Bill Text: PA HB2168 | 2009-2010 | Regular Session | Introduced


Bill Title: Further providing for application of part and for the definitions of "Commonwealth agency," "contracting officer," "executive agency," "independent agency," "purchasing agency," "State-affiliated entity" and "supplies"; providing for the definitions of "competitive procurement," "contracting agency," "judicial agency" and "legislative agency"; further providing for procurement responsibility, for powers and duties, for Board of Commissioners of Public Grounds and Buildings, for methods of source selection, for competitive sealed bidding, for competitive electronic auction bidding, for competitive sealed proposals, for small procurements, for sole source procurement, for emergency procurement, for multiple awards, for competitive selection procedures for certain services and for selection procedure for insurance and notary bonds; and making a repeal.

Spectrum: Partisan Bill (Republican 60-0)

Status: (Introduced - Dead) 2009-12-15 - Referred to STATE GOVERNMENT [HB2168 Detail]

Download: Pennsylvania-2009-HB2168-Introduced.html

  

 

    

PRINTER'S NO.  3021

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2168

Session of

2009

  

  

INTRODUCED BY BENNINGHOFF, BEAR, BOBACK, BOYD, CAUSER, CHRISTIANA, CIVERA, CLYMER, COX, CREIGHTON, CUTLER, DALLY, DELOZIER, DENLINGER, ELLIS, EVERETT, FAIRCHILD, GEIST, GILLESPIE, GINGRICH, GRELL, GROVE, HARRIS, HENNESSEY, HICKERNELL, HUTCHINSON, KAUFFMAN, M. KELLER, KILLION, KNOWLES, MAJOR, MARSICO, METZGAR, MILLER, MILNE, MOUL, MURT, MUSTIO, OBERLANDER, PICKETT, PYLE, RAPP, REED, REESE, REICHLEY, ROAE, ROCK, ROHRER, ROSS, SAYLOR, S. H. SMITH, STERN, STEVENSON, SWANGER, TALLMAN, J. TAYLOR, TURZAI, VULAKOVICH AND WATSON, DECEMBER 15, 2009

  

  

REFERRED TO COMMITTEE ON STATE GOVERNMENT, DECEMBER 15, 2009  

  

  

  

AN ACT

  

1

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

2

Statutes, further providing for application of part and for

3

the definitions of "Commonwealth agency," "contracting

4

officer," "executive agency," "independent agency,"

5

"purchasing agency," "State-affiliated entity" and

6

"supplies"; providing for the definitions of "competitive

7

procurement," "contracting agency," "judicial agency" and

8

"legislative agency"; further providing for procurement

9

responsibility, for powers and duties, for Board of

10

Commissioners of Public Grounds and Buildings, for methods of

11

source selection, for competitive sealed bidding, for

12

competitive electronic auction bidding, for competitive

13

sealed proposals, for small procurements, for sole source

14

procurement, for emergency procurement, for multiple awards,

15

for competitive selection procedures for certain services and

16

for selection procedure for insurance and notary bonds; and

17

making a repeal.

18

The General Assembly of the Commonwealth of Pennsylvania

19

hereby enacts as follows:

20

Section 1.  Section 102(a) and (c) of Title 62 of the

21

Pennsylvania Consolidated Statutes are amended to read:

 


1

§ 102.  Application of part.

2

(a)  Application to Commonwealth [procurement] agencies.--

3

This part applies to every expenditure of funds, other than the

4

investment of funds, by Commonwealth agencies under any

5

contract, irrespective of their source, including Federal

6

assistance moneys except as specified in section 2108 (relating

7

to compliance with Federal requirements). This part does not

8

apply to contracts between Commonwealth agencies or between the

9

Commonwealth and its political subdivisions or other governments

10

except as provided in Chapter 19 (relating to intergovernmental

11

relations). Nothing in this part or in accompanying regulations

12

shall prevent any Commonwealth agency or political subdivision

13

from complying with the terms and conditions of any grant, gift,

14

bequest or cooperative agreement.

15

* * *

16

[(c)  Application to General Assembly and unified judicial

17

system.--The General Assembly and its agencies and the unified

18

judicial system and its agencies may use the department as its

19

purchasing agency for the purchase of supplies under this part

20

and may use the department to dispose of surplus supplies under

21

Chapter 15 (relating to supply management).]

