A3427

An Act concerning the awarding of county college contracts and amending and supplementing P.L.1982, c.189 (C.18A:64A-25.1 et seq.).

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

1. N.J.S.18A:64A-12 is amended to read as follows:

18A:64A-12. For the effectuation of the purposes of [this] chapter 64A of Title 18A of the New Jersey Statutes, the board of trustees of a county college, in addition to [such] other powers expressly granted to it by law, is hereby granted the following powers:

a. To adopt or change the name of the county college;

b. To adopt and use a corporate seal;

c. To sue and be sued;

d. To determine the educational curriculum and program of the college consistent with the programmatic mission of the institution or approved by the Commission on Higher Education;

e. To appoint and fix the compensation and term of office of a president of the college who shall be the executive officer of the college and an ex officio member of the board of trustees;

f. To appoint, upon nomination of the president, members of the administrative and teaching staffs and fix their compensation and terms of employment subject to the provisions of N.J.S.18A:64A-13;

g. To appoint or employ, upon nomination of the president, [such] other officers, agents and employees as may be required to carry out the provisions of this chapter and to fix and determine their qualifications, duties, compensation, terms of office and all other conditions and terms of employment and retention;

h. To fix and determine tuition rates and other fees to be paid by students;

i. To grant diplomas, certificates or degrees;

j. To enter into contracts and agreements with the State or any of its political subdivisions or with the United States, or with any public body, department or other agency of the State or the United States or with any individual, firm or corporation which are deemed necessary or advisable by the board for carrying out the provisions of this chapter;

k. To accept from any government or governmental department, agency or other public or private body or from any other source grants or contributions of money or property which the board may use for or in aid of any of its purposes;

l. To acquire (by gift, purchase, condemnation or otherwise), own, lease, use and operate property, whether real, personal or mixed, or any interest therein, which is necessary or desirable for college purposes;

m. To determine that any property owned by the county college is no longer necessary for college purposes and to sell the same at [such] the price [and in such] , manner , and upon [such] terms and conditions as shall be established by the board;

n. To exercise the right of eminent domain, pursuant to the provisions of Title 20, Eminent Domain, of the Revised Statutes, to acquire any property or interest therein;

o. To make and promulgate [such] rules and regulations, not inconsistent with the provisions of this chapter or with the rules and regulations promulgated hereunder that are necessary and proper for the administration and operation of a county college and to implement the provisions of this chapter;

p. To exercise all other powers, not inconsistent with the provisions of this chapter or with the rules and regulations promulgated hereunder which may be reasonably necessary or incidental to the establishment, maintenance and operation of a county college; [and]

q. To establish and maintain a dedicated reserve fund for minor capital needs which in any given year shall not exceed 3% of the replacement value of the college's physical plant;

r. Pursuant to the “County College Contracts Law,” P.L.1982, c.189 (C.18A:64A-25.1 et seq.), award contracts and agreements for the purchase of goods and services, as distinct from contracts or agreements for the construction of buildings and other improvements, to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the county college, price and other factors considered; and

s. Pursuant to the “County College Contracts Law,” P.L.1982, c.189 (C.18A:64A-25.1 et seq.), award contracts and agreements for the construction of buildings and other improvements to the lowest responsible bidder, whose bid, conforming to the invitation for bids, will be the most advantageous to the county college.

(cf: P.L.1999, c.46, s.41)

2. Section 2 of P.L.1982, c.189 (C.18A:64A-25.2) is amended to read as follows:

2. As used in this article, unless the context otherwise indicates:

a. "Board of trustees" means the board of trustees of a county college and the community college commission of a community college agency;

b. "County college" means any body corporate known as

(1) the board of trustees of a county college established pursuant to chapter 64A of Title 18A of the New Jersey Statutes, or

(2) the community college commission of a community college agency established pursuant to P.L.1974, c.89 (C.18A:64A-30 et seq.);

c. "Contracting agent" means the business officer of the county college having the power to prepare advertisements to advertise for and receive bids and to make awards for the county college in connection with the purchases, contracts or agreements permitted by this article, or [such] the officer, committee or employee to whom [such] that power has been delegated by the county college;

d. "Contracts" mean contracts or agreements for the performance of work or the furnishing or hiring of services, materials [or] , supplies ,or construction, as distinguished from contracts of employment;

e. "Legal newspaper" means a newspaper circulating in the county or counties in which the county college has been established, printed and published in the English language at least once a week for at least one year continuously;

