New Jersey Local Public Contracts Law and Regulation ...

1 New Jersey Local Public Contracts Law and Regulation Reference Manual With Related and Supporting Information 40A:11-1 et seq. and 5:34. Current as of April 1, 2014. Prepared by: Bloustein Local Government Research Center, Rutgers, the State University and New Jersey Division of Local Government Services Local Public Contracts Law 40A:11-1 et seq. THIS PAGE LEFT INTENTIONALLY BLANK. April, 2014 ii Local Public Contracts Law 40A:11-1 et seq. READ THIS FIRST! HOW TO USE THIS HANDBOOK. This new handbook reprints the Local Public Contracts Law (LPCL, 40A:11) and Local Public contracting Rules ( 5:34), and includes supplemental material not found in earlier versions of these reprints.

2 The statutory and regulatory text includes all changes enacted through the 2012-2013 legislative session ( 2012 and 2013) and Division of Local Government Services (DLGS) rules adopted through the end of 2013. It is intended for contracting units and their procurement professionals and advisors that fall under the LPCL. The handbook is divided into two parts: Part One reprints the Local Public Contracts Law and several related statutes; Part Two reprints the primary administrative rules related to the Local Public and Public School Contracts Laws. The handbook includes clickable links that make moving between the Table of Contents and related material convenient when viewed on a computer.

3 In Part One, following the Local Public Contracts Law reprint, Appendix A displays the history and current Public bidding and quotation thresholds since 2000. The supplemental material in Appendix B includes the text of several statutes not readily referenced elsewhere that are related to the Law, and are shown in pertinent part. Appendix C is intended to assist readers address the scope of Local procurement laws and regulations. To that end, the LPCL text highlights those sections of the law that have associated regulations ( , 40A:11-3. Bid threshold; period of Contracts ) or have been the subject of DLGS Local Finance Notices. The highlighted titles are linked to corresponding listings in Appendix C where cited references have their own weblinks.

4 Appendix D is a standalone list of statutes and guidance with their related web references. These references should be read in pari materia with the Local Public Contracts Law. It should be reviewed by contracting professionals and their legal advisors. Part Two is a reprint of 5:34, its Appendices (including fillable forms), along with sections of 5:30 related to Local government procurement practices. Acknowledgements Preparation and editing of this handbook is credited to Marc Pfeiffer, former DLGS Deputy Director (retired) and Assistant Director of the Bloustein Local Government Research Center, who was assisted by Joseph A. Valenti, former Chief of the Division's Bureau of Local Management Services, both of whom led administration of the State's Local Public contracting laws for several decades.

5 Former DLGS Administrative Assistant Elaine Abel Holleran is also credited for the original preparation and formatting of the document. The Division thanks Bloustein Local for their efforts in this project and hopes that Local procurement professionals find it a valuable resource. It is the goal of the Division and Bloustein Local to update this annually. This document is online at: #17. April, 2014 iii Local Public Contracts Law 40A:11-1 et seq. THIS PAGE LEFT INTENTIONALLY BLANK. April, 2014 iv Local Public Contracts Law 40A:11-1 et seq. TABLE OF CONTENTS. PART ONE Local Public Contracts LAW. Section Title Page 40A:11-1 Short title; citation 1. 40A:11-2 Definitions 1. 40 Civil action brought on behalf of Local contracting unit.

6 5. 40A:11-3 Bid threshold; period of Contracts 5. 40A:11-4 Contracts required to be advertised, disqualification of bidder 6. 40 Purposes for which competitive contracting may be used by Local units 7. 40 Term of contract; exceptions 8. 40 competitive contracting process; resolution, administration 8. 40 Request for proposals; documentation; provisions 8. 40 competitive contracting proposal solicitation 9. Implementation of energy savings improvement program by 40 10. contracting unit; definitions 40A:11-5 Exceptions 16. Authority of city of first class to contract for water supply, 40 21. wastewater treatment services Applicability of C. 40A:11-1 et seq. to certain Contracts by city of first 40 22.

7 Class 40A:11-6 Emergency Contracts 22. 40 Award of Contracts 22. 40A:11-7 Contracts not to be divided 23. 40 Rules concerning determinations of aggregation 23. 40A:11-8 Bids for provision or performance of goods or services 23. Designation of contracting unit's purchasing agent, authority, 40A:11-9 24. responsibility, accountability; qualifications April, 2014 v Local Public Contracts Law 40A:11-1 et seq. Section Title Page 40A:11-9a Current purchasing agent, lower bid threshold 26. 40 List of sources for green product purchasing 26. Joint agreements for provision and performance of goods and 40A:11-10 27. services; cooperative marketing; authorization Additional matters regarding Contracts for the provision and 40A:11-11 27.

8 Performance of goods and services 40A:11-12 contracting unit purchases through State agency; procedure 29. 40A:11-13 Specifications 29. 40 Payment from bequest, legacy or gift; conditions 30. 40 Rejection of bids; reasons 30. 40A:11-14 Form of Contracts 31. 40A:11-15 Duration of certain Contracts 31. 40 Insurance contract to fund actuarial liability 37. 40 Contracts for purchase of electricity for new county correction facility 37. 40 Contract for marketing of recyclable materials 37. 40A:11-16 Separate plans for various types of work; bids; Contracts 37. $100,000 Contracts for improvements to real property; retainage, 40 39. security 40 Partial payments; deposit bonds 40.

9 40 Withholding of payments 40. 40 Partial payments for materials 40. Renegotiation of contract to reflect increase in solid waste disposal 40 41. costs Definitions relative to value engineering change orders; requirement 40 41. for certain Contracts 40A:11-17 Number of working days specified 42. 40A:11-18 American goods and products to be used where possible 42. April, 2014 vi Local Public Contracts Law 40A:11-1 et seq. Section Title Page 40A:11-19 Liquidated damages; void provisions as to contractor's remedies 43. 40A:11-20 Certificate of bidder showing ability to perform contract 43. 40A:11-21 Guarantee to be furnished with bid 43. 40A:11-22 Surety company certificate 43.

10 40A:11-23 Advertisements for bids; bids; general requirements 44. 40 Plans, specifications, bid proposal documents; required contents 45. 40 Approval of change order under certain circumstances. 47. 40 Required mandatory items for bid plans, specification 47. 40 Withdrawal of Public works bid 47. 40 "Bulletin NJ" 48. 40 Rules and Regulations 49. 40A:11-24 Time for making awards; deposits returned 49. 40A:11-25 General power to provide qualification for bidders 49. 40A:11-26 Standard questionnaire; effect of unsatisfactory answers 50. Standard statements and questionnaires; prospective bidders;. 40A:11-27 50. responses 40A:11-28 Classification of prospective bidders; notice 51.