22

* * *

23

Section 2.  The definitions of "Commonwealth agency,"

24

"contracting officer," "executive agency," "independent agency,"

25

"purchasing agency," "State-affiliated entity" and "supplies" in

26

section 103 of Title 62 are amended and the section is amended

27

by adding definitions to read:

28

§ 103.  Definitions.

29

Subject to additional definitions contained in subsequent

30

provisions of this part which are applicable to specific

- 2 -

 


1

provisions of this part, the following words and phrases when

2

used in this part shall have the meanings given to them in this

3

section unless the context clearly indicates otherwise:

4

* * *

5

"Commonwealth agency."  An executive agency, a legislative

6

agency, a judicial agency, an independent agency or a State-

7

affiliated entity.

8

"Competitive procurement."  Procurement under sections 512

9

(relating to competitive sealed bidding), 512.1 (relating to

10

competitive electronic auction bidding), 513 (relating to

11

competitive sealed proposals), 517 (relating to multiple

12

awards), 518 (relating to competitive selection procedures for

13

certain services), 519 (relating to selection procedure for

14

insurance and notary bonds) and 905 (relating to procurement of

15

design professional services).

16

* * *

17

"Contracting agency."  A Commonwealth agency which seeks

18

procurement of a supply, service or construction.

19

"Contracting officer."  A person authorized to enter into and

20

administer contracts and make written determinations with

21

respect to contracts for a contracting agency.

22

* * *

23

"Executive agency."

24

(1)  Any one of the following:

25

(i)  The Governor and the departments, boards,

26

commissions, authorities and other officers and agencies

27

of the Commonwealth.

28

(ii)  The Office of the State Treasurer.

29

(iii)  The Office of the Auditor General.

30

(iv)  The Office of Attorney General.

- 3 -

 


1

(2)  The term does not include [any court or other

2

officer or agency of the unified judicial system, the General

3

Assembly and its officers and agencies or any] a judicial

4

agency, legislative agency, independent agency [or], State-

5

affiliated entity, State-related institution, political

6

subdivision or any local, regional or metropolitan

7

transportation authority.

8

* * *

9

"Independent agency."  Boards, commissions and other agencies

10

and officers of the Commonwealth which are not subject to the

11

policy supervision and control of the Governor. The term does

12

not include [any] an executive agency, a judicial agency,

13

legislative agency, State-affiliated entity, [any court or other

14

officer or agency of the unified judicial system, the General

15

Assembly and its officers and agencies, any] State-related

16

institution, political subdivision or any local, regional or

17

metropolitan transportation authority.

18

* * *

19

"Judicial agency."  The Supreme Court, Superior Court,

20

Commonwealth Court or any other court or other officer or agency

21

of the unified judicial system. The term does not include an

22

executive agency, legislative agency, independent agency, State-

23

affiliated entity, State-related institution, political

24

subdivision or any local, regional or metropolitan

25

transportation authority.

26

"Legislative agency."

27

(1)  Any one of the following:

28

(i)  The Senate of Pennsylvania.

29

(ii)  The Pennsylvania House of Representatives.

30

(iii)  Another officer or agency of the General

- 4 -

 


1

Assembly.

2

(2)  The term does not include an executive agency,

3

judicial agency, independent agency, State-affiliated entity,

4

State-related institution, political subdivision or any

5

local, regional or metropolitan transportation authority.

6

* * *

7

"Purchasing agency."  A Commonwealth agency authorized by

8

this part or by other law to enter into contracts for itself or

9

as the agent [of another Commonwealth] for a contracting agency.

10

When purchasing for itself, the agency is both the contracting

11

agency and the purchasing agency. When purchasing for another

12

[Commonwealth] agency, the purchasing agency acts on behalf of

13

the [principal which needs the supplies, services and

14

construction] contracting agency and shall coordinate and

15

cooperate with [that] the contracting agency.

16

* * *

17

"State-affiliated entity."  A Commonwealth authority or a

18

Commonwealth entity. The term includes the Pennsylvania Turnpike

19

Commission, the Pennsylvania Housing Finance Agency, the

20

Pennsylvania Municipal Retirement System, the Pennsylvania

21

Infrastructure Investment Authority, the State Public School

22

Building Authority, the Pennsylvania Higher Educational

23

Facilities Authority and the State System of Higher Education.