f. "Materials" include goods and property subject to chapter 2 of Title 12A of the New Jersey Statutes, apparatus or any other tangible thing except real property or any interest therein;

g. "Extraordinary unspecifiable services" mean services or products which cannot be reasonably described by written specifications;

h. "Professional services" mean services rendered or performed by a person authorized by law to practice a recognized profession and whose practice is regulated by law and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and training. Professional services also mean services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor;

i. "Project" means any work, undertaking, construction or alteration;

j. "Purchases" are transactions, for a valuable consideration, creating or acquiring an interest in goods, services and property, except real property or any interest therein;

k. "Work" includes services and any other activity of a tangible or intangible nature performed or assumed pursuant to a contract or agreement with a county college;

l. “Information technology” means telecommunication and computing goods and services, including, but not limited to, software, hardware, cloud computing, and systems implementation and support for voice, data, and video.

(cf: P.L.1994, c.48, s.140)

3. Section 3 of P.L.1982, c.189 (C.18A:64A-25.3) is amended to read as follows:

3. a. (1) Any purchase, contract or agreement for the performance of any work or the furnishing or hiring of materials or supplies, through which workers employed in the performance of the contract are paid in accordance to the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $25,000 or, commencing January 1, 2003, the amount determined pursuant to subsection b. of this section in any fiscal year may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the county college, without public advertising for bids and bidding therefor.

(2) Any purchase, contract, or agreement for the performance of any work or the furnishing or hiring of materials or supplies, through which workers are not paid in accordance to the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $100,000 or, commencing January 1, 2025, the amount determined pursuant to subsection b. of this section in any fiscal year may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the county college, without public advertising for bids and bidding therefor.

b. Commencing January 1, 2003 and every two years thereafter, the Governor, in consultation with the Department of the Treasury, shall adjust the threshold [amount] amounts set forth in subsection a. of this section in direct proportion to the rise or fall of the Consumer Price Index for all urban consumers in the New York and Northeastern New Jersey and the Philadelphia areas as reported by the United States Department of Labor. The adjustment shall become effective on July 1 of the year in which it is reported.

c. Any purchase, contract or agreement made pursuant to this section may be awarded for a period of [24] 36 consecutive months, notwithstanding that [such 24] the 36 -month period does not coincide with the fiscal year.

(cf: P.L.2001, c.281, s.1)

4. Section 4 of P.L.1982, c.189 (C.18A:64A-25.4) is amended to read as follows:

4. a. Every contract or agreement for the performance of any work or the furnishing or hiring of any materials or supplies, through which workers employed in the performance of the contract are paid in accordance to the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or the contract price of which is to be paid with or out of college funds, not included within the terms of section 3 [hereof] of P.L.1982, c.189 (C.18A:64A-25.3), shall be made and awarded only by the county college after public advertising for bids and bidding therefor, except as provided otherwise in this article or specifically by any other law. No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate $7,500.00 or, commencing January 1, 1985, the amount determined pursuant to subsection b. of section 3 of P.L.1982, c.189 (C.18A:64A-25.3), except by written contract or agreement.

b. Every contract or agreement for the performance of any work or the furnishing or hiring of any materials or supplies, through which workers employed in the performance of the contract are not paid in accordance to the “New Jersey Prevailing Wage Act,” P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $100,000 or, commencing January 1, 2025, the amount determined pursuant to subsection b. of section 3 of P.L.1982, c.189 (C.18A:64A-25.3), in any fiscal year may be made, negotiated, and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the county college without public advertising for bids and bidding therefor.

(cf: P.L.1984, c.241, s.2)

5. Section 5 of P.L.1982, c.189 (C.18A:64A-25.5) is amended to read as follows:

5. Any purchase, contract or agreement of the character described in section 4 of P.L.1982, c.189 (C.18A:64A-25.4) may be made, negotiated or awarded by the county college by resolution at a public meeting of its board of trustees without public advertising for bids or bidding therefor if:

a. The subject matter thereof consists of:

(1) Professional services; [or]

(2) Extraordinary unspecifiable services and products which cannot reasonably be described by written specifications, subject however, to procedures consistent with open public bidding whenever possible; [or]

(3) Materials or supplies which are not available from more than one potential bidder, including without limitation materials or supplies which are patented or copyrighted; [or]

(4) The doing of any work by employees of the county college; [or]

(5) The printing of all legal notices and legal briefs, records , and appendices to be used in any legal proceeding to which the county college may be a party and the use of electronic data or media services, including the internet, for the printing of these legal notices and legal briefs, records, and appendices; [or]

