HOUSE AMENDED
PRIOR PRINTER'S NOS. 810, 2223 PRINTER'S NO. 2374
No. 746 Session of 1989
INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
PORTERFIELD, MADIGAN, AFFLERBACH, REIBMAN AND PETERSON,
MARCH 23, 1989
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JUNE 26, 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; AND <--
5 PROVIDING A PENALTY.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections SECTION SECTIONS 2(a) and (d), 3, 3.1 <--
9 and 5, 3, 3.1 AND 5 of the act of May 27, 1953 (P.L.244, No.34), <--
10 entitled "An act relating to and regulating the contracts of
11 incorporated towns and providing penalties," amended December
12 22, 1981 (P.L.542, No.157), are amended AND THE SECTION IS <--
13 AMENDED BY ADDING A SUBSECTION to read:
14 Section 2. Regulation of Contracts.--(a) All contracts or
15 purchases of incorporated towns in excess of [four thousand
16 dollars] ten thousand dollars THE MONETARY THRESHOLD LEVEL FOR <--
17 THE INCORPORATED TOWN TEN THOUSAND DOLLARS, except those <--
1 hereinafter mentioned, shall not be made except with and from
2 the lowest responsible bidder, after due notice in one newspaper
3 of general circulation published or circulated in the county in
4 which the town is situated at least three times at intervals of
5 not less than three days where daily newspapers of general
6 circulation are available for such publication, and in case of
7 weekly newspapers shall be published once a week for two
8 successive weeks. The first advertisement shall be published not
9 less than ten days prior to the date fixed for the opening of
10 bids. The amount of the contract shall in all cases, whether of
11 straight sale price, conditional sale, bailment lease or
12 otherwise, be the entire amount which the town pays to the
13 successful bidder or his assigns in order to obtain the services
14 or property or both, and shall not be construed to mean only the
15 amount which is paid to acquire title or to receive any other
16 particular benefit or benefits of the whole bargain.
17 (A.1) THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE <--
18 BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM OF THE TOTAL
19 OF ALL BUDGETS ADMINISTERED BY THE INCORPORATED TOWN, BUT IN NO
20 CASE SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND
21 DOLLARS, NOR MORE THAN TEN THOUSAND DOLLARS.
22 * * *
23 (d) The contracts or purchases made by council involving an
24 expenditure [of over [[four thousand dollars] ten thousand <--
25 dollars OVER THE MONETARY THRESHOLD LEVEL FOR THE INCORPORATED <--
26 TOWN TEN THOUSAND DOLLARS which shall not require advertising or <--
27 bidding as hereinbefore provided are as follows:
28 (1) Those for maintenance, repairs or replacements for
29 water, sewer, electric light or other public works of the
30 incorporated town, provided they do not constitute new
19890S0746B2374 - 2 -
1 additions, extensions or enlargements of existing facilities and
2 equipment, but a bond may be required by council as in other
3 cases of work done.
4 (2) Those made for improvements, repairs and maintenance of
5 any kind made or provided by any incorporated town through its
6 own employes: Provided, That all materials used for street
7 improvement, maintenance and/or construction in excess of [four
8 thousand dollars] ten thousand dollars THE MONETARY THRESHOLD <--
9 LEVEL FOR THE INCORPORATED TOWN TEN THOUSAND DOLLARS be subject <--
10 to the advertising requirements contained herein.
11 (3) Those where particular types, models or pieces of new
12 equipment, articles, apparatus, appliances, vehicles or parts
13 thereof are desired by council, which are patented and
14 manufactured or copyrighted products.
15 (4) Those involving any policies of insurance or surety
16 company bonds; those made for public utility service under
17 tariffs on file with the Pennsylvania Public Utility Commission;
18 those made with another political subdivision, or a county, the
19 Commonwealth of Pennsylvania, the Federal Government, any agency
20 of the Commonwealth or the Federal Government, or any municipal
21 authority, including the sale, leasing or loan of any supplies
22 or material by the Commonwealth or the Federal Government or
23 their agencies. But the price thereof shall not be in excess of
24 that fixed by the Commonwealth, the Federal Government, or their
25 agencies.
26 (5) Those involving personal or professional services.
