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Second Class Township Code

 

Article XXXI

Contracts

 

Section 3101. Power to Make Contracts.

 

The board of supervisors may make contracts for purchases under this act and the laws of this Commonwealth.

 

Section 3102. Letting Contracts.

 

(a) All contracts or purchases in excess of the required advertising amount of ten thousand dollars ($10,000), except those specifically excluded, shall not be made except with and from the lowest responsible bidder after due notice in one newspaper of general circulation in the township. The notice for bids shall be published at least two times at intervals of not less than three days in daily newspapers or once a week for two successive weeks in weekly newspapers. The first advertisement shall be published not more than forty-five days, and the second advertisement not less than ten days, before the date set for the opening of bids. Notice of proposed contracts or purchases shall also be posted where the board of supervisors normally meets or in a conspicuous place within the township. Any published notice for bids shall contain full plans and specifications, or refer to the places where copies thereof can be obtained, state the amount of the performance bond determined under subsection (g) and give the date, time and place of a meeting at which an individual or committee appointed by the board of supervisors or the board of supervisors will open and read the bids. ((a) amended Dec. 19, 1996, P.L. No. 181)

 

(b) Written or telephonic price quotations from at least three qualified and responsible contractors shall be requested for all contracts that exceed four thousand dollars ($4,000) but are less than the amount requiring advertisement and competitive bidding, or, in lieu of price quotations, a memorandum shall be kept on file showing that fewer than three qualified contractors exist in the market area within which it is practicable to obtain quotations. A written record of telephonic price quotations shall be made and shall contain at least the date of the quotation, the name of the contractor and the contractor's representative, the construction, reconstruction, repair, maintenance or work which was the subject of the quotation and the price. Written price quotations, written records of telephonic price quotations and memoranda shall be retained for a period of three years.

 

(c) The board of supervisors may purchase or make contracts under the act of October 27, 1979 (P.L. 241, No. 78), entitled "An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods where no bids are received," if no bids are received on an item after proper notices.

 

(d) The amount of the contract, whether of straight sale price, conditional sale, lease, lease purchase or otherwise, is the entire amount the township pays to the success" bidder in order to obtain the services or property, or both, and does not mean only the amount which is paid to acquire title or to receive any other particular benefit or benefits.

 

(e) The award of contracts shall only be made by public announcement at the meeting at which bids are opened by the board of supervisors, or received from the individual or committee appointed by the board of supervisors to open and read bids, or at a subsequent meeting of the board of supervisors, the time and place of which shall be publicly announced when bids are received. If for any reason one or both of the meetings are not held, the same business may be transacted at a subsequent meeting if at least five days' notice of the meeting is published in the same newspaper as the notice of bids. Bidders shall be notified and other interested parties, upon request, shall be notified of the date, time and location of the opening of bids and may be present when the bids are opened.

 

(f) The board of supervisors may reject all bids received if it is believed to be in the best interest of the township, and at a public meeting the reasons for the rejection of all bids shall be announced and be noted in the minutes.

 

(g) Unless covered under the bonding requirements of the act of December 20, 1967 (P.L. 869, No.385), known as the "Public Works Contractors' Bond Law of 1967," the success" bidder shall furnish a bond guaranteeing performance of the contract, in an amount as determined by the supervisors at the time of advertising for bids which shall be not less than ten percent nor more than one hundred percent of the amount of the contract, within twenty days after the contract is awarded. If the bidder fails to furnish the bond within twenty days, unless delivery is made or the entire contract is fulfilled during that time, the contract is void. Delivery, accomplishment and guarantees may be required in all cases, including the exceptions contained in this section. ((g) amended Dec. 19, 1996, P.L. , No. 181)

 

(h) The contracts or purchases made by the board of supervisors involving payments in excess of the required advertising amount, which do not require advertising, bidding or price quotations are as follows:

 

(1) Those made for emergency or routine maintenance, repairs or replacements for water, electric light and other public works of the township if they do not constitute new additions, extensions or enlargements of existing facilities and equipment.

 

(2) Those made for improvements, repairs or maintenance of any kind made or provided by any township through its own employees. All contracts or purchases of materials used for improvement, maintenance or construction in excess of four thousand dollars ($4,000) but less than the required advertising amount are subject to the provisions contained in subsection (b), and those contracts or purchases in excess of the required advertising amount are subject to the advertising requirements contained in subsection (a).

 

(3) Those involving any policies of insurance or surety company bonds, those made for public utility service and those made with another municipal corporation, county, school district or municipality authority or Federal or State Government, including the sale, leasing or loan of any supplies or materials by the Federal or State Government or their agencies.

 

(4) Those involving personal or professional services.

 

(5) Those made for materials and supplies or equipment rental under emergency conditions under 35 Pa. C.S. Pt. V (relating to emergency management services).

 

(6) Those contracts involving equipment rental with operators if more than fifty percent of the total labor personnel hours required for the completion of the contract is supplied by the township through its own employees.

 

(7) Those contracts for the purchase of repair parts or materials for use in existing township equipment or facilities if the item or material to be purchased is the sole item of its kind on the market or is manufactured as a replacement for the original item or equipment being repaired.

 

(8) Those for used equipment, articles, apparatus, appliances, vehicles or parts thereof being purchased from a public utility.