24

The term does not include [any court or other officer or agency

25

of the unified judicial system, the General Assembly and its

26

officers and agencies, any] a judicial agency, legislative

27

agency, State-related institution, political subdivision or any

28

local, regional or metropolitan transportation authority.

29

* * *

30

"Supplies."  Any property[, including, but not limited to,].

- 5 -

 


1

The term includes equipment, materials, printing, insurance and

2

leases of and installment purchases of tangible or intangible

3

personal property. The term does not include real property,

4

leases of real property or alcoholic beverages or liquor

5

purchased for resale by the Pennsylvania Liquor Control Board.

6

* * *

7

Section 3.  Section 301 of Title 62 is amended by adding

8

subsections to read:

9

§ 301.  Procurement responsibility.

10

* * *

11

(e)  Application to legislative agencies.--Legislative

12

agencies shall formulate their own procurement policy governing

13

the procurement, management, control and disposal of supplies,

14

services and construction and may act as their own purchasing

15

agency for the procurement of supplies, services and

16

construction, except that they shall use the procedures provided

17

under this part for the procurement. A legislative agency may

18

use the department as its purchasing agency for the purchase of

19

supplies, services and construction under this part and may use

20

the department to dispose of surplus supplies under Chapter 15

21

(relating to supply management).

22

(f)  Application to judicial agencies.--Judicial agencies may

23

formulate their own procurement policy governing the

24

procurement, management, control and disposal of supplies,

25

services and construction and may act as their own purchasing

26

agency for the procurement of supplies, services and

27

construction, except that they shall use the procedures provided

28

under this part for the procurement. A judicial agency may use

29

the department as its purchasing agency for the purchase of

30

supplies, services and construction under this part and may use

- 6 -

 


1

the department to dispose of surplus supplies under Chapter 15.

2

Section 4.  Sections 311, 326, 511, 512(a), 512.1(a), 513(a),

3

(b) and (g), 514, 515, 516, 517, 518(c) and (e) and 519(c) and

4

(f) of Title 62 are amended to read:

5

§ 311.  Powers and duties.

6

Except as otherwise provided in this part, the department may

7

promulgate regulations governing the procurement, management,

8

control and disposal of any and all supplies, services and

9

construction to be procured by [Commonwealth] executive and

10

independent agencies. The department shall consider and decide

11

matters of policy within the provisions of this part relating to

12

executive and independent agencies. The department may audit and

13

monitor the implementation of its regulations and the

14

requirements of this part.

15

§ 326.  Board of Commissioners of Procurement, Public Grounds

16

and Buildings.

17

[No lease of real estate for use by an executive or

18

independent agency and no sole source procurement of supplies,

19

except for computer software updates under $50,000, for an

20

executive or independent agency for which the department acts as

21

the purchasing agency shall be valid or effective unless, upon

22

review, it is approved by the Board of Commissioners of Public

23

Grounds and Buildings. Where the board is reviewing a proposed

24

sole source lease or procurement being submitted pursuant to

25

section 515 (relating to sole source procurement), approval of

26

the lease or procurement shall require the unanimous vote of the

27

board. Where the board is reviewing a proposed non-sole source

28

lease, the lease shall be approved when one member of the board

29

votes to approve the lease. All votes shall take place at a

30

public meeting.]

- 7 -

 


1

(a)  Board.--There is established an independent executive

2

board to be known as the Board of Commissioners of Procurement,

3

Public Grounds and Buildings. The board shall be composed of the

4

following members:

5

(1)  The Governor or a designee.

6

(2)  The State Treasurer or a designee.

7

(3)  The Attorney General or a designee.

8

(4)  The President pro tempore of the Senate or a

9

designee.

10

(5)  The Speaker of the House of Representatives or a

11

designee.

12

(6)  The President Judge of the Superior Court or a

13

designee.

14

(7)  A judge of the Superior Court appointed by the Chief

15

Justice of the Supreme Court or a designee.

16

(b)  Organization.--The Governor shall serve as chairperson.

17

The board shall meet at the call of the chairperson. A majority

18

of the board shall constitute a quorum. The board shall be

19

subject to the act of February 14, 2008 (P.L.6, No.3), known as

20

the Right-to-Know Law and 65 Pa.C.S. Ch.7 (relating to open

21

meetings). Commonwealth agencies shall cooperate with and

22

provide assistance to the board without financial reimbursement.

23

The department shall provide administrative services and staff,

24

including staff legal counsel, to the board.

