62 Pa.C.S. Ch. 5

in effect

62 Pa.C.S. § 5 Terms of office of present members.

The terms of office of the present members of the selection committee appointed pursuant to section 2401.1(19) of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, repealed by this act, shall not be affected by 62 Pa.C.S. § 905(d).

62 Pa.C.S. § 501 Definitions.

The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Established catalog price." The price included in a catalog, price list, schedule or other form that: (1) is regularly maintained by a manufacturer or contractor; (2) is either published or otherwise available for inspection by customers; and (3) states prices at which sales are currently or were last made to a significant number of any category of buyers or buyers constituting the general buying public for the supplies or services involved. "Invitation for bids." (Deleted by amendment). "Life cycle cost." The total cost of the supply in terms of purchase cost, installation cost, maintenance cost, energy cost, supply cost and other costs. "Procurement description." The words used in a solicitation to describe the supplies, services or construction to be procured. The term includes specifications attached to or made a part of the solicitation. "Request for proposals." (Deleted by amendment). "Responsible bidder or offeror." (Deleted by amendment). "Responsive bidder or offeror." (Deleted by amendment). "Sealed bid or proposal." (Deleted by amendment). (Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

62 Pa.C.S. § 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). 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). (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) Cross References. Section 511 is referred to in sections 322, 512 of this title.

62 Pa.C.S. § 512 Competitive sealed bidding.

(a) Conditions for use.--Contracts shall be awarded by competitive sealed bidding except as otherwise provided in section 511 (relating to methods of source selection). (b) Invitation for bids.--An invitation for bids shall be issued and shall include a procurement description and all contractual terms, whenever practical, and conditions applicable to the procurement. (c) Public notice.--Adequate public notice of the invitation for bids shall be given a reasonable time prior to the date set for the opening of bids. The purchasing agency shall establish written policies and may promulgate regulations regarding methods of public notice. The method of public notice may include any of the following: (1) Electronic publication which is accessible to the general public. (2) Advertisement as provided for in 45 Pa.C.S. § 306 (relating to use of trade publications). (3) Issuance of invitations for bids to bidders on the solicitation mailing list of the purchasing agency. (4) Publication in a newspaper of general circulation. (5) Where prequalification is a requirement of submitting a bid, notification to all contractors who have been prequalified by the purchasing agency. Copies of invitations to bid shall be made available to any interested person upon request to the purchasing agency. Purchasing agencies may establish procedures for the distribution of invitations to bid including the imposition of a fee to reimburse the agency for the costs of photocopying and mailing. (d) Bid opening.--Bids shall be opened publicly in the presence of one or more witnesses at the time and place designated in the invitation for bids. The amount of each bid and any other relevant information as may be specified by regulation, together with the name of each bidder, shall be recorded. The record shall be open to public inspection. (e) Bid acceptance and evaluation.--Bids shall be unconditionally accepted without alteration or modification except as authorized in this part or in the invitation for bids. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable, such as discounts, transportation costs and total or life cycle costs. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluation that are not set forth in the invitation for bids. (f) Modification or withdrawal of bids.-- (1) Bids may be modified or withdrawn by written notice or in person by a bidder or its authorized representative if its identity is made known and a receipt for the bid is signed prior to the exact hour and date set for the opening of bids. Except as otherwise provided in this part, withdrawals and modifications of bids received after the exact hour and date specified for the opening of bids shall not be considered. (2) Withdrawal of erroneous bids after bid opening but before award based on bid mistakes shall be permitted by the written determination of the contracting officer when the bidder requests relief and presents credible evidence that the reason for the lower bid price was a clerical mistake as opposed to a judgment mistake and was actually due to an unintentional arithmetical error or an unintentional omission of a substantial quantity of work, labor, material or services made directly in the compilation of the bid. The request for relief and the supporting evidence must be received by the contracting officer within a reasonable time period after the bid opening. The time period shall be specified by the department. (3) The contracting officer shall not permit a withdrawal of a bid if the withdrawal of the bid would result in the awarding of the contract on another bid of the same bidder, its partner or a corporation or business venture owned by or in which the bidder has a substantial interest. No bidder who is permitted to withdraw a bid shall supply any material or labor to or perform any subcontract or other work agreement for any person to whom a contract or subcontract is awarded in the performance of the contract for which the withdrawn bid was submitted without the written approval of the contracting officer. (g) Award.--The contract shall be awarded within 60 days of the bid opening by written notice to the lowest responsible bidder or all bids shall be rejected except as otherwise provided in this section. Extensions of the date for the award may be made by mutual written consent of the contracting officer and the lowest responsible bidder. Within 30 days of the bid opening the contracting officer shall, if bid security was required by the invitation for bids, return the bid security to all but the lowest and next-to-lowest responsible bidders then under consideration for contract award. (h) Multistep sealed bidding.--When it is considered impractical to prepare initially a procurement description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced bids, to be followed by an invitation for bids requesting priced bids from responsible bidders of the first solicitation. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 amended subsecs. (g) and (h). Cross References. Section 512 is referred to in sections 106, 106.1, 511, 512.1, 513, 517, 533, 561, 902 of this title.

