Writes a new correspondent:
“[Pittsburgh Regional Transit (PRT)] is the only transit authority in the state that requires the purchase of bonds by businesses doing business with them … thus virtually eliminating the possibility of small businesses being engaged for anything over $100,000 or so — in equipment/software sales.”
Now, context and perspective, pointed out by Eric Montarti, research director, at the Allegheny Institute for Public Policy, taken from PRT’s website:
“Why does PRT have performance bonding requirements?
“The Second Class County Port Authority Act, a state law and Port Authority’s enabling legislation, requires performance bonding for purchases that are in excess of $10,000 and which therefore must be publicly bid.
“The performance bond requirement for equipment and material purchases, as opposed to construction contracts, is unique to the Act and applies only to Port Authority and no other Pennsylvania public transit agencies or other Pennsylvania government agencies. However, we recognize that the performance bonding requirement for equipment and material purchases creates challenges for vendors.
“PRT is working with its lobbyists and other stakeholders to pursue a change in the Second Class County Port Authority Act to remove this mandatory performance bonding requirement for purchases. If this legislative change is accomplished, Port Authority will provide notice to its vendors, and request for bid documents for equipment and material purchases would no longer reflect a performance bond requirement except in very limited, unique instances.”
The writer also laments that Pennsylvania “is the only state that does not give any ‘extra’ percentages for small businesses when going out to bid.”
The below comments have been edited, lightly, for clarity:
“West Virginia, Ohio, Maryland [and] New York all ‘give’ 3 to 5 percent for small businesses that have a headquarters in their state, are minorities/women-owned/a DBE [disadvantage business enterprise]/vet owned.
“Speaking of tax dollars, I can only address this topic from an IT perspective.
“Thus, our company not only cannot compete in the other states but not even in our own (state and local). For example, an IT equipment bid for the City of Pittsburgh: We only marked it up 3 percent. We would have won if the 5 percent rule could have applied. …
“My company and amazing employees are grateful that there are many companies, nonprofits and universities in this region that do chose to do business with small businesses — and minorities/women-owned/DBEs/vet owned.”
We always appreciate reader input at the Allegheny Institute. And we encourage others to share their thoughts on matters of important public policy.
Colin McNickle is communications and marketing director at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).