 

(9) Those where particular types, models or pieces of equipment, articles, apparatus, appliances, vehicles or parts thereof which are patented and manufactured products. ((h) amended Dec. 18, 1996, P.L. __, No. 172)

 

(i) No township official, either elected or appointed, or township employee who knows, or who by the exercise of reasonable diligence could know, shall be interested to any appreciable degree, either directly or indirectly, in any contract for the sale or furnishing of any supplies or materials for the use of the township or for any work to be done for the township involving the payment by the township of more than five hundred dollars ($500) in any year unless the contract is awarded through the public bid process. This limitation does not apply if the officer or appointee of the township is an employee of the person, firm or corporation to which the money is to be paid in a capacity with no possible influence on the transaction and the officer cannot possibly be benefited thereby, either financially or otherwise. If a supervisor is within this exception, the supervisor shall so inform the board of supervisors and refrain from voting on the payments and shall in no manner participate in the contract. Any official or appointee who knowingly violates this provision is subject to surcharge to the extent of the damage shown to be sustained by the township, is ousted from office or employment and commits a misdemeanor of the third degree.

 

(j) Contracts for the purchase of materials or rental of equipment for the construction, reconstruction, maintenance and improvement of roads and bridges shall be in writing and let only on standard specifications of the Department of Transportation.

 

(k) Contracts for the purchase of materials or supplies may be bid on a per-unit basis.

 

(l) Every contract for the construction, reconstruction, alteration, repair, improvement or maintenance of public works shall comply with the act of March 3, 1978 (P.L. 6, No. 3), known as the "Steel Products Procurement Act."

 

(m) No person, consultant, firm or corporation contracting with a township for purposes of rendering personal or professional services to the township shall share with any township officer or employee, and no township officer or employee shall accept, any portion of the compensation or fees paid by the township for the contracted services provided to the township except under the following terms or conditions:

 

(1) Full disclosure of all relevant information regarding the sharing of the compensation or fees shall be made to the board of supervisors.

 

(2) The board of supervisors must approve the sharing of any fee or compensation for personal or professional services before the performance of the services.

 

(3) No fee or compensation for personal or professional services may be shared except for work actually performed.

 

(4) No shared fee or compensation for personal or professional services may be paid at a rate in excess of the commensurate for similar personal or professional services.

 

Section 3103. Road Contracts.

 

The board of supervisors may make a contract for the improvement and keeping in repair of township roads. No contract shall extend over a period of more than four years. Every contractor for road work shall give bond for the amount of the contract and sign specifications furnished by the board of supervisors for the building and care of the contract roads.

 

Section 3104. Evasion of Advertising Requirements.

 

(a) No supervisor shall evade the provisions of Section 3101 as to advertising for bids by purchasing or contracting for services and personal properties piecemeal to obtain prices under the required advertising price. This provision is intended to make unlawful the evading of advertising requirements by making a series of purchases or contracts each for less than the advertising requirement price, or by making several simultaneous purchases or contracts each below the required advertising price, when the transactions involved should have been made as one transaction for one price. Any supervisors who vote in violation of this provision and who know that the transaction upon which they vote is or ought to be part of a larger transaction and that it is being divided in order to evade the requirements as to advertising forbids are jointly and severally subject to surcharge for ten percent of the full amount of the contract or purchase.

 

(b) Any supervisor who votes to unlawfully evade the provisions of this article and who knows that the transaction upon which he so votes is or ought to be a part of a larger transaction and that it is being divided in order to evade the requirements as to advertising for bids commits a misdemeanor of the third degree for each contract entered into as a direct result of that vote. This penalty shall be in addition to any surcharge which may be assessed pursuant to subsection (a).

 

Section 3105. Bonds for Protection of Labor and Material Suppliers.

 

Before any contract exceeding five thousand dollars ($5,000) is awarded to any prime contractor or construction manager for the construction, reconstruction, alteration or repair of any building or other public work or public improvement of the township, the contractor shall furnish to the township a payment bond for the protection of claimants supplying labor or materials to the prime contractor to whom the contract is awarded, at one hundred percent of the contract amount, conditioned for the prompt payment of all materials furnished or labor supplied or performed in the prosecution of the contract under the act of December 20, 1967 (P.L. 869, No. 385), known as the "Public Works Contractors' Bond Law of 1967."

 

Section 3106. Purchase Contracts for Supplies and Equipment; Fire Company, Et Cetera; Participation.

 

The board of supervisors may permit any paid or volunteer fire company, paid or volunteer rescue company and paid or volunteer ambulance company in the township to participate in purchase contracts for supplies and equipment of the township and agreeing that it will be bound by any terms and conditions the township prescribes.

 

Section 3107. Separate Specifications for Branches of Work.

 

In the preparation of specifications for the erection or alteration of any public building, when the entire cost of the work exceeds the advertising requirement price, the architect, engineer or person preparing the specifications shall prepare separate specifications for the plumbing, heating, ventilating and electrical work, and the township shall receive separate bids upon each of those branches of work and award the contract to the lowest bidder.

 

Section 3108. Workers' Compensation Insurance.

 

(a) All contracts executed by any township which involve the construction or performance of any work involving the employment of labor shall contain a provision that the contractor shall accept, and file with the township proof of compliance with or exemption from, insofar as the work covered by the contract is concerned, the act of June 2, 1915 (P.L. 736, No. 338), known as the "Workers' Compensation Act."

 

(b) Any contract executed in violation of this section is void.

 

Section 3109. Engineers and Architects Not to be Interested in Contracts.

 

(a) No architect or engineer in the employ of a township and engaged in the preparation of plans, specifications or estimates may bid on any public work at any letting of the work in the township.

 

(b) An officer of a township who is charged with letting any public work may not award a contract to any architect or engineer in the employ of the township.

 

(c) An architect or engineer in the employ of a township may not be interested in any contract for public work in the township or receive any remuneration or gratuity from any person interested in any contract except under section 3102(1).

 

(d) Any person who violates this section commits a misdemeanor of the third degree.