Short Title: An Act amending
the act of May 1, 1913 (P.L.155, No.104), referred to as the Separations Act,
increasing the minimum bid requirement; and providing for evasion of
requirements.
Prime Sponsor: Representative
M. K. KELLER
Last Action: Referred to URBAN
AFFAIRS, March 9, 2015 [House]
MEMORANDUM
Posted: January 26, 2015 02:00 PM
From: Representative
Mark Keller
To: All House members
Subject: Raise Threshold of Separations Act
In the near future, I will be introducing legislation to
amend Act 104 of 1913, commonly referred to as the "separations Act",
to raise the public project cost threshold (before law applies) from $4,000 to
$100,000. The legislation requires that
the Dept. of Labor and Industry annually adjust the threshold upwards for
inflation.
The Separations Act of 1913 requires that public entities
solicit separate bids and award separate contracts for electrical, heating,
ventilating and plumbing work undertaken as part of public construction
projects in which total project costs exceed $4,000. The law was passed in 1913 with an original
threshold of $1,000 which was last adjusted in 1981 to its current level of
$4,000.
The act's requirement, known as the multiple prime
delivery system, renders the public entity responsible for the management and
coordination of multiple contracts. The
Separations Act is a general state law, with parallel provisions in some of the
local government codes (County Code, e.g.) and in the School Code. My legislation would not affect the distinct
"multiple prime bid" requirements in these other laws.
Arguably, perhaps the merits of "multiple
prime" bidding requirements may be necessary for larger public projects,
but I believe it is sound public policy to establish a reasonable threshold
that allows a public body to complete a small project (tool shed, etc...)
without having to go through the bureaucracy of following Separations Act
requirements. I believe that the current
threshold amount is far too law and causes public bodies to have to spend
taxpayer money on meeting requirements that are archaic. The original purpose of the law was not to
apply to relatively small projects, which it now does.
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