Client Alert - House Bill 291

November 2011
Claudia Williams, Esquire and Amanda Lavis, Esquire

On November 3, 2011, Governor Corbett signed into law HB-291, which amends Title 53 (Municipalities Generally) and Title 74 (Transportation) to increase the threshold for competitive bidding by intergovernmental units, parking authorities, municipal authorities and metropolitan transportation authorities.  HB-291 raises the threshold for purchases and contracts from $10,000 to a base amount of $18,500. The bill also increases the threshold for written or telephonic price quotations for contracts from $4,000 to the base amount of $10,000.

HB-291 provides for the annual indexing and adjusting of these thresholds for inflation, effective January 1, 2013. Both thresholds would be subject to an annual inflation adjustment based on the percentage increase in the Consumer Price Index, limited to a maximum annual adjustment of 3% of the respective base amounts.  Any adjustments will be published in the Pennsylvania Bulletin by the Department of Labor and Industry prior to January 1 of each year.

The Act takes effect immediately and applies to contracts and purchases advertised on or after January 1, 2012.  A copy of the bill is available here.

If you have any questions regarding HB-291 or financing your next project, contact Amanda Lavis or Claudia Williams at Rhoads & Sinon LLP in Harrisburg at 717-233-5731, or by email, or