(a) Contracts for services and personal property.--In counties of the third, fourth, fifth, sixth, seventh or eighth class, the county commissioners shall contract for and purchase the services referred to in section 12508 (relating to office supplies) and personal property for county officers and agencies. A contract and purchase not in excess of the base amount of $18,500, subject to adjustment under subsection (c), shall be by note or memorandum, in writing, signed by the county commissioners or their designees. A copy of the note and memorandum and the executed written contract, or electronic copy of the executed written contract, shall be filed in the office of the controller or, in a county without a controller, with the chief clerk of the county commissioners.
(b) Price quotations.--
(1) Except as otherwise provided in section 15102(h)(4) (relating to contract procedures, terms and bonds and advertising for bids), for counties of the third, fourth, fifth, sixth, seventh or eighth class, written or telephonic price quotations from at least three qualified and responsible contractors shall be requested for the contracts in excess of the base amount of $10,000, subject to adjustment under subsection (c), but less than the amount requiring advertisement and competitive bidding. 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.
(2) A written record of telephonic price quotations shall be made and shall contain at least:
(i) the date of the quotation;
(ii) the name of the contractor and the contractor's representative;
(iii) the construction, reconstruction, repair, maintenance or work which was the subject of the quotation; and
(iv) the price.
(3) Written price quotations, written records of telephonic price quotations and memoranda shall be retained for a period of three years.
(c) Adjustments to base amounts.--Adjustments to the base amounts specified under subsections (a) and (b) shall be made as follows:
(1) The Department of Labor and Industry shall determine the percentage change in the Consumer Price Index for All Urban Consumers: All Items (CPI-U) for the United States City Average as published by the United States Department of Labor, Bureau of Labor Statistics, for the 12-month period ending September 30, 2012, and for each successive 12-month period thereafter.
(2) If the department determines that there is no positive percentage change, no adjustment to the base amounts shall occur for the relevant time period provided for in this subsection.
(3) If the department determines that there is a positive percentage change in the first year that the determination is made under paragraph (1):
(i) the positive percentage change shall be multiplied by each base amount, and the products shall be added to the base amounts, respectively, and the sums shall be preliminary adjusted amounts; and
(ii) the preliminary adjusted amounts shall be rounded to the nearest $100 to determine the final adjusted base amounts for purposes of subsections (a) and (b).
(4) In each successive year in which there is a positive percentage change in the CPI-U for the United States City Average:
(i) the positive percentage change shall be multiplied by the most recent preliminary adjusted amounts and the products shall be added to the preliminary adjusted amount of the prior year to calculate the preliminary adjusted amounts for the current year; and
(ii) the sums shall be rounded to the nearest $100 to determine the new final adjusted base amounts for purposes of subsections (a) and (b).
(5) The determinations and adjustments required under this subsection shall be made in the period between October 1 and November 15 of the year following November 3, 2011, and annually between October 1 and November 15 of each year thereafter.
(6) The final adjusted base amounts and new final adjusted base amounts obtained under paragraphs (3) and (4) shall become effective January 1 for the calendar year following the year in which the determination required under paragraph (1) is made.
(7) The department shall transmit notice to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin prior to January 1 of each calendar year of the annual percentage change determined under paragraph (1) and the unadjusted or final adjusted base amounts determined under paragraphs (3) and (4) at which competitive bidding is required under subsection (a) and written or telephonic price quotations are required under subsection (b), respectively, for the calendar year beginning January 1 after publication of the notice. The notice shall include a written and illustrative explanation of the calculations performed by the department in establishing the unadjusted or final adjusted base amounts under this subsection for the ensuing calendar year.
(8) The annual increase in the preliminary adjusted base amounts obtained under paragraphs (3) and (4) may not exceed 3%.
(d) Wholesale purchases.--The county commissioners shall, if possible, anticipate the needs of the various officers, agencies and operations of the county and endeavor to purchase in wholesale quantities, if practicable and if savings could be achieved by wholesale purchase.
(e) Purposes of contracts and purchases.--The county commissioners may make contracts and purchases for all purposes expressly or impliedly authorized by law.