THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

Amending Title 62 (Procurement) of the Pennsylvania Consolidated

Statutes, 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.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

Pennsylvania Consolidated Statutes are amended to read:

§ 102.  Application of part.

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

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

investment of funds, by Commonwealth agencies under any

contract, irrespective of their source, including Federal

assistance moneys except as specified in section 2108 (relating

to compliance with Federal requirements). This part does not

apply to contracts between Commonwealth agencies or between the

Commonwealth and its political subdivisions or other governments

except as provided in Chapter 19 (relating to intergovernmental

relations). Nothing in this part or in accompanying regulations

shall prevent any Commonwealth agency or political subdivision

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

bequest or cooperative agreement.

* * *

[(c)  Application to General Assembly and unified judicial

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

judicial system and its agencies may use the department as its

purchasing agency for the purchase of supplies under this part

and may use the department to dispose of surplus supplies under

Chapter 15 (relating to supply management).]

* * *

Section 2.  The definitions of "Commonwealth agency,"

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

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

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

by adding definitions to read:

§ 103.  Definitions.

Subject to additional definitions contained in subsequent

provisions of this part which are applicable to specific

provisions of this part, the following words and phrases when

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

section unless the context clearly indicates otherwise:

* * *

"Commonwealth agency."  An executive agency, a legislative

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

affiliated entity.

"Competitive procurement."  Procurement under sections 512

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

competitive electronic auction bidding), 513 (relating to

competitive sealed proposals), 517 (relating to multiple

awards), 518 (relating to competitive selection procedures for

certain services), 519 (relating to selection procedure for

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

design professional services).

* * *

"Contracting agency."  A Commonwealth agency which seeks

procurement of a supply, service or construction.

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

administer contracts and make written determinations with

respect to contracts for a contracting agency.

* * *

"Executive agency."

(1)  Any one of the following:

(i)  The Governor and the departments, boards,

commissions, authorities and other officers and agencies

of the Commonwealth.

(ii)  The Office of the State Treasurer.

(iii)  The Office of the Auditor General.

(iv)  The Office of Attorney General.

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

officer or agency of the unified judicial system, the General

Assembly and its officers and agencies or any] a judicial

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

affiliated entity, State-related institution, political

subdivision or any local, regional or metropolitan

transportation authority.

* * *

"Independent agency."  Boards, commissions and other agencies

and officers of the Commonwealth which are not subject to the

policy supervision and control of the Governor. The term does

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

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

officer or agency of the unified judicial system, the General

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

institution, political subdivision or any local, regional or

metropolitan transportation authority.

* * *

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

Commonwealth Court or any other court or other officer or agency

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

executive agency, legislative agency, independent agency, State-

affiliated entity, State-related institution, political

subdivision or any local, regional or metropolitan

transportation authority.

"Legislative agency."

(1)  Any one of the following:

(i)  The Senate of Pennsylvania.

(ii)  The Pennsylvania House of Representatives.

(iii)  Another officer or agency of the General

Assembly.

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

judicial agency, independent agency, State-affiliated entity,

State-related institution, political subdivision or any

local, regional or metropolitan transportation authority.

* * *

"Purchasing agency."  A Commonwealth agency authorized by

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

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

When purchasing for itself, the agency is both the contracting

agency and the purchasing agency. When purchasing for another

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

the [principal which needs the supplies, services and

construction] contracting agency and shall coordinate and

cooperate with [that] the contracting agency.

* * *

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

Commonwealth entity. The term includes the Pennsylvania Turnpike

Commission, the Pennsylvania Housing Finance Agency, the

Pennsylvania Municipal Retirement System, the Pennsylvania

Infrastructure Investment Authority, the State Public School

Building Authority, the Pennsylvania Higher Educational

Facilities Authority and the State System of Higher Education.

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

of the unified judicial system, the General Assembly and its

officers and agencies, any] a judicial agency, legislative

agency, State-related institution, political subdivision or any

local, regional or metropolitan transportation authority.

* * *

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

The term includes equipment, materials, printing, insurance and

leases of and installment purchases of tangible or intangible

personal property. The term does not include real property,

leases of real property or alcoholic beverages or liquor

purchased for resale by the Pennsylvania Liquor Control Board.

