New Jersey Assembly Bill A1195

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Raises statutory threshold for certain public bidding, permits bidder disqualification due to prior negative experience, adds exemptions to public bidding requirement under "State College Contracts Law," and establishes process for cooperative pricing system.

Impact

The adoption of A1195 is likely to impact state laws governing procurement processes, particularly for institutions of higher education. By raising the bidding threshold, the bill could facilitate quicker contract awards for projects and services that are crucial for college operations. However, critics are concerned that this may lead to a lack of transparency and reduced competition among potential contractors. The ability to disqualify bidders based on their previous performance introduces a measure of accountability but could also disadvantage smaller firms or new entrants who lack a bidding history.

Summary

Assembly Bill A1195 aims to amend the existing 'State College Contracts Law' in New Jersey by increasing the statutory threshold for certain public bids and allowing for the disqualification of bidders based on prior negative experiences. The legislation specifies that the public bid threshold for contracts in which workers are not paid according to the New Jersey Prevailing Wage Act will be raised from $34,400 to $100,000. This modification is expected to provide state colleges more flexibility regarding smaller contracts without the need for extensive bidding procedures, thus streamlining operations and expenditures for higher education institutions.

Contention

Notable points of contention surrounding A1195 include the balance between efficiency and accountability in contract awarding. Proponents argue that the updates will help colleges operate more smoothly by minimizing bureaucratic hurdles for non-prevailing wage contracts. On the other hand, opponents worry that the changes could erode standards meant to ensure fair competition and adequate oversight in public contracting. Additionally, the broadening of exemptions to public bidding could obscure the procurement process, raising concerns regarding fiscal responsibility and the potential for cronyism in state-funded contracts.