§ 174.2. Awarded nonbid contracts.
(a) This phraseology is broadly inclusive, since the discretionary element in awarding such contracts provides the potential for abuse which Act 201 is attempting to uncover. Accordingly, the term ‘‘nonbid contract’’ includes all service purchase contracts, especially those for professional services, as well as those other nonbid contracts let by virtue of some selection process or exercise of governmental discretion.
(b) Excluded are services performed by business entities which may automatically participate in programs subject to governmental regulation; such as pharmacies participating in the paid prescription plan; lottery ticket salesmen.
(c) Similarly, public utility service, while on a nonbid basis, cannot be viewed as being ‘‘awarded,’’ since a utility exercises an actual or virtual monopoly within its service area, and its rates are not negotiated between the Commonwealth as a customer and the utility, but are subject to regulation.
(d) A bank acting as a State depository is not required to file unless it has been designated as such in 1974. Banks cashing welfare checks for a small handling charge are excluded, since this function is performed as a public service and the concept of an award or selection process is absent here.
(e) Banks which have been awarded consultantship or financial management contracts in 1974, or have had such contracts renewed in 1974, are required to file. Renewal means continuation of such a contract by virtue of any affirmative action taken by the contracting governmental body with respect to the continued existence of the contract.
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