(6) Textbooks, copyrighted materials, student produced publications and services incidental thereto, library materials including without limitation books, periodicals, newspapers, documents, pamphlets, photographs, reproductions, microfilms, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, slides, films, filmstrips, video and magnetic tapes, other printed or published matter and audiovisual and other materials of a similar nature, necessary binding or rebinding of library materials and specialized library services , including electronic databases and digital formats; [or]

(7) Food supplies and services including food supplies and management contracts for student centers, dining rooms and cafeterias; [or]

(8) The supplying of any product or the rendering of any service by the public utility which is subject to the jurisdiction of the Board of Public Utilities, in accordance with tariffs and schedules of charges made, charged and exacted, filed with [said] the board; or

(9) Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with [such] the services; [or]

(10) Specialized machinery or equipment of a technical nature which will not reasonably permit the drawing of specifications, and the procurement thereof without advertising is in the public interest; [or]

(11) Insurance, including the purchase of insurance coverage and consulting services, which exceptions shall be in accordance with the requirements for extraordinary unspecifiable services; [or]

(12) Publishing of legal notices in newspapers, as required by law and the use of electronic data or media services, including the internet, for the publication of legal notices; [or]

(13) The acquisition of artifacts or other items of unique intrinsic, artistic or historic character; [or]

(14) The collection of amounts due on student loans, including without limitation loans guaranteed by or made with funds of the United States of America , and amounts due on other financial obligations to the county college, including the amounts due on tuition and fees; [or]

(15) Professional consulting services; [or]

(16) Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions; [or]

(17) Contracts employing funds created by student activities fees charged to students or otherwise raised by students[, not under the direct control of the college] and expended by student organizations; [or]

(18) Printing, including without limitation catalogs, yearbooks and course announcements and the production and reproduction of the material in electronic and digital formats; [or]

(19) [Providing goods or services for the use, support or maintenance of proprietary computer hardware, software peripherals and system development for the hardware] information technology; [or]

(20) Personnel recruitment and advertising, including without limitation advertising seeking student enrollment; [or]

(21) Educational supplies, books, articles of clothing and other miscellaneous articles purchased by a county college bookstore, or by a service or management company under contract with a county college to operate a county college book store for resale to college students and employees; [or]

(22) Purchase or rental of graduation caps and gowns , and award certificates or plaques or the rental of space and equipment used for graduation and other events and ceremonies; [or]

(23) Expenses for travel or conferences; [or]

(24) Items available from vendors at costs below State contract pricing for the same product or service, which meets or exceeds the State contract terms or conditions ;

(25) Management contracts for bookstores, performing arts centers, residence halls, parking facilities and building operations;

(26) Consulting services involving information technology, curricular or programmatic review, fund raising, transportation, safety or security;

(27) Construction management services for construction, alteration, or repair of any building or improvement;

(28) Purchase or rental of equipment of a technical nature when the procurement thereof without advertising is necessary in order to assure standardization of equipment and interchangeability of parts in the public interest;

(29) Banking and investment services;

(30) Energy supply, including electric and gas, from a third-party supplier;

(31) Hazardous waste collection and disposal services;

(32) Supplies and services for the administration of study abroad or remote programs;

(33) Transportation services;

(34) Vehicle maintenance;

(35) Vending services; or

(36) Medical testing.

b. It is to be made or entered into with the United States of America, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof.

c. The county college has advertised for bids pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4) on two occasions and (i) has received no bids on both occasions in response to its advertisement, or (ii) has rejected [such] the bids on two occasions because the county college has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the county college prior to the advertising therefor, or have not been independently arrived at in open competition, or (iii) on one occasion no bids were received pursuant to (i) and on one occasion all bids were rejected pursuant to (ii), in whatever sequence; [any such] the contract or agreement may then be negotiated by a two-thirds affirmative vote of the authorized membership of the board of trustees authorizing [such] the contract or agreement; provided, however, that:

(1) A reasonable effort is made by the contracting agent to determine that the same or equivalent materials or supplies at a cost which is lower than the negotiated price are not available from any agency or authority of the United States, the State of New Jersey or from the county in which the county college is located, or any municipality in close proximity to the county college;

(2) The terms, conditions, restrictions and specifications set forth in the negotiated contract or agreement are not substantially different from those which were the subject of competitive bidding pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4); and

(3) Any [relevant] minor amendment or modification of any of the terms, conditions, restrictions and specifications, which were the subject of competitive bidding pursuant to section 4 of P.L.1982, c.189 (C.18A:64A-25.4), shall be stated in the resolution awarding [such] the contract or agreement; provided[, further, however,] that if on the second occasion the bids received are rejected as unreasonable as to price, the county college shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate and afford each [such] bidder a reasonable opportunity to negotiate, but the county college shall not award [such] the contract or agreement unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder, is the lowest negotiated price offered by any responsible vendor, and is a reasonable price for [such] the work, materials, supplies or services.

