Christopher I. McCabe, Esq.

U.S. Department Of Labor Issues Guidance On The FFCRA

As noted in an earlier post, the Families First Coronavirus Response Act (FFCRA), which becomes effective on April 1, 2020, provides for emergency paid family leave and emergency paid sick leave related to the ongoing coronavirus pandemic and COVID-19.  While the FFCRA applies to employers with fewer than 500 employees, employers with less than 50 employees may qualify for an exemption under soon to-be-issued regulations if the employer’s viability would be jeopardized.

The U.S. Department of Labor (DOL) has now issued specific guidance on the FFCRA provisions affecting employers and employees, including that the FFCRA leave provisions are not retroactive. The DOL has also prepared a Notice Poster which must be posted by an employer in a conspicuous place on its premises, or emailed or mailed to its employees, or posted on an employee information internal or external website.

In addition to the Notice Poster, the DOL guidance covers the following topics:

Thank you, and please stay safe in this difficult and stressful time.

If you need assistance on this important issue, call or email me.  I’ll be happy to assist in anyway possible.

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Posted on by Christopher I. McCabe, Esq. in Covid-19, General Comments Off on U.S. Department Of Labor Issues Guidance On The FFCRA

Governor Wolf’s Executive Order On COVID-19 And Force Majeure

On March 19, 2020, in response to the difficult, unprecedented, and constantly-evolving COVID-19 national health emergency, Pennsylvania Governor Tom Wolf issued an Executive Order which has shut down the physical locations of all non-life-sustaining businesses in Pennsylvania, including all construction projects, both public and private, except for emergency repairs and projects related to health facilities. The shut down Order was effective March 19, 2020, with enforcement to begin today, March 23, 2020, at 8:00 AM. The shut down Order is subject to a waiver process that might allow certain physical work sites to remain open. Public contractors seeking a waiver of the shut down of their contracting businesses and physical work sites can find information about the waiver process here. Until a waiver is granted, the physical work sites cannot re-open. In addition, various public contractor trade associations are seeking relief from Governor Wolf’s order so that critical public highway and other public infrastructure projects can continue unabated.

The current COVID-19 pandemic and Governor Wolf’s Executive Order seem to fit squarely into the classic definition of “force majeure,” which typically includes “action or inaction by a governmental authority to the extent not caused by Contractor, war, civil riots, floods, natural disasters, fire, orders of any court or public authority having jurisdiction to the extent not caused by Contractor,” and other similar “acts of God” or circumstances beyond either party’s reasonable control.

In addition, public contractors holding contracts with Commonwealth agencies and departments are in a unique position because the public entity stopping their work is the public entity with whom they are contracting. That means the public entity is acting both in police power role and in a contracting party role.

Because this is a complicated area of the law, it is recommended that all public contractors consult with experienced legal counsel to determine whether to invoke and provide notice of force majeure to their public owner counterparts.

If you need assistance on this important public contracting issue, call or email me.  I’ll be happy to assist in anyway possible.

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Posted on by Christopher I. McCabe, Esq. in Covid-19, General Comments Off on Governor Wolf’s Executive Order On COVID-19 And Force Majeure

The COVID-19 Pandemic And The Families First Coronavirus Response Act

In response to the unprecedented COVID-19 national health emergency, Congress has passed and President Trump has signed legislation which applies to employers and employees affected by the ongoing COVID-19 pandemic. These include employers and employees working in the public contracting field.

The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020, takes effect on April 2, 2020, and will remain effective through December 31, 2020. The FFCRA provides for emergency family leave and emergency sick leave benefits related to COVID-19. The FFRCA applies to employers with fewer than 500 employees. However, employers with less than 50 employees may be exempted by regulations of the US Department of Labor if the leave payments required under the FFCRA would jeopardize the employer’s viability.

My law firm Charlson Braber McCabe & Denmark has prepared a summary of the key provisions of the FFCRA. The summary can found be here.

Thank you and stay safe.

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Posted on by Christopher I. McCabe, Esq. in Covid-19, General Comments Off on The COVID-19 Pandemic And The Families First Coronavirus Response Act

Bidding Thresholds For Municipalities And State Authorities Increased For 2020

Effective January 1, 2020, the thresholds for public bidding by Pennsylvania state authorities and municipalities increased moderately from 2019 and are as follows:

  • Purchases and contracts below $11,300 require no formal bidding or written/telephonic quotations
  • Purchases and contracts between $11,300 and $21,000 require three written/telephonic quotations
  • Purchases and contracts of $21,000 and more ($28,300 for Metropolitan Transportation Authorities) require formal bidding

Bidding thresholds are adjusted annually for inflation by the Pa. Department of Labor & Industry under Act 90 of 2011. The Pa. Bulletin announcement announcing the 2019 bidding thresholds can be found here.

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Posted on by Christopher I. McCabe, Esq. in General Comments Off on Bidding Thresholds For Municipalities And State Authorities Increased For 2020

Philadelphia Voters Approve Amendment To Charter Allowing Award Of Non-Competitive Contracts Of Less Than $100k To Local Businesses

At the last general election in November, Philadelphia voters approved an amendment of the City of Philadelphia Home Rule Charter to allow for the award of contracts to, or purchases from, Philadelphia-based businesses where the contract or purchase is for less than $100,000 (which is to be adjusted annually for inflation). This local business exception does not apply, however, to contracts “for the erection, remodeling or alteration of, or addition to, any building or structure.”