* * *

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

subsections to read:

§ 301.  Procurement responsibility.

* * *

(e)  Application to legislative agencies.--Legislative

agencies shall formulate their own procurement policy governing

the procurement, management, control and disposal of supplies,

services and construction and may act as their own purchasing

agency for the procurement of supplies, services and

construction, except that they shall use the procedures provided

under this part for the procurement. A legislative agency may

use the department as its purchasing agency for the purchase of

supplies, services and construction under this part and may use

the department to dispose of surplus supplies under Chapter 15

(relating to supply management).

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

formulate their own procurement policy governing the

procurement, management, control and disposal of supplies,

services and construction and may act as their own purchasing

agency for the procurement of supplies, services and

construction, except that they shall use the procedures provided

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

the department as its purchasing agency for the purchase of

supplies, services and construction under this part and may use

the department to dispose of surplus supplies under Chapter 15.

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

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

(f) of Title 62 are amended to read:

§ 311.  Powers and duties.

Except as otherwise provided in this part, the department may

promulgate regulations governing the procurement, management,

control and disposal of any and all supplies, services and

construction to be procured by [Commonwealth] executive and

independent agencies. The department shall consider and decide

matters of policy within the provisions of this part relating to

executive and independent agencies. The department may audit and

monitor the implementation of its regulations and the

requirements of this part.

§ 326.  Board of Commissioners of Procurement, Public Grounds

and Buildings.

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

independent agency and no sole source procurement of supplies,

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

executive or independent agency for which the department acts as

the purchasing agency shall be valid or effective unless, upon

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

Grounds and Buildings. Where the board is reviewing a proposed

sole source lease or procurement being submitted pursuant to

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

the lease or procurement shall require the unanimous vote of the

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

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

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

public meeting.]

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

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

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

following members:

(1)  The Governor or a designee.

(2)  The State Treasurer or a designee.

(3)  The Attorney General or a designee.

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

designee.

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

designee.

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

designee.

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

Justice of the Supreme Court or a designee.

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

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

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

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

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

meetings). Commonwealth agencies shall cooperate with and

provide assistance to the board without financial reimbursement.

The department shall provide administrative services and staff,

including staff legal counsel, to the board.

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

(1)  Review and may approve applications by Commonwealth

agencies for sole source procurement or emergency

procurement.

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

executive and independent agencies.

(3)  Perform the duties of the former Board of

Commissioners of Public Grounds and Buildings.

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

apply:

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

board requesting that procurement be permitted without the

use of competitive procurement or requesting the real

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

required by the board and shall include or demonstrate all of

the following:

(i)  The name of the contracting agency.

(ii)  If the application is for a sole source

procurement, a copy of the determination required under

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

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

from which the supply, service or construction is to be

procured or the real property is to be leased.

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

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

leased.

(v)  A statement from the bidder or offeror from

which the supply, service or construction is to be

procured or the real property to be leased indicating

that within the last 365 days the bidder or offeror has

not contributed to a campaign of a State official holding

office within the Commonwealth agency in which the

contracting agency is located.

(vi)  Any other information required by the board.

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

satisfied that all requirements have been met, the board may

approve the application if the board finds all of the

following:

(i)  If the application is for a sole source

procurement, the procurement without the use of

competitive procurement is in both the best financial

interests and the best legal interests of the

Commonwealth.

(ii)  The bidder or offeror has not made a

contribution within the last 365 days to a campaign of a

State official holding office within the Commonwealth

agency in which the contracting agency is located.

(iii)  No conflict of interests exists between the

contracting agency, the head of the contracting agency,

the contracting officer or the purchasing agency and the

bidder or offeror.

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

apply:

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

board requesting that an emergency procurement be permitted.

The application shall be on the form required by the board

and shall include or demonstrate all of the following:

(i)  The name of the contracting agency.

(ii)  A copy of the determination required under

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

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

from which the supply, service or construction is to be

procured.

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

to be procured.