Whenever a county college shall determine that a bid was not arrived at independently in open competition pursuant to subsection c. (ii) of this section, it shall thereupon notify the county prosecutor of the county in which the county college is located and the Attorney General of the facts upon which its determination is based and, when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.

d. It is to be awarded through a reverse auction for the purchase of utilities and other commodities.

(cf: P.L.2001, c.281, s.2)

6. Section 6 of P.L.1982, c.189 (C.18A:64A-25.6) is amended to read as follows:

6. Any purchase, contract, or agreement may be made, negotiated or awarded by a county college without public advertising for bids and bidding therefor, notwithstanding that the cost or contract price will exceed [$25,000 or, commencing January 1, 2003, the amount determined pursuant to subsection b. of] the appropriate threshold amount, as adjusted and established pursuant to section 3 of P.L.1982, c.189 (C.18A:64A-25.3), when an emergency affecting the health, safety or welfare of occupants of college property requires the immediate delivery of the materials or supplies or the performance of the work, provided that [such] the purchases, contracts or agreements are awarded or made in the following manner:

a. A written requisition for the performance of [such] the work or the furnishing of materials or supplies, certified by the employee in charge of the building, facility or equipment where the emergency occurred, is filed with the contracting agent or his deputy in charge, describing the nature of the emergency, the time of its occurrence, and the need for invoking this section. The contracting agent, or his deputy in charge, being satisfied that the emergency exists, is hereby authorized to award a contract for [said] the work, materials or supplies.

b. Upon the furnishing of [such] the work, materials or supplies in accordance with the terms of the contract or agreement, the contractor furnishing [such] the work, materials or supplies shall be entitled to be paid therefor and the county college shall be obligated for [said] the payment.

c. The board of trustees may prescribe rules and procedures to implement the requirements of this section.

(cf: P.L.2001, c.281, s.3)

7. Section 8 of P.L.1982, c.189 (C.18A:64A-25.8) is amended to read as follows:

8. Except as provided in section 28 of P.L.1982, c.189 (C.18A:64A-25.28), every county college shall, on an annual basis or at [such] a lesser [intervals] interval as may be fixed by [it] the county college, solicit by public advertisement the submission of bids for the furnishing of all work, materials and supplies which are and which under section 4 of P.L.1982, c.189 (C.18A:64A-25.4) can be purchased or agreed or contracted to be furnished only after public advertising for bids and bidding therefor.

(cf: P.L.1982, c.189, s.8)

8. Section 14 of P.L.1982, c.189 (C.18A:64A-25.14) is amended to read as follows:

14. a. All advertisements for bids shall be published in a legal newspaper sufficiently in advance of the date fixed for receiving the bids to promote competitive bidding but in no event less than 10 days prior to [such] that date for any construction projects or any other contract or purchase. In addition to being published in a legal newspaper, advertisements may also be posted using electronic data or media services, including the Internet. The advertisement shall designate the manner of submitting and of receiving the bids , which may be submitted in electronic format or other format designated by the contracting agent, and the time and place at which the bids will be received. If the published specifications provide for receipt of bids by mail, those bids which are mailed to the county college shall be sealed and shall be opened only at [such] the time and place as all bids received are unsealed and announced. At [such] the time and place, the contracting agent of the county college shall publicly receive the bids and thereupon immediately proceed to unseal them and publicly announce the contents, which announcement shall be made in the presence of any parties bidding or their agents who are then and there present. A proper record of the prices and terms shall be made. No bids shall be received after the time designated in the advertisement.

b. Notice of revisions or addenda to advertisements or bid documents relating to bids shall be published in a legal newspaper and may also be posted using electronic data or media services, including the Internet, no later than seven days, Saturdays, Sundays and holidays excepted, prior to the bid due date. The notice shall be provided to any person who has submitted a bid or who has received a bid package, in one of the following ways: (a) in writing by certified mail [or] ; (b) by certified facsimile transmission, meaning that the sender's facsimile machine produces a receipt showing date and time of transmission and that the transmission was successful [or] ; (c) by a delivery service that provides certification of delivery to the sender ; or (d) by electronic means, including email, or other electronic format designated by the contracting agent. Failure to advertise or provide proper notification of revisions or addenda to advertisements or bid documents related to bids as prescribed by this section shall prevent the acceptance of bids and require the readvertisement for bids. Failure to obtain a receipt when good faith notice is sent or delivered to the address [or] , telephone facsimile number , or email address on file with the county college shall not be considered failure by the county college to provide notice.

