Reciprocal Limitations Act

Reciprocal Limitations Act

General Requirement

Pennsylvania has reacted to the in-state preference laws and practices of other states by reenacting the Reciprocal Limitations Act through the Commonwealth Procurement Code. Under this Act, Pennsylvania responds in a like manner against those states that apply preferences or prohibitions by giving similar preferences to Pennsylvania resident bidders and bidders offering supplies manufactured in Pennsylvania.

Requirements

1. Product Preference. In all purchases of supplies exceeding $10,000, preference is to be given to those bidders offering supplies produced, manufactured, mined, grown, or performed in this Commonwealth as against those bidders offering supplies produced, manufactured, mined, grown, or performed in any state that gives or requires a preference to goods, supplies, equipment, materials, or printing produced, manufactured, mined, grown, or performed in that state. The amount of the preferences is equal to the amount of the preference applied by the other state for that particular supply.

2. Bidder Preference. In the award of contracts for the procurement of supplies, services and construction exceeding $10,000, preference shall be given to Pennsylvania resident bidders against a nonresident bidder from any state that gives or requires a preference to bidders from that state. The amount of preference shall be equal to the amount of the preference applied by the state of the nonresident bidder. A resident bidder is a person, partnership or corporation, or other business entity authorized to transact business in this Commonwealth and having a bona fide establishment for transacting business within this Commonwealth at which it was transacting business on the day when bids for the public contract were first solicited.

3. Prohibition. For construction and for all purchases of supplies, the purchasing agency shall not specify, use, or purchase any supplies which are produced, manufactured, mined, grown, or performed in any state that prohibits the specification for, use or purchase of such items in or on its public buildings or other works, when such items are not produced, manufactured, mined, grown, or performed in such state.

List of states applying a bidding preference

Process

States or commodity or services within a state not listed on the drop down screen within the calculator are exempt from the Act. The Act only applies to those states that have legislated preference for their resident businesses against other states products and services. Utilize the link below for a Reciprocal Limitations Calculator

Reciprocal Limitations Calculator (Excel sheet)