SENATE STATE GOVERNMENT, WAGERING, TOURISM & HISTORIC PRESERVATION COMMITTEE

STATEMENT TO

SENATE, No. 3968

STATE OF NEW JERSEY

DATED:  NOVEMBER 15, 2021

      The Senate State Government, Wagering, Tourism, and Historic Preservation Committee reports favorably Senate Bill No. 3968.

     This bill increases, from $25,000 to $250,000, the purchasing threshold permitting the Director of Division of Purchase and Property to delegate authority to agencies and increases, from $25,000 to $250,000, the bid advertising threshold on certain contracts.

     Under current law, the Director of the Division of Purchase and Property may, by written order, delegate purchasing authority to the using agencies for purchases or contracts not in excess of $25,000.  This bill increases the amount to $250,000.

     Under current law, the director may, by written order, delegate purchasing authority to a specific agency for advertisement of purchases or contracts not in excess of $250,000, under certain conditions.  This bill increases the amount to $1,000,000 and includes that this may be done when a public exigency exists, such as when a public health emergency or a state of emergency has been declared by the Governor and is in effect.

     Under current law, any purchase, contract, or agreement may be made, negotiated, or awarded by the Director of the Division of Purchase and Property without advertising if the aggregate amount involved does not exceed $25,000 or the amount determined by the Governor, in consultation with the Treasurer.  The most recent update to the amount was made in 2020 and is currently at $44,000.  This bill increases the bid advertising threshold in the case of purchases for goods or services to $250,000.