Bill > A2023

Introduced Session

This bill provides equitable relief to government contractors who have sustained unanticipated expenses due to increases for construction materials. The unforeseen emergency of unanticipated increases in construction material costs has imposed substantial inequity upon government contractors awarded contracts after public bidding. Such inequity has threatened the ability of contractors to fulfill the contracts awarded to them. It is in the best interest of the State, its political subdivisions, its authorities, commissions, boards, or instrumentalities, and interstate agencies of which the State is a participant to provide equitable relief to those government contractors who have sustained damage from the unforeseen increases of construction material costs. This bill applies to State agencies, political subdivisions of the State, State authorities, commissions, boards, and instrumentalities, and, under certain circumstances, interstate agencies of which the State is a participant. This bill allows for the terms and conditions for certain contracts to be amended to adjust for the rising costs of construction materials. The determination of the adjustment would be made by the delegated person based upon the available evidence. The bill also provides for adjustments if there are decreases in costs. The adjustments would apply only to contracts valued at $25 million or less awarded by a contracting agency based upon bids submitted prior to December 1, 2021, but only for materials purchased or invoiced after March 1, 2020. This bill also authorizes the termination or suspension of any contract award for the purchase of commodities upon written application for such termination or suspension by the contractor, where extraordinary and unforeseen general market conditions have caused increases in the contractor's costs for construction materials or other physical elements consisting of construction materials to be sold under the contract. Such a determination would be made by the delegated person based upon the available evidence. The bill appropriates $25 million to the Department of the Treasury for the reimbursement of government contract costs to State agencies, political subdivisions, State authorities, commissions, boards, and instrumentalities, and, under certain circumstances, interstate agencies of which the State is a participant. The provisions of this bill would expire on June 30, 2024.

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Reginald Atkins (D)*,  Shanique Speight (D)*, 

Introduced, Referred to Assembly State and Local Government Committee (on 01/09/2024)

Official Document