PRINTER'S NO. 1270
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1199
Session of
2023
INTRODUCED BY NEILSON, SCHLOSSBERG, T. DAVIS, HILL-EVANS,
MADDEN, DELLOSO, SANCHEZ, HOHENSTEIN AND PARKER, MAY 19, 2023
REFERRED TO COMMITTEE ON STATE GOVERNMENT, MAY 19, 2023
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in source selection and contract formation, further
providing for debarment or suspension and for
prequalification of bidders and offerors.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 531(a) of Title 62 of the Pennsylvania
Consolidated Statutes is amended and the section is amended by
adding a subsection to read:
ยง 531. Debarment or suspension.
(a) Authority.--After reasonable notice to the person
involved and reasonable opportunity for that person to be heard,
the head of a purchasing agency, after consultation with the
head of the using agency, shall have authority to debar a person
from consideration for the award of contracts. The decision to
debar shall be based upon substantial evidence that a cause for
debarment or suspension under subsection (b) has occurred. In
making the decision of whether to debar a person, the head of
the purchasing agency shall take into consideration the
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seriousness of any violation and any mitigating factors. A
debarment may be for a period of not more than [three] five
years. The head of the purchasing agency may suspend a person
from consideration for an award of contracts for a period of up
to three months if there is probable cause for debarment.
* * *
(g) Civil penalties.--
(1) A debarred or suspended person shall be subject to
the following:
(i) For a debarment, a civil penalty not to exceed:
(A) $1,500 for an individual.
(B) $3,000 for a company.
(ii) For a suspension, a civil penalty not to
exceed:
(A) $1,000 for an individual.
(B) $2,000 for a company.
(2) A person subject to a civil penalty under
subparagraph (i) shall not be subject to a civil penalty
under subparagraph (ii) for the same cause enumerated under
subsection (b).
Section 2. Section 532 of Title 62 is amended to read:
ยง 532. Prequalification and qualification of bidders and
offerors.
(a) Prequalification.--
(1) Prospective bidders and offerors may be prequalified
for particular types of supplies, services and construction.
(2) Prequalification of bidders and offerors shall
include submission of evidence of compliance with the
following:
(i) Federal employer identification number or, for
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sole proprietors, Social Security number requirements.
(ii) Provisions of 42 U.S.C. Ch. 21 Subch. VI
(relating to equal employment opportunities) and Federal
Executive Order No. 11246 as amended by Federal Executive
Order No. 11375.
(iii) Certificates of insurance indicating coverage
as necessary for the contract and in amounts specified in
the bid specifications.
(iv) Proof of performance bond, which shall cover at
least 20% of the total cost of the contract to be
awarded.
(v) Proof that employees are covered by a health
care plan.
(vi) Proof of any professional or trade license
required by the laws of this Commonwealth for any trade
or specialty area in which the bidder or offeror is
seeking a contract award, including any suspension or
revocation of a license.
(3) Prospective bidders and offerors failing to submit
evidence of compliance under this subsection shall not be
awarded a Commonwealth agency contract.
(b) Qualifications for contract award.--
(1) A bidder or offeror must meet the following
qualifications to be awarded a Commonwealth agency contract:
(i) Swear under oath that employees on the project
are properly classified under 26 U.S.C. (relating to
Internal Revenue Code) and as clarified in regulations
promulgated by the Internal Revenue Service.
(ii) Have had no violations of the act of August 15,
1961 (P.L.987, No.442), known as the Pennsylvania
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Prevailing Wage Act, within the preceding five years
after the date of the latest finding.
(iii) File a signed statement that the bidder or
offeror has reviewed the provisions of the Pennsylvania
Prevailing Wage Act and that the bidder or offeror agrees
to pay the applicable prevailing wage rate.
(iv) Have had no violations under 29 U.S.C. ยง 160
(relating to prevention of unfair labor practices), the
act of June 1, 1937 (P.L.1168, No.294), known as the
Pennsylvania Labor Relations Act, or the act of July 23,
1970 (P.L.563, No.195), known as the Public Employe
Relations Act.
(v) Not use public funds to influence the decision
of its employees to join or not join the union of their
choice.
(2) The following qualifications may also be considered
in awarding a Commonwealth agency contract:
(i) Statements as to the past performance of the
contractor during the preceding three years. The bidder
or offeror shall give the names and addresses of the
projects, original contract price, final contract price
and the names of all subcontractors used, if applicable,
upon request by a Commonwealth agency.
(ii) Determinations relating to violations of
Federal, State or local laws, including violations of 29
U.S.C. Ch. 15 (relating to occupational safety and
health) and 41 U.S.C. Ch. 67 (relating to service
contract labor standards).
(c) Definition.--As used in this section, the term "health
care plan" shall mean a package of coverage benefits with a
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particular cost-sharing structure, network and service area that
is purchased through a health insurance policy.
Section 3. This act shall take effect in 60 days.
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