25

(c)  Duties.--The board shall do all of the following:

26

(1)  Review and may approve applications by Commonwealth

27

agencies for sole source procurement or emergency

28

procurement.

29

(2)  Review and may approve leases of real estate by

30

executive and independent agencies.

- 8 -

 


1

(3)  Perform the duties of the former Board of

2

Commissioners of Public Grounds and Buildings.

3

(d)  Lease and sole source procedure.--The following shall

4

apply:

5

(1)  A purchasing agency may submit an application to the

6

board requesting that procurement be permitted without the

7

use of competitive procurement or requesting the real

8

property to be leased. The application shall be on the form

9

required by the board and shall include or demonstrate all of

10

the following:

11

(i)  The name of the contracting agency.

12

(ii)  If the application is for a sole source

13

procurement, a copy of the determination required under

14

section 515(a) (relating to sole source procurement).

15

(iii)  The name and address of the bidder or offeror

16

from which the supply, service or construction is to be

17

procured or the real property is to be leased.

18

(iv)  The cost of the supply, service or construction

19

to be procured or the rent for the real property to be

20

leased.

21

(v)  A statement from the bidder or offeror from

22

which the supply, service or construction is to be

23

procured or the real property to be leased indicating

24

that within the last 365 days the bidder or offeror has

25

not contributed to a campaign of a State official holding

26

office within the Commonwealth agency in which the

27

contracting agency is located.

28

(vi)  Any other information required by the board.

29

(2)  The board shall review the application. Upon being

30

satisfied that all requirements have been met, the board may

- 9 -

 


1

approve the application if the board finds all of the

2

following:

3

(i)  If the application is for a sole source

4

procurement, the procurement without the use of

5

competitive procurement is in both the best financial

6

interests and the best legal interests of the

7

Commonwealth.

8

(ii)  The bidder or offeror has not made a

9

contribution within the last 365 days to a campaign of a

10

State official holding office within the Commonwealth

11

agency in which the contracting agency is located.

12

(iii)  No conflict of interests exists between the

13

contracting agency, the head of the contracting agency,

14

the contracting officer or the purchasing agency and the

15

bidder or offeror.

16

(e)  Emergency procurement procedure.--The following shall

17

apply:

18

(1)  A purchasing agency may submit an application to the

19

board requesting that an emergency procurement be permitted.

20

The application shall be on the form required by the board

21

and shall include or demonstrate all of the following:

22

(i)  The name of the contracting agency.

23

(ii)  A copy of the determination required under

24

section 516(a) (relating to emergency procurement).

25

(iii)  The name and address of the bidder or offeror

26

from which the supply, service or construction is to be

27

procured.

28

(iv)  The cost of the supply, service or construction

29

to be procured.

30

(v)  A statement from the bidder or offeror from

- 10 -

 


1

which the supply, service or construction is to be

2

procured indicating that within the last 365 days the

3

bidder or offeror has not contributed to a campaign of a

4

State official holding office within the Commonwealth

5

agency in which the contracting agency is located.

6

(vi)  Any other information required by the board.

7

(2)  The board shall review the application. Upon being

8

satisfied that all requirements have been met, the board may

9

approve the application if the board finds all of the

10

following:

11

(i)  The emergency procurement is in interests of the

12

Commonwealth.

13

(ii)  The bidder or offeror has not made a

14

contribution within the last 365 days to a campaign of a

15

State official holding office within the Commonwealth

16

agency in which the contracting agency is located.

17

(iii)  No conflict of interests exists between the

18

contracting agency, the head of the contracting agency,

19

the contracting officer or the purchasing agency and the

20

bidder or offeror.

21

§ 511.  Methods of source selection.

22

Unless otherwise authorized by law, all Commonwealth agency

23

contracts shall be awarded by competitive sealed bidding under

24

section 512 (relating to competitive sealed bidding) except as

25

provided in:

26

Section 512.1 (relating to competitive electronic auction

27

bidding).

28

Section 513 (relating to competitive sealed proposals).

29

Section 514 (relating to small procurements).

30

Section 515 (relating to sole source procurement).

- 11 -

 


1

Section 516 (relating to emergency procurement).

2

Section 517 (relating to [multiple awards] competitive

3

procurement on a multiple award basis).

4

Section 518 (relating to competitive selection procedures

5

for certain services).

