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Bill > A5328


NJ A5328

NJ A5328
Increases certain local public contract bid threshold.


summary

Introduced
02/20/2025
In Committee
02/20/2025
Crossed Over
Passed
Dead
01/12/2026

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 bid threshold from $17,500 to $22,000, which allows local government units more flexibility in awarding contracts without requiring public bidding. Under the new provisions, the governing body of a local contracting unit can authorize a purchasing agent or designated employee to award contracts up to $22,000 without public advertising for bids. If a contracting unit has established a bid threshold higher than $22,000 and has a qualified purchasing agent (a certified professional who manages purchasing activities), 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 thresholds if desired and continues the requirement for the Governor to periodically adjust these thresholds based on an index rate. The changes aim to streamline procurement processes for local governments by reducing administrative burdens for smaller contract awards while maintaining transparency and fiscal responsibility. The bill will take effect on the first day of the fourth month following its enactment.

Committee Categories

Government Affairs

Sponsors (3)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 02/20/2025)

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