The Commonwealth Court has ruled in a case of first impression that a state agency may not specify a price in a request for sealed competitive proposals because the Commonwealth Procurement Code requires an agency to consider cost among the factors in awarding a contract.
In Omnicare v. Department of Public Welfare, a three-judge panel unanimously ruled to invalidate a contract the state Department of Public Welfare awarded to Diamond Drugs Inc. to provide pharmaceuticals to DPW’s five Developmentally Disabled Centers.
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