With the New Year usually come new laws. Finally, a highly anticipated regulatory revision takes place in 2012, which will likely lower the cost of doing business for many local governments, municipal authorities and school districts. It’s an adjustment of limits for advertisement requirements for bids in Pennsylvania.
Act 84 of 2011, effective January 1, will increase the minimum dollar amount to advertise and seek bids for purchases and contracts from the current threshold of $10,000 to $18,500. In addition to increasing the current bid threshold, Act 84 will makes changes to the minimum amount necessary to seek telephone quotes for purchases and contracts to between $10,000 and $18,500. Any purchase a local government, municipal authority or school district makes that costs less than $10,000 will not be subject to the state’s bidding and advertising requirements. Smartly these minimum bid amounts will be adjusted annually based on changes in the Consumer Price Index. The PA Department of Labor and Industry will issue an annual change to the minimum bid amounts by January 1 of each year.
What does this mean to our local governments, school districts and municipal authorities? It means, less administrative work, faster response to on-going maintenance responsibilities and ultimately lower costs for routine maintenance projects and supply contracts.
Now, if we can only get that adjustment to the PA Wage Rate Law…stay tuned.
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