Bill Text: NJ A1308 | 2018-2019 | Regular Session | Amended

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Bill Title: The "Electronic Construction Procurement Act." *

Spectrum: Moderate Partisan Bill (Democrat 9-2)

Status: (Introduced - Dead) 2020-01-13 - Substituted by S3137 (3R) [A1308 Detail]

Download: New_Jersey-2018-A1308-Amended.html

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[First Reprint]

ASSEMBLY, No. 1308

STATE OF NEW JERSEY

218th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

 

 

Sponsored by:

Assemblyman  LOUIS D. GREENWALD

District 6 (Burlington and Camden)

Assemblyman  MATTHEW W. MILAM

District 1 (Atlantic, Cape May and Cumberland)

Assemblyman  R. BRUCE LAND

District 1 (Atlantic, Cape May and Cumberland)

 

Co-Sponsored by:

Assemblymen Armato and Mazzeo

 

 

 

 

SYNOPSIS

     The "Electronic Bidding Construction Act."

 

CURRENT VERSION OF TEXT

     As reported by the Assembly State and Local Government Committee on May 16, 2019, with amendments.

  

An Act concerning public contracts and supplementing various parts of the statutory law.

 

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

 

     1.    Sections 1 through 8 of P.L.    , c.     (C.          ) (pending before the Legislature as this bill) shall be known and may be cited as the "Electronic Bidding Construction Act."

 

     2.    The Legislature finds and declares that advances in electronic technology offer opportunities to enhance governmental efficiencies.  In order to explore these avenues of improved government efficiency, it is in the best interests of the State to require public entities to adopt proven technologies for the procurement of public works construction through means of electronic technology, and to require the State to promulgate standards for the use of these technologies that provide for the integrity and procedural protections of sealed public bidding and competitive contracting translated to an electronic environment.

 

     3.    As used in P.L.    , c.     (C.         ) (pending before the Legislature as this bill):

     ¹["Public contracting unit" means a government entity that contracts for the procurement of goods, services, or the construction of public works pursuant to the "Public School Contracts Law," N.J.S.A.18A:18A-1 et seq.; the "State College Contracts Law," N.J.S.A.18A:64-52 et seq.; the "County College Contracts Law," N.J.S.A.18A:64A-25.1 et seq.; N.J.S.A.52:18A-235 et seq. (the schools development authority law); the "Local Public Contracts Law," N.J.S.A.40A:11-1 et seq.; and chapters 32, 33, and 34 of Title 52 of the Revised Statutes (the State and its agencies and instrumentalities).]¹

     "Electronic procurement" means the use of computer technology and the Internet for the advertising and submission of public bids, providing notice of revisions or addenda to advertisements or bid documents, the receipt of proposals and quotations, and related practices to assist in determining the lowest responsible bidder ¹[who is] , the bidder whose bid is determined to be¹ most advantageous, price and other factors considered, ¹[as appropriate, for the procurement of public works construction] or other agency-appropriate bid or proposal procurement standard¹.

     ¹"Local public contracting unit" means a government entity that contracts for the procurement of goods, services, or the construction of public works pursuant to the "Public School Contracts Law," N.J.S.18A:18A-1 et seq.); the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.); and the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.).¹

     "Public works construction" means any project that is subject to the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), and is contracted for by a public contracting unit for the purposes of construction, reconstruction, demolition, alteration, custom fabrication, repair work, or maintenance work, including painting and decorating, done under contract and paid for, in whole or in part, out of the funds of a public body.  Public works construction also means construction, reconstruction, demolition, alteration, custom fabrication, repair work, or maintenance work, done on any property or premises, whether or not the work is paid for from public funds if at the time of the entering into the contract, the property or premises is owned by the government entity.

     ¹"State public contracting unit" means a government entity that contracts for the procurement of goods, services, or the construction of public works pursuant to the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.); P.L.2007, c.137 (C.52:18A-235 et seq.); and chapters 32, 33, and 34 of Title 52 of the Revised Statutes.¹

 

     4.    ¹[Public] a.  Local public¹ contracting units shall use an electronic procurement process for public works construction contracts whenever the project's value exceeds $5,000,000, subject to the provisions of           P.L.     , c.     (C.       ) (pending before the Legislature as this bill).