62 Pa.C.S. § 512.1 Competitive electronic auction bidding.

(a) Conditions for use.--If the purchasing agency determines in writing that use of competitive electronic auction bidding is in the best interests of the Commonwealth, a contract for supplies or services, but not construction, may be entered into by competitive electronic auction bidding. (b) Invitation for bids.--An invitation for bids shall be issued and shall include a procurement description and all contractual terms, whenever practical, and conditions applicable to the procurement, including a notice that bids will be received in an electronic auction manner. (c) Public notice.--Public notice of the invitation for bids shall be given in the same manner as provided in section 512(c) (relating to competitive sealed bidding). (d) Auctions.--Bids shall be accepted electronically at the time and in the manner designated in the invitation for bids. During the auction a bidder's price shall be disclosed to other bidders. Bidders shall have the opportunity to reduce their bid prices during the auction. At the conclusion of the auction, the record of the bid prices received and the name of each bidder shall be open to public inspection. (e) Withdrawal of bids.--After the auction period has terminated, withdrawal of bids shall be permitted as provided in section 512(f)(2). (f) Award.--The contract shall be awarded within 60 days of the auction by written notice to the lowest responsible bidder, or all bids shall be rejected except as otherwise provided in this section. Extensions of the date for the award may be made by mutual written consent of the contracting officer and the lowest responsible bidder. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 added section 512.1. Cross References. Section 512.1 is referred to in section 511 of this title.

62 Pa.C.S. § 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. (c) Public notice.--Public notice of the request for proposals shall be given in the same manner as provided in section 512(c) (relating to competitive sealed bidding). (d) Receipt of proposals.--Offerors shall submit their proposals to ensure that their proposals are received prior to the time and date established for receipt of the proposals. Proposals shall be submitted in the format required by the request for proposals. Proposals shall be opened so as to avoid disclosure of their contents to competing offerors. (e) Evaluation.--The relative importance of the evaluation factors shall be fixed prior to opening the proposals. A Commonwealth agency shall invite its comptroller to participate in the evaluation as a nonvoting member of any evaluation committee. No individual who has been employed by an offeror within the preceding two years may participate in the evaluation of proposals. (f) Discussion with responsible offerors and revision of proposals.--As provided in the request for proposals, discussions and negotiations may be conducted with responsible offerors for the purpose of clarification and of obtaining best and final offers. Responsible offers shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals. In conducting discussions, there shall be no disclosure of any information derived from proposals submitted by competing offerors. (g) Selection for negotiation.--The responsible offeror whose proposal is determined in writing to be the most advantageous to the purchasing agency, taking into consideration price and all evaluation factors, shall be selected for contract negotiation. (h) Contract negotiation.--(Deleted by amendment). (Dec. 3, 2002, P.L.1147, No.142, eff. imd.; Oct. 21, 2014, P.L.2517, No.149, eff. 60 days) 2014 Amendment. Act 149 amended subsec. (e). 2002 Amendment. Act 142 amended subsecs. (f) and (g) and deleted subsec. (h). Cross References. Section 513 is referred to in sections 106.1, 511, 517, 534, 561, 3741 of this title; section 9604 of Title 51 (Military Affairs).