6

Section 519 (relating to selection procedure for

7

insurance and notary bonds).

8

Section 520 (relating to supplies manufactured and

9

services performed by persons with disabilities).

10

Section 905 (relating to procurement of design

11

professional services).

12

§ 512.  Competitive sealed bidding.

13

(a)  Conditions for use.--Contracts for supplies, services

14

and construction shall be awarded by competitive sealed bidding

15

except as otherwise provided [in section 511 (relating to

16

methods of source selection)] under this chapter.

17

* * *

18

§ 512.1.  Competitive electronic auction bidding.

19

(a)  Conditions for use.--If the contracting officer of the 

20

purchasing agency determines in writing that use of competitive

21

[electronic auction] sealed bidding is not in the best interests

22

of the Commonwealth[,] and that the use of competitive

23

electronic auction bidding is more advantageous to the

24

Commonwealth, the purchasing agency may enter into a contract

25

for supplies or services, but not construction, [may be entered

26

into] by competitive electronic auction bidding.

27

* * *

28

§ 513.  Competitive sealed proposals.

29

[(a)  Conditions for use.--When the contracting officer

30

determines in writing that the use of competitive sealed bidding

- 12 -

 


1

is either not practicable or advantageous to the Commonwealth, a

2

contract may be entered into by competitive sealed proposals.

3

(b)  Request for proposals.--Proposals shall be solicited

4

through a request for proposals.]

5

(a)  Conditions for use.--If the head of a contracting agency

6

determines in writing that the use of competitive sealed bidding

7

is not in the best interests of the Commonwealth and that the

8

use of competitive sealed proposals is more advantageous to the

9

Commonwealth, the purchasing agency may enter into a contract

10

for supplies, services and construction by competitive sealed

11

proposals.

12

(b)  Request for proposals.--After making the determination

13

required under subsection (a), proposals shall be solicited

14

through a request for proposals. A request for proposals shall

15

require each offeror to state whether within the last 365 days

16

the offeror has contributed to a campaign of a State official

17

holding office within the Commonwealth agency in which the

18

contracting agency is located.

19

* * *

20

(g)  Selection for negotiation.--The responsible offeror

21

whose proposal is determined in writing to be the most

22

advantageous to the [purchasing] contracting agency, taking into

23

consideration price and all evaluation factors, and who has not

24

contributed within the last 365 days to a campaign of a State

25

official holding office within the Commonwealth agency in which

26

the contracting agency is located shall be selected for contract

27

negotiation.

28

§ 514.  Small procurements.

29

If the procurement is not the subject of a Statewide

30

requirements contract between the purchasing agency and a

- 13 -

 


1

contractor, the head of the purchasing agency may authorize in

2

writing procurements without [formal bid procedures, not

3

exceeding the amount established by the purchasing agency] the

4

use of competitive procurement procedures for small

5

procurements. The head of the purchasing agency may authorize a

6

small procurement [of the supply or service] on a no-bid basis

7

for [procurements which do] a supply or service which does not

8

exceed [the amount established by the head of the purchasing

9

agency for small, no-bid procurements] a total cost of $5,000.

10

The amount of $5,000 shall be adjusted annually by the

11

department to reflect the annual percentage change in the

12

Consumer Price Index of the United States Department of Commerce

13

occurring in the one-year period ending December 31 of each

14

year. The head of the purchasing agency may authorize a small 

15

procurement on a no-bid basis for [construction projects that

16

do] a construction project which does not exceed a total

17

construction cost of $10,000. The amount of $10,000 shall be

18

adjusted annually by the department to reflect the annual

19

percentage change in the Composite Construction Cost Index of

20

the United States Department of Commerce occurring in the one-

21

year period ending December 31 of each year. Procurement

22

requirements shall not be artificially divided so as to

23

constitute a small procurement under this section. Small

24

procurements shall be made in accordance with the requirements

25

of the written authorization and this section. Records of all

26

small procurements shall be transmitted to the purchasing

27

agency.

28

§ 515.  Sole source procurement.

29

[A contract may be awarded for a supply, service or

30

construction item without competition if the contracting officer

- 14 -

 


1

first determines in writing that one of the following conditions

2

exists:

3

(1)  Only a single contractor is capable of providing the

4

supply, service or construction.

5

(2)  A Federal or State statute or Federal regulation

6

exempts the supply, service or construction from the

7

competitive procedure.

