Current through Pa Acts 2024-53, 2024-56 through 2024-111
Section 15102 - Contract procedures, terms and bonds and advertising for bids(a) Contract requirements.--A contract for services and personal property in which the base amount of the contract exceeds the sum of $18,500, subject to adjustment under section 15101(c) (relating to commissioners sole contractors for county generally), shall be in writing and shall, except as otherwise specified, be made by advertising for bids.(b) Bids.-- (1) Contracts or purchases in excess of the base amount of $18,500, subject to adjustment under section 15101(c), except those specified in subsection (h) and except as provided by the act of October 27, 1979 (P.L.241, No.78), entitled "An 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," must be made: (i) with and from the lowest responsible and responsive bidder submitting a bid in conformity with the specifications approved by the county commissioners for the contract or purchase;(ii) after due notice in one newspaper of general circulation, published or circulating in the county: (A) at least two times at intervals of not less than three days where daily newspapers of general circulation are employed for such publication; or(B) once a week for two successive weeks where weekly newspapers are employed.(2) The first notice under paragraph (1)(ii) shall be published not less than 10 days prior to the date fixed for the opening of bids.(3) The requirements of this subsection need not be followed in cases of emergency, but in emergency cases the actual emergency shall be declared and stated by resolution of the county commissioners.(c) Receipt and opening of bids.--All bids shall be received by the controller, or, for a county without a controller, by the chief clerk of the county commissioners, in sealed envelopes. The following apply:(1) For a county of the second class A, bids shall be opened publicly at a time and place to be designated in the advertisement for bids. The figures shall be announced publicly by the chief clerk or the chief clerk's designee and referred to the appropriate departments for tabulation without the presence of the county commissioners.(2) For a county of the third, fourth, fifth, sixth, seventh or eighth class, bids shall be opened publicly at a time and place specified in the advertisement for bids, in the presence of the controller or chief clerk, as the case may be, by the county commissioners or their designee. The controller or the chief clerk, shall keep a record of the bids.(d) Entire amount.-- (1) The amount or price of the contract shall be the entire amount which the county pays to the successful bidder or the bidder's assigns less the value of personal property transferred from the county to the bidder or the bidder's assigns at any time during the duration of the contract, in order to obtain the services or property, or both. The amount of the contract may not be construed to mean only the amount that is paid to acquire title or to receive any other particular benefit of the whole bargain.(2) The value of personal property transferred to the bidder or the bidder's assigns upon execution of the contract shall be specified in the bid. The method of determining the value of personal property transferred to the bidder or his assigns at a time during the duration of the contract shall be specified in the bid and shall be determined using generally accepted valuation methods.(e)Acceptance of bids.-- (1) The acceptance of bids by advertising required under this section shall be made by the controller, for a county of the second class A, or by the county commissioners, for a county of the third, fourth, fifth, sixth, seventh or eighth class. The acceptance of bids shall only be made by public announcement at the meeting at which bids are opened, or at a subsequent meeting, the time and place of which shall be publicly announced when bids are opened. If for any reason the award is not made at either of the meetings, the same business may be transacted at any subsequent meeting, the time and place of which shall have been announced at the previous meeting held for the award.(2) The contract shall be awarded, or the bids shall be rejected, within 30 days of the opening of the bids, except for bids subject to 62 Pa.C.S. (relating to procurement). A 30-day extension of the date for the award may be made by the mutual written consent of the county commissioners and any bidder that wishes to remain under consideration for award. The county commissioners shall excuse from consideration any bidder not wishing to agree to a request for extension of the date for the award and shall release the bidder from any bid bond or similar bid security furnished under subsection (f).(3) A contract shall be filed with the controller, or with the chief clerk as the case may be, immediately after the execution.(f) Security permitted.--The county commissioners may require, as a necessary condition of considering a bid, that any bids advertised be accompanied by a cashier's check or other irrevocable letter of credit in a reasonable amount drawn upon a bank authorized to do business in this Commonwealth or by a bond with corporate surety in a reasonable amount. In the event a bidder shall, upon award of the contract to the bidder, fail to comply with the requirements of subsection (g) as to security guaranteeing the performance of the contract, the security furnished under this subsection shall be forfeited to the county as liquidated damages.(g) Security required.--If a formal bid is required by this chapter, the successful bidder may be required to furnish a bond or irrevocable letter of credit or other security in an amount sufficient to the county commissioners guaranteeing performance of the contract within 30 days after the contract has been awarded, unless the county commissioners prescribe a shorter period. The successful bidder for a contract which involves the construction, erection, installation, completion, alteration, repair of or addition to any public work or improvement of any kind shall furnish security as provided in section 16118 (relating to contract performance security and payment bonds). Performance security for services and contracts for labor and materials delivered on a periodic basis, including food service contracts, home health services and janitorial services and supplies, may be computed on the expected average value for one or more months at the discretion of the county commissioners. Upon failure to furnish the security within the time fixed, the previous awards shall be void. Deliveries, performances and guarantees may be required in all cases of expenditures, including the exceptions under subsection (h).