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  • NJ A2139
  • Requires State Treasurer to follow usual procurement process prior to entering into cooperative purchasing agreements.
In Committee
Crossed OverPassedSignedDead/Failed/Vetoed
2016-2017 Regular Session
At present, the law authorizes the Director of the Division of Purchase and Property in the Department of the Treasury to purchase goods or services through cooperative purchasing agreements with other states or political subdivisions thereof and through contracts awarded pursuant to a nationally recognized and accepted cooperative agreement that has been developed using a competitive bidding process in which other states participate. In some cases, the use of agreements has caused contracts that were previously awarded to New Jersey businesses to be awarded instead to large national firms and has denied New Jersey businesses the opportunity to bid on these contracts. This bill would address this situation by providing that prior to entering into such an agreement, the director would follow the usual procedures for the awarding of public contracts or, if the director deems it appropriate, the procedures for the awarding of small business set-aside contracts, including procedures for the awarding of multi-source contracts when appropriate. Upon opening the bids or reviewing the quotation of prices, the director would determine whether awarding the contract by that method would be the most cost-effective method of procurement and in the State's best interest compared to making the purchase through a cooperative purchasing agreement and will award the contract or enter in to the cooperative purchasing agreement accordingly. If the director determines to award the contract through a cooperative purchasing agreement, all bids or price quotations previously submitted would be void. The bill would also provide that the State's commitment under a cooperative purchasing agreement would not exceed two years. Therefore, even if the director chooses to use a cooperative purchasing agreement, the process established by the bill would give New Jersey businesses the opportunity to compete for a particular type of procurement every two years. In addition, the bill provides that the director will not enter into a cooperative purchasing agreement unless for a continuous period of six months the director has posted express written notice on the division's Internet website that the director is considering making a particular purchase through such an agreement and published that notice at least monthly in a newspaper or newspapers with Statewide circulation.
Not specified
Introduced, Referred to Assembly State and Local Government Committee  (on 1/27/2016)
Date Chamber Action Description
1/27/2016 A Introduced, Referred to Assembly State and Local Government Committee
Date Motion Yea Nay Other
None specified