Townships Applaud Raising Of Bid Limits Under Act 84

Townships in Pennsylvania will finally see a change in bid limit laws. Act 84 of 2011, effective Jan. 1, will increase the minimum dollar amount that requires townships to advertise and seek bids for purchases and contracts. By upping the current threshold from $10,000 to $18,500, the law means that fewer local purchases will fall under state-mandated bidding procedures.

For more than a decade, the Pa. State Association of Township Supervisors (PSATS) has been urging lawmakers to pass the legislation. “Increasing the bidding threshold will make procurement more cost-effective and, as a result, will provide more choices that are advantageous to townships and their taxpayers,” said PSATS Executive Director David M. Sanko during a presentation at this year’s Potter County Association of Township Officials annual convention.

In addition to increasing the current municipal bid threshold, Act 84 will require townships to seek telephone quotes for purchases and contracts between $10,000 and $18,500. Any purchase a township makes that costs less than $10,000 will not be subject to the state’s bidding and advertising requirements. Also, the minimum bid amounts will be adjusted annually based on changes in the Consumer Price Index.