THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BAKER, EICHELBERGER, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, RAFFERTY, YAW, M. WHITE, D. WHITE, ERICKSON, ALLOWAY, BRUBAKER, GREENLEAF, SMUCKER, WAUGH, FERLO, ROBBINS, VANCE, EARLL, SCARNATI, McILHINNEY, PICCOLA, WARD AND BROWNE, JANUARY 26, 2011

SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 20, 2011   

AN ACT

Amending the act of May 1, 1933 (P.L.103, No.69), entitled, as

reenacted and amended, "An act concerning townships of the

second class; and amending, revising, consolidating and

changing the law relating thereto," further providing for

competitive bidding of contracts.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3102(a), (b) and (h) of the act of May 1,

1933 (P.L.103, No.69), known as The Second Class Township Code,

reenacted and amended November 9, 1995 (P.L.350, No.60) and

amended December 18, 1996 (P.L.1142, No.172), December 19, 1996

(P.L.1412, No.181) and October 11, 2000 (P.L.535, No.70), are

amended and the section is amended by adding a subsection to

read:

Section 3102.  Letting Contracts.--(a)  All contracts or

purchases in excess of the required advertising base amount of

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[ten thousand dollars ($10,000)] twenty-five thousand dollars

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($25,000) eighteen thousand five hundred dollars ($18,500),

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subject to adjustment under subsection (b.1), except those

specifically excluded, shall not be made except with and from

the lowest responsible bidder after due notice in one newspaper

of general circulation in the township. The notice for bids

shall be published at least two times at intervals of not less

than three days in daily newspapers or once a week for two

successive weeks in weekly newspapers. The first advertisement

shall be published not more than forty-five days, and the second

advertisement not less than ten days, before the date set for

the opening of bids. Notice of proposed contracts or purchases

shall also be posted where the board of supervisors normally

meets or in a conspicuous place within the township. Any

published notice for bids shall contain full plans and

specifications, or refer to the places where copies thereof can

be obtained, state the amount of the performance bond determined

under subsection (g) and give the date, time and place of a

meeting at which an individual or committee appointed by the

board of supervisors or the board of supervisors will open and

read the bids.

(b)  Written or telephonic price quotations from at least

three qualified and responsible contractors shall be requested

for all contracts [that exceed [four thousand dollars ($4,000)]

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seven thousand dollars ($7,000) in excess of the base amount of

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ten thousand dollars ($10,000), subject to adjustment under

subsection (b.1), but are less than the amount requiring

advertisement and competitive bidding, or, 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.

(b.1)  Adjustments shall be made as follows:

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(1)  Every five years, beginning with the year in which this

subsection becomes applicable to contracts and purchases, the

Department of Labor and Industry shall calculate the average

percentage change in the Consumer Price Index for All Urban

Consumers (CPI-U) for the United States city average for all

items as published by the United States Department of Labor,

Bureau of Labor Statistics, for the preceding five-year period.

(2)  The amount at which competitive bidding is required

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

telephonic price quotations are required under subsection (b)

shall be adjusted every five years as follows:

(i)  In the case of competitive bidding, the positive

percentage change, as determined in accordance with paragraph

(1), shall be multiplied by the amount applicable under

subsection (a) for the current five-year period and the product

thereof shall be added to the amount applicable under subsection

(a) for the current five-year period, with the result rounded to

the nearest multiple of one hundred dollars ($100).

(ii)  In the case of written or telephonic price quotations,

the positive percentage change, as determined in accordance with

paragraph (1), shall be multiplied by the amount applicable

under subsection (b) for the current five-year period and the

product thereof shall be added to the amount applicable under

subsection (b) for the current five-year period, with the result

rounded to the nearest multiple of one hundred dollars ($100).

(3)  The 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

between October 1 and November 15 of each successive year.

(4)  The adjusted amounts obtained in accordance with

paragraph (2) shall become effective January 1 for the five-year

period 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 in which the

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) and written or telephonic price quotations

are required under subsection (b) for the five-year period

beginning the first day of January after publication of the

notice.

(b.1)  Adjustments to the base amounts specified under

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subsections (a) and (b) shall be made as follows:

(1)  The Department of Labor and Industry shall determine the

percentage change in the All Items Consumer Price Index for All

Urban Consumers (CPI-U) for the United States City Average as

published by the United States Department of Labor, Bureau of

Labor Statistics for the twelve-month period ending September

30, 2012, and for each successive twelve-month period

thereafter.