(cf: P.L.2005, c.191, s.3)

9. Section 19 of P.L.1982, c.189 (C.18A:64A-25.19) is amended to read as follows:

19. All purchases, contracts or agreements , as distinct from contracts or agreements for the construction of buildings and other improvements, which require public advertisement for bids shall be awarded by the board of trustees to the [lowest] responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the county college, price and other factors considered, except that a bid may be disqualified due to a prior negative experience pursuant to the provisions of section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill).

Prior to the award of any other purchase, contract or agreement which does not require public advertisement, the estimated cost of which is 20[%] percent or more, of the amount set forth in or, commencing January 1, 1985, 20[%] percent of the amount determined by the Governor pursuant to subsection b. of section 3 of P.L.1982, c. 189 (C. 18A:64A-25.3), the contracting agent shall, except in the case of professional services, solicit quotations therefor whenever practicable, and the award thereof shall be made, in accordance with section 3 of P.L.1982, c.189 (C.18A:64A-25.3), on the basis of the [lowest responsible] quotation [received] , conforming to the request for proposals, which is most advantageous to the county college, price and other factors considered; provided, however, if the contracting agent deems it impractical to solicit competitive quotations or having sought [such] the quotations determines that the award should not be made on [the] that basis [of the lowest quotation received], the contracting agent shall file a statement of explanation of the reason or reasons therefor, which shall be placed on file with [such] the purchase, contract or agreement.

(cf: P.L.1984, c.241, s.6)

10. Section 25 of P.L.1982, c.189 (C.18A:64A-25.25) is amended to read as follows:

25. a. In the preparation of plans and specifications for the construction, alteration or repair of any building by a county college, when the entire cost of the work and materials will exceed [$25,000 or, commencing January 1, 2003,] the amount determined pursuant to subsection b. of section 3 of P.L.1982, c.189 (C.18A:64A-25.3), [separate plans and specifications may be prepared for each of the following branches of work in the following categories, to include all work and materials related thereto or to be performed or furnished in connection therewith] the contracting agent shall advertise for and receive in the manner provided by law:

(1) separate bids for branches of work in the following categories:

(a) The plumbing and gas fitting work;

(b) The refrigeration, heating and ventilating systems and equipment;

(d) The structural steel and ornamental iron work;

(e) General construction, which shall include all other work and materials required for the completion of the project;

(2) single bids by general contractors for all work and materials required to complete the entire project, if awarded as a single contract; or

(3) separate bids for branches of work in the categories listed in paragraph (1) of this subsection and single bids by general contractors for all work and materials required to complete the entire project, if awarded as a single contract.

b. [With regard to the branch work categories in subsection a. of this section, the contracting agent shall advertise for and receive in the manner provided by law (1) separate bids for each of the foregoing categories (a) through (e), or (2) single bids by general contractors for all work and materials required to complete the entire project, if awarded as a single contract, or (3) both.] (1) In the case of separate bids under paragraph (1) or (3) of [this] subsection a. of this section for [categories (a) through (d) of subsection a. of this section] work in the categories listed in paragraph (1) of subsection a. of this section, prime contractors shall not be required to name subcontractors in their bid.

(2) In the case of a single bid under paragraph (2) or (3) of subsection a. of this section, all bids submitted shall set forth the name or names of, and evidence of performance security from, all subcontractors to whom the general contractor will subcontract the [work described in the foregoing categories (a) through (d) of] branches of work in the categories listed in paragraph (1) of subsection a. of this section.

(3) Subcontractors who furnish non-specialty trade work pursuant to [category] subparagraph (e) of paragraph (1) of subsection a. of this section or subcontractors who furnish work to named subcontractors pursuant to [categories] subparagraphs (a) through (d) of paragraph (1) of subsection a. of this section shall not be named in the bid submitted pursuant to paragraph (2) of this subsection.