62 Pa.C.S. § 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 head of the purchasing agency may authorize procurement of the supply or service on a no-bid basis for procurements which do not exceed the amount established by the head of the purchasing agency for small, no-bid procurements. The head of the purchasing agency may authorize procurement on a no-bid basis for construction projects that do 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. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) Cross References. Section 514 is referred to in sections 107, 108, 322, 327, 511, 515, 518, 564, 905 of this title; section 13A06 of Title 65 (Public Officers).

62 Pa.C.S. § 515 Sole source procurement.

(a) General rule.--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. (b) Written determination.--The written determination authorizing sole source procurement shall be included in the contract file. For procurements over $250,000 made under subsection (a)(10), the determination shall be signed by the head of the purchasing agency. (c) Approval required by board of commissioners of public grounds and buildings.--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. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.; Nov. 4, 2016, P.L.1216, No.163, eff. 60 days) Cross References. Section 515 is referred to in sections 106.1, 326, 511, 518, 519, 534, 561, 564, 905 of this title.

62 Pa.C.S. § 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 quotes 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 procurement file. No written contract may be required. The supplier of the supply, service or construction may be paid based on the emergency approval and approved invoice. (Nov. 4, 2016, P.L.1216, No.163, eff. 60 days) Cross References. Section 516 is referred to in sections 106.1, 511, 515, 518, 519, 541, 561, 564, 905, 3604 of this title; section 13A06 of Title 65 (Public Officers).

62 Pa.C.S. § 517 Multiple awards.

(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: (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. (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 in the same manner as provided in section 513(d) (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: (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. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 amended subsecs. (c) and (e) and added subsec. (f). Cross References. Section 517 is referred to in sections 511, 1902 of this title.

62 Pa.C.S. § 518 Competitive selection procedures for certain services.

(a) Conditions for use.--The services of accountants, clergy, physicians, lawyers, dentists and other professional services which are not performed by other Commonwealth employees shall be procured in accordance with this section except as authorized under section 514 (relating to small procurements), 515 (relating to sole source procurement) or 516 (relating to emergency procurement). (b) Statement of qualifications.--Persons engaged in providing the types of services specified in subsection (a) may submit statements of qualifications and expressions of interest in providing these services. The contracting officer may specify a uniform format for statements of qualifications. Persons may amend these statements at any time by filing a new statement. (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. (d) Discussions.--The contracting officer may conduct discussions with any responsible offeror to determine the offeror's qualifications for further consideration. Discussions shall not disclose any information derived from proposals submitted by other offerors. (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. Fair and reasonable compensation shall be determined through negotiation. 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. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 amended subsecs. (a), (d) and (e). Cross References. Section 518 is referred to in sections 511, 561 of this title; section 1555 of Title 64 (Public Authorities and Quasi-Public Corporations).

62 Pa.C.S. § 519 Selection procedure for insurance and notary bonds.

(a) Conditions for use.--Insurance and notary bonds shall be procured by the department in accordance with this section except as authorized under section 515 (relating to sole source procurement) or 516 (relating to emergency procurement). (b) Statement of qualifications.--Insurance and bond carriers may submit statements of qualifications and expressions of interest in providing insurance or notary bonds. The department may specify a uniform format for statements of qualifications. (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. (d) Receipt of proposals.--Offerors shall submit their proposals prior to the time and date specified. (e) Discussions with responsible offerors and revision to proposals.--Discussions and negotiations may be conducted with responsible offerors. Responsible offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion, negotiation and revision of proposals. Revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. (f) Award.--Award shall be made to the responsible offeror 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. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 amended subsecs. (e) and (f). Cross References. Section 519 is referred to in sections 511, 561 of this title.

