SENATE STATE GOVERNMENT COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, Nos. 1266 and 1289

STATE OF NEW JERSEY

DATED: NOVEMBER 18, 1996

      The Senate State Government Committee reports favorably a Senate Committee Substitute for Senate, Nos. 1266 and 1289.

      This committee substitute would provide that in order to be eligible to bid on a State public works contract a bidder must have submitted a statement of qualifications within the preceding 12 months. Existing law requires a bidder to have documented the bidder's qualifications within the preceding seven months. Allowing bidders to file statements at less frequent intervals would reduce the administrative burden on the Division of Building and Construction which currently processes 4,000 applications annually even though its staff has been reduced. This would enable the division to conduct a more thorough review of information submitted and to refine evaluation criteria to include measures of past performance. In addition to State agencies, all school districts and many local units rely on the division's qualification and classification of bidders.

      The committee substitute would also make it easier for bidders to comply with qualification requirements. Many bidders have been periodically unable to bid on State construction contracts because financial information, such as year-end statements, was not available by the current deadline for requalifying. Extending the period of time during which a bidder is qualified may make more bidders available to bid on each contract and lower bidders' costs. This, in turn, could result in lower bids which would benefit the State.