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05/18/2024 09:49 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20230&cosponId=38390
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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted: December 7, 2022 11:28 AM
From: Representative Perry A. Stambaugh
To: All House members
Subject: Raise Threshold of Separations Act (Former HB 710)
 
I am reintroducing legislation (previous HB 710) to amend Act 104 of 1913, commonly referred to as the “Separations Act,” to raise the public project cost threshold (before law applies) from $4,000 to $250,000. The legislation also requires that the PA Department of Labor and Industry annually adjust the threshold upwards for inflation.

The Separations Act of 1913 requires that public entities solicit separate bids and award separate contracts for electrical, heating, ventilation, and plumbing work undertaken as part of public construction projects where total project costs exceed $4,000. The law was passed in 1913 with an original threshold of $1,000, which was last adjusted in 1981 to its current level.

The Act’s requirement, known as the multiple prime delivery system, renders the public entity responsible for the management and coordination of multiple contracts. The Separations Act is a general state law, with parallel provisions in some of the local government codes (County Code) and in the School Code. My legislation would not affect the distinct “multiple prime bid” requirements in these other laws.

Arguably, merits of “multiple prime” bidding requirements may be necessary for larger public projects. But I believe it is sound public policy to establish a reasonable threshold that allows a public body to complete a small project (storage shed, etc.) without having to go through the bureaucracy of following Separations Act requirements. The current threshold amount is far too low and causes public bodies to have to spend taxpayer money on meeting requirements that are archaic. After all, the original purpose of the law was not to apply to relatively small projects, which it now does.

Please consider joining me in co-sponsoring this legislation.



Introduced as HB329