62 Pa.C.S. § 520 Supplies manufactured and services performed by persons with disabilities.

(a) General rule.-- (1) Contracts for supplies manufactured by and services performed by persons with disabilities shall be entered into in accordance with this section without the requirement for competitive bidding. Persons with disabilities must make an appreciable contribution in manufacturing an item or performing a service. (2) When the Commonwealth enters into a contract under this section with a cost exceeding $300,000 per year, the department, in cooperation with the purchasing agency, shall conduct an annual review to confirm compliance with the contract and the requirements of this section. The annual review shall include, but not be limited to, an assessment of all requirements related to appreciable contribution. If the department, in cooperation with the purchasing agency, determines that persons with disabilities are not making an appreciable contribution in the manufacturing of an item or the performance of a service or an agency for persons with disabilities is not in compliance with other requirements of this section, the department shall give an agency for persons with disabilities 45 days in which to remedy the deficiency. If the agency for persons with disabilities fails to remedy the deficiency within 45 days, the agency for persons with disabilities shall be deemed to be in noncompliance with the contract, and the purchasing agency may terminate the contract and seek to procure the item or service through a competitive bidding process. Nothing in this section shall preclude a purchasing agency from procuring an item or service through an emergency contract when an agency for persons with disabilities is deemed to be in noncompliance. (b) Fair market price.--Upon request to the department and notice to the purchasing agency, the department shall determine the fair market price of any supply manufactured by or service performed by persons with disabilities and offered for sale to any Commonwealth agency by an agency for persons with disabilities. The department shall revise the prices in accordance with changing market conditions. (c) Distribution.--At the request of the department, the Department of Public Welfare or a nonprofit agency with the approval of the Department of Public Welfare shall facilitate the distribution of orders for supplies manufactured by or services performed by persons with disabilities among agencies for persons with disabilities. (d) Procurement of supplies manufactured and services performed by persons with disabilities.--Except as provided in subsection (e), all supplies manufactured by and services furnished by persons with disabilities shall be procured in accordance with applicable specifications of the department or other Commonwealth agencies from any agency for persons with disabilities whenever the supplies and services are available at a price determined by the department to be the fair market price. The head of a purchasing agency shall annually discuss its needs for supplies or services with any agency for persons with disabilities. (e) Procurement from Commonwealth agency.--If any supply manufactured by or any service performed by persons with disabilities and offered for sale is available for procurement from any Commonwealth agency and this part or any other statute requires the procurement of the supply or service from the Commonwealth agency, then the procurement of the supply or service shall be made in accordance with the other provisions. (f) Exception.--Notwithstanding subsection (h), when the Commonwealth enters into a contract under this section for the operation of the Commonwealth's driver's license photo centers, at least 70% of the amount paid by the Commonwealth shall be used to cover payment of wages and salaries to persons with disabilities and to cover actual manufacturing costs, real estate lease costs, property insurance and other costs which are specifically required by contract. (g) Application.-- (1) This section shall not supersede any contract currently in force between a Commonwealth agency and another party. (2) Nothing in this section shall be construed as conferring upon any party any right or interest in any contract entered into with the Commonwealth. (h) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Agency for persons with disabilities." Any charitable, nonprofit agency incorporated under the laws of this Commonwealth and approved by the department through which persons with disabilities manufacture supplies or perform services in this Commonwealth. "Appreciable contribution." (1) In addition to paragraph (2), the department shall determine whether the contribution by individuals with disabilities is appreciable. Persons with disabilities must make an appreciable contribution in manufacturing a supply or performing a service. (2) At least 75% of the personnel either engaged in the direct labor of manufacturing of a supply or engaged in the direct labor in performing a service in this Commonwealth must be visually impaired, mentally retarded or physically disabled. In addition, at least 75% of the amount paid by the Commonwealth agency for the supply or the service shall be remitted to the agency for persons with disabilities to cover payment of wages and salaries to persons with disabilities and to cover other actual manufacturing costs incurred by the agency for persons with disabilities in manufacturing of a supply. "Manufactured." The transformation of raw materials or the assembly of essential component parts or a combination of both in the production of a supply which is different in form, composition or character from the raw materials or the essential component parts. This definition applies only to the assembly of a supply. "Mentally retarded." Subaverage general intellectual functioning which originates during the developmental period and is associated with the impairment of maturation, learning or social adjustment. "Performed." Labor provided to do the work to fulfill the requirements of the contract. "Persons with a disability." A person who is visually impaired, mentally retarded or physically disabled. "Physically disabled." A limitation of most activities and functioning by virtue of a severe impairment of the various bodily systems which cannot be eliminated, modified or substantially reduced by the usual rehabilitation services and which precludes competitive employment. "Services." While "services" is defined in section 103 (relating to definitions), for the purposes of this section, the term specifically includes such packaging or repackaging which, as determined by the department, provides a substantial and real benefit to the Commonwealth agency which needs the supplies to be packaged or repackaged. When packaging or repackaging services are to be provided to a Commonwealth agency by an agency for persons with disabilities, the Commonwealth agency shall make the arrangements for the procurement of the supplies to be packaged or repackaged. Packaging or repackaging shall not be considered "services" if the manufacturer usually packages or repackages the supplies in the quantity required by the agency as a part of its manufacturing and distribution process. This definition applies only to the packaging or repackaging of a supply. "Supply manufactured by or service performed by person with disabilities." (Deleted by amendment). "Visually impaired." A condition in which central visual acuity does not exceed 20/200 in the better eye with correcting lenses or in which the widest diameter of the visual field subtends an angle no greater than 20 degrees. (Dec. 9, 2002, P.L.1340, No.159, eff. 30 days) References in Text. The Department of Public Welfare, referred to in this section, was redesignated as the Department of Human Services by Act 132 of 2014. Cross References. Section 520 is referred to in section 511 of this title.

