summary
Introduced
10/28/2024
10/28/2024
In Committee
10/28/2024
10/28/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill amends the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), to increase, from $17,500 to $22,000, the statutory, maximum contract amount at which the governing body of a local contracting unit may designate an employee to award a contract without public advertising for bids, regardless of whether the designated employee possesses a qualified purchasing agent certificate. Under the bill, if a contracting unit has established a bid threshold in excess of $22,000, and has designated a person possessing a qualified purchasing agent certificate to serve as the contracting unit's purchasing agent, then the contracting unit is not required to award the contract itself, and may delegate the power to award contracts in an amount between $22,000 and the bid threshold to the holder of the qualified purchasing agent certificate. Current law authorizes the governing body of a contracting unit that has designated a purchasing agent to establish a bid threshold of up to $25,000 or the threshold amount set by the Governor, which amount is currently set at $44,000. Therefore, under the bill, a contracting unit would be able to delegate the award of a contract below $22,000, or all contracts below $22,000, to a purchasing agent or other employee, without publicly advertising for bids. If a contracting unit designates a purchasing agent and sets a bid threshold in excess of $22,000, the contracting unit may delegate the power to award contracts between $22,000 and the public bid threshold to the purchasing agent.
AI Summary
This bill amends the Local Public Contracts Law to increase the contract value threshold at which local government units can award contracts without public bidding from $17,500 to $22,000. The legislation allows governing bodies of local contracting units to authorize a purchasing agent or designated employee to award contracts under $22,000 without requiring public advertisement for bids. If a contracting unit has established a bid threshold higher than $22,000 and has a qualified purchasing agent (a certified professional responsible for purchasing), they can delegate the power to award contracts between $22,000 and the established bid threshold to that agent. The bill maintains existing provisions that allow governing bodies to set lower bid thresholds if desired and allows contracts to be awarded for up to 24 consecutive months (12 months for professional services). The changes provide local governments with more flexibility in awarding smaller contracts and streamline the procurement process by reducing bureaucratic steps for lower-value purchases. The amendments will take effect on the first day of the fourth month following the bill's enactment.
Committee Categories
Housing and Urban Affairs
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 10/28/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S3849 |
BillText | https://pub.njleg.gov/Bills/2024/S4000/3849_I1.HTM |
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