     ¹b.   State public contracting units shall use an electronic procurement process for public works construction contracts when the project requires public advertisement, subject to the provisions of           P.L.     , c.     (C.       ) (pending before the Legislature as this bill

     c.¹   The State Treasurer, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate regulations to effectuate the electronic procurement of public works construction, in consultation with the State Comptroller, the Commissioner of Community Affairs, the Commissioner of Education, and the Secretary of Higher Education.  The regulations shall set forth each of the steps the State Treasurer deems appropriate to be taken by each ¹State or local¹ public contracting unit for contracts that meet those criteria.  The regulations shall also set forth a procedure to be followed by a ¹State or local¹ public contracting unit for the awarding of a contract for the administration of the electronic procurement process.

     5.    a.  The regulations adopted pursuant to section 4 of P.L.    , c.  (C.    ) (pending before the Legislature as this bill) shall require that contracts to be awarded for public works construction pursuant to the provisions of P.L.    , c.        (C.    ) (pending before the Legislature as this bill) contain the following bidding components:

     (1) general conditions of the contract;

     (2) plans and specifications of the public works construction project;

     (3) competitive bidding for the contract, if appropriate;

     (4) ¹[prequalification] classification¹ of firms submitting bids;

     (5) statement of corporate ownership of the entity or entities submitting bids;

     (6) bid bond and performance bond security;

     (7) execution of the contract;

     (8) certification of financial ability to complete work;

     (9) commencement of work;

     (10) ¹[single-prime bids;

     (11)]¹ prevailing wage mandate;

     ¹[(12)] (11)¹  acknowledgement of addenda;

     ¹[(13)] (12)¹  naming of prime subcontractors;

     ¹[(14)] (13)¹  specified alternates;

     ¹[(15) explicit retainage amount disclosed;

     (16)] (14)¹  non-collusion affidavit; and

     ¹[(17)] (15)¹  political contribution disclosure.

     b.    The State Treasurer shall also promulgate a bid proposal form to be used by contractors or vendors bidding for work under P.L.    , c.                  (C.         ) (pending before the Legislature as this bill).

     c.     The regulations shall require that a contractor or vendor seeking a contract for  public works construction pursuant to P.L.    , c.        (C.    ) (pending before the Legislature as this bill) be classified with the Division of Property Management and Construction in the Department of ¹the¹ Treasury ¹, or be prequalified by the Department of Transportation, New Jersey Transit, or the New Jersey Turnpike Authority,¹ prior to submitting a bid.

 

     6.    The regulations adopted pursuant to section 4 of P.L.  , c.   (C.   ) (pending before the Legislature as this bill) shall require that electronic procurement processes meet the following requirements:

     a.     five years of use by a public contracting unit to secure electronic bids;

     b.    allow public contracting units to advertise bids and distribute bidding documents including plans and specifications;

     c.     be a closed loop system that allows contractors, vendors, and bidders, to receive bid solicitations and documentation, as well as submit bids electronically;

     d.    provide a digital lockbox that ensures bid information cannot be accessed by a third party before the bid deadline, including an electronic bidding servicer or the State;

     e.     allow bids to be encrypted upon submission and when in the digital lockbox;

     f.     use digital signature technology and provide for identity verification;

     g.    allow for electronic bid validation;

     h.    allow bids to be ¹[edited or]¹ withdrawn ¹and resubmitted¹ by the vendor or bidder at any point up to the published bid deadline;

     i.     allow addenda to be issued electronically with addenda automatically applied to the online bid form;

     j.     provide capabilities to create and edit templates of bid forms;

     k.    provide the means for the State to require data types, including but not limited to numeric prices;

     l.     calculate extensions for contractors, bidders or vendors based on price and quality when applicable;

     m.   alert contractors, vendors, and bidders of missing required data;

     n.    provide email notification to contractors, vendors, and bidders of issuance of bid advertisement and addenda;

     o.    provide commodity ¹or classification¹ codes ¹as required by the contracting agency¹ to allow for targeted notifications to contractors, vendors, and bidders;

     p.    provide system implementation services and training to public contracting units at no cost; and

     q.    offer scheduled training webinars for contractors, vendors, and bidders at no cost.