62 Pa.C.S. § 521 Cancellation of invitations for bids or requests for proposals.

An invitation for bids, a request for proposals or other solicitation may be canceled, or any or all bids or proposals may be rejected, at any time prior to the time a contract is executed by all parties when it is in the best interests of the Commonwealth. Bids may be rejected in part when specified in the solicitation. The reasons for the cancellation or rejection shall be made part of the contract file. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) Cross References. Section 521 is referred to in section 1711.1 of this title.

62 Pa.C.S. § 531 Debarment or suspension.

(a) Authority.--After reasonable notice to the person involved and reasonable opportunity for that person to be heard, the head of a purchasing agency, after consultation with the head of the using agency, shall have authority to debar a person from consideration for the award of contracts. The decision to debar shall be based upon substantial evidence that a cause for debarment or suspension under subsection (b) has occurred. In making the decision of whether to debar a person, the head of the purchasing agency shall take into consideration the seriousness of any violation and any mitigating factors. A debarment may be for a period of not more than three years. The head of the purchasing agency may suspend a person from consideration for an award of contracts for a period of up to three months if there is probable cause for debarment. (b) Causes for debarment or suspension.--The causes for debarment or suspension include: (1) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property. (2) Commission of fraud or a criminal offense or other improper conduct or knowledge of, approval of or acquiescence in such activities by a person associated with: (i) obtaining; (ii) attempting to obtain; or (iii) performing a public contract or subcontract. The person's acceptance of the benefits derived from the conduct shall be deemed evidence of such knowledge, approval or acquiescence. (3) Violation of Federal or State antitrust statutes. (4) Violation of any Federal or State law regulating campaign contributions. (5) Violations of any Federal or State environmental law. (6) Violation of any Federal or State law regulating hours of labor, minimum wage standards or prevailing wage standards; discrimination in wages; or child labor violations. (7) Violation of the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act. (7.1) Violation of 18 Pa.C.S. § 7314 (relating to fraudulent traffic in Supplemental Nutrition Assistance Program (SNAP) benefits). (8) Violation of any Federal or State law prohibiting discrimination in employment. (9) Debarment by any agency or department of the Federal Government or by any other state. (10) Three or more occurrences where a person has been declared ineligible for a contract. (11) Unsatisfactory performance, including, but not limited to, any of the following: (i) Failure to comply with terms of a Commonwealth agency contract or subcontract, including, but not limited to: willful failure to perform in accordance with the terms of one or more contracts, a history of failure to perform or unsatisfactory performance of one or more contracts. (ii) Offering unbalanced bids. (iii) Failure to complete the work in the time frame specified in the contract. (iv) Being declared in default on prior work or project. (v) Failure to submit documents, information or forms as required by contract. (vi) Making false statements or failing to provide information or otherwise to cooperate with the contracting agency, the Office of State Inspector General or other Commonwealth authorities. (vii) Discrimination in violation of laws or regulations in the conduct of business as a contractor. (12) Any other act or omission indicating a lack of skill, ability, capacity, quality control, business integrity or business honesty that seriously and directly affects the present responsibility of a person as determined by the purchasing agency. (c) Decision.