Section 56802 - Regulation of contracts(a) All contracts or purchases in excess of the base amount of eighteen thousand five hundred dollars, subject to adjustment under subsection (a.2), except those mentioned in this section 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," shall be in writing, and shall be made only after notice by the secretary, published once in one newspaper of general circulation, published or circulating in the county in which the township is situated. The advertisement shall be published not less than ten days prior to the date fixed for the opening of bids and shall also be posted in a conspicuous place within the township. The advertisement for contracts or purchases shall contain the date, time and location for opening of bids and shall state the amount of the performance bond determined under subsection (c). The advertisement shall also contain full plans and specifications, or refer to the places where copies thereof can be obtained. All plans and specifications shall be on file not less than ten days in advance of opening bids. The amount of the contract shall in all cases, whether of straight sale price, conditional sale, lease, lease purchase or otherwise, be the entire amount which the township pays to the successful bidder or the bidder's assigns in order to obtain the services or property, or both, and shall not be construed to mean only the amount that is paid to acquire title or to receive any other particular benefit or benefits of the whole bargain.(a.1) Written or telephonic price quotations from at least three qualified and responsible contractors shall be requested for all contracts in excess of the base amount of ten thousand dollars, subject to adjustment under subsection (a.2) but 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 that 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. Written price quotations as used throughout this section include electronic mail.(a.2) Adjustments to the base amounts specified under subsections (a) and (a.1) shall be made as follows: (1) The Department of Labor and Industry shall determine the percentage change in the Consumer Price Index for All Urban Consumers: All Items (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.(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 hundred dollars, to determine the final adjusted base amounts for purposes of subsections (a) and (a.1).(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 shall be rounded to the nearest one hundred dollars to determine the new final adjusted base amounts for purposes of subsections (a) and (a.1).(5) The determinations and adjustments required under this subsection shall be made in the period between October 1 and November 15 of each year.(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 transmit notice to the Legislative Reference Bureau for publication 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 telephone price quotations are required under subsection (a.1), 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) The annual increase in the preliminary adjusted base amounts obtained under paragraphs (3) and (4) shall not exceed three percent.(b)(1)(i) If advertisement and bidding are required, the advertisement shall specify the date, time and place bids will be received and the date, time and place for the opening of bids.(ii) At the board of commissioners' request, the bids advertised for must be accompanied by cash, money order, a certified or cashier's good faith check or other irrevocable letter of credit drawn upon a bank authorized to do business in this Commonwealth or by a bond with corporate surety in the amount as the board of commissioners determine, and, when requested, no bid may be considered unless so accompanied.(iii) Bids received pursuant to an advertisement shall be opened publicly by the board of commissioners or the board's agent or employees. The amount of each bid and any other relevant information as may be specified by the board, together with the name of each bidder, shall be disclosed and recorded, and the record shall be open to public inspection and copying.(iv) At a public meeting of the board of commissioners, the board shall either award the contract or reject all bids.(2) Any contract executed in violation of the provisions of this section shall be void. Nothing in this section shall prevent the making of contracts for governmental services for a period exceeding one year, but any contract shall be executed only for the amounts agreed to be paid for the services to be rendered in succeeding fiscal years.(c) The successful bidder, when advertising is required, shall be required to furnish bond or irrevocable letter of credit or other security with suitable reasonable requirements guaranteeing the performance of the contract, with sufficient surety, in an amount as determined by the board of commissioners which shall be not less than ten percent nor more than one hundred percent of the amount of the liability under the contract within twenty days after the contract has been awarded, unless the board of commissioners shall prescribe a shorter period of not less than ten days. Upon failure to furnish the security within the prescribed time, the previous award shall be void. Deliveries, accomplishment and guarantees may be required in all cases of expenditures including exceptions herein.(d) The contracts or purchases made by the board of commissioners which shall not require advertising, bidding or price quotations, as provided in this article, are as follows: (1) Those for maintenance, repairs or replacements for water, electricity, or other public works of the township, provided they do not constitute new additions, extensions or enlargements of existing facilities and equipment but security may be required by the board of commissioners as in other cases of work done.