Legislative Update: S3137

With recent advances in technology occurring rapidly and exponentially, it is appropriate to look to ways that New Jersey can utilize these technologies to provide efficiencies while accomplishing standardization; clearing up the tremendous amount of inconsistency between various public contracting statutes. S-3137 seeks to further address these inconsistencies throughout public bidding laws by establishing a uniform set of bid components to be submitted electronically.
Standardized, electronic procurement streamlines the process, reduces administrative burden on agencies and staff and allows for a more equitable, ethical and competitive bidding process and allows apples-to-apples comparison of bids. It therefore reduces risk and the potential for conflict among bidders and between the government entity and bidders. For all these reasons, electronic bidding will provide cost-savings to New Jersey taxpayers.

Summary

“This bill would require public contracting agencies that contract for the construction of public works to use electronic procurement technologies for public works construction projects when a project’s value exceeds $5,000,000.

These entities include those subject to the “Public School Contracts Law,” N.J.S.A.18A:18A-1 et seq.; the “State College Contracts Law,” N.J.S.A.18A:64-52 et seq.; the “County College Contracts Law,” N.J.S.A.18A:64A-25.1 et seq.; N.J.S.A.52:18A-235 et seq. (the schools development authority law), the “Local Public Contracts Law,” N.J.S.A.40A:11-1 et seq.; and chapters 32, 33, and 34 of Title 52 of the Revised Statutes (the State and its agencies and instrumentalities).

The bill requires the State Treasurer to promulgate regulations to effectuate the electronic procurement of public works as required by the bill. The regulations must set forth each of the steps the treasurer deems appropriate to be taken by each public contracting unit when a public works project project’s value exceeds $5,000,000. The regulations must also create a procedure to be followed by a public contracting unit for the awarding of a contract for the administration of the electronic procurement process, and all aspects of electronic procurement. The regulations must also require that a contractor or vendor seeking a contract for public works under the bill be classified with the Division of Property Management and Construction in the Department of the Treasury prior to submitting a bid. The regulations must also require certain bidding components specified in the bill. The regulations promulgated by the treasurer must also set qualifications to be met by firms providing electronic procurement processes under the bill.”