 

     7.    a.  The regulations promulgated by the State Treasurer pursuant to section 4 of P.L.   , c.    (C.             ) (pending before the Legislature as this bill) shall include, but not be limited to, practices that, notwithstanding any other law to the contrary:

     (1)   convert the current statutory, regulatory, and policy procedures related to sealed bidding to an electronic procurement environment;

     (2)   authorize public contracting units to accept commercial standards for electronic forms of bid security; and

     (3)   establish minimum standards that shall be met by systems and services that provide and administer electronic procurement processes.

     b.    The State Treasurer shall also consult with: the Attorney General to develop safeguards to protect against collusion and bid rigging; the Division of Purchase and Property ¹and the Division of Property Management and Construction¹ in the Department of the Treasury to develop practices used for electronic procurement; and the Office of Information Technology in, but not of, the Department of the Treasury, to ensure the privacy and security of electronic transactions.

     c.     Notwithstanding any law, rule, or regulation to the contrary, plans and specifications for public works construction contracts that require the seal and signature of a professional engineer, architect, or land surveyor may be included in an electronic file used for electronic procurement as long as the original document from which the electronic file is derived contains a physical or electronic seal and signature as otherwise required by law.  If the State Board of Engineers and Land Surveyors and the New Jersey State Board of Architects adopt rules to permit digital seals and signatures, those rules shall supersede this subsection.

 

     8.    Notwithstanding any provisions of chapters 32, 33, and 34 of Title 52 of the Revised Statutes to the contrary, the State, and any agency or instrumentality of the State, shall use electronic procurement processes for public works construction contracts whenever the ¹[project's value exceeds $5,000,000,] project requires public advertisement pursuant to section 7 of P.L.1954, c.48 (C.52:34-12),¹ in accordance with the provisions of P.L.    , c.     (C.          ) (pending before the Legislature as this bill).

 

     9.    Notwithstanding any provisions of the "Public School Contracts Law," N.J.S.18A:18A-1 et seq. to the contrary, a board of education shall use electronic procurement processes for public works construction contracts whenever the project's value exceeds $5,000,000, in accordance with the provisions of P.L.   , c.  (C.      ) (pending before the Legislature as this bill).

 

     10.  Notwithstanding any provisions of the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.) to the contrary, a State college shall use electronic procurement processes for public works construction contracts whenever the ¹[project's value exceeds $5,000,000] project requires public advertisement¹, in accordance with the provisions of           P.L.    , c.     (C.          ) (pending before the Legislature as this bill).

 

     11.  Notwithstanding any provisions of the "County College Contracts Law," P.L.1982, c.189 (C.18A:64A-25.1 et seq.) to the contrary, a county college shall use electronic procurement processes for public works construction contracts whenever the project's value exceeds $5,000,000, in accordance with the provisions of P.L.    , c.     (C.          ) (pending before the Legislature as this bill).

 

     12.  Notwithstanding any provisions of P.L.2007, c.137 (C.52:18A-235 et seq.) to the contrary, the development authority shall use electronic procurement processes for public works construction contracts whenever the ¹[project's value exceeds $5,000,000] project requires public advertisement¹, in accordance with the provisions of P.L.   , c.  (C.       ) (pending before the Legislature as this bill).

 

     13.  Notwithstanding any provisions of the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to the contrary, a contracting unit shall use electronic procurement processes for public works construction contracts whenever the project's value exceeds $5,000,000, subject to the provisions of P.L.     , c.   (C.      ) (pending before the Legislature as this bill).

 

     14.  This act shall take effect on the first day of the ¹[sixth] thirteenth¹ month next following enactment.