SENATE, No. 919

STATE OF NEW JERSEY

INTRODUCED MARCH 14, 1996

By Senator HAINES

An Act concerning the duration of certain public contracts and supplementing chapter 11 of Title 40A of the New Jersey Statutes.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. A contracting unit may enter into a contract as a participant in a cooperative pricing system established pursuant to paragraph (5) of section 11 of P.L.1971, c.198 (C.40A:11-11) with a board of education, for materials, supplies or services that are not listed in section 15 of P.L.1971, c.198 (C.40A:11-15) and that are required on a recurring basis from year to year, for any term not exceeding in the aggregate, two years. Such contract may be renewed on an annualized basis for a period not exceeding three additional years without any further solicitation for bids or bidding upon a finding by the contracting unit that the services are being performed in an effective and efficient manner, or that the materials and supplies continue to meet the original specifications. If a contracting unit elects to renew an existing contract, the terms and conditions of the existing contract shall remain substantially unchanged and any increase in the annualized contract cost over the three-year period shall be no greater than a total of 20% over the initial annualized cost of the contract.

    2. This act shall take effect immediately.

STATEMENT

    This bill authorizes a local contracting unit to enter into a contract as a participant in a cooperative pricing system established pursuant to paragraph (5) of section 11 of P.L.1971, c.198 (C.40A:11-11) with a board of education, for materials, supplies or services that are not listed in section 15 of P.L.1971, c.198 (C.40A:11-15) and that are required on a recurring basis from year to year, for any term not exceeding in the aggregate, two years. The bill also provides that such a contract may be renewed yearly for a period not exceeding three additional years without any further solicitation for bids or bidding upon a finding by the contracting unit that the services are being performed in an effective and efficient manner, or that the materials and supplies continue to meet the original specifications. The bill requires that if a contracting unit elects to renew an existing contract, the terms and conditions of the existing contract must remain substantially unchanged and any increase in the annualized contract cost over the three year period must be no greater than a total of 20% over the initial annualized cost of the contract.

    The provisions of this bill are similar to an existing exception to the duration of certain contracts under the "Public School Contracts Law," N.J.S.18A:18A-1 et seq.). It is the intent of the sponsors that the insertion of the similar language in the "Local Public Contracts Law" will permit local contracting units to join together with school districts in the purchase of materials, supplies and services required on a recurring basis from year to year, and will allow local contracting units to benefit from the ability to renew such contracts yearly for a period not exceeding three additional years without any further solicitation for bids or bidding upon a finding that the services are being performed in an effective and efficient manner, or that the materials and supplies continue to meet the original specifications. The provisions of this bill are intended to save local contracting units time and money, allowing for the provision of goods and services to the taxpaying public at the lowest possible cost.

Permits extension of certain public contracts without public bidding under certain circumstances.