Bill Text: PA SB288 | 2011-2012 | Regular Session | Amended

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Bill Title: Further regulating contracts and purchases.

Spectrum: Moderate Partisan Bill (Republican 23-3)

Status: (Engrossed - Dead) 2011-10-04 - Re-referred to APPROPRIATIONS [SB288 Detail]

Download: Pennsylvania-2011-SB288-Amended.html

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PRIOR PRINTER'S NOS. 262, 1560 PRINTER'S NO. 1590
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 288 Session of2011
INTRODUCED BY RAFFERTY, EICHELBERGER, KASUNIC, FOLMER, GORDNER, BOSCOLA, ORIE, YAW, M. WHITE, D. WHITE, ERICKSON, BAKER, ALLOWAY, BRUBAKER, GREENLEAF, SMUCKER, FERLO, ROBBINS, VANCE, EARLL, SCARNATI, McILHINNEY, PICCOLA, WARD, MENSCH AND BROWNE, JANUARY 26, 2011
AS AMENDED ON THIRD CONSIDERATION, SEPTEMBER 26, 2011
AN ACT
Amending the act of July 28, 1953 (P.L.723, No.230), entitled,
as amended, "An act relating to counties of the second class
and second class A; amending, revising, consolidating and
changing the laws relating thereto," further regulating
contracts and purchases.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of July 28, 1953 (P.L.723, No.230), known
as the Second Class County Code, is amended by adding a section
to read:
Section 112. Adjustments Based on Consumer Price Index.--(a)
Adjustments to the base amounts 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) hundred dollars <--
($100), to determine the final adjusted base amounts.
(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) hundred dollars ($100) to <--
determine the new final adjusted base amounts.
(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
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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 or written
or telephonic price quotations are required 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 shall exceed three <--
percent of the most recently adjusted base amount.
(8) The annual increase in the preliminary adjusted base <--
amounts obtained under paragraphs (3) and (4) shall not exceed
three per centum.
Section 2. Section 2001(a) and (d) of the act, amended
November 30, 2004 (P.L.1439, No.186), are amended to read:
Section 2001. County Commissioners to Make Contracts.--The
County Commissioners may make contracts for lawful purposes and
for the purposes of carrying into execution the provisions of
this section and the laws of the Commonwealth.
(a) Except as provided in subsection (a.1), all contracts or
purchases in excess of [ten thousand dollars ($10,000)] the base
amount of eighteen thousand five hundred dollars ($18,500),
subject to adjustment under section 112, shall be in writing
and, except those hereinafter mentioned and except as provided
by the act of October 27, 1979 (P.L.241, No.78), entitled "An
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act authorizing political subdivisions, municipality authorities
and transportation authorities to enter into contracts for the
purchase of goods and the sale of real and personal property
where no bids are received," shall not be made except with and
from the lowest responsible and responsive bidder meeting
specifications, after due notice in at least one newspaper of
general circulation, published or circulating in the county at
least two (2) times, at intervals of not less than three (3)
days where daily newspapers of general circulation are employed
for such publication, or in case weekly newspapers are employed,
then the notice shall be published once a week for two (2)
successive weeks. The first advertisement shall be published not
less than ten (10) days prior to the date fixed for the opening
of bids.
* * *
(d) The contracts or purchases made by the commissioners
involving an expenditure of over [ten thousand dollars
($10,000)] the base amount of eighteen thousand five hundred
dollars ($18,500), subject to adjustment under section 112,
which shall not require advertising or bidding as hereinbefore
provided are as follows:
(1) Those for maintenance, repairs or replacements for
water, electric light, or other public works: Provided, That
they do not constitute new additions, extensions or enlargements
of existing facilities and equipment. Security may be required
by the county commissioners as in other cases of work done.
(2) Those made for improvements, repairs and maintenance of
any kind made or provided by the county through its own
employes. This paragraph shall not apply to construction
materials used in a street improvement.
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(3) Those where particular types, models or pieces of new
equipment, articles, apparatus, appliances, vehicles or parts
thereof are desired by the county commissioners, which are
patented and manufactured products or copyrighted products.
(4) Those involving any policies of insurance or surety
company bonds, those made for public utility service and
electricity, natural gas or telecommunication services:
Provided, That, in the case of utilities not under tariffs on
file with the Pennsylvania Public Utility Commission, contracts
made without advertising and bidding shall be made only after
receiving written or telephonic price quotations from at least
three (3) qualified and responsible contractors, or in lieu of
price quotations a memorandum shall be kept on file showing that
fewer than three (3) 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
contain at least the date of the quotation, the name of the
contractor and the contractor's representative.
(5) Those involving personal or professional services,
including, but not limited to, services of members of the
medical or legal profession, registered architects, engineers,
certified public accountants or other personal services
involving professional expertise.
(6) Those involving tangible client services provided by
nonprofit agencies. For the purposes of this clause, the term
"tangible client services" shall mean congregate meals, home-
delivered meals, transportation and chore services provided
through area agencies on aging.
(6.1) Those involving contracts entered into by nonprofit
cooperative hospital service associations for hospitals and
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nursing homes which are part of the institutional district or
which are owned by the county, operated by the county or
