[Second Reprint]

SENATE, No. 4043

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED NOVEMBER 8, 2021

 


 

Sponsored by:

Senator  SANDRA B. CUNNINGHAM

District 31 (Hudson)

Assemblywoman  MILA M. JASEY

District 27 (Essex and Morris)

Assemblyman  LOUIS D. GREENWALD

District 6 (Burlington and Camden)

 

Co-Sponsored by:

Senator Ruiz and Assemblywoman Lampitt

 

 

 

 

SYNOPSIS

     Raises statutory threshold for certain public bidding, permits bidder disqualification due to prior negative experience, adds exemptions to public bidding requirement under "State College Contracts Law," and establishes process for cooperative pricing system. 

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Higher Education Committee on January 3, 2022, with amendments.

  


An Act concerning the awarding of State college and university contracts, amending N.J.S.18A:64-6 and P.L.1992, c.61, and amending and supplementing 1[P.L.1986, c.43] various parts of the statutory law1.

 

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

 

     1.    N.J.S.18A:64-6 is amended to read as follows:

     18A:64-6.  The board of trustees of a State college shall have general supervision over and shall be vested with the conduct of the college.  It shall have the power and duty to:

     a.     Adopt and use a corporate seal;

     b.    Determine the educational curriculum and program of the college consistent with the programmatic mission of the institution or approved by the Commission on Higher Education;

     c.     Determine policies for the organization, administration and development of the college;

     d.    Study the educational and financial needs of the college; annually acquaint the Governor and Legislature with the condition of the college; and prepare and present the annual budget to the Governor, the Division of Budget and Accounting in the Department of the Treasury and the Legislature in accordance with law; 

     e.     Disburse all moneys appropriated to the college by the Legislature and all moneys received from tuition, fees, auxiliary services and other sources; 

     f.     Direct and control expenditures and transfers of funds appropriated to the college and tuition received by the college, in accordance with the provisions of the State budget and appropriation acts of the Legislature, reporting changes and additions thereto and transfers thereof to the Director of the Division of Budget and Accounting in the State Department of the Treasury and as to funds received from other sources, direct and control expenditures and transfers in accordance with the terms of any applicable trusts, gifts, bequests, or other special provisions.  All accounts of the college shall be subject to audit by the State at any time; 

     g.    In accordance with the provisions of the State budget and appropriation acts of the Legislature, appoint and fix the compensation of a president of the college, who shall be the executive officer of the college and an ex officio member of the board of trustees, without vote, and shall serve at the pleasure of the board of trustees; 

     h.    Notwithstanding the provisions of Title 11, Civil Service, of the Revised Statutes, upon nomination by the president appoint a treasurer and such deans and other professional members of the academic, administrative and teaching staffs as defined in section 13 of P.L.1986, c.42 (C.18A:64-21.2) as shall be required and fix their compensation and terms of employment in accordance with salary ranges and policies which shall prescribe qualifications for various classifications and shall limit the percentage of the educational staff that may be in any given classification;

     i.     Upon nomination by the president, appoint, remove, promote and transfer such other officers, agents or employees as may be required for carrying out the purposes of the college and assign their duties, determine their salaries and prescribe qualifications for all positions, all in accordance with the provisions of Title 11, Civil Service, of the Revised Statutes;

     j.     Grant diplomas, certificates and degrees;

     k.    Pursuant to the provisions of the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.) enter into contracts and agreements for the purchase of lands, buildings, equipment, materials, supplies and services; enter into contracts and agreements with the State or any of its political subdivisions or with the United States, or with any public body, department or other agency of the State or the United States or with any individual, firm, or corporation, which are deemed necessary or advisable by the board for carrying out the purposes of the college;

     l.     If necessary, take and condemn land and other property in the manner provided by the "Eminent Domain Act of 1971," P.L.1971, c.361 (C.20:3-1 et seq.), whenever authorized by law to purchase land or other property;

     m.   Adopt, after consultation with the president and faculty, bylaws and make and promulgate such rules, regulations and orders, not inconsistent with the provisions of this article, that are necessary and proper for the administration and operation of the college and the carrying out of its purposes;

     n.    Establish fees for room and board sufficient for the operation, maintenance, and rental of student housing and food service facilities;

     o.    Fix and determine tuition rates and other fees to be paid by students;

     p.    Accept from any government or governmental department, agency or other public or private body or from any other source grants or contributions of money or property, which the board may use for or in aid of any of its purposes;

     q.    Acquire by gift, purchase, condemnation or otherwise, own, lease, dispose of, use and operate property, whether real, personal or mixed, or any interest therein, which is necessary or desirable for college purposes;

     r.     Employ architects , engineers, consultants, and other professionals to plan buildings 1, consistent with the provisions of the “Building Design Services Act,” P.L.1989, c.277 (C.45:4B-1 et seq.)1 ; secure bids for the construction of buildings and for the equipment thereof; make contracts for the construction of buildings and for equipment; and supervise the construction of buildings;

     s.     Manage and maintain, and provide for the payment of all charges and expenses in respect to all properties utilized by the college;

     t.     Borrow money for the needs of the college, as deemed requisite by the board, in such amounts, and for such time and upon such terms as may be determined by the board, provided that this borrowing shall not be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit, or be payable out of property or funds, other than moneys appropriated for that purpose, of the State;

     u.    Authorize any new program, educational department or school consistent with the institution's programmatic mission or approved by the commission;

     v.    (Deleted by amendment, P.L.1994, c.48);

     w.   Pursuant to the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.), award contracts and agreements for the purchase of goods and services, as distinct from contracts or agreements for the construction of buildings and other improvements, to that responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the State college, price and other factors considered; and

     x.    Pursuant to the "State College Contracts Law," P.L.1986, c.43 (C.18A:64-52 et seq.), award contracts and agreements for the construction of buildings and other improvements to the lowest responsible bidder, whose bid, conforming to the invitation for bids, will be the most advantageous to the State college.

