Section 696.7 - Contracts; procurement and sale of property; competition in award of contracts(a) Contractual authority.--(1) The department shall have the power and authority to enter into contracts and to make joint contracts of purchase with any railroad company, transportation organization or municipality in any manner complying with the law applicable to the entity. The department shall have power and authority to make contracts for the improvement of any rights-of-way, roadbeds or rolling stock, electrification systems, other transportation systems, or any parts thereof, constituting a project without advertisement for competitive bids, where such work is to be done at cost by the personnel and with the facilities of the railroad company, or any of its wholly owned affiliates, local transportation organization or municipality on whose system the property is to be used.(2) Any other provision of law to the contrary notwithstanding, the department may sell, transfer, lease or grant any license to, easement over or any other interest in all, or any part of, the rail properties and other property acquired under the provisions of this or any other rail-related act to any responsible person, firm, corporation, municipality or instrumentality thereof, municipal authority, transportation authority, the Federal Government or any branch or agency thereof, for continued operation or other use compatible with the operation of a railroad or any public purpose, when approval for the continued operation or other public purpose is granted by the Interstate Commerce Commission of the United States, when such approval is required. The department may exercise the authority and power granted pursuant to this paragraph without the necessity of competitive bidding. If, during the first five years after the sale, transfer, lease or grant of a license or easement, the property or property right is used for any purpose other than that which is compatible with the operation of a railroad or any public purpose, the property or property right shall revert to the Commonwealth.(3) In the event the department determines that there is no need for continued operation of a railroad on any rail properties or other properties acquired under the provisions of this or any other rail-related act, and that the properties are not needed for any other public purpose, the department may sell (under a system of public competitive bidding), transfer, lease or grant any license to, easement over or any other interest in all or any part of the properties to any responsible person, firm, corporation, municipality or instrumentality thereof, municipal authority, transportation or to the Federal Government or any branch or agency thereof for any worthwhile purpose, as determined by the department.(4) At least 30 days prior to the sale of any property as authorized by paragraph (2) or (3), the department shall provide written notice thereof to the chairmen of the Transportation Committees of the Senate and House of Representatives.(b) Competitive bids.--Except in the purchase of unique articles, or articles which for any other reason cannot be obtained in the open market, and except as herein specifically provided, competitive bids shall be secured before any purchase or sale, by contract, or otherwise, is made or before any contract is awarded for construction, alterations, supplies, equipment, repairs or maintenance or for rendering any services to the department other than professional services; and the purchase shall be made from or the contract shall be awarded to the lowest responsible bidder; or a sale to the highest responsible bidder. No purchase of any unique article or other articles which cannot be obtained in the open market shall be made without express approval of the secretary where the amount involved is in excess of $5,000.(c) Advertisement.--Except as herein specifically provided otherwise, all purchases and sales in excess of $5,000 shall be awarded after advertising in a newspaper of general circulation in the area where the property is to be used not less than two weeks prior to the bid opening. Bids shall be publicly opened and read aloud at a date, time and place designated in the invitation to bid. In all cases of purchases or sales in excess of $5,000 authorized hereunder to be made without competitive bidding except purchases from or sales to a transportation organization or contracts with a transportation company under subsection (a), invitations to bid shall be sent not less than one week prior to the bid opening to at least three potential bidders who are qualified technically and financially to submit bids, or in lieu thereof a memorandum shall be kept on file showing that less than three potential bidders so qualified exist in the market area within which it is practicable to obtain bids.(d) Negotiation of certain contracts.--Purchases or sales under $5,000 may be negotiated with or without competitive bidding under sound procurement procedures as promulgated and established by the secretary.(e) Waiver of competitive bid requirement.--Competitive bidding requirements may be waived if it is determined in such manner as the secretary may, by regulation, provide that an emergency directly and immediately affecting customer service, public health, safety or welfare requires immediate delivery of supplies, materials, or equipment. A record of circumstances explaining the emergency shall be submitted to the secretary and kept on file.(f) Departmental property.--Contracts for the sale or lease of property owned by the department shall be awarded after competitive bidding as shown in subsection (c), except where a contract is entered into with any municipality or agency or instrumentality of the Commonwealth, transportation organization, railroad company or Federal agency.(g) Restriction.--Requirements shall not be split into parts for the purpose of avoiding the provisions of this section.(h) Rejection of bids.--The department shall have the right to reject any or all bids or parts of any or all bids, whenever, in the opinion of the secretary, such rejection is necessary for the protection of the interest of the Commonwealth. In every case, a record shall be made, setting forth the reason for the rejection which record shall thereafter be kept on file.(i) Rules and regulations.--The secretary shall adopt rules and regulations to effectuate the provisions of this section.(j) Assignments.--The secretary shall have the power to accept the assignment from any railroad company, transportation organization or municipality of all or any interest in any lawfully made contract for the procurement and purchase of any asset deemed necessary or desirable by the secretary in connection with any project.1984, July 5, P.L. 587, No. 119, § 7, imd. effective. Amended 2011, July 7, P.L. 300, No. 71, §1, effective in 60 days [ 9/6/2011].