SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

STATEMENT TO

SENATE, No. 2947

STATE OF NEW JERSEY

DATED:  JANUARY 17, 2019

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 2947.

      This bill amends the "Local Public Contracts Law," P.L.1971, c.198 (C.40A:11-1 et seq.) to provide that once three or more parties have received bid documents, the local contracting unit would be required to release the names of all parties who have received bid documents, upon request.

      The local contracting unit would be required to make the information available in a timely manner and in accordance with P.L.1963, c.73 (C.47:1A-1 et seq.).  Alternatively, if the contracting unit maintains its own website, the contracting unit may post the information on that site.  Failure to release or post the information would prevent the contracting unit from accepting bids and require the readvertisement of bids.

      The purpose of this bill is to allow subcontractors, including minority-owned and women-owned subcontracting businesses, to have timely access to bidders on public projects so that they can submit subcontracting bids to those bidders for the purpose of enabling those bidders to put together their lowest possible bids to the benefit of the local contracting unit.  Under the current system, if the names of the parties who have received bid documents is not released or made public, then only subcontractors specifically contacted by a bidder are able to submit bids on subcontracting work.  By expanding the pool of subcontractors vying for a job, the cost should be reduced and the bidder able to submit a lower cost proposal.  The bill would also help ensure that minority-owned and women-owned subcontracting businesses get fair opportunity to compete for work on public projects.

      Additionally, the bill would require bid proposal documents for contracts to erect, alter, repair or improve real property, the total price of which exceeds the Local Public Contracts Law bid threshold, to include a bidder's affidavit of non-collusion.  This requirement is being imposed to ensure that bidders have not participated in collusion with other bidders or owner representatives, or otherwise taken any action in restraint of free and competitive bidding.