According to a City Council press release, the City Charter amendment favoring local businesses “would expand access to more small businesses – especially for minority- and woman-owned establishments – and incentivize diversity and competition.”

The voters also approved an amendment to the City Charter which will increase the competitive bidding threshold from $34,000 to $75,000 (to be adjusted annually for inflation) for the award of contracts to, or purchases from, businesses not based in Philadelphia.

These amendments will take effect in January 2020.

If you need assistance on a public contracting issue, call or email me for a no-cost consultation.  I’ll be happy to assist in anyway possible.

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Posted on by Christopher I. McCabe, Esq. in City of Phila., General Comments Off on Philadelphia Voters Approve Amendment To Charter Allowing Award Of Non-Competitive Contracts Of Less Than $100k To Local Businesses

The Prevailing Wage Act

Recently, I was asked if the threshold for the Pa. Prevailing Wage Act had been increased to $100,000. The answer is no. The threshold is still $25,000, except for a narrow exception which is explained in this earlier blog post.

In general, the Prevailing Wage Act mandates that workers on Pennsylvania public construction, reconstruction, demolition, alteration, or repair projects costing more than $25,000, other than those involving “maintenance work,” must be paid the general prevailing minimum wage rates. “Maintenance work” is defined in the Act as “the repair of existing facilities when the size, type or extent of such facilities is not thereby changed or increased.” By definition, “maintenance work” is a subset for “repair” and therefore must be narrowly construed.

Read more

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Posted on by Christopher I. McCabe, Esq. in Prevailing Wage Comments Off on The Prevailing Wage Act

What Is A Responsible Bidder?

What is a “responsible” bidder? The short answer is one who is competent, qualified, and sufficiently experienced to perform the work in question. The long answer follows.

“Responsibilty” refers to the qualifications, including competence and experience, of a bidder to perform a public contract.  Whether a bidder is responsible or qualified to receive a contract award is ordinarily left up to the discretion of the government officials in charge of awarding the contract.  The courts are extremely reluctant to overrule government decisions to disqualify a bidder as non-responsible. Read more

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Posted on by Christopher I. McCabe, Esq. in Bidder Responsibility Comments Off on What Is A Responsible Bidder?

Bid Withdrawals, Revisited

Can a bidder withdraw its bid due to an honest and good faith mistake in its bid price? The short answer is yes.

But the bidder must act quickly – written notice to withdraw must be provided within two business days of the bid opening. More importantly, the bidder must submit credible evidence that the reason for the price bid being substantially lower was a clerical mistake, and not a “judgment” mistake, and was actually due to an unintentional and substantial arithmetical error or an unintentional omission of a substantial quantity of work, labor, material or services made directly in the compilation of the bid. See 73 P.S. § 1602. Read more

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Posted on by Christopher I. McCabe, Esq. in Bid Withdrawal Comments Off on Bid Withdrawals, Revisited

House Committee Votes To Amend HB 163 To Repeal Separations Act

The latest onslaught against the more than 100-year old Separations Act has begun.

On June 19, 2019, the House State Government Committee voted 15-10 in favor of amending House Bill 163 to remove the language which would have allowed public projects to be completed by one of four different project delivery methods. Instead, the amended HB 163 now simply repeals the Separations Act in its entirety. The Committee also voted 15-10 to report the amended HB 163 out of the Committee.

The newly amended HB 163 can be found here.

If you need assistance on a Separations Act issue, feel free to call or email me.  I’ll be happy to assist in anyway possible.

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Posted on by Christopher I. McCabe, Esq. in Separations Act Comments Off on House Committee Votes To Amend HB 163 To Repeal Separations Act

Is The Separations Act Again In Danger Of Repeal?

Is the Separations Act once again in danger of repeal?

House Bill 163, whose prime sponsor is Representative Garth D. Everett, proposes to fully repeal the Separations Act and further amend the Pa. Procurement Code to allow for public projects to be completed by one of four different project delivery methods: (1) construction management at-risk; (2) design-bid-build with multiple prime contractors; (3) design-bid-build with a single prime contractor; or (4) design-build. Each of these delivery methods is defined in the HB 163.

The memorandum for HB 163 describes the Separations Act as “an entirely outdated law costing the taxpayers of Pennsylvania money unnecessarily.” The Separations Act was enacted in 1913 and requires public entities to solicit and award separate contracts for plumbing, heating, electrical, and ventilating work that is part of a public construction project where the cost of construction exceeds $4,000.

A vote on HB 163 is scheduled for Tuesday, June 18th, before the House State Government Committee.

Time will tell whether the Separations Act survives this latest repeal effort.

If you need assistance on a Separations Act issue, feel free to call or email me.  I’ll be happy to assist in anyway possible.

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Posted on by Christopher I. McCabe, Esq. in Separations Act Comments Off on Is The Separations Act Again In Danger Of Repeal?
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