(2) Those made for improvements, repairs and maintenance of any kind made or provided by a township through its own employes if the materials used for street improvement or construction in excess of the amount specified or adjusted under subsection (a.1) are subject to the relevant price quotation or advertising requirements contained in this section.(3) Those where particular types, models or pieces of new equipment, articles, apparatus, appliances, computer software, vehicles or parts thereof are desired by the board of commissioners which are patented or copyrighted products or are needed to ensure compatibility with existing systems, facilities or equipment. (3.1) Those for used personal property, such as equipment, articles, apparatus, appliances, vehicles or parts thereof being purchased from a public utility, municipal corporation, county, school district, municipal authority, council of government, volunteer fire company, volunteer ambulance service, volunteer rescue squad or Federal or State Government.(4) Those involving a policy of insurance or a surety bond.(4.1) Those made for public utility service and electricity, natural gas or telecommunications services.(4.2) Those made with another political subdivision or a county, or council of governments, consortium, cooperative or other similar entity created under 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) or the Federal Government, the Commonwealth, any agency of the Federal Government or the Commonwealth or any municipal authority, including the sale, leasing or loan of any supplies or materials by the Federal Government or the Commonwealth or their agencies. The price may not be in excess of that fixed by the Federal Government or the Commonwealth, or their agencies.(5) Those involving personal or professional services.(6) Those made for materials and supplies or equipment rental under emergency conditions under 35 Pa.C.S. Pt. V (relating to emergency management services).(7) Those 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 employees.(8) Those 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.(9) Those for emergency maintenance, repairs or replacements for water, electricity or public works of the township, if they do not constitute new additions, extensions or enlargements of existing facilities and equipment, but security may be required by the board of commissioners, as in other cases of work done. The actual emergency and the nature of the procurement shall be stated in a resolution by the board of commissioners and adopted at the next public meeting.(10) Those for the mitigation of a real or potential emergency involving a clear and present danger to the health, safety and welfare of the residents of the township. For those contracts or purchases made in cases of emergencies, the actual emergency and the nature of the procurement shall be stated in a resolution by the board of commissioners and adopted at the next public meeting. Nothing in this subsection prohibits the board of commissioners from engaging in advertising, bidding or price quotations if the board of commissioners determines that the advertising, bidding or price quotations are in the public interest.
(e) The board of commissioners shall award contracts subject to the requirements of and may exercise any powers granted by the following acts to the extent applicable: (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 17, 1968 (P.L. 11, No. 5), known as "The Minimum Wage Act of 1968."(4) The act of January 23, 1974 (P.L. 9, No. 4), referred to as the Public Contract Bid Withdrawal Law.(5) The act of March 3, 1978 (P.L. 6, No. 3), known as the "Steel Products Procurement Act."(6) The act of February 17, 1994 (P.L. 73, No. 7), known as the "Contractor and Subcontractor Payment Act."(7) 62 Pa.C.S. Pt. II (relating to general procurement provisions).(f) No person, consultant, firm or corporation contracting with a township for purposes of rendering personal or professional services to the township shall share with any township officer or employe, and no township officer or employe shall accept, any portion of the compensation or fees paid by the township for the contracted services provided to the township 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 board of commissioners.(2) The board of commissioners must approve the sharing of any fee or compensation for personal or professional services prior to the performance of the services.(3) No fee or compensation for personal or professional services may be shared except for work actually performed.(4) No shared fee or compensation for personal or professional services may be paid at a rate in excess of that commensurate for similar personal or professional services.1931, June 24, P.L. 1206, art. XVIII, § 1802. Amended 1935, July 18, P.L. 1176, § 1; 1939, May 25, P.L. 185, § 1; 1947, May 8, P.L. 163, § 4; 1949, May 27, P.L. 1955, § 36; 1951, May 10, P.L. 255, § 1; 1955, Sept. 7, P.L. 563, § 6; 1957, May 17, P.L. 168, § 1; 1961, April 28, P.L. 144, § 1; 1967, Oct. 9, P.L. 375, § 1; 1970, May 6, P.L. 350, No. 116, § 1; 1976, Nov. 23, P.L. 1135, No. 243, § 1, effective in 60 days; 1978, June 30, P.L. 560, No. 95, § 1, effective in 60 days; 1978, Oct. 4, P.L. 1042, No. 237, § 1, effective in 60 days; 1980, Oct. 5, P.L. 782, No. 144, § 1, effective in 60 days; 1981, Dec. 22, P.L. 535, No. 154, § 1, effective in 60 days; 1986, Dec. 17, P.L. 1682, No. 195, § 1, effective in 60 days; 1990, July 10, P.L. 389, No. 92, § 2, effective in 60 days; 1995, June 26, P.L. 66, No. 13, § 2, effective in 60 days; 1996, Dec. 18, P.L. 1149, No. 173, § 1, effective in 60 days; 1996, Dec. 20, P.L. 1495, No. 192, § 1, effective in 60 days; 1997, June 25, P.L. 332, No. 36, § 2, effective in 60 days; 2011, Nov. 3, P.L. 345, No. 85, § 1, imd. effective; 2013, Nov. 27, P.L. 1079, No. 96, § 1, effective in 60 days [Jan. 27, 2014]; 2018, Oct. 24, P.L. 886, No. 141, § 1, effective in 60 days [Dec. 24, 2018]; 2020, Oct. 29, P.L. 782, No. 96, § 66, effective in 60 days [Dec. 28, 2020].