Panel Approves Bartolotta’s Bill to Simplify Process for Small Businesses Bidding on State Road Contracts

HARRISBURG – The Senate Transportation Committee today endorsed legislation that would make it easier for small businesses to bid on state road contracts, according to the bill’s sponsor, Senator Camera Bartolotta (R-46).

Senate Bill 1181 would exempt companies bidding on state road projects of $1 million or less from certain financial statement filing requirements that have proven to undermine the ability of a small business to bid on these projects.

Current law requires businesses bidding on projects to provide the Commonwealth with a “reviewed” financial statement to determine the maximum bid capacity of the contactor. However, changes in accounting principles have made the cost associated with obtaining a reviewed financial statement prohibitively expensive for small businesses.

“The current process makes it extremely difficult for many companies to bid on state road projects simply because of the time, effort and financial resources that are required to meet the excessive reporting requirements,” Bartolotta said. “We can find a better way to determine a company’s ability to complete smaller projects without completely disqualifying those companies who cannot afford to meet the same reporting requirements as larger firms who regularly compete for multi-million dollar contracts.”

Under Bartolotta’s legislation, businesses would still be required to submit detailed financial statements prior to bidding. The type of statements that would be required for smaller projects would be less complex than those required of larger firms that work on more expensive projects.

Senate Bill 1181 was sent to the full Senate for consideration. It is likely to be sent to the Senate Appropriations Committee before facing a final vote in the Senate.

CONTACT: Colleen Greer (717) 787-1463