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Bill > S1442


NJ S1442

NJ S1442
Modifies use of cooperative purchasing agreements by certain public contracting units for construction services; prohibits time-and-materials contracts in certain circumstances; allows indefinite delivery, indefinite quantity public contracts in certain circumstances.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill modifies cooperative purchasing requirements for construction services used by certain contracting units. Under current law, any contracting unit can make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement when available and determined to have a cost savings. This bill requires that, for construction services for a public works project, cooperative purchasing agreements can only be used if the contract is awarded by a contracting unit in the State of New Jersey and is competitively bid in compliance with all requirements regarding public bidding, bid security, performance guarantees, insurance, and other public contracting requirements that are applicable to public works contracts. Public works projects undertaken by a contracting unit through a cooperative purchasing agreement would be subject to the "Public Works Contractor Registration Act" and the "New Jersey Prevailing Wage Act." The bill also prohibits the use of time-and-materials contracts that are available through a cooperative purchasing agreement by contracting units to undertake a public works project subject to the "Public Works Contractor Registration Act" and the "New Jersey Prevailing Wage Act." Additionally, the bill requires contracting units that award a contract for construction services for a public works project through a cooperative purchasing agreement to verify and maintain a copy of certain contractor contact information for prevailing wage enforcement purposes. The bill also allows a contracting unit to award indefinite delivery, indefinite quantity contracts for goods or services, including public works, without final plans and specifications for an individual project, provided the bid advertisement for the contract promotes free, open, and competitive bidding and sets forth the process by which individual purchase orders may be issued. As used in this bill, "contracting unit" means any: County; Municipality; Special district; School district; Fire district; State college or university; Public research university; County college; Board, commission, committee, authority or agency, which is not a State board, commission, 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 New Jersey Transit Corporation.

AI Summary

This bill modifies how certain public entities, referred to as "contracting units" (which include counties, municipalities, school districts, and various state and local agencies), can use cooperative purchasing agreements for construction services on public works projects. Previously, any contracting unit could use these agreements if they offered cost savings. Now, for construction services on public works projects, these agreements can only be used if the contract was awarded by a New Jersey contracting unit through a competitive bidding process that meets all public contracting requirements, including bid security and insurance. Projects under these agreements will also be subject to the "Public Works Contractor Registration Act" and the "New Jersey Prevailing Wage Act," which ensure contractors are registered and pay workers a minimum wage. The bill specifically prohibits the use of "time-and-materials contracts" (contracts where costs are based on actual material expenses and labor hours at fixed hourly rates) through cooperative purchasing agreements for public works projects covered by these two acts. Additionally, contracting units using cooperative purchasing for construction must keep records of contractor contact information for prevailing wage enforcement. The bill also introduces a new provision allowing contracting units to award "indefinite delivery, indefinite quantity contracts" for goods, services, or public works without needing final project plans and specifications upfront, as long as the initial bid advertisement promotes open competition and outlines how individual orders will be placed.

Committee Categories

Government Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee (on 01/09/2024)

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