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PRINTER'S NO. 1673
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1318
Session of
2026
INTRODUCED BY LAUGHLIN AND STEFANO, MAY 1, 2026
REFERRED TO LOCAL GOVERNMENT, MAY 1, 2026
AN ACT
Amending Titles 8 (Boroughs and Incorporated Towns), 11 (Cities)
and 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in contracts, further providing for
regulation of contracts; in contracts, further providing for
contracts or purchases in excess of base amount of $18,500,
for contracts or purchases not in excess of base amount of
$18,500, for contracts or purchases not requiring advertising
or bidding, for evasion of advertising requirements and for
separate bids for plumbing, heating, ventilating and
electrical work, elevators and escalators; in general
provisions relating to area government and intergovernmental
cooperation, further providing for bids for certain joint
purchases, for written or telephonic price quotations
required and for division of transactions provided; in
parking authorities, further providing for competition in
award of contracts; in municipal authorities, further
providing for competition in award of contracts; and making
an editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1402(a) and (a.1) of Title 8 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 1402. Regulation of contracts.
(a) Requirements.--All contracts or purchases in excess of
the base amount of [$18,500] $100,000, subject to adjustment
under subsection (a.2), except those mentioned in this section
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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 not be
made except with and from the lowest qualified and responsible
bidder after due notice in one newspaper of general circulation,
at least two times at intervals of not less than three days
where daily newspapers of general circulation are available for
publication and, in case of weekly newspapers, notice once a
week for two successive weeks. The first advertisement shall be
published not more than 45 days and the second advertisement not
less than ten days prior to the date fixed for the opening of
bids. Advertisements for contracts or purchases must also be
posted in a conspicuous place within the borough. Advertisements
for contracts and purchases must contain the date, time and
location for opening of bids and must state the amount of the
performance bond determined under subsection (c). The amount of
the contract must in all cases, whether of straight sale price,
conditional sale, lease, lease purchase or otherwise, be the
entire amount which the borough pays to the successful bidder or
the bidder's assigns in order to obtain the services or
property, or both, and may not be construed to mean only the
amount that is paid to acquire title or to receive another
particular benefit of the whole bargain.
(a.1) Price quotations.--Written or telephonic price
quotations from at least three qualified and responsible
contractors must be requested for contracts in excess of the
base amount of [$10,000] $50,000, subject to adjustment under
subsection (a.2), and less than the amount requiring
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advertisement and competitive bidding, or, in lieu of price
quotations, a memorandum must 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 must be made and must 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
must be retained for a period of three years. Written price
quotations as used throughout this section include electronic
mail.
* * *
Section 2. Sections 11901.1, 11901.2, 11901.4(a) and (b)
introductory paragraph, 11902(1), 11903.1 introductory paragraph
and 11909(1) of Title 11 are amended to read:
§ 11901.1. Contracts or purchases in excess of certain base
amount [of $18,500].
(a) General rule.--Except as provided in section 11901.4(b)
(relating to contracts or purchases not requiring advertising or
bidding), all contracts or purchases in excess of the base
amount of [$18,500] $100,000, subject to adjustment under
section 11903.1 (relating to adjustments to base amount based on
Consumer Price Index for All Urban Consumers), shall be subject
to advertising and competitive bidding as provided in this
chapter.
(b) Contract.--All services and personal property required
by any city municipal department, where the amount exceeds the
base amount of [$18,500] $100,000, subject to adjustment under
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section 11903.1, shall be furnished and performed under written
contract. The contract shall be awarded and given to the lowest
responsible bidder after advertising two times, each publication
on a different day, in not more than two newspapers of general
circulation, in accordance with the provisions of section 10109
(relating to publication of notices). The bids shall not be
opened until at least 10 days have elapsed after the first
advertisement is published. A copy of the advertisement for
contracts or purchases shall be posted in the city office
designated by council.
§ 11901.2. Contracts or purchases not in excess of certain base
amount [of $18,500].
