On November 3, 2011, Act 84 of 2011 was signed into law in Pennsylvania and becomes effective on January 1, 2012. Act 84 amends certain provisions of the Second Class Township Code which require Townships to advertise and seek bids for purchases and contracts of a certain minimum dollar amount. Act 84 increases that minimum dollar amount from $10,000 to $18,500 which will lessen the regulatory bidding restraints on Townships. Townships will not have to comply with the state’s burdensome bidding and advertising requirements if the amount of the purchase or contract is below $18,500. Additionally, the threshold amount for written or telephonic price quotations has been raised from $4,000 to $10,000. Townships are required to seek written or telephonic price quotations from at least three contractors for all contracts between the amounts of $10,000 to $18,500. Township will not have to comply with the state’s bidding and advertising requirements for purchases of less than $10,000 which gives Townships greater flexibility and results in costs savings. Similar new laws will also provide bidding relief to boroughs and school districts.
For a full copy of Act 84 provisions, click here and search by House Bill No. 278.