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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 806, 1014                PRINTER'S NO. 2219

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 742 Session of 1989


        INTRODUCED BY STOUT, CORMAN, STEWART, BRIGHTBILL, PUNT, LEMMOND,
           PORTERFIELD, WENGER, MADIGAN, AFFLERBACH, REIBMAN AND
           PETERSON, MARCH 21, 1989

        AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MAY 30, 1990

                                     AN ACT

     1  Amending the act of August 9, 1955 (P.L.323, No.130), entitled
     2     "An act relating to counties of the third, fourth, fifth,
     3     sixth, seventh and eighth classes; amending, revising,
     4     consolidating and changing the laws relating thereto,"
     5     further regulating contracts and purchases as to bids and
     6     advertising.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Sections 1801, 1802(a), (b) and (h) and 1803 of
    10  the act of August 9, 1955 (P.L.323, No.130), known as The County
    11  Code, amended December 22, 1981 (P.L.580, No.167), are amended
    12  to read:
    13     Section 1801.  Commissioners Sole Contractors for County.--    <--
    14  (A)  The county commissioners shall contract for and purchase     <--
    15  all services referred to in section five hundred eight and
    16  personal property for county officers and agencies. All
    17  contracts and purchases not in excess of [four thousand dollars
    18  ($4,000)] ten thousand dollars ($10,000) THE MONETARY THRESHOLD   <--


     1  LEVEL FOR THE COUNTY SHALL BE SUBJECT TO SECTION 1802(A.1) AND
     2  shall be by note or memorandum, in writing, signed by the county
     3  commissioners, or their agent. A copy of all such notes and
     4  memorandums and all written contracts shall be filed in the
     5  office of the controller, if any, and, if not, then with the      <--
     6  chief clerk of the commissioners. The commissioners shall, where
     7  possible, anticipate the needs of the NOT, THEN WITH THE CHIEF    <--
     8  CLERK OF THE COMMISSIONERS.
     9     (B)  WRITTEN OR TELEPHONIC PRICE QUOTATIONS FROM AT LEAST
    10  THREE QUALIFIED AND RESPONSIBLE CONTRACTORS SHALL BE REQUESTED
    11  FOR ALL CONTRACTS THAT EXCEED FOUR THOUSAND DOLLARS ($4,000) BUT
    12  ARE LESS THAN THE AMOUNT REQUIRING ADVERTISEMENT AND COMPETITIVE
    13  BIDDING OR, IN LIEU OF PRICE QUOTATIONS, A MEMORANDUM SHALL BE
    14  KEPT ON FILE SHOWING THAT FEWER THAN THREE QUALIFIED CONTRACTORS
    15  EXIST IN THE MARKET AREA WITHIN WHICH IT IS PRACTICABLE TO
    16  OBTAIN QUOTATIONS. A WRITTEN RECORD OF TELEPHONIC PRICE
    17  QUOTATIONS SHALL BE MADE AND SHALL CONTAIN AT LEAST THE DATE OF
    18  THE QUOTATION, THE NAME OF THE CONTRACTOR AND THE CONTRACTOR'S
    19  REPRESENTATIVE, THE CONSTRUCTION, RECONSTRUCTION, REPAIR,
    20  MAINTENANCE OR WORK WHICH WAS THE SUBJECT OF THE QUOTATION AND
    21  THE PRICE. WRITTEN PRICE QUOTATIONS, WRITTEN RECORDS OF
    22  TELEPHONIC PRICE QUOTATIONS AND MEMORANDA SHALL BE RETAINED FOR
    23  A PERIOD OF THREE YEARS.
    24     (C)  THE COMMISSIONERS SHALL, WHERE POSSIBLE, ANTICIPATE THE
    25  NEEDS OF THE various officers and agencies of the county and
    26  endeavor to purchase in wholesale quantities, where practicable
    27  and where savings could be achieved thereby. The commissioners
    28  may make contracts and purchases for all purposes expressly or
    29  impliedly authorized by law.
    30     Section 1802.  Contract Procedures; Terms and Bonds;
    19890S0742B2219                  - 2 -

