Bill Text: NJ A5019 | 2024-2025 | Regular Session | Introduced
Bill Title: Revises definition of "contracting unit" for government cooperative purchasing agreements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-11-14 - Introduced, Referred to Assembly State and Local Government Committee [A5019 Detail]
Download: New_Jersey-2024-A5019-Introduced.html
Sponsored by:
Assemblywoman ELLEN J. PARK
District 37 (Bergen)
SYNOPSIS
Revises definition of "contracting unit" for government cooperative purchasing agreements.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning cooperative purchasing agreements entered into by government contracting units and amending P.L.1996, c.16.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 7 of P.L.1996, c.16 (C.52:34-6.2) is amended to read as follows:
7. a. Notwithstanding the provisions of any other law to the contrary except the provisions of R.S.30:4-95, and as an alternative to the procedures concerning the awarding of public contracts provided in P.L.1954, c.48 (C.52:34-6 et seq.), the Director of the Division of Purchase and Property in the Department of the Treasury may enter into cooperative purchasing agreements with one or more other states, or political subdivisions thereof, for the purchase of goods and services. A cooperative purchasing agreement shall allow the jurisdictions which are parties thereto to standardize and combine their requirements for the purchase of a particular good or service into a single contract solicitation which shall be competitively bid and awarded by one of the jurisdictions on behalf of jurisdictions participating in the contract.
b. (1) The director may elect to purchase goods or services through a contract awarded pursuant to a cooperative purchasing agreement whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded or already awarded through a cooperative purchasing agreement, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(2) The director may also elect to purchase goods or services through a contract awarded pursuant to a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, in which other states participate, whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded through a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(3) Notwithstanding any other law to the contrary, any contracting unit authorized to purchase goods, or to contract for services, may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process by another contracting unit within the State of New Jersey, or within any other state, when available. Prior to making purchases or contracting for services, the contracting unit shall determine that the use of the cooperative purchasing agreement shall result in cost savings after all factors, including charges for service, material, and delivery, have been considered.
For purposes of this paragraph[,]:
"contracting unit" means any [county, municipality, special district, school district, fire district] local unit, State college or university, public research university, county college, State authority or agency, or any board, commission, or committee, [authority or agency,] which is not a State board, commission, or committee, [authority or agency,] and which has administrative jurisdiction over any district, included or operating in whole or in part, within the territorial boundaries of any county or municipality which exercises functions which are appropriate for the exercise by one or more units of local government, and which has statutory power to make purchases and enter into contracts awarded by a contracting agent for the provision or performance of goods or services, and the New Jersey Transit Corporation created pursuant to P.L.1979, c.150 (C.27:25-1 et seq.)[.]; and
"local unit" means any county, municipality, special district, school district, fire district, or any board, commission, committee, authority or agency thereof.
c. The director may solicit bids and award contracts on behalf of this State and other jurisdictions which are parties to a cooperative purchasing agreement provided that the agreement specifies that each jurisdiction participating in a contract is solely responsible for the payment of the purchase price and cost of purchases made by it under the terms of any contract awarded pursuant to the agreement.
d. The director may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.
(cf: P.L.2018, c.162, s.14)
2. This act shall take effect immediately.
STATEMENT
Under current law, certain government contracting units authorized to purchase goods, or to contract for services, may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process by another contracting unit within the State of New Jersey, or within any other state, when available. The definition of "contracting unit" in this provision of law includes various government entities, but specifies that they are "not a State board, commission, committee, authority or agency."
This bill revises this definition of "contracting unit" to change the use of "authority or agency," providing instead for "State authority or agency." Thereby, State authorities or agencies would be included in the definition of contracting unit and be able to participate in the pertinent cooperative purchasing agreement. State boards, commissions, and committees will remain ineligible to participate in these cooperative purchasing agreements.
