Bill Text: NJ S3612 | 2022-2023 | Regular Session | Introduced
Bill Title: Adjusts bid threshold amounts on certain public contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-02-16 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3612 Detail]
Download: New_Jersey-2022-S3612-Introduced.html
Sponsored by:
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Adjusts bid threshold amounts on certain public contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning public contracts, amending and supplementing N.J.S.18A:18A-3 and P.L.1971, c.198, and amending 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 or the threshold amount adjusted by the Governor pursuant to subsection b. of this section.
(2) Notwithstanding paragraph (1) of this subsection, a board of education that has appointed a qualified purchasing agent pursuant to subsection b. of section 9 of P.L.1971, c.198 (C.40A:11-9), and that serves a municipality, or municipalities, with total population in excess of 100,000 people, or governs a county school district, may establish that the bid threshold may be up to $200,000 or the threshold amount adjusted by the Governor pursuant to subsection b. of this section.
(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] three 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] third 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] up to 36 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. (New section) Notwithstanding the provisions of any other law, rule, or regulation to the contrary, a contract having an anticipated value in excess of $17,500 but below the contracting unit's applicable public bidding threshold, is not required to be awarded by the governing body of the contracting unit and may be awarded by the qualified purchasing agent of the contracting unit.
3. 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 qualified purchasing agent pursuant to subsection b. of section 9 of P.L.1971, c.198 (C.40A:11-9) 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 municipality with a population in excess of 100,000 people, or an agency or instrumentality thereof, or a county, or an agency or instrumentality thereof, the governing body of the contracting unit that has appointed a qualified purchasing agent pursuant to subsection b. of section 9 of P.L.1971, c.198 (C.40A:11-9) may establish a bid threshold of $200,000 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] up to 36 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] third 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] third 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)
4. (New section) Notwithstanding the provisions of any other law, rule, or regulation to the contrary, a contract having an anticipated value in excess of $17,500, but below the contracting unit's applicable public bidding threshold, is not required to be awarded by the governing body of the contracting unit and may be awarded by the qualified purchasing agent of the contracting unit.
5. 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) as amended by P.L. c. (C. ) (pending before the Legislature as this bill). A contracting unit exercising this authority shall file a letter to this effect with the director.
(cf: P.L.2009, c.166, s.4)
6. This act shall take effect on the first day of the first month
next following enactment.
STATEMENT
This bill adjusts the statutory bid threshold amounts under the Local Public Contracts Law and the Public School Contracts Law. The bill increases the statutory bid thresholds for all local units with a population in excess of 100,000 people or, in the case of a school district, that serves a municipality, or municipalities, with total population in excess of 100,000 people, and allows the contracting unit to authorize higher bid thresholds.
The bill allows 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 qualified purchasing agent. The bill allows counties and municipalities with a population in excess of 100,000, and boards of education located within municipalities with a population in excess of 100,000, to establish a bid threshold of $200,000, or the amount adjusted by the Governor.
The bill changes the time in which the Governor, in consultation with the Department of Treasury, is required to adjust the threshold amount from every five years to every three year.
The bill also provides that, notwithstanding the provisions of any other law, rule, or regulation to the contrary, a contract having an anticipated value in excess of $17,500 but below the contracting unit's applicable public bidding threshold is not required to be awarded by the governing body of the contracting unit and may be awarded by the qualified purchasing agent of the contracting unit.
