SENATE TRANSPORTATION COMMITTEE

STATEMENT TO

ASSEMBLY, No. 1937

STATE OF NEW JERSEY

DATED: JUNE 6, 1996

      The Senate Transportation Committee released without recommendation Assembly Bill No. 1937.

      This bill would amend current law to permit the New Jersey Transit Corporation (the corporation) to negotiate or award any contract or agreement for the purchase or overhaul of public transit rolling stock and signal and fare collection systems without advertising.

      The corporation is currently required to use a competitive sealed bid process, after public advertisement of such bids, for the purchase or overhaul of such equipment. This bid process requires the development of detailed specifications and price is the primary factor when comparing eligible bids. The detailed specifications required for the competitive bid process do not allow the corporation to respond to bids submitted and may require that a bid which does not meet all specifications, regardless of the degree of nonconformity, be deemed ineligible.

      Current law authorizes a purchase, contract or agreement to be negotiated or awarded by the corporation without advertising under the following circumstances: if the aggregate amount of the purchase or contract does not exceed the State threshold amount for public bidding (currently $11,200); for the acquisition of public or private entities engaged in the provision of public transportation service, used public transportation equipment or existing public transportation facilities or rights of way; for the acquisition of professional or technical services; for the purchase or award a contract under emergency circumstances; and for the contracting for the operation of rail passenger or motorbus services. Corporation regulations require that all purchases, whether by formal advertising or otherwise, be made on a competitive basis to the maximum extent possible.

      This bill is identical to S-1168, released by the committee on the same date.