NOTICES

DEPARTMENT OF
LABOR AND INDUSTRY

Consumer Price Index Adjustment of Base Amounts on Bids Effective January 1, 2023

[52 Pa.B. 7567]
[Saturday, December 10, 2022]

 Each year the Department of Labor and Industry (Department) is required by the following statutes to publish changes to the base amounts triggering the requirement for public bids, telephonic bids or separate bids, or both, for certain contracts. The Department is required to announce the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U): All Items (CPI-U) for the United States City Average for the 12-month period ending September 30 of each year. The Department utilizes the most current nonseasonally adjusted series, as published by the United States Bureau of Labor Statistics (BLS), which at present uses 1982—1984 as the index base period (set equal to 100). The percentage change for the 12-month period ending September 30, 2022, is 8.2%.

 The change to the base rate is determined as follows:

 1) Calculate the percentage change in CPI-U (I) from September 2021 to September 2022. This is derived as I = (CPI₂₂−CPI₂₁)/CPI₂₁, where the subscripts refer to September 2022 and 2021 values of CPI-U. As reported by the BLS these values are (296.808 − 274.310)/274.310 = +22.498/274.310 = +8.2017%, which when rounded to 1 decimal place = 8.2%. (This was also reported as 8.2% in Table A of the BLS News release on the Consumer Price Index Summary for September 2022.)

 2) The legislation puts a floor of 0 and a cap of 3% on the percentage change to be utilized in the calculations (technically these restrictions are on the Preliminary Adjusted Base (PAB), defined in step 4, however this is mathematically equivalent). The truncated value of the percentage change to be used in the adjustment formula is denoted as PC, resulting in:

 a) PC = I, for 0 ≤ I ≤ 3%,

 b) PC = 0, for I < 0 and

 c) PC = 3%, for I > 3%.

 3) The base value (either original for new legislation or the prior year's PAB) is designated as B and the product of B and PC (determined previously) is P. (There are different values of the base depending on the entity and the type of bid, so technically B could be designated with 2 subscripts. For illustration purposes, the subscripts are omitted.) Then P = B*PC. A common value for the base amount in 2022 for a public bid is $21,890.83. (The other two prior PABs, which are this year's bases for a variety of bid types, were $11,832.87 and $29,582.19.) For example, using B = $21,890.83, results in P = $21,890.83*3.0% = $656.72. (Since I = 8.2%, PC = 3% as stated previously in 2c.)

 4) Then the Preliminary Adjusted Base, PAB = P + B, which reduces to $656.72 + $21,890.83 = $ 22,547.55.

 5) The Final Adjusted Base Amount, FAA, (which is used as the limit for the next year that is 2023) is the PAB rounded to the nearest 100. Therefore, the FAA = $22,500.00.

Entity and Legislation	Final Adjusted Base Amount for Use in 2023
	Public Bid	Written/ Telephonic Bid	Separate Bids	Concessions
The County Code (16 P.S. §§ 1216-B, 1801—1803, 1955, 2317 and 2650)	$22,500	$12,200	$22,500
County Correctional Institutions (61 Pa.C.S. § 1735)	$22,500	$12,200	$22,500
Second Class County Code (16 P.S. §§ 3112, 5001, 5407, 5511-A, 5517 and 5704.1)	$22,500	$12,200	$22,500
Public School Code (24 P.S. §§ 1-120, 7-751 and 8-807.1)	$22,500	$12,200	$22,500
Public School Code, Thaddeus Stevens College of Technology (24 P.S. § 19-1913.1-B)	$22,500
Public School Code, State System of Higher Education (24 P.S. §§ 20-2003-A.1 and 20-2010-A)	$22,500
Prevention and Control of Floods, Flood Control Districts (32 P.S. §§ 662 and 662.1)	$22,500
Housing Authorities (35 P.S. § 1551)	$22,500	$12,200
Intergovernmental Cooperation (53 Pa.C.S. §§ 2308, 2311 and 2312)	$22,500	$12,200
General Municipal Law, Flood Control (53 P.S. § 2863)	$22,500	$12,200
Political Subdivisions Joint Purchases Law (53 P.S. § 5432)	$22,500	$12,200
Parking Authorities (53 Pa.C.S. § 5511)	$30,500	$12,200
Municipal Authorities (53 Pa.C.S. § 5614)	$22,500	$12,200
Second Class County Code—Residential Finance Authorities (16 P.S. § 5208-A)	$22,500	$12,200
Public Auditorium Authorities Law (53 P.S. § 23851)	$22,500	$12,200
Third Class City Code (11 Pa.C.S. §§ 11901.1, 11901.2, 11901.4, 11902, 11903.1 and 11909)	$22,500		$22,500
Boroughs and Incorporated Towns (8 Pa.C.S. §§ 1402, 1403 and 1405)	$22,500	$12,200	$22,500
Incorporated Towns (53 P.S. §§ 53202, 53202.1, 53203, 53203.1 and 53205)	$22,500	$12,200	$22,500
First Class Township Code (53 P.S. §§ 56802, 56803 and 56805)	$22,500	$12,200	$22,500
Second Class Township Code (53 P.S. §§ 68102 and 68107)	$22,500	$12,200	$22,500
Economic Development Financing Law (73 P.S. § 382)	$22,500	$12,200
Metropolitan Transportation Authorities (74 Pa.C.S. § 1750)	$30,500			$22,500

JENNIFER BERRIER, 
Secretary

[Pa.B. Doc. No. 22-1905. Filed for public inspection December 9, 2022, 9:00 a.m.]

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