8

(3)  The total cost of the supply, service or

9

construction is less than the amount established by the

10

department for small, no-bid procurements under section 514

11

(relating to small procurements).

12

(4)  It is clearly not feasible to award the contract for

13

supplies or services on a competitive basis.

14

(5)  The services are to be provided by attorneys or

15

litigation consultants selected by the Office of General

16

Counsel, the Office of Attorney General, the Department of

17

the Auditor General or the Treasury Department.

18

(6)  The services are to be provided by expert witnesses.

19

(7)  The services involve the repair, modification or

20

calibration of equipment and they are to be performed by the

21

manufacturer of the equipment or by the manufacturer's

22

authorized dealer, provided the contracting officer

23

determines that bidding is not appropriate under the

24

circumstances.

25

(8)  The contract is for investment advisors or managers

26

selected by the Public School Employees' Retirement System,

27

the State Employees' Retirement System or a State-affiliated

28

entity.

29

(9)  The contract is for financial or investment experts

30

to be used and selected by the Treasury Department or

- 15 -

 


1

financial or investment experts selected by the Secretary of

2

the Budget.

3

(10)  The contract for supplies or services is in the

4

best interest of the Commonwealth.

5

The written determination authorizing sole source procurement

6

shall be included in the contract file. With the exception of

7

small procurements under section 514 and emergency procurements

8

under section 516 (relating to emergency procurement), if the

9

sole source procurement is for a supply, except for computer

10

software updates under $50,000, for which the department acts as

11

purchasing agency, it must be approved by the Board of

12

Commissioners of Public Grounds and Buildings prior to the award

13

of a contract.]

14

(a)  Condition of use.--If the head of a contracting agency

15

determines in writing that the use of competitive sealed bidding

16

is not in the best interests of the Commonwealth and that one or

17

more of the conditions listed under subsection (b) exists, the

18

purchasing agency may, after receiving approval by the Board of

19

Commissioners of Procurement, Public Grounds and Buildings,

20

enter into a contract for supplies, services or construction

21

without the use of competitive procurement.

22

(b)  Conditions.--In order for a procurement to be made under

23

this section, the head of a contracting agency must determine

24

that one of the following conditions exists:

25

(1)  A Federal or State statute or Federal regulation

26

exempts the supply, service or construction from competitive

27

procurement.

28

(2)  The supply, service or construction is only capable

29

of being supplied by one bidder or offeror.

30

(3)  The services to be procured involve the repair,

- 16 -

 


1

modification or calibration of equipment and they are to be

2

performed by the manufacturer of the equipment or by the

3

manufacturer's authorized dealer, if the contracting officer

4

determines that bidding is not appropriate under the

5

circumstances.

6

(4)  The services to be procured are only capable of

7

being supplied by one expert witness.

8

(5)  The services to be procured involve financial

9

matters and they are to be provided by investment advisors or

10

managers to be used and selected by the Public School

11

Employees' Retirement System, the State Employees' Retirement

12

System or a State-affiliated entity.

13

(6)  The services to be procured involve financial

14

matters and they are to be provided by financial or

15

investment experts to be used and selected by the Treasury

16

Department.

17

(7)  The services to be procured involve the financial

18

interests of the Commonwealth in the global financial markets

19

and they are to be provided by financial or investment

20

experts to be used and selected by the Secretary of the

21

Budget for the Budget Office.

22

(8)  The supply, service or construction is a procurement

23

under section 514 (relating to small procurements).

24

(9)  The supply to be procured is computer software

25

updates under $50,000.

26

(c)  Documentation.--The determination required under

27

subsection (a) shall be placed in the contract file and shall be

28

made available for public inspection in accordance with section

29

106 (relating to public access to procurement information).

30

(d)  Exception.--For the purposes of this section, the

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1

following shall be deemed approved by the Board of Commissioners

2

of Procurement, Public Grounds and Buildings:

3

(1)  A procurement which is a computer software update

4

under $50,000.

5

(2)  A procurement which is a small procurement under

6

section 514.

7

(e)  Selection for negotiation.--Upon receiving notification

8

from the Board of Commissioners of Procurement, Public Grounds

9

and Buildings that the procurement of the supply, service or

10

construction has been authorized without the use of competitive

11

procurement, the purchasing agency shall notify the responsible

12

bidder or offeror that it has been selected for contract

13

negotiation.

14

§ 516.  Emergency procurement.

