September

30, 2012, and for each successive twelve-month period

thereafter.

(2)  If the department determines that there is no positive

percentage change, then no adjustment to the base amounts 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 each base amount and

the products shall be added to the base amounts, respectively,

and the sums shall be preliminary adjusted amounts.

(ii)  The preliminary adjusted amounts shall be rounded to

the nearest one thousand dollars ($1,000) hundred dollars

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($100), to determine the final adjusted base amounts for

purposes of subsections (a) and (b).

(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 amounts and the products

shall be added to the preliminary adjusted amount of the prior

year to calculate the preliminary adjusted amounts for the

current year. The sums thereof shall be rounded to the nearest

one thousand dollars ($1,000) hundred dollars ($100) to

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determine the new final adjusted base amounts for purposes of

subsections (a) and (b).

(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 amounts and new final adjusted

base amounts 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 amounts determined under

paragraphs (3) and (4) at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b), respectively, 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 amounts under this subsection for the ensuing calendar

year.

(8)  No adjustment to the base amounts specified under

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subsections (a) and (b) shall exceed three percent of the most

recently adjusted base amount The annual increase in the

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preliminary adjusted base amounts obtained under paragraphs (3)

and (4) shall not exceed three percent.

(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)] the base amount of eighteen thousand five hundred

dollars ($18,500) 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)] the base

amount of eighteen thousand five hundred dollars ($18,500) 

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.