Adjustments to the base amounts specified under sections 11901.1 (relating to contracts or purchases in excess of base amount of $18,500), 11902 (relating to evasion of advertising requirements) and 11909 (relating to separate bids for plumbing, heating, ventilating and electrical work, elevators and escalators) shall be made as follows:
(1) The Department of Labor and Industry shall determine the percentage change in the Consumer Price Index for All Urban Consumers: All Items (CPI-U) for the United States City Average, as published by the United States Department of Labor, Bureau of Labor Statistics, for the 12-month period ending September 30.
(2) If the Department of Labor and Industry determines that there is no positive percentage change, no adjustment to the base amounts shall occur for the relevant time period provided for in this section.
(3) (i) If the Department of Labor and Industry determines that there is a positive percentage change in the first year that the determination is made under paragraph (1), the positive percentage change shall be multiplied by each base amount, the products shall be added to the base amounts, respectively, and the sums shall be preliminary adjusted amounts.
(ii) The preliminary adjusted amounts shall be rounded to the nearest $100 to determine the final adjusted base amounts for purposes of sections 11901.1 and 11902.
(4) In each successive year in which there is a positive percentage change in the CPI-U for the United States City Average, the positive percentage change shall be multiplied by the most recent preliminary adjusted amounts and the products shall be added to the preliminary adjusted amount of the prior year to calculate the preliminary adjusted amounts for the current year. The sums shall be rounded to the nearest $100 to determine the new final adjusted base amounts for purposes of sections 11901.1 and 11902.
(5) The determinations and adjustments required under this section shall be made annually after October 1 and before November 15.
(6) The final adjusted base amounts and new final adjusted base amounts obtained under paragraphs (3) and (4) shall become effective January 1 for the calendar year following the year in which the determination required under paragraph (1) is made.
(7) The Department of Labor and Industry shall publish notice in the Pennsylvania Bulletin prior to January 1 of each calendar year of the annual percentage change determined under paragraph (1) and the unadjusted or final adjusted base amounts determined under paragraphs (3) and (4) at which competitive bidding is required under section 11901.1 and advertising is required under section 11902 or separate bids are required under section 11909 for the calendar year beginning the first day of January after publication of the notice. The notice shall include a written and illustrative explanation of the calculations performed by the Department of Labor and Industry in establishing the unadjusted or final adjusted base amounts under this section for the ensuing calendar year.
(8) The annual increase in the preliminary adjusted base amounts obtained under paragraphs (3) and (4) shall not exceed 3%.
Cross References. Section 11903.1 is referred to in sections 11901.1, 11901.2, 11901.4, 11902, 11909 of this title.