(v)  A statement from the bidder or offeror from

which the supply, service or construction is to be

procured indicating that within the last 365 days the

bidder or offeror has not contributed to a campaign of a

State official holding office within the Commonwealth

agency in which the contracting agency is located.

(vi)  Any other information required by the board.

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

satisfied that all requirements have been met, the board may

approve the application if the board finds all of the

following:

(i)  The emergency procurement is in interests of the

Commonwealth.

(ii)  The bidder or offeror has not made a

contribution within the last 365 days to a campaign of a

State official holding office within the Commonwealth

agency in which the contracting agency is located.

(iii)  No conflict of interests exists between the

contracting agency, the head of the contracting agency,

the contracting officer or the purchasing agency and the

bidder or offeror.

§ 511.  Methods of source selection.

Unless otherwise authorized by law, all Commonwealth agency

contracts shall be awarded by competitive sealed bidding under

section 512 (relating to competitive sealed bidding) except as

provided in:

Section 512.1 (relating to competitive electronic auction

bidding).

Section 513 (relating to competitive sealed proposals).

Section 514 (relating to small procurements).

Section 515 (relating to sole source procurement).

Section 516 (relating to emergency procurement).

Section 517 (relating to [multiple awards] competitive

procurement on a multiple award basis).

Section 518 (relating to competitive selection procedures

for certain services).

Section 519 (relating to selection procedure for

insurance and notary bonds).

Section 520 (relating to supplies manufactured and

services performed by persons with disabilities).

Section 905 (relating to procurement of design

professional services).

§ 512.  Competitive sealed bidding.

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

and construction shall be awarded by competitive sealed bidding

except as otherwise provided [in section 511 (relating to

methods of source selection)] under this chapter.

* * *

§ 512.1.  Competitive electronic auction bidding.

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

purchasing agency determines in writing that use of competitive

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

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

electronic auction bidding is more advantageous to the

Commonwealth, the purchasing agency may enter into a contract

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

into] by competitive electronic auction bidding.

* * *

§ 513.  Competitive sealed proposals.

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

determines in writing that the use of competitive sealed bidding

is either not practicable or advantageous to the Commonwealth, a

contract may be entered into by competitive sealed proposals.

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

through a request for proposals.]

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

determines in writing that the use of competitive sealed bidding

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

use of competitive sealed proposals is more advantageous to the

Commonwealth, the purchasing agency may enter into a contract

for supplies, services and construction by competitive sealed

proposals.

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

required under subsection (a), proposals shall be solicited

through a request for proposals. A request for proposals shall

require each offeror to state whether within the last 365 days

the offeror has contributed to a campaign of a State official

holding office within the Commonwealth agency in which the

contracting agency is located.

* * *

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

whose proposal is determined in writing to be the most

advantageous to the [purchasing] contracting agency, taking into

consideration price and all evaluation factors, and who has not

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

official holding office within the Commonwealth agency in which

the contracting agency is located shall be selected for contract

negotiation.

§ 514.  Small procurements.

If the procurement is not the subject of a Statewide

requirements contract between the purchasing agency and a

contractor, the head of the purchasing agency may authorize in

writing procurements without [formal bid procedures, not

exceeding the amount established by the purchasing agency] the

use of competitive procurement procedures for small

procurements. The head of the purchasing agency may authorize a

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

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

exceed [the amount established by the head of the purchasing

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

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

department to reflect the annual percentage change in the

Consumer Price Index of the United States Department of Commerce

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

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

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

do] a construction project which does not exceed a total

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

adjusted annually by the department to reflect the annual

percentage change in the Composite Construction Cost Index of

the United States Department of Commerce occurring in the one-

year period ending December 31 of each year. Procurement

requirements shall not be artificially divided so as to

constitute a small procurement under this section. Small

procurements shall be made in accordance with the requirements

of the written authorization and this section. Records of all

small procurements shall be transmitted to the purchasing

agency.

§ 515.  Sole source procurement.

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

construction item without competition if the contracting officer

first determines in writing that one of the following conditions

exists:

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

supply, service or construction.

(2)  A Federal or State statute or Federal regulation

exempts the supply, service or construction from the

competitive procedure.

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

construction is less than the amount established by the

department for small, no-bid procurements under section 514

(relating to small procurements).

