§ 449.7. Purchase of materials and equipment.
(a) Advertisement. The advertisement for any purchase, whether to be picked up or delivered or, in case of materials, to be applied in place, shall contain a reasonably complete description and estimated quantities of the major items or categories of items. The advertisement shall also indicate the requirement of a bid or performance bond, or both.
(b) Proposal. The proposal shall contain the approximate number of items or tons, gallons, square yards, the metric equivalent, or other standard unit of measure, required, as reasonably estimated by the municipality.
(1) The bidder shall insert in the proposal:
(i) The unit price for each item.
(ii) The total price for each item (quantity x unit price).
(iii) The total price for any group of items which the proposal stipulates shall be supplied by a single bidder.
(2) Bids, without quantities, are not acceptable.
(3) Only like items may be required to be supplied by a single bidder.
(i) If this requirement is imposed, the proposal shall so indicate.
(ii) It is not permissible to require a single supplier to provide both tars and asphalts.
(iii) When tar is to be bid, it is not permissible to specify coal tar or to specify water tar.
(4) Liquid asphalt shall be purchased by one of the following:
(i) Weight.
(ii) Volume (gallons or liters) at 60°F or 15.5°C. Use the conversion table contained in the Department Bulletin 25, Publication #27.
(c) Bonds. On purchases over $10,000, suppliers shall provide bonds in accordance with the following chart:
First, Second, & 2A-Class Cities Third Class Cities Boroughs First Class Townships Second Class Townships Bid Bond * Discretionary with council in a reasonable amount. (53 P. S. § 36901(f)) Discretionary with council, in an amount determined by council. (53 P. S. § 46402(b)(1)) Not required Not required Performance Bond * Bond or irrevocable letter of credit, in amount sufficient to council, furnished within 20 days, but not less than 10 days, of award as specified by council. (53 P. S. § 36901(g)) At council’s discretion. If required, not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by council. (53 P. S. § 46402(c)) Not less than 10% or greater than 100%, furnished within 20 days, but not less than 10 days, of award as specified by township commissioners. (53 P. S. § 56802(c)) Not less than 10% or greater than 100%, as specified by township supervisors, furnished within 20 days of award. (53 P. S. § 68102(g)) * See appropriate municipal code or charter.
NOTE: The Public Works Contractors’ Bond Law of 1967 may supersede requirements of municipal codes. Consult the appropriate statutes or consult with the appropriate municipal solicitor, or both, regarding bonding requirements for a particular contract or project.
(d) Annual estimate of materials. Each municipality shall make an annual estimate of its requirements of road construction and maintenance materials, and shall advertise for bids on all items and groups of like items ordinarily supplied by a single supplier—see subsection (b)(3)—which are estimated to exceed $10,000 for the year. For materials estimates between $4,000 and $10,000, three telephone price quotes shall be obtained prior to the selection of a supplier. In lieu of the price quotations, a memorandum shall be kept on file showing that fewer than three qualified contractors service the market area within which it is practicable to obtain quotations until a satisfactory audit of the contract is completed by the Department of the Auditor General. If the cost during the year of an unadvertised item or group of like items ordinarily supplied by a single supplier exceeds $10,000, or if the cost was between $4,000 and $10,000 and three price quotes were not obtained, the entire cost shall be ineligible for payment from the Liquid Fuels Tax fund unless it can be shown to the satisfaction of the Secretary that it was reasonably believed that the cost of the year’s requirements of that item or group of like items would not exceed $10,000 or be between $4,000 and $10,000 as specified in this section.
(e) Purchases through Department of General Services or intergovernmental agencies. Advertising, bidding and bonding requirements do not apply to ‘‘piggy back’’ purchases from suppliers under contracts with the Department of General Services or intergovernmental agencies. Compliance by an intergovernmental agency with the advertising and bonding requirements in this chapter shall be sufficient to relieve a municipality cooperating in the same purchasing agreement from compliance with the advertising, bidding and bonding requirements.
(f) Purchases of gasoline subject to Federal Energy Administration regulations. Advertising, bidding and bonding requirements do not apply to gasoline purchases which Federal Energy Administration regulations require be made from specified suppliers if a municipality utilizes 84,000 gallons or more a year.
Authority The provisions of this § 449.7 issued under The Administrative Code of 1929 (71 P. S. § § 511.3, 512 and 513); and act of June 1, 1956 (P. L. (1955) 1944, No. 655) (72 P. S. § § 2615.1—2615.10); amended under the Vehicle Code, 75 Pa.C.S. § § 6103 and 9511; and sections 1—10 of the act of June 1, 1956 (P. L. (1955) 1944, No. 655) (72 P. S. § § 2615.1—2615.10).
Source The provisions of this § 449.7 amended through August 20, 1982, effective August 21, 1982, 12 Pa.B. 2802; amended May 16, 2003, effective May 17, 2003, 33 Pa.B. 2378. Immediately preceding text appears at serial pages (240961) to (240962).
Cross References This section cited in 67 Pa. Code § 449.8 (relating to equipment rental).
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