15

[The head of a purchasing agency may make or authorize others

16

to make an emergency procurement when there exists a threat to

17

public health, welfare or safety or circumstances outside the

18

control of the agency create an urgency of need which does not

19

permit the delay involved in using more formal competitive

20

methods. Whenever practical, in the case of a procurement of a

21

supply, at least two bids shall be solicited. A written

22

determination of the basis for the emergency and for the

23

selection of the particular contractor shall be included in the

24

contract file.]

25

(a)  Condition of use.--If the head of a contracting agency

26

determines in writing that the use of competitive sealed bidding

27

is not in the best interests of the Commonwealth and that the

28

supply, service or construction is necessary to prevent an

29

immediate threat of personal injury or physical damage to

30

property, the purchasing agency may, after receiving approval by

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1

the Board of Commissioners of Procurement, Public Grounds and

2

Buildings, enter into a contract for the supply, service or

3

construction without the use of competitive procurement.

4

(b)  Documentation.--The determination required under

5

subsection (a) shall be placed in the contract file and shall be

6

made available for public inspection in accordance with section

7

106 (relating to public access to procurement information).

8

(c)  Exception.--For the purposes of this section, a

9

procurement which is necessary to respond to a disaster

10

emergency declared under 35 Pa.C.S. § 7301 (relating to general

11

authority of Governor) shall be deemed approved by the Board of

12

Commissioners of Procurement, Public Grounds and Buildings.

13

(d)  Selection for negotiation.--Upon receiving notification

14

from the Board of Commissioners of Procurement, Public Grounds

15

and Buildings that the procurement of the supply, service or

16

construction has been authorized as an emergency procurement,

17

the purchasing agency shall notify the responsible bidder or

18

offeror that it has been selected for contract negotiation.

19

§ 517.  [Multiple awards] Competitive procurement on a multiple

20

award basis.

21

(a)  Conditions for use.--[Contracts may be entered into on a

22

multiple award basis when the head of the purchasing agency

23

determines that one or more of the following criteria is

24

applicable:] If the head of the purchasing agency determines in

25

writing that one or more of the conditions listed under

26

subsection (a.1) exists and that the use of multiple contracts

27

is more advantageous to the Commonwealth, the purchasing agency

28

may enter into a contract on a multiple award basis.

29

(a.1)  Conditions.--In order for a procurement to be made

30

under this section, the head of a contracting agency must

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1

determine that one of the following conditions exists:

2

(1)  It is administratively or economically impractical

3

to develop or modify specifications for a myriad of related

4

supplies because of rapid technological changes.

5

(2)  The subjective nature in the use of certain supplies

6

and the fact that recognizing this need creates a more

7

efficient use of the item.

8

(3)  It is administratively or economically impractical

9

to develop or modify specifications because of the

10

heterogeneous nature of the product lines.

11

(4)  There is a need for compatibility with existing

12

systems.

13

(5)  The agency should select the contractor to furnish

14

the supply, service or construction based upon best value or

15

return on investment.

16

(b)  Solicitation process.--[Invitations to bid or requests

17

for proposals shall be issued for the supplies, services or

18

construction to be purchased] Invitations to bid shall be issued

19

as provided under section 512(b) (relating to competitive sealed

20

bidding) for supplies, services or construction to be purchased

21

or requests for proposals shall be issued as provided under

22

section 513(b) (relating to competitive sealed proposals) for

23

supplies, services or construction to be purchased. Invitations

24

for bids or requests for proposals shall describe the method for

25

selection of the successful bidders or offerors.

26

(c)  Public notice.--Public notice of the invitation for bids

27

or request for proposals shall be given in the same manner as

28

provided in section 512(c) [(relating to competitive sealed

29

bidding)].

30

(d)  Receipt of bids or proposals.--Bids shall be opened in

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1

the same manner as provided in section 512(d). Proposals shall

2

be received and evaluated in the same manner as provided in

3

section 513(d) and (e) [(relating to competitive sealed

4

proposals)].

5

(e)  Award.--[The invitation for bids or request for

6

proposals shall describe the method for selection of the

7

successful bidders or offerors. There are three options:] 

8

Contracts shall be awarded to bidders consistent with subsection

9

(e.1) and contracts shall be awarded to offerors who have not

10

contributed within the last 365 days to a campaign of a State

11

official holding office within the Commonwealth agency in which

12

the contracting agency is located consistent with subsection

13

(e.1).

