Bill Text: NJ A4487 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires State Contract Managers to monitor work conducted by subcontractors on State contracts.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced) 2024-09-23 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Labor Committee [A4487 Detail]
Download: New_Jersey-2024-A4487-Introduced.html
Sponsored by:
Assemblywoman SHAVONDA E. SUMTER
District 35 (Bergen and Passaic)
SYNOPSIS
Requires State Contract Managers to monitor work conducted by subcontractors on State contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the scope of work of certain subcontractors under State contracts and amending P.L.2005, c.336.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.2005, c.336 (C.52:34-10.7) is amended to read as follows:
7. The State Contract Manager shall be the State employee who shall be responsible for the overall management and administration of a State contract entered into on behalf of the State by the Division of Purchase and Property in the Department of the Treasury. The State agency using the contract shall designate the State Contract Manager for that contract and inform the Director of the Division of Purchase and Property of its designation, except that the director may designate the State Contract Manager when the director deems necessary.
The State Contract Manager for each contract shall be identified at the time of execution of the contract. At that time, the contractor shall be provided with the State Contract Manager's name, department, division, agency, address, telephone number, fax phone number, and E-mail address.
For a contract where only one State agency uses the contract, the State Contract Manager shall be responsible for engaging the contractor, assuring that purchase orders are issued to the contractor, directing the contractor to perform the work of the contract, approving the deliverables and approving payment vouchers. The State Contract Manager shall be the person that the contractor contacts after the contract is executed for answers to any questions and concerns about any aspect of the contract. The State Contract Manager shall be responsible for coordinating the use and resolving minor disputes between the contractor and the State agency.
If the contract has multiple users, the director may designate the State Contract Manager for that contract. The State Contract Manager shall be the central coordinator of the use of the contract for all using agencies, while other State employees engage and pay the contractor. All persons and agencies that use the contract shall notify and coordinate the use of the contract with the State Contract Manager.
The State Contract Manager shall have the following additional duties:
if the State Contract Manager determines that the contractor has failed to perform the required work and is unable to resolve that failure to perform directly with the contractor, the State Contract Manager shall file a formal complaint with the contract compliance unit in the Division of Purchase and Property and request that office to assist in the resolution of the contract performance problem with the contractor;
the State Contract Manager shall be responsible for arranging for contract extensions and preparing any re-procurement of the contract with the Purchase Bureau;
the State Contract Manager shall be responsible for obtaining permission from the director to reduce the scope of work, amend the contract or add work or special projects to the contract after contract award;
the State Contract Manager shall be responsible for completion of a project performance assessment form for submission to the division, with a copy to the Office of Management and Budget; and
the State Contract Manager shall be responsible for submitting the contractor final deliverables to the Associate Director of the Office of Management and Budget.
The State Contract Manager shall also be responsible for monitoring that all certified businesses formally identified as subcontractors by prime contractors on State contracts are contracted to complete work within their identified area of expertise. Throughout the duration of the State contract, the State Contract Manager shall monitor and document on a routine basis the use of the identified certified businesses.
If at any time during the contract duration any of the previously identified certified businesses are no longer performing as subcontractors, the State Contract Manager shall require the prime contractor to formally submit their reasoning for no longer utilizing the previously identified certified business as a subcontractor for the work.
Each State Contract Manager shall notify the Chief Diversity Officer on a quarterly basis of the number of instances when certified businesses formally identified as subcontractors by prime contractors are contracted to complete work outside their identified area of expertise. The report shall include the name of the prime contractor, a description of the work of the certified business as a subcontractor, and how the work was outside the area of expertise of the certified business.
Any contract user that is unable to resolve disputes with a contractor shall refer those disputes to the State Contract Manager for resolution. Any questions related to performance of the work of the contract by contract users shall be directed to the State Contract Manager. The contractor may contact the State Contract Manager if the contractor cannot resolve a dispute with contract users.
As used in this section:
"Chief Diversity Officer" means the individual holding the position established in the Division of Purchase and Property in the Department of the Treasury pursuant to section 1 of P.L.2017, c.95 (C.52:32-18.1).
"Small business" shall have the same meaning as in section 1 of P.L.2023, c.165 (52:32-54.1).
"Women's business" shall have the same meaning as in section 2 of P.L.1986, c.195 (C.52:27H-21.18).
"Minority business" shall have the same meaning as in section 2 of P.L.1986, c.195 (C.52:27H-21.18).
"Veteran-owned business" shall have the same meaning as in section 2 of P.L.2011, c.147 (C. 52:32-50).
"Disabled veteran business" shall have the same meaning as in section 2 of P.L.2015, c.116 (52:32-31.2).
"LGBTQ+" means members of the lesbian, gay, bisexual, transgender, or questioning community.
"Economically disadvantaged business" shall have the same meaning in section 1 of P.L.2023, c.300 (C.52:32-31.15)
"Socially disadvantaged business" shall have the same meaning in section 1 of P.L.2023, c.300 (C.52:32-31.15)
"Certified business" means a small business, minority business, women's business, veteran business, disabled veteran business, LGBTQ+ business, economically disadvantaged business, or socially disadvantaged business as certified by the Division of Revenue Business Certification program in the Department of the Treasury.
(cf: P.L.2005, c.336, s.7)
2. This act shall take effect on the 120th day following the date of enactment, except that the State Treasurer may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.
STATEMENT
This bill requires State Contract Managers to monitor the use of subcontractors that are certified businesses on State contracts.
Under this bill, the State Contract Manager is responsible for monitoring that all certified businesses formally identified as subcontractors by prime contractors on State contracts are contracted to complete work within their identified area of expertise. During the execution of the State contracts, the State Contract Manager is responsible for monitoring and documenting the use of the identified certified businesses as subcontractors. If the prime contractor decides to discontinue their utilization of the certified business as a subcontractor, the State Contract Manager must require a formal explanation from the prime contractor.
Each State Contract Manager is required to notify the Chief Diversity Officer on a quarterly basis of the number of instances when certified businesses formally identified as subcontractors by prime contractors are contracted to complete work outside their identified area of expertise. The report must include the name of the prime contractor, a description of the work of the certified business as a subcontractor, and how the work was outside the area of expertise of the certified business.
As used in the bill, certified business means a small business, minority business, women's business, veteran business, disabled veteran business, LGBTQ+ business, economically disadvantaged business, or socially disadvantaged business as certified by the Division of Revenue Business Certification program in the Department of the Treasury.
