New Jersey-2010-A117-Introduced

An Act concerning purchasing requirements for certain State authorities and local government units and amending P.L.1971, c.198 and P.L.1996, c.16.

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

1. Section 12 of P.L.1971, c.198 (C.40A:11-12) is amended to read as follows:

12. a. (1) Any contracting unit under this act may without advertising for bids, or having rejected all bids obtained pursuant to advertising therefor, purchase any goods or services under any contract or contracts for such goods or services entered into on behalf of the State by the Division of Purchase and Property in the Department of the Treasury.

(2) A contracting unit, as defined in section 2 of P.L.1971, c.198 (C.40A:11-2), may without advertising for bids, or having rejected all bids obtained pursuant to advertising therefor, purchase any goods or services at a procurement price that is below the price of equivalent goods or services under contracts entered into on behalf of the State by the Division of Purchase and Property in the Department of the Treasury.

b. A contracting unit may also use, without advertising for bids, or having rejected all bids obtained pursuant to advertising, the Federal Supply Schedules of the General Services Administration or schedules from other federal procurement programs promulgated by the Director of the Division of Purchase and Property in the Department of the Treasury pursuant to section 1 of P.L.1996, c.16 (C.52:34-6.1), subject to the following conditions:

(1) the price of the goods or services being procured is no greater than the price offered to federal agencies;

(2) (Deleted by amendment, P.L.2006, c.10;

(3) the contracting unit receives the benefit of federally mandated price reductions during the term of the contract;

(4) the price of the goods or services being procured is no greater than the price of the same or equivalent goods or services under the State contract, unless the contracting unit determines that because of factors other than price, selection of a vendor from the Federal Supply Schedules or schedules from other federal procurement programs would be more advantageous to the contracting unit;

(5) a copy of the purchase order relating to any such contract, the requisition or request for purchase order, if applicable, and documentation identifying the price of the goods or services under the Federal Supply Schedules or schedules from other federal procurement programs shall be filed with the Director of the Division of Purchase and Property in the Department of the Treasury within five working days of the award of any such contract by the contracting unit.

c. Whenever a purchase is made, the contracting unit shall place its order with the vendor offering the lowest price, including delivery charges, that best meets the requirements of the contracting unit. Prior to placing such an order, the contracting unit shall document with specificity that the goods or services selected best meet the requirements of the contracting unit.

(cf: P.L.2006, c.10, s.4)

2. Section 2 of P.L.1996, c.16 (C.52:34-6.3 )is amended to read as follows:

2. a. Notwithstanding the provisions of any other law to the contrary, the State authorities authorized to contract independently under various provisions of State law may also use, without advertising for bids, or having rejected all bids obtained pursuant to advertising, the Federal Supply Schedules of the General Services Administration or schedules from other federal procurement programs, promulgated by the Director of the Division of Purchase and Property in the Department of the Treasury pursuant to section 1 of P.L.1996, c.16 (C.52:34-6.1), subject to the following conditions:

(1) the price of the goods or services being procured is no greater than the price offered to federal agencies;

(2) (Deleted by amendment, P.L.2006, c.10);

(3) the authority receives the benefit of federally mandated price reductions during the term of the contract;

(4) the price of the goods or services being procured is no greater than the price of the same or equivalent goods or services under the State contract, unless the authority determines that because of factors other than price, selection of a vendor from the Federal Supply Schedules or schedules from other federal procurement programs would be more advantageous to the authority;

(5) a copy of the purchase order relating to any such contract, the requisition or request for purchase order, if applicable, and documentation identifying the price of the goods or services under the Federal Supply Schedules or schedules from other federal procurement programs shall be filed with the State Treasurer within five working days of the award of any such contract by the authority. The authority shall make available to the State Treasurer upon request any other documents relating to the solicitation and award of the contract.

b. State authorities authorized to contract independently under various provisions of State law may also, without advertising for bids, or having rejected all bids obtained pursuant to advertising, purchase any goods or services at a procurement price that is below the price of equivalent goods or services under contracts entered into on behalf of the State by the Division of Purchase and Property in the Department of the Treasury. Prior to making a purchase without advertising for bids or after rejecting all bids, pursuant to the authority of this subsection, the State authority shall document with specificity that the goods or services selected best meet the requirements of the State authority.

(cf: P.L.2006, c.10, s.5)

3. This act shall take effect immediately.

STATEMENT

This bill would authorize certain State authorities and local and county governments to purchase goods or services at a cost below that offered under State contracts without resorting to advertising for bids. This would provide State authorities, as well as local and county governments, the necessary flexibility to obtain goods and services at lower prices than those available under State contracts.

Additional savings would also be achieved by avoiding costs and delays related to the bidding process.