New Jersey-2022-A4262-Introduced

An Act concerning certain public contracts and amending N.J.S.18A:18A-3, P.L.1971, c.198, and P.L.2009, c.166.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. N.J.S.18A:18A-3 is amended to read as follows:

18A:18A-3. a. (1) When the cost or price of [any] a contract [awarded by the purchasing agent] , in the aggregate, does not exceed in a contract year the total sum of [$17,500] $50,000, the [contract may be awarded by a purchasing agent when so authorized by resolution of the] board of education may authorize a purchasing agent to award the contract without public advertising for bids and bidding therefor [, except that the]. The board of education may adopt a resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. If the purchasing agent possesses a qualified purchasing agent certificate pursuant to subsection b. of section 9 of P.L.1971, c.198 (C.40A:11-9) the board of education may establish that the bid threshold may be up to [$25,000] $100,000.

(2) Notwithstanding paragraph (1) of this subsection, a board of education located within a city of the first class may authorize a purchasing agent to award a contract, the cost or price of which, in the aggregate, does not exceed in a contract year the total sum of $75,000. A board of education located within a city of the first class may adopt a resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. If the purchasing agent possesses a qualified purchasing agent certificate pursuant to subsection b. of section 9 of P.L.1971, c.198 (C.40A:11-9) the board of education may establish that the bid threshold may be up to $150,000.

(3) Such authorization may be granted for each contract or by a general delegation of the power to negotiate and award such contracts pursuant to this section.

b. Commencing in the fifth year after the year in which P.L.1999, c.440 takes effect, and every five years thereafter, the Governor, in consultation with the Department of the Treasury, shall adjust the threshold amount and the higher threshold amount which the board of education is permitted to establish as set forth in subsection a. of this section or the threshold amount resulting from any adjustment under this subsection, in direct proportion to the rise or fall of the index rate as that term is defined in N.J.S.18A:18A-2, and shall round the adjustment to the nearest $1,000. The Governor shall notify all local school districts of the adjustment no later than June 1 of every fifth year. The adjustment shall become effective on July 1 of the year in which it is made.

Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, except that contracts for professional services pursuant to paragraph (1) of subsection a. of N.J.S.18A:18A-5 may be awarded for a period not exceeding 12 consecutive months.

(cf: P.L.2009, c.166, s.6)

2. Section 3 of P.L.1971, c.198 (C.40A:11-3) is amended to read as follows:

3. a. (1) When the cost or price of [any] a contract [awarded by the contracting agent] , in the aggregate, does not exceed in a contract year the total sum of [$17,500] $50,000, the [contract may be awarded by a purchasing agent or other employee so designated by the] governing body [when so authorized] , by ordinance or resolution, as appropriate to the contracting unit, may authorize a purchasing agent or other designated employee to award the contract without public advertising for bids [, except that the]. The governing body of a contracting unit that has appointed a purchasing agent may establish a bid threshold of up to $100,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this section.

(2) Notwithstanding paragraph (1) of this subsection, when the contracting unit is a city of the first class or a county, the governing body, by ordinance or resolution, as appropriate to the contracting unit, may authorize a purchasing agent or other designated employee to award a contract, the cost or price of which, in the aggregate, does not exceed in a contract year the total sum of $75,000. The governing body of a contracting unit that is a city of the first class or a county and has appointed a purchasing agent may establish a bid threshold of $150,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this section.

(3) The governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. [If a purchasing agent has been appointed, the governing body of the contracting unit may establish that the bid threshold may be up to $25,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this section.]

(4) Such authorization may be granted for each contract or by a general delegation of the power to negotiate and award such contracts pursuant to this section.

b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive months, except that contracts for professional services pursuant to subparagraph (i) of paragraph (a) of subsection (1) of section 5 of P.L.1971, c.198 (C.40A:11-5) may be awarded for a period not exceeding 12 consecutive months. The Division of Local Government Services shall adopt and promulgate rules and regulations concerning the methods of accounting for all contracts that do not coincide with the contracting unit's fiscal year.

c. The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of every fifth year beginning in the fifth year after the year in which P.L.1999, c.440 takes effect, adjust the threshold amount, in direct proportion to the rise or fall of the index rate as that term is defined in section 2 of P.L.1971, c.198 (C.40A:11-2), and shall round the adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made.

(cf: P.L.2009, c.166, s.2)

3. Section 4 of P.L.2009, c.166 (C.40A:11-9a) is amended to read as follows:

4. An individual who is the duly authorized purchasing agent of a contracting unit and does not possess a qualified purchasing agent certificate on the date of enactment of P.L.2009, c.166 may continue to be referred to as the purchasing agent, but the bid threshold for that contracting unit shall be set at [$17,500 until such time as that individual obtains a qualified purchasing agent certificate] the amount authorized pursuant to section 3 of P.L.1971, c.198 (C.40A:11-3). A contracting unit exercising this authority shall file a letter to this effect with the director.

(cf: P.L.2009, c.166, s.4)

4. This act shall take effect on the first day of the fourth month next following enactment.

STATEMENT

This bill would adjust the statutory bid threshold amounts under the Local Public Contracts Law (LPCL, N.J.S.A 40:11-1 et seq.) and the Public School Contracts Law (PSCL, N.J.S.A. 18A:18A-1 et seq.). The bill would increase the statutory bid thresholds for all local units and boards of education and would allow larger local units, counties and first class cities, and boards of education located within first class cities, to authorize higher bid thresholds.

The bill would allow all local units and boards of education to authorize the award of contracts of up to $50,000 without public advertising for bids, which amount may be increased to as much as $100,000 if the board or local unit employs a State-certified purchasing agent. The bill would allow counties, cities of the first class, and boards of education located within cities of the first class to authorize the award of contracts of up to $75,000 without public advertising for bids, which amount may be increased to as much as $150,000 if the board or local unit employs a State-certified purchasing agent.