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

supplies or services on a competitive basis.

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

litigation consultants selected by the Office of General

Counsel, the Office of Attorney General, the Department of

the Auditor General or the Treasury Department.

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

(7)  The services involve the repair, modification or

calibration of equipment and they are to be performed by the

manufacturer of the equipment or by the manufacturer's

authorized dealer, provided the contracting officer

determines that bidding is not appropriate under the

circumstances.

(8)  The contract is for investment advisors or managers

selected by the Public School Employees' Retirement System,

the State Employees' Retirement System or a State-affiliated

entity.

(9)  The contract is for financial or investment experts

to be used and selected by the Treasury Department or

financial or investment experts selected by the Secretary of

the Budget.

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

best interest of the Commonwealth.

The written determination authorizing sole source procurement

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

small procurements under section 514 and emergency procurements

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

sole source procurement is for a supply, except for computer

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

purchasing agency, it must be approved by the Board of

Commissioners of Public Grounds and Buildings prior to the award

of a contract.]

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

determines in writing that the use of competitive sealed bidding

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

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

purchasing agency may, after receiving approval by the Board of

Commissioners of Procurement, Public Grounds and Buildings,

enter into a contract for supplies, services or construction

without the use of competitive procurement.

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

this section, the head of a contracting agency must determine

that one of the following conditions exists:

(1)  A Federal or State statute or Federal regulation

exempts the supply, service or construction from competitive

procurement.

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

of being supplied by one bidder or offeror.

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

modification or calibration of equipment and they are to be

performed by the manufacturer of the equipment or by the

manufacturer's authorized dealer, if the contracting officer

determines that bidding is not appropriate under the

circumstances.

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

being supplied by one expert witness.

(5)  The services to be procured involve financial

matters and they are to be provided by investment advisors or

managers to be used and selected by the Public School

Employees' Retirement System, the State Employees' Retirement

System or a State-affiliated entity.

(6)  The services to be procured involve financial

matters and they are to be provided by financial or

investment experts to be used and selected by the Treasury

Department.

(7)  The services to be procured involve the financial

interests of the Commonwealth in the global financial markets

and they are to be provided by financial or investment

experts to be used and selected by the Secretary of the

Budget for the Budget Office.

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

under section 514 (relating to small procurements).

(9)  The supply to be procured is computer software

updates under $50,000.

(c)  Documentation.--The determination required under

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

made available for public inspection in accordance with section

106 (relating to public access to procurement information).

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

following shall be deemed approved by the Board of Commissioners

of Procurement, Public Grounds and Buildings:

(1)  A procurement which is a computer software update

under $50,000.

(2)  A procurement which is a small procurement under

section 514.

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

from the Board of Commissioners of Procurement, Public Grounds

and Buildings that the procurement of the supply, service or

construction has been authorized without the use of competitive

procurement, the purchasing agency shall notify the responsible

bidder or offeror that it has been selected for contract

negotiation.

§ 516.  Emergency procurement.

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

to make an emergency procurement when there exists a threat to

public health, welfare or safety or circumstances outside the

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

permit the delay involved in using more formal competitive

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

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

determination of the basis for the emergency and for the

selection of the particular contractor shall be included in the

contract file.]

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

determines in writing that the use of competitive sealed bidding

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

supply, service or construction is necessary to prevent an

immediate threat of personal injury or physical damage to

property, the purchasing agency may, after receiving approval by

the Board of Commissioners of Procurement, Public Grounds and

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

construction without the use of competitive procurement.

(b)  Documentation.--The determination required under

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

made available for public inspection in accordance with section

106 (relating to public access to procurement information).

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

procurement which is necessary to respond to a disaster

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

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

Commissioners of Procurement, Public Grounds and Buildings.

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

from the Board of Commissioners of Procurement, Public Grounds

and Buildings that the procurement of the supply, service or

construction has been authorized as an emergency procurement,

the purchasing agency shall notify the responsible bidder or

offeror that it has been selected for contract negotiation.

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

award basis.

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

multiple award basis when the head of the purchasing agency

determines that one or more of the following criteria is

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

writing that one or more of the conditions listed under

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

is more advantageous to the Commonwealth, the purchasing agency

may enter into a contract on a multiple award basis.