affiliated with the county by the purchasing of or participating
in contracts for materials, supplies and equipment.
(7) Those involving the purchase of milk.
(8) Those made with any public body, including, but not
limited to, the sale, lease or loan of any supplies or materials
to the county by a public body, provided that the price thereof
shall not be in excess of that fixed by the public body. The
requirements of 53 Pa.C.S. Ch. 23 Subch. A (relating to
intergovernmental cooperation) shall not apply when a county
purchases cooperatively with another public body which has
entered into a contract for supplies or materials. As used in
this paragraph, "public body" shall mean any of the following:
(i) the Federal Government;
(ii) the Commonwealth of Pennsylvania;
(iii) any other state;
(iv) a political subdivision, local or municipal authority
or other similar local entity of the Commonwealth or any other
state; or
(v) an agency of the Federal Government, the Commonwealth or
any other state.
(9) Those exclusively involving construction management
services.
(10) Those involving computer software.
* * *
Section 3. Section 2517(a) of the act, amended December 9,
2002 (P.L.1383, No.170), is amended to read:
Section 2517. Separate Specifications and Contracts for
Certain Items.--(a) In the preparation of specifications for
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the erection, construction and alteration of any public
building, when the entire cost of such work shall exceed [ten
thousand dollars ($10,000)] the base amount of eighteen thousand
five hundred dollars ($18,500), subject to adjustment under
section 112, the architect, engineer or other person preparing
such specifications shall prepare separate specifications for
the plumbing, heating, ventilating and electrical work. The
board of commissioners shall receive separate bids upon each of
the said branches of work and award the contract for the same to
the lowest responsible bidder for each of said branches.
* * *
Section 4. Section 2511-A(a), (b), (b.1) and (h) of the act,
added October 30, 2000 (P.L.616, No.85), are amended to read:
Section 2511-A. Competition in Award of Contracts.--(a) All
construction, reconstruction, repairs or work of any nature made
by any Authority, where the entire cost, value or amount of such
construction, reconstruction, repairs or work, including labor
and materials, shall exceed [ten thousand dollars ($10,000)]
the base amount of eighteen thousand five hundred dollars
($18,500), subject to adjustment under section 112, except
construction, reconstruction, repairs or work done by employes
of said Authority or by labor supplied under agreement with any
Federal or State agency with supplies and materials purchased,
as hereinafter provided, shall be done only under contract or
contracts to be entered into by the Authority with the lowest
responsible bidder upon proper terms, after due public notice
has been given asking for competitive bids hereinafter provided.
No contract shall be entered into for construction or
improvement or repair of any project or portion thereof unless
the contractor shall give an undertaking, with a sufficient
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surety or sureties approved by the Authority and in an amount
fixed by the Authority, for the faithful performance of the
contract. All such contracts shall provide, among other things,
that the person or corporation entering into such contract with
the Authority will pay for all materials furnished and services
rendered for the performance of the contract and that any person
or corporation furnishing such materials or rendering such
services may maintain an action to recover for the same against
the obligor in the undertaking as though such person or
corporation was named therein, provided the action is brought
within one (1) year after the time the cause of action accrued.
Nothing in this section shall be construed to limit the power of
the Authority to construct, repair or improve any project or
portion thereof or any addition, betterment or extension thereto
directly by the officers, agents and employes of the Authority
or otherwise than by contract.
(b) All supplies and materials costing [ten thousand dollars
($10,000)] the base amount of eighteen thousand five hundred
dollars ($18,500), subject to adjustment under section 112, or
more shall be purchased only after due advertisement as
hereinafter provided. The Authority shall accept the lowest bid
or bids, kinds, 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 non-competitive market or solely
by a manufacturer's authorized dealer.
(b.1) Written or telephonic price quotations from at least
three (3) qualified and responsible contractors shall be
requested for all contracts that exceed [four thousand dollars
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($4,000)] the base amount of ten thousand dollars ($10,000),
subject to adjustment under section 112, 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 (3) 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 (3) years.
* * *
(h) An Authority shall not evade the provisions of this
section as to advertising for bids or purchasing materials or
contracting for services piecemeal for the purpose of obtaining
prices under [ten thousand dollars ($10,000)] the base amount of
eighteen thousand five hundred dollars ($18,500), subject to
adjustment under section 112, upon transactions which should, in
the exercise of reasonable discretion and prudence, be conducted
as one transaction amounting to more than [ten thousand dollars
($10,000)] the base amount of eighteen thousand five hundred
dollars ($18,500), subject to adjustment under section 112. This
provision is intended to make unlawful the practice of evading
advertising requirements by making a series of purchases or
contracts each for less than the advertising requirement price
or by making several simultaneous purchases or contracts each
below said price when in either case the transaction involved
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should have been made as one transaction for one price.
* * *
Section 5. This act shall apply to contracts and purchases
advertised on or after January 1 of the year following the
effective date of this section.
Section 6. This act shall take effect immediately.
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