--After the person has been given notice of the potential debarment and the opportunity to be heard, the head of a purchasing agency shall issue a written decision. The decision shall: (1) State the reasons for the action taken. (2) Inform the person involved of the right to judicial review as provided in subsection (e). (d) Notice of decision.--A copy of the decision under subsection (c) shall be sent, with delivery confirmed, to the person, any other party intervening or any interested party that has provided written notice to the purchasing agency of that party's interest in the decision under subsection (c). (e) Finality of decision and appeal.--A decision under subsection (c) shall be final and conclusive unless the person appeals to the Commonwealth Court under 42 Pa.C.S. § 763(a)(1) (relating to direct appeals from government agencies) within 30 days after receipt of the decision. (f) Effect of suspension or debarment.--Suspension or debarment of a person shall automatically prohibit all Commonwealth agencies from awarding any contract to the person or renewing or extending any contract with the person unless the contracting officer determines that there are compelling reasons for the award, renewal or extension and the head of the purchasing agency approves the determination. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.; Oct. 24, 2018, P.L.1159, No.160, eff. 60 days) 2018 Amendment. Act 160 added subsec. (b)(7.1). Cross References. Section 531 is referred to in sections 303, 9119 of Title 74 (Transportation).

62 Pa.C.S. § 532 Prequalification of bidders and offerors.

Prospective bidders and offerors may be prequalified for particular types of supplies, services and construction.

62 Pa.C.S. § 533 Security and performance bonds.

(a) Contract for supplies or services.-- (1) In the case of competitive sealed bidding or competitive sealed proposals for a contract for supplies or services, bidders or offerors may be required by the contracting officer to provide bid or proposal security. Bid or proposal security shall be in the form of a certified or bank check or a bond provided by a surety company authorized to do business in this Commonwealth or another form of security as specified in the invitation for bids or request for proposals. Bid or proposal security shall be at least in the minimum amount or percentage of the amount of the bid as shall be specified in the advertisement, invitation for bids or request for proposals. (2) When the invitation for bids or the request for proposals requires security, noncompliance by the bidder or offeror with the instructions in the invitation for bids or request for proposals requires that the bid or proposal be rejected unless it is determined that the bid or proposal fails to comply with the security requirements in a nonsubstantial manner. (3) After the bids or proposals are opened, they shall be irrevocable for the period specified in the invitation for bids or the request for proposals except as provided in section 512(f) (relating to competitive sealed bidding). If a bidder or offeror is permitted to withdraw its bid or proposal before award, no action shall be had against the bidder or offeror or against the bid or proposal security. (4) A contractor may be required by the contracting officer to provide a performance bond executed by a surety company authorized to do business in this Commonwealth. In lieu of a bond, a contractor may provide other security as permitted by the head of the purchasing agency. The performance bond or other required security shall be in an amount determined by the head of the purchasing agency, and it shall be conditioned upon the faithful performance of the contract. (b) Contract for construction.--Bid security and performance bonds as required for contracts for construction are provided for in sections 902 (relating to bid or proposal security) and 903 (relating to contract performance security and payment bonds). (Dec. 3, 2002, P.L.1147, No.142, eff. imd.) 2002 Amendment. Act 142 amended subsec. (a)(3). Cross References. Section 533 is referred to in section 3753 of this title.