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

under this section, the head of a contracting agency must

determine that one of the following conditions exists:

(1)  It is administratively or economically impractical

to develop or modify specifications for a myriad of related

supplies because of rapid technological changes.

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

and the fact that recognizing this need creates a more

efficient use of the item.

(3)  It is administratively or economically impractical

to develop or modify specifications because of the

heterogeneous nature of the product lines.

(4)  There is a need for compatibility with existing

systems.

(5)  The agency should select the contractor to furnish

the supply, service or construction based upon best value or

return on investment.

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

for proposals shall be issued for the supplies, services or

construction to be purchased] Invitations to bid shall be issued

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

bidding) for supplies, services or construction to be purchased

or requests for proposals shall be issued as provided under

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

supplies, services or construction to be purchased. Invitations

for bids or requests for proposals shall describe the method for

selection of the successful bidders or offerors.

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

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

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

bidding)].

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

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

be received and evaluated in the same manner as provided in

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

proposals)].

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

proposals shall describe the method for selection of the

successful bidders or offerors. There are three options:] 

Contracts shall be awarded to bidders consistent with subsection

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

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

official holding office within the Commonwealth agency in which

the contracting agency is located consistent with subsection

(e.1).

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

contract awards consistent with the following:

(1)  Awards shall be made to the lowest responsible

bidder or offeror for each designated manufacturer.

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

responsible bidders or offerors for each designated

manufacturer.

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

offerors.

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

contractor from the bidders or offerors awarded contracts under

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

based upon best value or return on investment.

§ 518.  Competitive selection procedures for certain services.

* * *

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

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

purchasing agency through a request for proposals. The request

for proposals shall describe the services required, list the

type of information required of each offeror and state the

relative importance of the particular information. Additionally,

each request for a proposal shall require offerors to state

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

the offeror with an ownership interest in the offeror has

contributed to a campaign of a State official holding office

within the Commonwealth agency in which the contracting agency

is located.

* * *

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

determined in writing by the contracting officer to be best

qualified based on the evaluation factors set forth in the

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

entity with ownership interests in the entity have not

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

official holding office within the Commonwealth agency in which

the contracting agency is located. Fair and reasonable

compensation shall be determined through negotiation, except

that no contract shall provide for compensation which exceeds

the rate charged other governmental entities. If compensation

cannot be agreed upon with the best qualified responsible

offeror, then negotiations will be formally terminated with the

offeror. If proposals were submitted by one or more other

responsible offerors, negotiations may be conducted with the

other responsible offeror or responsible offerors in the order

of their respective qualification ranking. The contract may be

awarded to the responsible offeror then ranked as best qualified

if the amount of compensation is determined to be fair and

reasonable.

§ 519.  Selection procedure for insurance and notary bonds.

* * *

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

insurance or notary bond coverage shall be given by the

purchasing agency through a request for proposals. The request

for proposals shall describe the type of insurance or bond

coverage required and list the type of information and data

required of each offeror and shall state whether within the last

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

ownership interest in the offeror has contributed to a campaign

of a State official holding office within the Commonwealth

agency in which the contracting agency is located.

* * *

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

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

interest in the entity have not contributed within the last 365

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

Commonwealth agency in which the contracting agency is located

and whose proposal is determined in writing by the department to

be the most advantageous to the Commonwealth based on criteria

determined by the department, including the coverage offered and

the cost of the premium.

Section 5.  The Board of Commissioners of Procurement, Public

Grounds and Buildings shall be a continuation of Board of

Commissioners of Public Grounds and Buildings. All activities

initiated by the Board of Commissioners of Public Grounds and

Buildings shall continue and remain in full force and effect and

may be completed by the Board of Commissioners of Procurement,

Public Grounds and Buildings. Contracts, obligations and

collective bargaining agreements entered into by the Board of

Commissioners of Public Grounds and Buildings are not affected

nor impaired by the continuation of the Board of Commissioners

of Public Grounds and Buildings.

Section 6.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under

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

Pa.C.S. § 326.

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

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

repealed.

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