(4) Notwithstanding the foregoing provisions of this subsection, a county college may choose to require in its bid specification that a subcontractor shall be named in a bid when, in the case of paragraph (1) of subsection [b.] a. of this section, separate bids for each category, the work of that subcontractor exceeds 35 percent of the county college's estimated amount of value of the work, which shall be set forth in the bid specification.

c. Contracts shall be awarded to the lowest responsible bidder whose bid, conforming to the invitation for bids, will be the most advantageous to the county college, except that a bid may be disqualified due to prior negative experience pursuant to the provisions of section 14 of P.L. , c. (C. ) (pending before the Legislature as this bill). [In the event that a contract is advertised in accordance with (3) above, the contract shall be awarded in the following manner: if the sum total of the amounts bid by the lowest responsible bidder for each category (a) through (e) is less than the amount bid by the lowest responsible bidder for all the work and materials, the county college shall award separate contracts for each of such categories to the lowest responsible bidder therefor, but if the sum total of the amount bid by the lowest responsible bidder for each category is not less than the amount bid by the lowest responsible bidder for all the work and materials, the county college shall award a single contract to the lowest responsible bidder for all of such work and materials. In every case in which a contract is awarded under (2) above, all payments required to be made under the contract for work and materials supplied by a subcontractor shall, upon the certification of the contractor of the amount due to the subcontractor, be paid directly to the subcontractor.]

(cf: P.L.2012, c.59, s.3)

11. Section 27 of P.L.1982, c.189 (C.18A:64A-25.27) is amended to read as follows:

27. Any county college may, by resolution of its board of trustees, authorize the sale in the following manner of its personal property not needed for college purposes:

a. If the estimated fair value of the property to be sold exceeds [$25,000] $100,000 or[, commencing January 1, 2003,] the amount determined pursuant to subsection b. of section 3 of P.L.1982, c.189 (C.18A:64A-25.3) in any one sale and the property does not consist of perishable goods, it shall be sold at public sale to the highest bidder.

b. Notice of the date, time and place of the public sale, together with a description of the items to be sold and the conditions of sale shall be published once in a legal newspaper. [Such] The sales shall be held not less than seven nor more than 14 days after the publication of the notice thereof.

c. Personal property may be sold to the United States, the State of New Jersey, another county college or to any body politic by private sale without advertising for bids.

d. If no bids are received, the property may then be sold at private sale without further publication or notice thereof but in no event at less than the estimated fair value; or the county college may, if it so elects, reoffer the property at public sale. As used herein, "estimated fair value" means the market value of the property if sold by a willing seller to a willing buyer less the cost to the college of continuing to store or maintain [such] the property.

e. A county college may reject all bids if it determines [such] the rejection to be in the public interest. In any case in which the college has rejected all bids, it may readvertise [such] the personal property for a subsequent public sale. If it elects to reject all bids at a second public sale pursuant to this section, it may then sell [such] the personal property without further publication or notice thereof at private sale, provided that in no event shall the negotiated price at the private sale be less than the amount of the highest bid rejected at the preceding two public sales, and provided further that in no event shall the terms or conditions of sale be changed or amended.

f. If the estimated fair value of the property to be sold does not exceed [$25,000] $100,000 or[, commencing January 1, 2003,] the amount determined pursuant to subsection b. of section 3 of P.L.1982, c.189 (C.18A:64A-25.3) in any one sale or the property consists of perishable goods, it may be sold at private sale without advertising for bids.

g. Notwithstanding the provisions of this section, by resolution of the board of trustees, a purchasing agent may include a sale of personal property no longer needed for county college purposes as part of specifications to offset the price of a new purchase.

(cf: P.L.2001, c.281, s.6)

12. Section 28 of P.L.1982, c.189 (C.18A:64A-25.28) is amended to read as follows:

28. [Duration of certain contracts.] A county college may only enter into a contract exceeding [24] 36 consecutive months for the:

a. Supplying of[:

(1) Fuel for heating purposes for any term not exceeding in the aggregate three years; or

(2) Fuel or] fuel and oil for [use in automobiles, autobuses, motor vehicles or equipment] heating and other purposes and utilities for any term not exceeding in the aggregate [three] five years; [or]

b. Plowing and removal of snow and ice for any term not exceeding in the aggregate [three] five years; [or]

c. Collection and disposal of garbage and refuse for any term not exceeding in the aggregate [three] five years; [or]

d. [Providing goods or services for the use, support or maintenance of proprietary computer hardware, software peripherals and system development for the hardware] Purchase, lease, or servicing of information technology for any term of not more than five years; [or]