62 Pa.C.S. § 534 Cost or pricing data.

(a) Submission by contractor.--A contractor shall, except as provided in subsection (c), submit cost or pricing data and shall certify that, to the best of its knowledge and belief, the cost or pricing data submitted was accurate, complete and current as of a mutually determined specified date prior to the date of: (1) the award of any contract under section 513 (relating to competitive sealed proposals) or 515 (relating to sole source procurement) where, under either section, the total contract price is expected to exceed an amount established by the head of the purchasing agency; or (2) the pricing of any change order or contract modification which is expected to exceed an amount established by the head of the purchasing agency. (b) Price adjustment.--Any contract, change order or contract modification under which a certificate is required shall contain a provision that the price to the purchasing agency, including profit or fee, shall be adjusted to exclude any significant sums by which the purchasing agency finds that the price was increased because the cost or pricing data furnished by the contractor was inaccurate, incomplete or not current as of the date agreed upon between the parties. (c) Cost or pricing data not required.--The requirements of this section need not be applied to contracts under any of the following circumstances: (1) When responsive proposals are received from two or more offerors. (2) When the contract price is based on established catalog prices or market prices. (3) When contract prices are set by statute or regulation. (4) When it is determined in writing by the contracting officer that the requirements of this section may be waived and the reasons for the waivers are stated in writing. Cross References. Section 534 is referred to in sections 552, 561 of this title.

62 Pa.C.S. § 535 Printing.

No contract for printing shall be entered into with any person until the purchasing agency is satisfied that the person is the owner or lessee of machinery and equipment necessary to properly and promptly perform any orders issued to the person under the proposed printing contract. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

62 Pa.C.S. § 541 Approval of accounting system.

No contract type shall be used unless it has been determined in writing by the head of the purchasing agency that: (1) The proposed contractor's accounting system will permit timely development of all necessary cost data in the form required by the specific contract type contemplated. (2) The proposed contractor's accounting system is adequate to allocate costs in accordance with generally accepted accounting principles. Notwithstanding the preceding, a contract may be used without a prior written determination where the contract is a firm, fixed-price contract or a contract awarded under section 516 (relating to emergency procurement). Cross References. Section 541 is referred to in sections 561, 9119 of this title.

62 Pa.C.S. § 542 Multiterm contracts.

(a) Specified period.--A contract for supplies, construction or services may be entered into for a period of time deemed to be in the best interests of the Commonwealth. The term of the contract and conditions of renewal or extension, if any, shall be included in the solicitation, and funds shall be available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds. (b) Cancellation for unavailability of funds in succeeding fiscal periods.--When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal period, the contract shall be canceled, and the contractor shall be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the supplies, services or construction delivered under the contract. Such reimbursement shall not include loss of anticipated profit, loss of use of money or administrative or overhead costs. The cost of cancellation may be paid from any appropriations available for that purpose. The contractor shall not be entitled to any reimbursement where the Commonwealth elects not to exercise a renewal or extension option provided for in the contract.