(h) Exceptions.--Contracts or purchases made by the county commissioners for the following may not require advertising, bidding or price quotations:(1) Maintenance, repairs or replacements for water, electric light or other public works if not new additions, extensions or enlargements of existing facilities and equipment. Security may be required by the county commissioners as in other cases for work done.(2) Improvements, repairs and maintenance, made or provided by the county through its own employees. This paragraph does not apply to construction materials used in a street improvement.(3) Particular types, models or pieces of new equipment, articles, apparatus, appliances, vehicles or parts thereof requested by the county commissioners, which are patented and manufactured or copyrighted products.(4) Policies of insurance or surety company bonds.(5) Public utility service and electricity, natural gas or telecommunication services, provided that, for utilities not under tariff with the Pennsylvania Public Utility Commission, contracts made without advertising and bidding shall be made only after receiving written or telephonic price quotations in accordance with the procedures specified in section 15101(b).(6) Services of members of the medical or legal profession, registered architects, engineers, certified public accountants or other personal services involving professional expertise.(7) Materials, supplies and equipment contracts entered into by nonprofit cooperative hospital service associations for hospitals and 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.(8) Tangible client services provided by nonprofit agencies. For the purposes of this paragraph, the term "tangible client services" shall mean congregate meals, home-delivered meals, transportation or chore services provided through area agencies on aging.(9) The sale, lease or loan of supplies or materials to the county by a public body if the price is not in excess of that fixed by the public body. The requirements of 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) may not apply when a county purchases cooperatively with another public body that has entered into a contract for supplies or materials. As used in this paragraph, the term "public body" shall mean any of the following:(i) the Federal Government;(iv) a political subdivision, local or municipal authority, council of government, entity created in accordance with 53 Pa.C.S. Ch. 23 Subch. A 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.(10) The purchase of milk for counties of the second class A.(11) Construction management services.(i) Contracts for technology and information systems.--(1) Notwithstanding the provisions of this chapter to the contrary, the county commissioners shall have authority to enter into contracts for equipment and services related to technology and information systems on the basis of best value procurement.(2) Contracts under best value procurement shall be made only after the county has solicited proposals based on performance and outcome specifications developed by the county and describing at minimum: (i) the objectives to be met by the system;(ii) the tasks to be performed by the system;(iii) the users of the system;(iv) system security issues;(v) the time frame for system implementation;(vi) potential operating technologies;(vii) compatibility with existing systems;(viii) training and maintenance; and(ix) the process by which the contract shall be awarded.(3) Best value procurement may not require a sealed bid process and shall permit the county commissioners to negotiate the terms of the agreement with any responsive and responsible vendor.(j)Other acts.--A contract subject to this chapter shall comply, as applicable, with the provisions of: (1) The act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act.(2) The act of December 20, 1967 (P.L.869, No.385), known as the Public Works Contractors' Bond Law of 1967.(3) The act of January 23, 1974 (P.L.9, No.4), referred to as the Public Contract Bid Withdrawal Law.(4) The act of March 3, 1978 (P.L.6, No.3), known as the Steel Products Procurement Act.(5) The act of February 17, 1994 (P.L.73, No.7), known as the Contractor and Subcontractor Payment Act.(6) 62 Pa.C.S. Chs. 37 Subch. B. (relating to motor vehicles), 39 (relating to contracts for public works) and 45 (relating to antibid-rigging).(k) Shared fees and compensation.--Individuals, consultants, firms or corporations contracting with a county for purposes of rendering personal or professional services to the county may not share with a county officer or employee, and county officers or employees may not accept any portion of the compensation or fees paid by the county for the contracted services provided to the county except under the following terms or conditions: (1) Full disclosure of all relevant information regarding the sharing of the compensation or fees shall be made to the county commissioners.(2) The county commissioners must approve the sharing of any fee or compensation for personal or professional services prior to the performance of the services.(3) Fees or compensation for personal or professional services may not be shared except for work actually performed.(4) Shared fees or compensation for personal or professional services may not be paid at a rate in excess of that commensurate for similar personal or professional services.(l) Electronic bidding.--Nothing in this part shall be construed as prohibiting a county from electronic bidding to the extent authorized by 62 Pa.C.S. Ch. 46 (relating to electronic bidding by local government units).Added by P.L. (number not assigned at time of publication) 2024 No. 14,§ 4, eff. 7/8/2024.