14

(e.1)  Number of awards.--The purchasing agency shall make

15

contract awards consistent with the following:

16

(1)  Awards shall be made to the lowest responsible

17

bidder or offeror for each designated manufacturer.

18

(2)  Awards shall be made to the two or three lowest

19

responsible bidders or offerors for each designated

20

manufacturer.

21

(3)  Awards shall be made to all responsible bidders or

22

offerors.

23

(f)  Selection.--A Commonwealth agency may select a

24

contractor from the bidders or offerors awarded contracts under

25

subsection (e) to furnish the supply, service or construction

26

based upon best value or return on investment.

27

§ 518.  Competitive selection procedures for certain services.

28

* * *

29

(c)  Request for proposals.--Adequate notice of the need for

30

the services specified in subsection (a) shall be given by the

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1

purchasing agency through a request for proposals. The request

2

for proposals shall describe the services required, list the

3

type of information required of each offeror and state the

4

relative importance of the particular information. Additionally,

5

each request for a proposal shall require offerors to state

6

whether within the last 365 days the offeror or any member of

7

the offeror with an ownership interest in the offeror has

8

contributed to a campaign of a State official holding office

9

within the Commonwealth agency in which the contracting agency

10

is located.

11

* * *

12

(e)  Award.--Award shall be made to the responsible offeror

13

determined in writing by the contracting officer to be best

14

qualified based on the evaluation factors set forth in the

15

request for proposals and who as an entity or as members of the

16

entity with ownership interests in the entity have not

17

contributed within the last 365 days to a campaign of a State

18

official holding office within the Commonwealth agency in which

19

the contracting agency is located. Fair and reasonable

20

compensation shall be determined through negotiation, except

21

that no contract shall provide for compensation which exceeds

22

the rate charged other governmental entities. If compensation

23

cannot be agreed upon with the best qualified responsible

24

offeror, then negotiations will be formally terminated with the

25

offeror. If proposals were submitted by one or more other

26

responsible offerors, negotiations may be conducted with the

27

other responsible offeror or responsible offerors in the order

28

of their respective qualification ranking. The contract may be

29

awarded to the responsible offeror then ranked as best qualified

30

if the amount of compensation is determined to be fair and

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1

reasonable.

2

§ 519.  Selection procedure for insurance and notary bonds.

3

* * *

4

(c)  Request for proposals.--Adequate notice of the need for

5

insurance or notary bond coverage shall be given by the

6

purchasing agency through a request for proposals. The request

7

for proposals shall describe the type of insurance or bond

8

coverage required and list the type of information and data

9

required of each offeror and shall state whether within the last

10

365 days the offeror or any member of the offeror with an

11

ownership interest in the offeror has contributed to a campaign

12

of a State official holding office within the Commonwealth

13

agency in which the contracting agency is located.

14

* * *

15

(f)  Award.--Award shall be made to the responsible offeror

16

who as an entity or as members of the entity with an ownership

17

interest in the entity have not contributed within the last 365

18

days to a campaign of a State official holding office within the

19

Commonwealth agency in which the contracting agency is located

20

and whose proposal is determined in writing by the department to

21

be the most advantageous to the Commonwealth based on criteria

22

determined by the department, including the coverage offered and

23

the cost of the premium.

24

Section 5.  The Board of Commissioners of Procurement, Public

25

Grounds and Buildings shall be a continuation of Board of

26

Commissioners of Public Grounds and Buildings. All activities

27

initiated by the Board of Commissioners of Public Grounds and

28

Buildings shall continue and remain in full force and effect and

29

may be completed by the Board of Commissioners of Procurement,

30

Public Grounds and Buildings. Contracts, obligations and

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1

collective bargaining agreements entered into by the Board of

2

Commissioners of Public Grounds and Buildings are not affected

3

nor impaired by the continuation of the Board of Commissioners

4

of Public Grounds and Buildings.

5

Section 6.  Repeals are as follows:

6

(1)  The General Assembly declares that the repeal under

7

paragraph (2) is necessary to effectuate the amendment of 62

8

Pa.C.S. § 326.

9

(2)  Section 446 of the act of April 9, 1929 (P.L.177,

10

No.175), known as The Administrative Code of 1929, is

11

repealed.

12

Section 7.  This act shall take effect in 60 days.

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