62 Pa.C.S. § 543 Effective contracts.

(a) General rule.--Irrespective of the type of contract, no contract shall be effective until executed by all necessary Commonwealth officials as provided by law. (b) Certain contracts.--Those Statewide requirements contracts where the total dollar purchasing amount, based upon estimated quantities, is in excess of $1,000,000 shall not be effective unless first approved by the State Treasurer. The $1,000,000 amount shall be adjusted each year 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 each year.

62 Pa.C.S. § 551 Right to inspect plant.

The purchasing agency may, at reasonable times, inspect the part of the plant or place of business of a contractor or any subcontractor which is related to the performance of any contract awarded or to be awarded by the purchasing agency. Cross References. Section 551 is referred to in sections 561, 9119 of this title.

62 Pa.C.S. § 552 Right to audit records.

(a) Audit of cost or pricing data.--The purchasing agency or its designee may, at reasonable times and places, audit the books and records of any person who has submitted cost or pricing data under section 534 (relating to cost or pricing data) to the extent that the books and records relate to the cost or pricing data. A person who receives a contract, change order or contract modification for which cost or pricing data is required shall maintain the books and records that relate to the cost or pricing data for three years from the date of final payment under the contract unless a shorter period is otherwise authorized by the purchasing agency in writing. (b) Contract audit.--The purchasing agency may audit the books and records of a contractor or any subcontractor under any negotiated contract or subcontract other than a firm, fixed-price contract to the extent that the books and records relate to the performance of the contract or subcontract. The books and records shall be maintained by the contractor for a period of three years from the date of final payment under the prime contract and by the subcontractor for a period of three years from the date of final payment under the prime contract unless a shorter period is otherwise authorized by the purchasing agency in writing. Cross References. Section 552 is referred to in sections 561, 9119 of this title.

62 Pa.C.S. § 561 Finality of determinations.

The determinations required by the following sections are final and conclusive unless they are clearly erroneous, arbitrary, capricious or contrary to law: Section 512(f) (relating to competitive sealed bidding). Section 513(a) and (g) (relating to competitive sealed proposals). Section 515 (relating to sole source procurement). Section 516 (relating to emergency procurement). Section 518(e) (relating to competitive selection procedures for certain services). Section 519(f) (relating to selection procedure for insurance and notary bonds). Section 534(c) (relating to cost or pricing data). Section 541 (relating to approval of accounting system). Cross References. Section 561 is referred to in section 563 of this title.

62 Pa.C.S. § 562 Anticompetitive practices.

Collusion among bidders or offerors is unlawful. Every contract, combination or conspiracy which unreasonably restrains trade among bidders or offerors is unlawful. Contracts so arrived at may be declared void at the option of the Commonwealth. In addition to remedies available to the Commonwealth in the Federal courts, there shall be the same remedies in the courts of this Commonwealth. When any person has reason to believe collusion or other anticompetitive practices have occurred among any bidders or offerors, a notice of the relevant facts shall be transmitted to the Attorney General, who shall investigate the reports. (Dec. 3, 2002, P.L.1147, No.142, eff. imd.)

62 Pa.C.S. § 563 Retention of procurement records.

All procurement records, including any written determinations issued in accordance with section 561 (relating to finality of determinations), shall be retained for a minimum of three years from the date of final payment under the contract and disposed of in accordance with records retention guidelines and schedules as provided by law. In accordance with applicable law, all retained documents shall be made available to the State Treasurer, Auditor General, General Counsel, Inspector General and Attorney General upon request. Cross References. Section 563 is referred to in sections 106.1, 561, 9119 of this title.

62 Pa.C.S. § 564 Record of certain actions.

The purchasing agency shall maintain a record listing all contracts made under sections 514 (relating to small procurements), 515 (relating to sole source procurement) and 516 (relating to emergency procurement) for a minimum of three years from the date of final payment under the contract. The record shall contain: (1) Each contractor's name. (2) The amount and type of each contract. (3) A listing of the supplies, services or construction procured under each contract.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=62Fetched: 10/16/2026