THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY M.K. KELLER, AUMENT, BAKER, BEAR, BENNINGHOFF, BLOOM, BOBACK, BOYD, BROOKS, CAUSER, CHRISTIANA, CLYMER, COX, CREIGHTON, CUTLER, DELOZIER, DENLINGER, ELLIS, EVERETT, FARRY, FLECK, GABLER, GEIST, GERBER, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARHART, HARPER, HARRIS, HELM, HENNESSEY, HESS, HICKERNELL, KAUFFMAN, KILLION, KNOWLES, MAJOR, MARSHALL, MARSICO, MASSER, METCALFE, MILLARD, MILLER, MOUL, OBERLANDER, O'NEILL, PAYNE, PEIFER, PERRY, PICKETT, PYLE, QUIGLEY, QUINN, RAPP, REED, REICHLEY, ROAE, ROCK, ROSS, SAYLOR, SCAVELLO, CULVER, SCHRODER, SIMMONS, SONNEY, STERN, STEVENSON, SWANGER, TALLMAN, TOBASH, TRUITT, TURZAI, VEREB, VULAKOVICH AND WATSON, JANUARY 27, 2011

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JANUARY 27, 2011  

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, further providing for competitive

bidding of contracts relating to municipal authorities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5614(a)(1), (b), (c) and (h)(1) of Title

53 of the Pennsylvania Consolidated Statutes are amended and the

section is amended by adding a subsection to read:

§ 5614.  Competition in award of contracts.

(a)  Services.--

(1)  Except as set forth in paragraph (2), all

construction, reconstruction, repair or work of any nature

made by an authority if the entire cost, value or amount,

including labor and materials, exceeds [$10,000] $25,000,

subject to adjustment under subsection (c.1), shall be done

only under contract to be entered into by the authority with

the lowest responsible bidder upon proper terms after public

notice asking for competitive bids as provided in this

section.

* * *

(b)  Supplies and materials.--All supplies and materials

costing at least [$10,000] $25,000, subject to adjustment under

subsection (c.1), shall be purchased only after advertisement as

provided in this section. The authority shall accept the lowest

bid, kind, quality and material being equal, but the authority

shall have the right to reject any or all bids or select a

single item from any bid. The provisions as to bidding shall not

apply to the purchase of patented and manufactured products

offered for sale in a noncompetitive market or solely by a

manufacturer's authorized dealer.

(c)  Quotations.--Written or telephonic price quotations from

at least three qualified and responsible contractors shall be

requested for a contract which exceeds [$4,000] $10,000, subject

to adjustment under subsection (c.1), but is less than the

amount requiring advertisement and competitive bidding. In lieu

of price quotations, a memorandum shall be kept on file showing

that fewer than three qualified contractors exist in the market

area within which it is practicable to obtain quotations. A

written record of telephonic price quotations shall be made and

shall contain at least the date of the quotation; the name of

the contractor and the contractor's representative; the

construction, reconstruction, repair, maintenance or work which

was the subject of the quotation; and the price. Written price

quotations, written records of telephonic price quotations and

memoranda shall be retained for a period of three years.

(c.1)  Adjustments.--

(1)  The Department of Labor and Industry shall determine

the percentage change in the Consumer Price Index for All

Urban Consumers for the 12-month period ending September 30

of the calendar year in which this subsection becomes

effective and for each successive 12-month period thereafter.

(2)  The amount at which competitive bidding is required

under subsection (a)(1) and the amount at which written or

telephonic price quotations are required under subsection (b)

shall be adjusted annually as follows:

(i)  For subsection (a)(1):

(A)  Multiply the positive percentage change

under paragraph (1) by the amount applicable under

subsection (a) for the current year.

(B)  Add the product under clause (A) to the

amount applicable under subsection (a)(1) for the

current year.

(C)  Round the sum under clause (B) to the

nearest multiple of $10.

(ii)  For subsection (b):

(A)  Multiply the positive percentage change, as

determined under paragraph (1) by the amount

applicable under subsection (a)(1) for the current

year.

(B)  Add the product under clause (A) to the

amount applicable under subsection (b) for the

current year.

(C)  Round the sum under clause (B) to the

nearest multiple of $10.

(3)  The annual determination required under paragraph

(1) and the calculation of the adjustments required under

paragraph (2) shall be made in the period between October 1

and November 15 of the year following the effective date of

this subsection and annually between October 1 and November

15 of each successive year.

(4)  The adjusted amounts obtained under paragraph (2)

shall become effective January 1 for the calendar year

following the year in which the determination required under

paragraph (1) is made.

(5)  The department shall give notice in the Pennsylvania

Bulletin prior to January 1 of each calendar year of the

annual percentage change determined in accordance with

paragraph (1) and the amounts, whether adjusted or unadjusted

in accordance with paragraph (2), at which competitive

bidding is required under subsection (a)(1) and written or

telephonic price quotations are required under subsection (b)

for the calendar year beginning the first day of January

after publication of the notice.

* * *

(h)  Evasion.--

(1)  An authority may not evade the provisions of this

section as to bids or purchasing materials or contracting for

services piecemeal for the purpose of obtaining prices under

[$10,000] the amount required by this section upon

transactions which should, in the exercise of reasonable

discretion and prudence, be conducted as one transaction

amounting to more than [$10,000] the amount required by this

section.

* * *

Section 2.  This act shall apply to contracts and purchases

advertised after December 31 of the year in which this section

takes effect.

Section 3.  This act shall take effect immediately.