Bill
Bill > A3984
NJ A3984
NJ A3984Modifies 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
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 contracting units in New Jersey can use cooperative purchasing agreements for construction services, which are agreements where multiple government entities combine their purchasing power to get better prices. Specifically, for public works projects, these agreements can only be used if the contract was awarded by a New Jersey contracting unit and was competitively bid according to all applicable public contracting rules, including bid security, performance guarantees, and insurance. Projects under these agreements will also be subject to the "Public Works Contractor Registration Act," which requires contractors to register, and the "New Jersey Prevailing Wage Act," which ensures workers are paid a minimum wage. The bill prohibits the use of "time-and-materials contracts" through cooperative purchasing for public works projects subject to these two acts; a time-and-materials contract is one where the cost is based on the actual expenses for materials and labor hours at set hourly rates. Additionally, contracting units using cooperative purchasing for construction must keep records of contractor contact information for prevailing wage enforcement. The bill also allows contracting units to award "indefinite delivery, indefinite quantity" contracts, which are contracts for goods or services, including public works, that don't require final plans and specifications upfront, as long as the bidding process is open and competitive and clearly outlines how individual orders will be placed. A "contracting unit" is broadly defined to include various local government entities like counties, municipalities, school districts, and certain authorities, as well as NJ Transit.
Committee Categories
Government Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3984 |
| BillText | https://pub.njleg.gov/Bills/2026/A4000/3984_I1.HTM |
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