(2)  If the department determines that there is no positive

percentage change, then no adjustment to the base amounts shall

occur for the relevant time period provided for in this

subsection.

(3)  (i)  If the department determines that there is a

positive percentage change in the first year that the

determination is made under paragraph (1), the positive

percentage change shall be multiplied by each base amount and

the products shall be added to the base amounts, respectively,

and the sums shall be preliminary adjusted amounts.

(ii)  The preliminary adjusted amounts shall be rounded to

the nearest one thousand dollars ($1,000), to determine the

final adjusted base amounts for purposes of subsections (a) and

(b).

(4)  In each successive year in which there is a positive

percentage change in the CPI-U for the United States City

Average, the positive percentage change shall be multiplied by

the most recent preliminary adjusted amounts and the products

shall be added to the preliminary adjusted amount of the prior

year to calculate the preliminary adjusted amounts for the

current year. The sums thereof shall be rounded to the nearest

one thousand dollars ($1,000) to determine the new final

adjusted base amounts for purposes of subsections (a) and (b).

(5)  The determinations and adjustments required under this

subsection 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 year thereafter.

(6)  The final adjusted base amounts and new final adjusted

base amounts obtained under paragraphs (3) and (4) shall become

effective January 1 for the calendar year following the year in

which the determination required under paragraph (1) is made.

(7)  The department shall publish notice in the Pennsylvania

Bulletin prior to January 1 of each calendar year of the annual

percentage change determined under paragraph (1) and the

unadjusted or final adjusted base amounts determined under

paragraphs (3) and (4) at which competitive bidding is required

under subsection (a) and written or telephonic price quotations

are required under subsection (b), respectively, for the

calendar year beginning the first day of January after

publication of the notice. The notice shall include a written

and illustrative explanation of the calculations performed by

the department in establishing the unadjusted or final adjusted

base amounts under this subsection for the ensuing calendar

year.

(8)  No adjustment to the base amounts specified under

subsections (a) and (b) shall exceed three percent of the most

recently adjusted base amount.

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(h)  The contracts or purchases made by the board of

supervisors involving payments in excess of the required

advertising amount, which do not require advertising, bidding or

price quotations are as follows:

(1)  Those made for emergency, or routine maintenance,

repairs or replacements for water, electric light and other

public works of the township if they do not constitute new

additions, extensions or enlargements of existing facilities and

equipment.

(2)  Those made for improvements, repairs or maintenance of

any kind made or provided by any township through its own

employes. All contracts or purchases of materials used for

improvement, maintenance or construction [in excess of four

thousand dollars ($4,000) but less than the required advertising

amount] are subject to the provisions contained in subsection

(a) and (b)[, and those contracts or purchases in excess of the

required advertising amount are subject to the advertising

requirements contained in subsection (a)].

(3)  Those involving any policies of insurance or surety

company bonds, those made for public utility service, those made

for electricity, natural gas or telecommunications service

either directly or with an association authorized under Article

XIV in which the township is a member and those made with

another municipal corporation, county, school district or

municipality authority or Federal or State Government, including

the sale, leasing or loan of any supplies or materials by the

Federal or State Government or their agencies.

(4)  Those involving personal or professional services.

(5)  Those made for materials and supplies or equipment

rental under emergency conditions under 35 Pa.C.S. Pt. V 

(relating to emergency management services).

(6)  Those contracts involving equipment rental with

operators if more than fifty percent of the total labor

personnel hours required for the completion of the contract is

supplied by the township through its own employes.

(7)  Those contracts for the purchase of repair parts or

materials for use in existing township equipment or facilities

if the item or material to be purchased is the sole item of its

kind on the market or is manufactured as a replacement for the

original item or equipment being repaired.

(8)  Those for used equipment, articles, apparatus,

appliances, vehicles or parts thereof being purchased from a

public utility.

(9)  Those where particular types, models or pieces of

equipment, articles, apparatus, appliances, vehicles or parts

thereof which are patented and manufactured products.

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Section 2.  The amendment or addition of section 3102(a),

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(b), (b.1) and (h) of the act shall apply to contracts and

purchases advertised after December 31 of the year in which this

section takes effect This act shall apply to contracts and

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purchases advertised on or after January 1 of the year following

the effective date of this section.

Section 3.  This act shall take effect immediately.