Senate Committee Acts On Municipal Purchasing Package

Bipartisan Package would provide for purchasing flexibility

Today, the Senate Local Government Committee unanimously moved forward a bipartisan package of bills that would provide local governments -- counties, cities, townships, boroughs, towns, and municipal authorities -- greater flexibility when it comes to purchasing, announced Senator Bob Regola (R-39), Chairman of the committee.

Currently, when a municipality plans to purchase an item above $10,000, it must go through the competitive bidding process -- paying for advertisements in a newspaper, waiting for sealed bids, and voting at a public meeting on the lowest responsible bid.

The Local Government Bid Limits Package, which Sen. Regola is coordinating with Senate colleagues, would amend the various local government codes by raising to $25,000 the level at which local governments must go through the competitive bidding process.  The bills also require written or telephonic quotes for purchases costing $7,000 to $25,000.  Additionally, the bid limit thresholds would annually be adjusted by the Department of Labor and Industry based upon the Consumer Price Index for all Urban Consumers (CPI-U) -- thus negating the need to regularly address this issue.

“It has been 17 years since the General Assembly last addressed this issue,” said Sen. Regola.  “As a former township supervisor, I know first-hand how cumbersome the purchasing process is.  If we want local governments to operate more like a business, we need to provide them with the flexibility they need to do their jobs without being constrained by too much red tape.  Furthermore, the ability to make relatively small purchases without the time and expense of advertising will be more efficient and save money for municipalities.”

Senate Bills 1071 (Counties), 1072 (3^rd Class Cities), 1073 (1^st Class Townships), 1074 (2^nd Class Townships), 1075 (Boroughs), 1076 (Incorporated Towns), 1077 (Municipal Authorities), 1080 (Political Subdivision Joint Purchases Law), 1082 (Public Auditorium Authorities Law), and 1085 (Municipal Flood Improvement Law) are now awaiting further consideration by the full Senate.

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Contact:  Nate Silcox (717) 787-6063