Committee OK's Robbins Bill Upping Bidding Limit for Cities

Legislation would save money, provide municipal purchasing flexibility

The Senate Local Government Committee today approved Senate Bill 1072, legislation sponsored by Senator Bob Robbins (R-50) that would help Pennsylvania's Third Class Cities by raising the amount they could spend without going through the time consuming and expensive formal bidding process.

The Committee approved a 16-bill package, including SB 1072, that would update and increase the threshold for the formal bidding process for local and county governments across the Commonwealth. In addition to serving as the prime sponsor of SB 1072, Senator Robbins is a co-sponsor of the other 15 bills as well.

"I am very pleased that the Local Government Committee has taken quick action on these bills. These changes are timely and they are necessary. The truth is state law as it stands now places a real burden on municipalities," said Senator Robbins, who also serves as Chairman of the Local Government Commission. "They are unable to make relatively minor purchases without the time and expense of the formal bidding process and that ends up costing the taxpayers."

Currently, anytime a municipality plans to purchase an item or service costing $10,000 or more, it must go through the bidding process by advertising twice in a newspaper, receiving sealed bids by vendors, and voting at a public meeting on the lowest bid.

Senate Bills 1071 to 1086 would amend the various local government codes -- including those for counties, cities, townships, boroughs and school districts -- by raising from $10,000 to $25,000 the level at which local governments must go through the bidding process.

"A dollar just doesn't goes as far today as it did in 1990, regardless of whether you're talking about a family budget or a municipal budget," Senator Robbins said. "Back then $10,000 represented a significant purchase on the part of a local government. That simply is not the case today. My bill, along with the other bills in this legislative package set a more reasonable threshold of $25,000 for the formal bidding process."

The bills would also increase the range requiring written or telephonic quotes from $4,000 to $10,000 to $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.

Contact:

Michael Hengst
(717) 787-1322