27 * * *
28 SECTION 2. SECTIONS 3, 3.1 AND 5 OF THE ACT, AMENDED <--
29 DECEMBER 21, 1981 (P.L.542, NO.157), ARE AMENDED TO READ:
30 Section 3. Evasion of Advertising Requirements.-- (A) No <--
19890S0746B2374 - 3 -
1 member or members of council shall evade the provisions of
2 Section two hereof by purchasing or contracting for services and
3 personal properties piecemeal for the purpose of obtaining
4 prices under [four thousand dollars] ten thousand dollars THE <--
5 MONETARY THRESHOLD LEVEL FOR THE INCORPORATED TOWN TEN THOUSAND <--
6 DOLLARS upon transactions which transaction should, in the
7 exercise of reasonable discretion and prudence, be conducted as
8 one transaction amounting to more than [four thousand dollars]
9 ten thousand dollars THE MONETARY THRESHOLD LEVEL FOR THE <--
10 INCORPORATED TOWN TEN THOUSAND DOLLARS. This provision is <--
11 intended to make unlawful the evading of advertising
12 requirements by making a series of purchases or contracts each
13 for less than the advertising requirement of price, or by making
14 several simultaneous purchases or contracts each below said
15 price, when, in either case, the transactions involved should
16 have been made as one transaction for one price. Any members of
17 council who so vote in violation of this provision and who know
18 that the transaction upon which they so vote is or ought to be a
19 part of a larger transaction and that it is being divided in
20 order to evade the requirements as to advertising for bids shall
21 be jointly and severally subject to surcharge for ten per centum
22 of the full amount of the contract or purchase.
23 (B) Whenever it shall appear that a member of council may <--
24 have voted in violation of this section but the purchase or
25 contract on which he so voted was not approved by council, this
26 section shall be inapplicable.
27 (C) ANY COUNCIL MEMBER WHO VOTES TO UNLAWFULLY EVADE THE <--
28 PROVISIONS OF SECTION 2 AND WHO KNOWS THAT THE TRANSACTION UPON
29 WHICH HE SO VOTES IS OR OUGHT TO BE A PART OF A LARGER
30 TRANSACTION AND THAT IT IS BEING DIVIDED IN ORDER TO EVADE THE
19890S0746B2374 - 4 -
1 REQUIREMENTS AS TO ADVERTISING FOR BIDS, COMMITS A MISDEMEANOR
2 OF THE THIRD DEGREE FOR EACH CONTRACT ENTERED INTO AS A DIRECT
3 RESULT OF THAT VOTE. THIS PENALTY SHALL BE IN ADDITION TO ANY
4 SURCHARGE WHICH MAY BE ASSESSED PURSUANT TO SUBSECTION (A).
5 Section 3.1. [Contracts between Seven Hundred Fifty Dollars <--
6 and [[Four Thousand Dollars] Ten Thousand Dollars OTHER <--
7 CONTRACTS TEN THOUSAND DOLLARS; Written Bids.--(A) In all cases <--
8 of contracts or purchases, other than the kinds mentioned in
9 clauses (1) to (5) inclusive of subsection (d) of section 2 of
10 this act, from seven hundred fifty dollars to [[four thousand <--
11 dollars] ten thousand dollars] TEN THOUSAND DOLLARS inclusive, <--
12 whether made by the town council or by an officer or appointee
13 of the town, written bids shall be solicited therefor; and no
14 such contract or purchase shall be made for the town except upon
15 at least three such written bids. The specifications upon which
16 bids are solicited shall be uniform in so far as possible to
17 afford equal opportunity for bidding. Catalogues and circulars
18 of firm prices shall be acceptable as bids upon the contracts or
19 purchases herein regulated. All such bids shall be retained in
20 the proper department or office for a period of at least two
21 months, and shall be reported monthly to the person designated
22 by the town council, who shall make a consolidated monthly
23 report thereof to council. The town council and the person
24 designated by the town council shall have access to the bids in
25 all departments and offices of the town for the enforcement of
26 this provision. Any official or appointee of the town
27 contracting or purchasing in violation of the provision of this
28 section shall be liable upon his bond, if any, or personally, in
29 the full amount of the purchase or contract so made, and the
30 town council may avoid any such purchase or contract.
19890S0746B2374 - 5 -
1 (B) WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST <--
2 THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
3 FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS BUT ARE LESS
4 THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE BIDDING
5 OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE KEPT ON
6 FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS EXIST
7 IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO OBTAIN
8 QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE QUOTATIONS
9 SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF THE
10 QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
11 REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
12 MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
13 THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
14 TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
15 A PERIOD OF THREE YEARS.
16 Section 5. Separate Bids for Plumbing, Heating, Ventilating
17 and Electrical Work.--In the preparation for the erection,
18 construction and alteration of any public building of an
19 incorporated town, when the entire cost of such work shall
20 exceed [four thousand dollars] ten thousand dollars THE MONETARY <--
21 THRESHOLD LEVEL FOR THE INCORPORATED TOWN TEN THOUSAND DOLLARS,
22 the architect, engineer or other person preparing such
23 specifications shall prepare separate specifications for the
24 plumbing, heating, ventilating and electrical work. The person
25 or persons authorized to enter into contracts for the erection,
26 construction or alteration of such public buildings shall
27 receive separate bids upon each of the said branches of work and
28 award the contract for the same to the lowest responsible bidder
29 for each of said branches.
30 Section 2 3 2. This act shall take effect in 60 days. <--
B13L53JRW/19890S0746B2374 - 6 -