PRINTER'S NO. 3599
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2901
Session of
2022
INTRODUCED BY O'NEAL, KAIL, HERSHEY, JOZWIAK, PENNYCUICK,
NEILSON, TWARDZIK AND CIRESI, OCTOBER 25, 2022
REFERRED TO COMMITTEE ON STATE GOVERNMENT, OCTOBER 25, 2022
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in procurement organization, further providing for
powers and duties and providing for limited contract
adjustment due to construction material price escalation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 321 of Title 62 of the Pennsylvania
Consolidated Statutes is amended by adding a paragraph to read:
§ 321. Powers and duties.
Except as otherwise specifically provided in this part, the
department shall have the following powers and duties:
* * *
(7) Adjust the prices of construction material line
items within a contract subject to the provisions and
limitations of section 323 (relating to limited contract
adjustment due to construction material price escalation).
Section 2. Title 62 is amended by adding a section to read:
§ 323. Limited contract adjustment due to construction material
price escalation.
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(a) General rule.--Notwithstanding the provisions of section
534 (relating to cost or pricing data), if the terms and
conditions of a contract awarded by a Commonwealth agency
require a contractor to furnish construction materials, the
terms and conditions may be adjusted by the department upon a
determination by the department that there has been an increase
in the cost of acquisition by the contractor, subcontractor or
supplier of materials. Adjustments under this section shall be
subject to the following conditions:
(1) The bid for the contract was submitted no earlier
than March 15, 2020.
(2) The bid for the contract was submitted no later than
the effective date of this section.
(3) At the time of the contractor or subcontractor's
application for contract adjustment, the cost of acquisition
of construction materials by the contractor, subcontractor or
supplier of materials has increased in excess of 5% since the
time of the contract award. A determination shall be made by
the department and shall be based upon available evidence,
including a nationally recognized economic index published by
the United States Department of Labor.
(b) Application.--The department shall establish a process
for applications for contract adjustment to be submitted by a
contractor or subcontractor within 30 days of the effective date
of this section. The department shall:
(1) Prescribe the form of the application for a contract
adjustment under this section.
(2) Require applications for a contract adjustment under
this section to include sufficient documentary evidence, as
determined by the department, that the contract conforms to
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the conditions specified in subsection (a).
Section 3. This act shall take effect in 60 days.
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