Bill > A5514

Introduced Session

This bill requires local contracting units under the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.), (contracting units) to determine and utilize cost-saving practices when procuring energy-related goods and services. The bill specifies that a cost savings analysis prescribed by the Division of Local Government Services in the Department of Community Affairs is required to include, at a minimum: factors such as charges for service, materials, delivery, soft costs, costs of acquisition, and other costs of traditional bidding such as cost overruns, protest, rework, and change orders. If the purchasing agent determines that entering into a cooperative purchasing system for the procurement of energy-related goods or services will result in cost savings, the contracting unit is required to utilize a cooperative purchasing system. Under the bill, prior to entering into a contract for the procurement of any goods or services, the contracting unit is required to ensure that the contractor and any subcontractors are compliant with existing State and federal laws, rules, and regulations. This bill also requires the Director of the Division of Local Government Services in the Department of Community Affairs to develop guidelines for a local contracting unit to enter into cooperative purchasing systems for the procurement of energy-related goods or services. Under the bill, the cooperative purchasing system guidelines is to include, but not be limited to:· the types of energy-related goods and services, including work, labor, commodities, equipment, materials, or supplies of any tangible or intangible nature, except real property, that may be procured through a contract awarded by a contracting agent under a cooperative purchasing system;· the requirements concerning the process for advertising and soliciting bids for contracts through a cooperative purchasing system, and the factors that are required to be utilized in the awarding of contracts;· provisions ensuring contracting units enter into contracts for the procurement of energy-related goods or services through a cooperative purchasing system with contractors and subcontractors that are compliant with existing State and federal laws, rules, and regulations; and· information outlining the benefits of entering into cooperative purchasing systems, including but not limited to: cost-savings for the procurement of energy-related goods and services; access to experienced and reliable contractors and subcontractors; improvements in project execution time; elimination of pre-bid costs; and guaranteed maximum pricing to eliminate unforeseen expenses. The division is required to develop a cost savings analysis template comparing the costs of cooperative purchasing systems and other methods of procurement including, but not limited to, factors such as charges for service, materials, delivery, soft costs, costs of acquisition, and other costs of traditional bidding such as cost overruns, protest, rework, and change orders. The division is required to: (1) distribute the template to the governing body of each municipality and county in the State; and (2) publish the cost savings analysis template on the division's Internet website in an easily accessible location and format. Under the bill, the division is required to distribute the guidelines to the governing body of each municipality and county in this State, and publish the guidelines on the division's Internet website in an easily accessible location and format.

Committee Categories

Dan Hutchison (D)*,  Cody Miller (D)*, 

Assembly State and Local Government Hearing (10:00:00 5/15/2025 Committee Room 16, 4th Floor, State House Annex, Trenton, NJ) (on 05/15/2025)

Official Document