SENATE AMENDED
        PRIOR PRINTER'S NO. 2287                     PRINTER'S NO. 3159

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1784 Session of 1975


        INTRODUCED BY MESSRS. DeMEDIO, RITTER, FRYER, MEBUS AND WEIDNER,
           OCTOBER 1, 1975

        SENATOR MURPHY, LOCAL GOVERNMENT, IN SENATE, AS AMENDED,
           MAY 11, 1976

                                     AN ACT

     1  Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An
     2     act providing for the incorporation as bodies corporate and
     3     politic of 'Authorities' for municipalities, counties and
     4     townships; prescribing the rights, powers and duties of such
     5     Authorities heretofore or hereafter incorporated; authorizing
     6     such Authorities to acquire, construct, improve, maintain and
     7     operate projects, and to borrow money and issue bonds
     8     therefor; providing for the payment of such bonds, and
     9     prescribing the rights of the holders thereof; conferring the
    10     right of eminent domain on such Authorities; authorizing such
    11     Authorities to enter into contracts with and to accept grants
    12     from the Federal Government or any agency thereof; and
    13     conferring exclusive jurisdiction on certain courts over
    14     rates," regulating contract procedures and advertising for
    15     bids.

    16     The General Assembly of the Commonwealth of Pennsylvania
    17  hereby enacts as follows:
    18     Section 1.  Subsections A and B of section 10, act of May 2,
    19  1945 (P.L.382, No.164), known as the "Municipality Authorities
    20  Act of 1945," amended September 1, 1967 (P.L.293, No.122), are
    21  amended to read:
    22     Section 10.  Competition in Award of Contracts.--A.  All
    23  construction, reconstruction, repairs or work of any nature made


     1  by any Authority, where the entire cost, value or amount of such
     2  construction, reconstruction, repairs or work, including labor
     3  and materials, shall exceed [one thousand five hundred dollars
     4  ($1500)] two thousand dollars ($2,000) TWO THOUSAND FIVE HUNDRED  <--
     5  DOLLARS ($2,500), except construction, reconstruction, repairs
     6  or work done by employes of said Authority, or by labor supplied
     7  under agreement with any Federal or State agency, with supplies
     8  and materials purchased as hereinafter provided, shall be done
     9  only under contract or contracts to be entered into by the
    10  Authority with the lowest responsible bidder upon proper terms,
    11  after due public notice has been given asking for competitive
    12  bids as hereinafter provided. No contract shall be entered into
    13  for construction or improvement or repair of any project or
    14  portion thereof, unless the contractor shall give an undertaking
    15  with a sufficient surety or sureties approved by the Authority,
    16  and in an amount fixed by the Authority, for the faithful
    17  performance of the contract. All such contracts shall provide
    18  among other things that the person or corporation entering into
    19  such contract with the Authority will pay for all materials
    20  furnished and services rendered for the performance of the
    21  contract, and that any person or corporation furnishing such
    22  materials or rendering such services may maintain an action to
    23  recover for the same against the obligor in the undertaking, as
    24  though such person or corporation was named therein, provided
    25  the action is brought within one year after the time the cause
    26  of action accrued. Nothing in this section shall be construed to
    27  limit the power of the Authority to construct, repair or improve
    28  any project or portion thereof, or any addition, betterment or
    29  extension thereto, directly by the officers, agents and employes
    30  of the Authority, or otherwise than by contract.
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     1     B.  All supplies and materials costing [one thousand five
     2  hundred dollars ($1500)] two thousand dollars ($2,000) TWO        <--
     3  THOUSAND FIVE HUNDRED DOLLARS ($2,500), or more shall be
     4  purchased only after due advertisement as hereinafter provided.
     5  Authority shall accept the lowest bid or bids, kind, quality and
     6  material being equal, but the Authority shall have the right to
     7  reject any or all bids or select a single item from any bid. The
     8  provisions as to bidding shall not apply to the purchase of
     9  patented and manufactured products offered for sale in a
    10  noncompetitive market or solely by a manufacturer's authorized
    11  dealer.
    12     * * *
    13     Section 2.  This act shall take effect immediately.












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