S1442

An Act concerning certain contracts by certain public contracting units, amending P.L.1996, c.16, and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 7 of P.L.1996, c.16 (C.52:34-6.2) is amended to read as follows:

7. a. Notwithstanding the provisions of any other law to the contrary except the provisions of R.S.30:4-95, and as an alternative to the procedures concerning the awarding of public contracts provided in P.L.1954, c.48 (C.52:34-6 et seq.), the Director of the Division of Purchase and Property in the Department of the Treasury may enter into cooperative purchasing agreements with one or more other states, or political subdivisions thereof, for the purchase of goods and services. A cooperative purchasing agreement shall allow the jurisdictions which are parties thereto to standardize and combine their requirements for the purchase of a particular good or service into a single contract solicitation which shall be competitively bid and awarded by one of the jurisdictions on behalf of jurisdictions participating in the contract.

b. (1) The director may elect to purchase goods or services through a contract awarded pursuant to a cooperative purchasing agreement whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded or already awarded through a cooperative purchasing agreement, the director shall review and approve the specifications and proposed terms and conditions of the contract.

(2) The director may also elect to purchase goods or services through a contract awarded pursuant to a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, in which other states participate, whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded through a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, the director shall review and approve the specifications and proposed terms and conditions of the contract.

(3) Notwithstanding any other law to the contrary, any contracting unit authorized to purchase goods, or to contract for services, may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process by another contracting unit within the State of New Jersey, or within any other state, when available. Prior to making purchases or contracting for services, the contracting unit shall determine that the use of the cooperative purchasing agreement shall result in cost savings after all factors, including charges for service, material, and delivery, have been considered.

(4) A contracting unit shall purchase and contract for construction services for a public works project through a cooperative purchasing agreement only 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 shall be subject to the “Public Works Contractor Registration Act,” P.L.1999, c.238 (C.34:11-56.48 et seq.), and the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.).

(5) Contracting units shall not utilize time-and-materials contracts available through a cooperative purchasing agreement to undertake a public works project subject to the “Public Works Contractor Registration Act,” P.L.1999, c.238 (C.34:11-56.48 et seq.), and the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.).

For the purposes of this paragraph, the term “time-and-materials contract” means a contract for the actual costs for materials and acquiring services on the basis of direct labor hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses, and profit.

(6) For the purposes of prevailing wage enforcement, a contracting unit that awards a contract for construction services for a public works project through a cooperative purchasing agreement shall verify and maintain an accurate copy of:

the name, principal business address in the State, and telephone number of the contractor; or

if the contractor's principal business address is not within the State, the name and address of the contractor's custodian of records and agent for service of process in this State.

For purposes of this [paragraph] subsection, "contracting unit" means any county, municipality, special district, school district, fire district, State college or university, public research university, county college, or any 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 the New Jersey Transit Corporation created pursuant to P.L.1979, c.150 (C.27:25-1 et seq.).

c. The director may solicit bids and award contracts on behalf of this State and other jurisdictions which are parties to a cooperative purchasing agreement provided that the agreement specifies that each jurisdiction participating in a contract is solely responsible for the payment of the purchase price and cost of purchases made by it under the terms of any contract awarded pursuant to the agreement.

d. The director may promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), which are necessary to effectuate the purposes of this section.

(cf: P.L.2018, c.162, s.14)

2. (New section) Notwithstanding any provision of law to the contrary, a contracting unit as defined in subsection b. of section 7 of P.L.1996, c.16 (C.52:34-6.2) may 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. A contracting unit may issue purchase orders under an indefinite delivery, indefinite quantity contract provided the items for delivery were specified in the bid advertisement for the contract.

3. This act shall take effect immediately.

STATEMENT

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.