[First Reprint]
ASSEMBLY, No. 1569
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 15, 1996
By Assemblymen GARCIA and STANLEY
An Act concerning local public contracts and amending P.L.1975, c.353 and P.L.1971, c.198.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 6 of P.L.1975, c.353 (C.40A:11-6.1) is amended to read as follows:
6. All purchases, contracts or agreements which require public advertisement for bids shall be awarded to the lowest responsible bidder. For the purposes of this section a contracting unit may determine that a bidder is not "responsible" if the contracting unit has had a prior negative experience with that bidder. "Prior negative experience" means, concerning a prior contract with the contracting unit:
a. within the previous 1[10] five1 years, the bidder has been found liable in an adjudicated case, through either a court proceeding or arbitration, for noncompletion of work, failing to complete work in a timely manner, or for unsatisfactory job performance; or
b. within the previous 1[five] three1 years, the bidder was given notice by certified mail, return receipt requested, of noncompletion of work, failing to complete work in a timely manner, or of unsatisfactory job performance, that required the contracting unit to either withhold monies due the bidder in order to utilize the services of another contractor to correct or complete the project or invoke a liquidated damages clause in the prior contract with the bidder.
Every notice to a contractor pursuant to subsection b. of this section that the contracting unit has determined that the contractor shall not be considered a responsible bidder shall specify the nature of the contract breach and shall provide for an opportunity to be heard before the governing body of the contracting unit. The contractor may appeal the determination of the governing body by instituting, within 45 days of the determination of the governing body and in accordance with the New Jersey Court Rules, a summary proceeding in the Superior Court, Law Division, venued in the county in which the contracting unit is located, which action shall be tried de novo.
Prior to the award of any other purchase, contract or agreement, the contracting agent shall, except in the case of the performance of professional services, solicit quotations, whenever practicable, on any such purchase, contract or agreement the estimated cost or price of which is $1,000.00 or more, and the award thereof shall be made, in accordance with sections 3 (C. 40A:11-3) or 4 (C. 40A:11-4), as the case may be, of the Local Public Contracts Law, on the basis of the lowest responsible quotation received, which quotation is most advantageous to the contracting unit, price and other factors considered; provided, however, that if the contracting agent deems it impracticable to solicit competitive quotations in the case of extraordinary, unspecifiable service, or, in the case of such or any other purchase, contract or agreement awarded hereunder, having sought such quotations determines that it should not be awarded on the basis of the lowest quotation received, the contracting agent shall file a statement of explanation of the reason or reasons therefor, which shall be placed on file with said purchase, contract or agreement.
(cf: P.L.1983, c.418)
2. Section 32 of P.L.1971, c.198 (C.40A:11-32) is amended to read as follows:
32. Nothing herein contained shall be construed as depriving any contracting agent of the right to reject a bid at any time prior to the actual award of a public work or contract, where the circumstances of the prospective bidder have changed subsequent to the qualification and classification of the said bidder, which in the opinion of the awarding contracting unit would adversely affect the responsibility of the bidder. Before taking final action on any such bid, the contracting agent concerned shall notify the said bidder and afford him an opportunity to present any additional information which might tend to sustain the existing classification; except that the contracting agent may take final action on the bid if the contracting unit has had a prior negative experience with the bidder pursuant to the provisions of section 6 of P.L.1975, c.353 (C.40A:11-6.1).
No person shall be qualified to bid on any public work or contract unless he shall have submitted a statement or answers as herein required within a period of 6 months preceding the date of opening of bids for the public work or contract, if the bidders thereon are required to be classified hereunder. In any case where the contracting unit shall require classification of the bidders in compliance with these sections, each bidder on any public work or contract shall be required to submit a statement listing the changes in the statement or answers herein required as part of his bid submission.
(cf: P.L.1971, c.198, s.32)
3. This act shall take effect immediately.
Allows local contracting unit to disqualify bidder if contracting unit has had prior negative experience with that bidder.