With regard to all contracts or purchases not in excess of
the base amount of [$18,500] $100,000, subject to adjustment
under section 11903.1 (relating to adjustments to base amount
based on Consumer Price Index for All Urban Consumers), the
following shall apply:
(1) The purchases or contracts shall be evidenced by
note or memorandum in writing, signed by the officer or
employee making the purchase or contract.
(2) Council, or the officer designated by council, shall
approve all purchases or contracts, except council need not
approve those purchases or contracts within the category of
small or routine purchases or incidental expenses, as defined
by ordinance.
§ 11901.4. Contracts or purchases not requiring advertising or
bidding.
(a) Not in excess of base amount.--City contracts or
purchases, if not in excess of the base amount of [$18,500]
$100,000, subject to adjustment under section 11903.1 (relating
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to adjustments to base amount based on Consumer Price Index for
All Urban Consumers), shall not require advertising or bidding.
(b) In excess of base amount.--The following city contracts
or purchases involving an expenditure over the base amount of
[$18,500] $100,000, subject to adjustment under section 11903.1,
do not require advertising or bidding:
* * *
§ 11902. Evasion of advertising requirements.
The following shall apply:
(1) No elected or appointed official or officials of any
city shall evade the provisions of this chapter requiring
advertising for bids by purchasing or contracting for
services and personal property piecemeal for the purpose of
obtaining prices under the base amount of [$18,500] $100,000,
subject to adjustment under section 11903.1 (relating to
adjustments to base amount based on Consumer Price Index for
All Urban Consumers), upon transactions which should, in the
exercise of reasonable discretion and prudence, be conducted
as one transaction amounting to more than the base amount of
[$18,500] $100,000, subject to adjustment under section
11903.1.
* * *
§ 11903.1. Adjustments to base amount based on Consumer Price
Index for All Urban Consumers.
Adjustments to the base amounts specified under sections
11901.1 (relating to contracts or purchases in excess of certain
base amount [of $18,500]), 11902 (relating to evasion of
advertising requirements) and 11909 (relating to separate bids
for plumbing, heating, ventilating and electrical work,
elevators and escalators) shall be made as follows:
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* * *
§ 11909. Separate bids for plumbing, heating, ventilating and
electrical work, elevators and escalators.
The following shall apply:
(1) In the preparation of specifications for the
erection, construction and alteration of any public building,
when the entire cost of the work shall exceed the base amount
of [$18,500] $100,000, subject to adjustment under section
11903.1 (relating to adjustments to base amount based on
Consumer Price Index for All Urban Consumers), the architect,
engineer or other person preparing the specifications shall
prepare only the following separate specifications:
(i) Plumbing.
(ii) Heating.
(iii) Ventilating.
(iv) Electrical work.
(v) Elevators and escalators.
(vi) One complete set of specifications for all the
other work to be done in the erection, construction and
alteration.
* * *
Section 3. Sections 2308(a), 2311(a), 2312, 5511(a)(1), (b)
and (c) and 5614(a)(1), (b) and (c) of Title 53 are amended to
read:
§ 2308. Bids for certain joint purchases.
(a) Notice.--All joint purchases involving an expenditure of
more than a base amount of [$18,500] $100,000, subject to
adjustment under subsection (b), shall be made by contract, in
writing, only after notice for bids once a week for two weeks in
at least one and not more than two newspapers of general
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circulation in the joining local governments. All contracts
shall be let to the lowest responsible bidder. Every contract
for the construction, reconstruction, alteration, repair,
improvement or maintenance of public works shall comply with the
provisions of the act of March 3, 1978 (P.L.6, No.3), known as
the Steel Products Procurement Act.
* * *
§ 2311. Written or telephonic price quotations required.