e. Insurance, including the purchase of insurance coverages, insurance consultant or administrative services, and including participation in a joint self-insurance fund, risk management programs or related services provided by a county college insurance group, or participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6, for any term of not more than [three] five years; [or]

f. Leasing or service of automobiles, motor vehicles, [electronic communications equipment,] machinery and equipment of every nature and kind for any term not exceeding in the aggregate five years; [or]

g. [Supplying of any product or rendering of any service by a company providing voice, data, transmission or switching services, for a term not exceeding five years; or] (Deleted by amendment, P.L. , c. (pending before the Legislature as this bill)

h. The providing of food supplies and services, including food supplies and management contracts for student centers, dining rooms, vending operations, and cafeterias, for a term not exceeding 30 years; [or]

i. (Deleted by amendment, P.L.2009, c.4).

j. Any single project for the construction, reconstruction or rehabilitation of a public building, structure or facility, or a public works project including the retention of the services of an architect [or] , engineer , construction manager, or other consultant in connection with the project, for the length of time necessary for the completion of the actual construction; [or]

k. The management and operation of bookstores , performing arts centers, residence halls, parking facilities, and building operations for a term not exceeding 30 years; [or]

l. Custodial or janitorial services for any term not exceeding in the aggregate [three] five years; [or]

m. Child care services for a term not exceeding [three] five years; [or]

n. Security services for a term not exceeding [three] five years; [or]

o. Ground maintenance services for a term not exceeding [three] five years; [or]

p. Laundering, dry-cleaning or rental of uniforms for a term not exceeding [three] five years; [or]

q. The performance of work or services or the furnishing of materials and supplies for the purpose of producing class I renewable energy, as that term is defined in section 3 of P.L.1999, c.23 (C.48:3-51), at, or adjacent to, buildings owned by, or operations conducted by, the contracting unit, the entire price of which is to be established as a percentage of the resultant savings in energy costs, for a term not to exceed 30 years; provided, however, that these contracts shall be entered into only subject to and in accordance with guidelines promulgated by the Board of Public Utilities establishing a methodology for computing energy cost savings and energy generation costs;

r. The provision of banking, financial services, and e-commerce services for a term not exceeding five years;

s. The provision of services for maintenance and repair of building systems, including, fire alarms, fire suppression systems, security systems, and heating, ventilation, and air conditioning systems for a term not exceeding five years; or

t. Purchase of alternative energy or the purchase or lease of alternative energy services or equipment for conservation or cost saving purposes for a term not exceeding 30 years.

All multi-year leases and contracts entered into pursuant to this section, except contracts and agreements for the provision of work or the supplying of equipment to promote energy conservation through the production of class I renewable energy and authorized pursuant to subsection q. of this section, and except contracts for insurance coverages, insurance consultant or administrative services, participation or membership in a joint self-insurance fund, risk management programs or related services of a county college insurance group, and participation in an insurance fund established by a county pursuant to N.J.S.40A:10-6 or a joint insurance fund established pursuant to P.L.1983, c.372 (C.40A:10-36 et seq.), shall contain a clause making them subject to the availability and appropriation annually of sufficient funds to meet the extended obligation or contain an annual cancellation clause.

(cf: P.L.2009, c.90, s.45)

13. (New section) a. Notwithstanding any other provision of law to the contrary, a board of trustees of a county college may, by resolution approved by a majority of the board and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder or the responsible bidder whose bid would otherwise be determined to be most advantageous to the county college, as applicable, if the board finds that a board of a public institution of higher education in the State has had prior negative experience with the bidder within the past 15 years.

b. As used in this section, "prior negative experience" means any of the following:

(1) the bidder has been found, through either court adjudication, arbitration, mediation, or other contractually stipulated alternate dispute resolution mechanism, to have: failed to provide or perform goods or services; or failed to complete the contract in a timely manner; or otherwise performed unsatisfactorily under a prior contract with a public institution of higher education;

(2) the bidder defaulted on a contract, thereby requiring a public institution of higher education to utilize the services of another contractor to provide the goods or perform the services or to correct or complete the contract;

(3) the bidder defaulted on a contract, thereby requiring a public institution of higher education to look to the bidder's surety for completion of the contract or tender of the costs of completion; or

(4) the bidder is debarred or suspended from contracting with any of the agencies or departments of the executive branch of the State of New Jersey at the time of the contract award, whether or not the action was based on experience with a public institution of higher education.

c. The following conditions shall apply if the county college is contemplating a disqualification based on prior negative experience:

(1) The existence of any of the indicators of prior negative experience set forth in this section shall not require that a bidder be disqualified. In each instance, the decision to disqualify shall be made within the discretion of the county college and shall be rendered in the best interests of the county college.

