HOUSE AMENDED
PRIOR PRINTER'S NO. 810 PRINTER'S NO. 2223
No. 746 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, MAY 30, 1990
AN ACT
1 Amending the act of May 27, 1953 (P.L.244, No.34), entitled "An
2 act relating to and regulating the contracts of incorporated
3 towns and providing penalties," further regulating contracts;
4 and further providing for advertising requirements.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Sections SECTION 2(a) and (d), 3, 3.1 and 5 of <--
8 the act of May 27, 1953 (P.L.244, No.34), entitled "An act
9 relating to and regulating the contracts of incorporated towns
10 and providing penalties," amended December 22, 1981 (P.L.542,
11 No.157), are amended AND THE SECTION IS AMENDED BY ADDING A <--
12 SUBSECTION to read:
13 Section 2. Regulation of Contracts.--(a) All contracts or
14 purchases of incorporated towns in excess of [four thousand
15 dollars] ten thousand dollars THE MONETARY THRESHOLD LEVEL FOR <--
16 THE INCORPORATED TOWN, except those hereinafter mentioned, shall
17 not be made except with and from the lowest responsible bidder,
1 after due notice in one newspaper of general circulation
2 published or circulated in the county in which the town is
3 situated at least three times at intervals of not less than
4 three days where daily newspapers of general circulation are
5 available for such publication, and in case of weekly newspapers
6 shall be published once a week for two successive weeks. The
7 first advertisement shall be published not less than ten days
8 prior to the date fixed for the opening of bids. The amount of
9 the contract shall in all cases, whether of straight sale price,
10 conditional sale, bailment lease or otherwise, be the entire
11 amount which the town pays to the successful bidder or his
12 assigns in order to obtain the services or property or both, and
13 shall not be construed to mean only the amount which is paid to
14 acquire title or to receive any other particular benefit or
15 benefits of the whole bargain.
16 (A.1) THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE <--
17 BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM OF THE TOTAL
18 OF ALL BUDGETS ADMINISTERED BY THE INCORPORATED TOWN, BUT IN NO
19 CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND
20 DOLLARS, NOR MORE THAN TEN THOUSAND DOLLARS.
21 * * *
22 (d) The contracts or purchases made by council involving an
23 expenditure [of over [four thousand dollars] ten thousand <--
24 dollars OVER THE MONETARY THRESHOLD LEVEL FOR THE INCORPORATED <--
25 TOWN which shall not require advertising or bidding as
26 hereinbefore provided are as follows:
27 (1) Those for maintenance, repairs or replacements for
28 water, sewer, electric light or other public works of the
29 incorporated town, provided they do not constitute new
30 additions, extensions or enlargements of existing facilities and
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1 equipment, but a bond may be required by council as in other
2 cases of work done.
3 (2) Those made for improvements, repairs and maintenance of
4 any kind made or provided by any incorporated town through its
5 own employes: Provided, That all materials used for street
6 improvement, maintenance and/or construction in excess of [four
7 thousand dollars] ten thousand dollars THE MONETARY THRESHOLD <--
8 LEVEL FOR THE INCORPORATED TOWN be subject to the advertising
9 requirements contained herein.
10 (3) Those where particular types, models or pieces of new
11 equipment, articles, apparatus, appliances, vehicles or parts
12 thereof are desired by council, which are patented and
13 manufactured or copyrighted products.
14 (4) Those involving any policies of insurance or surety
15 company bonds; those made for public utility service under
16 tariffs on file with the Pennsylvania Public Utility Commission;
17 those made with another political subdivision, or a county, the
18 Commonwealth of Pennsylvania, the Federal Government, any agency
19 of the Commonwealth or the Federal Government, or any municipal
20 authority, including the sale, leasing or loan of any supplies
21 or material by the Commonwealth or the Federal Government or
22 their agencies. But the price thereof shall not be in excess of
23 that fixed by the Commonwealth, the Federal Government, or their
24 agencies.
25 (5) Those involving personal or professional services.