(a) Amount.--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
[$10,000] $50,000, subject to adjustment under subsection (b),
but are less than the amount requiring advertisement and
competitive bidding, or, in lieu of price quotations, a
memorandum shall be kept on file showing that fewer than three
qualified contractors exist in the market area within which it
is practicable to obtain quotations. A written record of
telephonic price quotations shall be made and shall contain at
least the date of the quotation, the name of the contractor and
the contractor's representative, the construction,
reconstruction, repair, maintenance or work which was the
subject of the quotation and the price, written price
quotations, written records of telephonic price quotations, and
memoranda shall be retained for a period of three years.
* * *
§ 2312. Division of transactions provided.
No local government shall evade the provisions of section
2308 (relating to bids for certain joint purchases) as to
advertising for bids or purchasing materials or contracting for
services piecemeal for the purpose of obtaining prices under a
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base amount of [$18,500] $100,000, subject to adjustment under
section 2308(b), upon transactions which should in the exercise
of reasonable discretion and prudence be conducted as one
transaction amounting to more than a base amount of [$18,500]
$100,000, subject to adjustment under section 2308(b). This
provision is intended to make unlawful the practice of evading
advertising requirements by making a series of purchases or
contracts each for less than the advertising requirement price
or by making several simultaneous purchases or contracts each
below such price when in either case the transaction involved
should have been made as one transaction for one price.
§ 5511. Competition in award of contracts.
(a) Services.--
(1) Except as set forth in paragraph (2), all
construction, reconstruction, repair or work of any nature
made by an authority if the entire cost, value or amount,
including labor and materials, exceeds [$25,000] $100,000
shall be done only under contract to be entered into by the
authority with the lowest responsible bidder upon proper
terms after public notice asking for competitive bids as
provided in this section.
* * *
(b) Supplies and materials.--All supplies and materials
costing at least [$25,000] $100,000 shall be purchased only
after advertisement as provided in this section. The authority
shall accept the lowest bid, kind, quality and material being
equal, but the authority shall have the right to reject any or
all bids or select a single item from any bid. The provisions as
to bidding shall not apply to the purchase of patented and
manufactured products offered for sale in a noncompetitive
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market or solely by a manufacturer's authorized dealer.
(c) Quotations.--Written or telephonic price quotations from
at least three qualified and responsible contractors shall be
requested for a contract in excess of the base amount of
[$10,000] $50,000, subject to adjustment under subsection (c.1),
but is less than the amount requiring advertisement and
competitive bidding. 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 which was the subject of the
quotation; and the price. Written price quotations, written
records of telephonic price quotations and memoranda shall be
retained for a period of three years.
* * *
§ 5614. Competition in award of contracts.
(a) Services.--
(1) Except as set forth in paragraph (2), all
construction, reconstruction, repair or work of any nature
made by an authority if the entire cost, value or amount,
including labor and materials, exceeds a base amount of
[$18,500] $100,000, subject to adjustment under subsection
(c.1), shall be done only under contract to be entered into
by the authority with the lowest responsible bidder upon
proper terms after public notice asking for competitive bids
as provided in this section.
* * *
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(b) Supplies and materials.--All supplies and materials with
a base price costing at least [$18,500] $100,000, subject to
adjustment under subsection (c.1), shall be purchased only after
advertisement as provided in this section. The authority shall
accept the lowest bid, kind, quality and material being equal,
but the authority shall have the right to reject any or all bids
or select a single item from any bid. The provisions as to
bidding shall not apply to the purchase of patented and
manufactured products offered for sale in a noncompetitive
market or solely by a manufacturer's authorized dealer.
(c) Quotations.--Written or telephonic price quotations from
at least three qualified and responsible contractors shall be
requested for a contract in excess of the base amount of
[$10,000] $50,000, subject to adjustment under subsection (c.1),
but is less than the amount requiring advertisement and
competitive bidding. 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 which was the subject of the
quotation; and the price. Written price quotations, written
records of telephonic price quotations and memoranda shall be
retained for a period of three years.
* * *
Section 4. This act shall take effect in 90 days.
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