SENATE MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 1866

STATE OF NEW JERSEY

DATED:  FEBRUARY 24, 2020

      The Senate Military and Veterans' Affairs Committee reports favorably a Senate Committee Substitute for Senate, No. 1866.

      This committee substitute establishes a price preference program for service-disabled veteran-owned businesses competing for State contracts.

      Under current law, certain purchases or contracts payable out of State funds are publicly advertised and competitively bid on by businesses.  The State then awards the contract to the lowest bidder.

      This bill would establish a price preference of up to 10 percent of the amount of the contract to a qualified disabled veterans’ business.  If the disabled veterans’ business meets the requirements of the contract solicitation and is the lowest bidder due to the preference program, a State agency will enter into a procurement contract with the disabled veterans’ business.  If two or more qualified disabled veterans’ businesses bid on a contract utilizing the preference program, the disabled veterans’ business with the lowest bid will be awarded the contract. 

      This bill defines “disabled veteran” to mean a resident of this State who has been certified by the United States Department of Veterans Affairs as having any degree of service-connected disability.  The bill defines “qualified disabled veterans’ business” to mean a business (1) which has its principal place of business in the State, (2) is independently owned and operated, (3) at least 51 percent is owned and controlled by persons who are disabled veterans, and (4) the management and daily business operations are controlled by one or more disabled veterans or in the case of a disabled veteran with a permanent and severe disability, controlled by the spouse of such veteran.