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PA Bulletin, Doc. No. 16-2154
Consumer Price Index Adjustment of Base Amounts on Bids Effective January 1, 2017
[46 Pa.B. 7772][Saturday, December 10, 2016]
Each year the Department of Labor and Industry (Department) is required by the following statutes to publish changes to the base amounts triggering the requirement for public bids, telephonic bids or separate bids, or both, for certain contracts. The Department is required to announce the percentage change in the Consumer Price Index for All Urban Consumers (CPI-U): All Items for the United States City Average for the 12-month period ending September 30 of each year. The Department utilizes the most current nonseasonally adjusted series, as published by the United States Bureau of Labor Statistics (BLS), which at present uses 1982—1984 as the index base period (set equal to 100). The percentage change for the 12-month period ending September 30, 2016, is 1.5%.
1) Calculate the percentage change in CPI-U (I) from September 2015 to September 2016. This is derived as I = (CPI16—CPI15)/CPI15, where the subscripts refer to September 2016 and 2015 values of CPI-U. As reported by the BLS these values are (241.428 − 237.945)/237.945 = +3.483/237.945 = +1.4638%, which when rounded to 1 decimal place = 1.5%. (This was also reported as 1.5% in Table A of the BLS news release on the Consumer Price Index Summary for September 2016.)
c) PC = 3% for I > 3 %.
3) The base value (either original for new legislation or the prior year's PAB) is designated as B and the product of B and PC (determined previously) is P. (There are different values of the base depending on the entity and the type of bid, so technically B could be designated with two subscripts. For illustration purposes, the subscripts are omitted.) Then P = B*PC. A common value for the base amount in 2016 for a public bid is $19,421.08. (The other two prior PABs, which are this year's bases for a variety of bid types, were $10,497.88 and $26,244.70.) For example, using B = $19,421.08, results in P = $19,421.08 * 1.5% = $291.32.
4) Then the Preliminary Adjusted Base, PAB = P + B, which reduces to $291.32 + $19,421.08 = $19,712.40.
5) The Final Adjusted Base Amount, FAA (which is used as the limit for the next year that is 2017), is the PAB rounded to the nearest 100. Therefore, the FAA = $19,700.00. Final Adjusted Base Amount for Use in 2017 Entity and Legislation Public Bid Written/ Telephonic Bid Separate Bids Concessions The County Code (16 P.S. §§ 1801—1803, 2317) $19,700 $10,700 $19,700 Second Class County Code (16 P.S. §§ 3112, 5001, 5511-A and 5517) $19,700 $10,700 $19,700 Public School Code (24 P.S. §§ 1-120, 7-751 and 8-807.1) $19,700 $10,700 $19,700 Public School Code, Thaddeus Stevens College of Technology (24 P.S. § 19-1913.1-B) $19,700 Public School Code, State System of Higher Education (24 P.S. §§ 20-2003-A.1 and 20-2010-A) $19,700 Prevention and Control of Floods, Flood Control Districts (32 P.S. §§ 662 and 662.1) $19,700 Housing Authorities (35 P.S. § 1551) $19,700 $10,700 Intergovernmental Cooperation (53 Pa.C.S. §§ 2308, 2311 and 2312) $19,700 $10,700 General Municipal Law, Flood Control (53 P.S. § 2863) $19,700 $10,700 Political Subdivisions Joint Purchases Law (53 P.S. § 5432) $19,700 $10,700 Parking Authorities (53 Pa.C.S. § 5511) $26,600 $10,700 Municipal Authorities (53 Pa.C.S. § 5614) $19,700 $10,700 Public Auditorium Authorities Law (53 P.S. § 23851; HB 2324) $19,700 $10,700 Third Class City Code (11 Pa.C.S. §§ 11901.1, 11901.2, 11901.4, 11902, 11903.1 and 11909) $19,700 $19,700 The Borough Code (53 P.S. §§ 46402 and 46405) $19,700 $10,700 $19,700 Incorporated Towns (53 P.S. §§ 53202, 53202.1, 53203, 53203.1 and 53205) $19,700 $10,700 $19,700 First Class Township Code (53 P.S. §§ 56802, 56803 and 56805) $19,700 $10,700 $19,700 Second Class Township Code (53 P.S. §§ 68102 and 68107) $19,700 $10,700 $19,700 Economic Development Financing Law (73 P.S. § 382) $19,700 $10,700 Metropolitan Transportation Authorities (74 Pa.C.S. § 1750) $26,600 $19,700
KATHY M. MANDERINO, Secretary
[Pa.B. Doc. No. 16-2154. Filed for public inspection December 9, 2016, 9:00 a.m.]