     1  Advertising for Bids.--(a)  All contracts for services and
     2  personal property where the amount thereof exceeds the sum of
     3  [four thousand dollars ($4,000)] ten thousand dollars ($10,000)   <--
     4  THE MONETARY THRESHOLD LEVEL FOR THE COUNTY, shall be written     <--
     5  and shall, except as otherwise hereinafter specified, be made by
     6  advertising for bids.
     7     (A.1)  THE MONETARY THRESHOLD LEVEL ABOVE WHICH COMPETITIVE    <--
     8  BIDDING SHALL BE REQUIRED SHALL BE ONE PER CENTUM (1%) OF THE
     9  TOTAL OF ALL BUDGETS ADMINISTERED BY THE COUNTY, BUT IN NO CASE
    10  SHALL THE MONETARY THRESHOLD BE LESS THAN FOUR THOUSAND DOLLARS
    11  ($4,000), NOR MORE THAN TEN THOUSAND DOLLARS ($10,000).
    12     (b)  Contracts or purchases in excess of [four thousand
    13  dollars ($4,000)] ten thousand dollars ($10,000) THE MONETARY     <--
    14  THRESHOLD LEVEL FOR THE COUNTY, except those hereinafter
    15  mentioned, hall not be made except with and from the lowest
    16  responsible bidder, after due notice in one newspaper of general
    17  circulation, published or circulating in the county, at least
    18  three times at intervals of not less than three days where daily
    19  newspapers of general circulation are employed for such
    20  publication, or in case weekly newspapers are employed then the
    21  notice shall be published once a week for two successive weeks.
    22  The first advertisement shall be published not less than ten
    23  days prior to the date fixed for the opening of bids. The
    24  requirements of this subsection need not be followed in cases of
    25  emergency, but in such cases the actual emergency shall be
    26  declared and stated by resolution of the commissioners.
    27     * * *
    28     (h)  The contracts or purchases made by the commissioners
    29  involving an expenditure of over [four thousand dollars
    30  ($4,000)] ten thousand dollars ($10,000)] THE MONETARY THRESHOLD  <--
    19890S0742B2219                  - 3 -

     1  LEVEL FOR THE COUNTY which shall not require advertising or
     2  bidding, as hereinbefore provided, are as follows:
     3     (1)  Those for maintenance, repairs or replacements for
     4  water, electric light, or other public works of the county where
     5  they do not constitute new additions, extensions or enlargements
     6  of existing facilities and equipment. A bond may be required by
     7  the commissioners as in other cases for work done.
     8     (2)  Those made for improvements, repairs and maintenance of
     9  any kind, made or provided by the county through its own
    10  employes. This shall not apply to construction materials used in
    11  a street improvement.
    12     (3)  Those where particular types, models or pieces of new
    13  equipment, articles, apparatus, appliances, vehicles or parts
    14  thereof, are desired by the commissioners, which are patented
    15  and manufactured or copyrighted products.
    16     (4)  Those involving any policies of insurance or surety
    17  company bonds, those made for public utility service under
    18  tariffs on file with the Pennsylvania Public Utility Commission,
    19  those made with another political subdivision, the Commonwealth
    20  of Pennsylvania, the Federal Government, any agency of the
    21  Commonwealth or the Federal Government or any municipal
    22  authority, including the sale, leasing or loan of any supplies
    23  or materials by the Commonwealth or the Federal Government or
    24  their agencies, but the price thereof shall not be in excess of
    25  that fixed by the Commonwealth, or the Federal Government, or
    26  their respective agencies.
    27     (5)  Those involving services of members of the medical or
    28  legal profession, registered architects, engineers, certified
    29  public accountants or other personal services involving
    30  professional expert advice.
    19890S0742B2219                  - 4 -

