Legislation Permits Use of Electronic Bidding and Reverse Auctions by Local
Legislation Permits Use of Electronic Bidding and Reverse Auctions by Local Government in Pennsylvania
The Local Government Unit Electronic Bidding Act was passed by the Pennsylvania Senate on June 30, 2006. Signed into law by Governor Ed Rendell on July 7, PA Act 88 of 2006 allows municipalities, school districts, councils of government, authorities, and others to incorporate electronic bidding and reverse auctions into their competitive bidding processes.
The Commonwealth of Pennsylvania has a history of using reverse auctions, authorized under the Procurement Code, PA Title 62. However, prior to passage of Act 88, most Pennsylvania municipalities could not use electronic bidding or reverse auctions because they were restricted by the competitive bidding language in their municipal codes. Act 88 amends the Commonwealth’s Procurement Code to allow local governments to use electronic bidding and reverse auctions for their own purchases. The legislation will take effect on September 5, 2006.
The Erie-based Center for eBusiness and Advanced IT (eBizITPA) is finalizing training to help government officials understand and implement these new tools. Currently available is a Web-based seminar on reverse auction basics. eBizITPA is developing a more comprehensive workshop on reverse auctions and electronic bidding that will be available in Fall 2006, and a second Web-based seminar on electronic bidding.
“At eBizITPA, we are convinced that strategic use of information technology is the key to streamlined processes and reduced costs of doing business. With the passage of Act 88, Pennsylvania’s local governments can now use technology to enhance procurement and deliver savings that taxpayers can appreciate,” says Mary Bula, eBizITPA Outreach Specialist. “As part of the eBizITPA mission, we have designed training seminars to teach local government units how to effectively use electronic bidding and reverse auctions to maximum advantage.”
The Center for eBusiness and Advanced IT (eBizITPA) is a statewide Ben Franklin Technology Development Authority initiative designed to help Pennsylvania enterprises understand and use information technology and e-business tools to become more successful. For more information on eBizITPA, visit: www.govinfo.bz/5966-311.