(2) All mitigating factors shall be considered in determining the seriousness of the prior negative experience and in deciding whether disqualification is warranted.

(3) The bidder shall be furnished by the county college with a written notice (a) stating that a disqualification is being considered; (b) setting forth the reason for the disqualification; and (c) indicating that the bidder shall be accorded an opportunity for a hearing before the county college if the bidder so requests within a stated period of time. At the hearing, the bidder shall show good cause why the bidder should not be disqualified by presenting documents and testimony. If the county college determines that good cause has not been shown by the bidder, it may vote to find the bidder lacking in responsibility and, thus, disqualified.

(4) Disqualification shall be for a reasonable, defined period of time which shall not exceed five years.

(5) A disqualification, other than a disqualification pursuant to which a county college is prohibited by law from entering into a contract with a bidder, may be voided or the period thereof may be reduced, at the discretion of the county college, upon the submission of a good faith application under oath, supported by documentary evidence, setting forth substantial and appropriate grounds for the granting of relief, including reversal of a judgment or actual change of ownership, management, or control of the bidder.

(6) An opportunity for a hearing need not be offered to a bidder whose disqualification is based on its suspension or debarment by an agency or department of the executive branch of the State of New Jersey. The term of [such a] the disqualification shall be concurrent with the term of the suspension or debarment by the State agency or department.

14. This act shall take effect on the first day of the second month next following the date of enactment.

STATEMENT

This bill makes various changes to the “County College Contracts Law.”

The public bid threshold for county colleges is currently $41,600. Under current law, the threshold is adjusted every two years by the Governor, in consultation with the Department of the Treasury, in direct proportion to the rise or fall of the Consumer Price Index for all urban consumers in New York and Northeastern New Jersey and the Philadelphia areas, as reported by the United States Department of Labor. This bill raises the threshold to $100,000 for contracts through which workers employed in the performance of the contract are not paid in accordance to the "New Jersey Prevailing Wage Act.” The threshold for contracts through which workers employed in the performance of the contract are paid in accordance with the “New Jersey Prevailing Wage Act” remains unchanged. Both thresholds will continue to be adjusted by the Governor every two years in the same manner.

This bill revises the law that enumerates numerous exemptions to the requirement for public advertising and bidding to also include: (1) the use of electronic data or media services for the publication of legal notices; (2) the production and reproduction of printed materials in electronic and digital formats; (3) information technology; (4) the rental of space and equipment used for graduation and other events and ceremonies; (5) management contracts for bookstores, performing arts centers, residence halls, parking facilities, and building operations; (6) certain consulting services; (7) construction management services; (8) certain technical equipment purchases or rentals; (9) banking and investment services; (10) energy supply from a third-party supplier; (11) hazardous waste collection and disposal services; (12) supplies and services for the administration of study abroad or remote programs; (13) transportation services; (14) vehicle maintenance; (15) vending services; and (16) medical testing.

The bill also provides that a county college may purchase without public advertising for bids if the purchase or contract is to be awarded through a reverse auction for the purchase of utilities and other commodities.

Additionally, the bill increases the length of time a county college may enter into certain contracts from 24 to 36 consecutive months and permits a county college to enter into certain contracts for a term of not more than five years. The bill also stipulates maximum contract lengths for the provision of: banking, financial services, and e-commerce services; services for maintenance and repair of building systems; and the purchase of alternative energy or the purchase or lease of alternative energy services or equipment for conservation or cost saving purposes.

The bill modifies for county colleges the standard for the award of contracts for goods and services, as distinct from construction contracts.

Under current law, these contracts are required to be awarded to the lowest responsible bidder. Pursuant to the bill, the board of trustees of a county college is required to award these contracts to the responsible bidder whose bid will be most advantageous to the county college, price and other factors considered.

The bill provides that a board of trustees of a county college may, by resolution approved by a majority of the board, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder or the responsible bidder whose bid would otherwise be determined to be most advantageous to the county college as applicable, if the board finds that a board of a public institution of higher education in the State has had a prior negative experience with the bidder within the past 15 years.

The bill sets forth conditions that must be applied if a county college is contemplating a bidder disqualification based on prior negative experience including: giving the State college discretion to disqualify a bidder; requiring consideration of mitigating factors; requiring the provision of written notice to the bidder of a potential disqualification and an opportunity for a hearing; and limiting the period of time during which a bidder may be disqualified.