Pennsylvania Code
Pennsylvania Code & Bulletin
COMMONWEALTH OF PENNSYLVANIA

• No statutes or acts will be found at this website.

The Pennsylvania Bulletin website includes the following: Rulemakings by State agencies; Proposed Rulemakings by State agencies; State agency notices; the Governor’s Proclamations and Executive Orders; Actions by the General Assembly; and Statewide and local court rules.

PA Bulletin, Doc. No. 23-1768

NOTICES

DEPARTMENT OF
LABOR AND INDUSTRY

Consumer Price Index Adjustment of Base Amounts on Bids Effective January 1, 2024

[53 Pa.B. 8005]
[Saturday, December 23, 2023]

 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, 2023, is 3.7%.

 The change to the base rate is determined as follows:

 1) Calculate the percentage change in CPI-U (I) from September 2022 to September 2023. This is derived as I = (CPI23 − CPI22)/CPI22, where the subscripts refer to September 2023 and 2022 values of CPI-U. As reported by the BLS these values are (307.789 − 296.808)/296.808 = +10.981/296.808 = +3.6997%, which when rounded to 1 decimal place = 3.7%. (This was also reported as 3.7% in Table A of the BLS News release on the Consumer Price Index Summary for September 2023.)

 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 2023 for a public bid is $22,547.55. (The other two prior PABs, which are this year's bases for a variety of bid types, were $12,187.86 and $30,469.66.) For example, using B = $22,547.55, results in P = $22,547.55 * 3.0% = $676.43. (Since I = 3.7%, PC = 3% as stated previously in 2c).

 4) Then the Preliminary Adjusted Base, PAB = P + B, which reduces to $676.43 + $22,547.55 = $23,223.98.

 5) The Final Adjusted Base Amount, FAA, (which is used as the limit for the next year that is 2024) is the PAB rounded to the nearest 100. Therefore, the FAA = $23,200.00.

Entity and LegislationFinal Adjusted Base Amount for Use in 2024
Public BidWritten/
 Telephonic Bid 		 Separate Bids  Concessions 
The County Code (16 P.S. §§ 1216-B, 1801—1803, 1955, 2317 and 2650) $23,200$12,600$23,200
County Correctional Institutions (61 Pa.C.S. § 1735)$23,200$12,600$23,200
Second Class County Code (16 P.S. §§ 3112, 5001, 5155, 5407, 5511-A, 5517 and 5704.1) $23,200$12,600$23,200
Public School Code (24 P.S. §§ 1-120, 5-511, 7-751, 8-807.1, 14-1405-A, 17-1715-A and 17-1749-A)$23,200$12,600$23,200
Public School Code, Thaddeus Stevens College of Technology (24 P.S. § 19-1913.1-B) $23,200
Public School Code, State System of Higher Education (24 P.S. §§ 20-2003-A.1 and 20-2010-A) $23,200
Prevention and Control of Floods, Flood Control Districts (32 P.S. §§ 662 and 662.1) $23,200
Housing Authorities (35 P.S. § 1551) $23,200$12,600
Intergovernmental Cooperation (53 Pa.C.S. §§ 2308, 2311 and 2312)$23,200$12,600
General Municipal Law, Flood Control (53 P.S. § 2863)$23,200$12,600
Political Subdivisions Joint Purchases Law (53 P.S. § 5432) $23,200$12,600
Parking Authorities (53 Pa.C.S. § 5511)$31,400$12,600
Municipal Authorities (53 Pa.C.S. § 5614) $23,200$12,600
Second Class County Code—Residential Finance Authorities (16 P.S. § 5208-A)$23,200$12,600
Public Auditorium Authorities Law (53 P.S. § 23851) $23,200$12,600
Third Class City Code (11 Pa.C.S. §§ 11901.1, 11901.2, 11901.4, 11902, 11903.1 and 11909) $23,200$23,200
Boroughs and Incorporated Towns (8 Pa.C.S. §§ 1402, 1403 and 1405) $23,200$12,600$23,200
Incorporated Towns (53 P.S. §§ 53202, 53202.1, 53203, 53203.1 and 53205) $23,200$12,600$23,200
First Class Township Code (53 P.S. §§ 56802, 56803 and 56805)$23,200$12,600$23,200
Second Class Township Code (53 P.S. §§ 68102 and 68107) $23,200$12,600$23,200
Economic Development Financing Law (73 P.S. § 382) $23,200$12,600
Metropolitan Transportation Authorities (74 Pa.C.S. § 1750) $31,400$23,200
[Pa.B. Doc. No. 23-1768. Filed for public inspection December 22, 2023, 9:00 a.m.]


No part of the information on this site may be reproduced for profit or sold for profit.

This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.