     1     (6)  Those involving contracts entered into by nonprofit
     2  cooperative hospital service associations for hospitals and
     3  nursing homes which are part of the institutional district or
     4  which are owned by the county; operated by the county; or
     5  affiliated with the county by the purchasing of, or
     6  participating in contracts for, materials, supplies and
     7  equipment.
     8     * * *
     9     Section 1803.  Evasion of Advertising Requirements.--No
    10  commissioner or commissioners shall evade the provisions of
    11  section one thousand eight hundred two of this act, as to
    12  advertising for bids or purchasing or contracting for services
    13  and personal properties piece-meal, for the purpose of obtaining
    14  prices under [four thousand dollars ($4,000)] ten thousand        <--
    15  dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE COUNTY     <--
    16  upon transactions which should in the exercise of reasonable
    17  discretion and prudence be conducted as one transaction
    18  amounting to more than [four thousand dollars ($4,000)] ten       <--
    19  thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE   <--
    20  COUNTY. This provision is intended to make unlawful the practice
    21  of evading advertising requirements by making a series of
    22  purchases or contracts each for less than the advertising
    23  requirement price, or by making several simultaneous purchases
    24  or contracts each below said price, when in either case the
    25  transaction involved should have been made as one transaction
    26  for one price. Any county commissioners who so vote in violation
    27  of this provision and who know that the transaction upon which
    28  they so vote is or ought to be a part of a larger transaction
    29  and that it is being divided in order to evade the requirements
    30  as to advertising for bids shall be, jointly and severally,
    19890S0742B2219                  - 5 -

     1  subject to surcharge for any loss sustained. Wherever it shall
     2  appear that a commissioner may have voted in violation of this
     3  section, but the purchase or contract on which he so voted was
     4  not approved by the board of county commissioners, this section
     5  shall be inapplicable.
     6     Section 2.  Sections 2317 and 2670 of the act, amended
     7  December 22, 1981 (P.L.580, No.167), are amended to read:
     8     Section 2317.  Separate Bids for Plumbing, Heating,
     9  Ventilating, Electrical Work, Elevators and Moving Stairs.--In
    10  the preparation of specifications for the erection, construction
    11  and alteration of any public building, when the entire cost of
    12  such work shall exceed [four thousand dollars ($4000)] ten        <--
    13  thousand dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE   <--
    14  COUNTY the architect, engineer or other person preparing such
    15  specifications shall prepare only the following separate
    16  specifications: (1) plumbing, (2) heating, (3) ventilating, (4)
    17  electrical work, (5) elevators and moving stairs, and (6) one
    18  complete set of specifications for all the other work to be done
    19  in such erection, construction and alteration. The board of
    20  commissioners shall receive separate bids upon each of the said
    21  branches of work and award the contract for the same to the
    22  lowest responsible bidder for each of said branches, including
    23  the balance of the work in addition to the plumbing, heating,
    24  ventilating and electrical work, and elevators and moving
    25  stairs. Where it is desired to install an air conditioning unit,
    26  the heating and ventilating so involved may be regarded as one
    27  branch of work having only one set of specifications, and bids
    28  may be received and a contract awarded thereon, as hereinbefore
    29  provided.
    30     Section 2670.  Building or Repair of Bridges.--In addition to
    19890S0742B2219                  - 6 -

     1  the provisions of Articles XVIII and XXIII of this act relating
     2  to contracting for services and personal property, whenever the
     3  county commissioners propose to build or repair a bridge at a
     4  cost in excess of [four thousand dollars ($4000)] ten thousand    <--
     5  dollars ($10,000) THE MONETARY THRESHOLD LEVEL FOR THE COUNTY     <--
     6  their advertisements for bids shall contain the description of
     7  the repairs, or designs of the kind of bridge, required. When
     8  the contract is for the building of a bridge, the designs and
     9  specifications therefor, or a copy thereof, shall be kept in the
    10  office of the county commissioners, open to the inspection of
    11  all intending bidders during such advertising and the time
    12  specified therein for the reception of bids. In the case of a
    13  bridge to be erected over a stream upon the line between two
    14  adjoining counties, the advertising shall be done in each of
    15  said counties, and a copy of the plans and specifications shall
    16  be kept in the commissioners' office of each county. The time of
    17  filing bids and the person's name with whom filed must be marked
    18  on the outside of said bids.
    19     Section 3.  This act shall take effect in 60 days.








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