26 * * *
27 SECTION 2. SECTIONS 3, 3.1 AND 5 OF THE ACT, AMENDED <--
28 DECEMBER 21, 1981 (P.L.542, NO.157), ARE AMENDED TO READ:
29 Section 3. Evasion of Advertising Requirements.--No member
30 or members of council shall evade the provisions of Section two
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1 hereof by purchasing or contracting for services and personal
2 properties piecemeal for the purpose of obtaining prices under
3 [four thousand dollars] ten thousand dollars THE MONETARY <--
4 THRESHOLD LEVEL FOR THE INCORPORATED TOWN upon transactions
5 which transaction should, in the exercise of reasonable
6 discretion and prudence, be conducted as one transaction
7 amounting to more than [four thousand dollars] ten thousand <--
8 dollars THE MONETARY THRESHOLD LEVEL FOR THE INCORPORATED TOWN. <--
9 This provision is intended to make unlawful the evading of
10 advertising requirements by making a series of purchases or
11 contracts each for less than the advertising requirement of
12 price, or by making several simultaneous purchases or contracts
13 each below said price, when, in either case, the transactions
14 involved should have been made as one transaction for one price.
15 Any members of council who so vote in violation of this
16 provision and who know that the transaction upon which they so
17 vote is or ought to be a part of a larger transaction and that
18 it is being divided in order to evade the requirements as to
19 advertising for bids shall be jointly and severally subject to
20 surcharge for ten per centum of the full amount of the contract
21 or purchase.
22 Whenever it shall appear that a member of council may have
23 voted in violation of this section but the purchase or contract
24 on which he so voted was not approved by council, this section
25 shall be inapplicable.
26 Section 3.1. [Contracts between Seven Hundred Fifty Dollars <--
27 and [Four Thousand Dollars] Ten Thousand Dollars OTHER <--
28 CONTRACTS; Written Bids.--(A) In all cases of contracts or <--
29 purchases, other than the kinds mentioned in clauses (1) to (5)
30 inclusive of subsection (d) of section 2 of this act, from seven
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1 hundred fifty dollars to [four thousand dollars] ten thousand <--
2 dollars inclusive, whether made by the town council or by an
3 officer or appointee of the town, written bids shall be
4 solicited therefor; and no such contract or purchase shall be
5 made for the town except upon at least three such written bids.
6 The specifications upon which bids are solicited shall be
7 uniform in so far as possible to afford equal opportunity for
8 bidding. Catalogues and circulars of firm prices shall be
9 acceptable as bids upon the contracts or purchases herein
10 regulated. All such bids shall be retained in the proper
11 department or office for a period of at least two months, and
12 shall be reported monthly to the person designated by the town
13 council, who shall make a consolidated monthly report thereof to
14 council. The town council and the person designated by the town
15 council shall have access to the bids in all departments and
16 offices of the town for the enforcement of this provision. Any
17 official or appointee of the town contracting or purchasing in
18 violation of the provision of this section shall be liable upon
19 his bond, if any, or personally, in the full amount of the
20 purchase or contract so made, and the town council may avoid any
21 such purchase or contract.
22 (B) WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST <--
23 THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
24 FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS BUT ARE LESS
25 THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE BIDDING
26 OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE KEPT ON
27 FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS EXIST
28 IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN
29 QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE QUOTATIONS
30 SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF THE
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1 QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
2 REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
3 MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
4 THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
5 TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
6 A PERIOD OF THREE YEARS.
7 Section 5. Separate Bids for Plumbing, Heating, Ventilating
8 and Electrical Work.--In the preparation for the erection,
9 construction and alteration of any public building of an
10 incorporated town, when the entire cost of such work shall
11 exceed [four thousand dollars] ten thousand dollars THE MONETARY <--
12 THRESHOLD LEVEL FOR THE INCORPORATED TOWN, the architect,
13 engineer or other person preparing such specifications shall
14 prepare separate specifications for the plumbing, heating,
15 ventilating and electrical work. The person or persons
16 authorized to enter into contracts for the erection,
17 construction or alteration of such public buildings shall
18 receive separate bids upon each of the said branches of work and
19 award the contract for the same to the lowest responsible bidder
20 for each of said branches.
21 Section 2 3. This act shall take effect in 60 days. <--
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