(cf: P.L.2005, c.369, s.1)

 

     2.    Section 2 of P.L.1986, c.43 (C.18A:64-53) is amended to read as follows:

     2.    As used in this article, unless the context otherwise indicates:

     a.     "Board of trustees" means the board of a State college;

     b.    "Contracting agent" means the business officer of the State college having the power to prepare advertisements, to advertise for and receive bids, and to make awards for the State college in connection with the purchases, contracts or agreements permitted by this article or the officer, committee or employee to whom the power has been delegated by the State college;

     c.     "Contracts" means contracts or agreements for the performance of work or the furnishing or hiring of services, materials [or] 2,2 supplies, or construction, as distinguished from contracts of employment;

     d.    "Legal newspaper" means a newspaper circulating in this State which has been printed and published in the English language at least once a week for at least one year continuously;

     e.     "Materials" includes goods and property subject to chapter 2 of Title 12A of the New Jersey Statutes, apparatus or any other tangible thing, except real property or any interest therein;

     f.     "Extraordinary unspecifiable services" means services or products which cannot be reasonably described by written specifications;

     g.    "Professional services" means services rendered or performed by a person authorized by law to practice a recognized profession and whose practice is regulated by law and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction or apprenticeship and training.  Professional services also means services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor;

     h.    "Project" means any work, undertaking, construction or alteration;

     i.     "Purchases" are transactions, for a valuable consideration, creating or acquiring an interest in goods, services and property except real property or any interest therein;

     j.     "State college" means an institution of higher education established pursuant to chapter 64 of Title 18A of the New Jersey Statutes;

     k.    "Work" includes services and any other activity of a tangible or intangible nature performed or assumed pursuant to a contract or agreement with a State college;

     l.     "Information technology" means telecommunication and computing goods and services, including, but not limited to, software, hardware, cloud computing, and systems implementation and support for voice, data and video.

(cf: P.L.2005, c.369, s.2)

 

     3.    Section 3 of P.L.1986, c.43 (C.18A:64-54) is amended to read as follows:

     3.    a.  (1)  Any purchase, contract or agreement for the performance of any work or the furnishing or hiring of materials or supplies , through which workers employed in the performance of the contract are paid in accordance to the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $26,200 or, commencing January 1, 2005, the amount determined pursuant to subsection b. of this section, in any fiscal year may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the State college without public advertising for bids and bidding therefor.

     (2)   Any purchase, contract or agreement for the performance of any work or the furnishing or hiring of materials or supplies, through which workers employed in the performance of the contract are not paid in accordance to the “New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $100,000 or, commencing January 1, 2022, the amount determined pursuant to subsection b. of this section, in any fiscal year may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the State college without public advertising for bids and bidding therefor.

     b.    Commencing January 1, 2005 and every two years thereafter, the Governor, in consultation with the Department of the Treasury, shall adjust the threshold 1[amount] amounts1 set forth in subsection a. of this section in direct proportion to the rise or fall of the Consumer Price Index for all urban consumers in the New York and Northeastern New Jersey and the Philadelphia areas, as reported by the United States Department of Labor.  The adjustment shall become effective on July 1 of the year in which it is reported.

     c.     Any purchase, contract or agreement made pursuant to this section may be awarded for a period of 36 consecutive months, notwithstanding that the 36 -month period does not coincide with the fiscal year.

(cf: P.L.2005, c.369, s.3)

 

     4.    Section 4 of P.L.1986, c.43 (C.18A:64-55) is amended to read as follows:

     4.    a.  Every contract or agreement for the performance of any work or the furnishing or hiring of any materials or supplies, through which the workers employed in the performance of the contract are paid in accordance to the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or the contract price of which is to be paid with or out of college funds, not included within the terms of section 3 of this article, shall be made and awarded only by the State college after public advertising for bids and bidding therefor, except as provided otherwise in this article or specifically by any other law.  No work, materials or supplies shall be undertaken, acquired or furnished for a sum exceeding in the aggregate $26,200 or, commencing January 1, 2005,  the amount determined pursuant to subsection b. of section 3 of P.L.1986, c.43 (C.18A:64-54), except by written contract or agreement.

     b.    Any purchase, contract or agreement for the performance of any work or the furnishing or hiring of materials or supplies, through which the workers employed in the performance of the contract are not paid in accordance to the “New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), the cost or price of which, together with any sums expended for the performance of any work or services in connection with the same project or the furnishing of similar materials or supplies during the same fiscal year, paid with or out of college funds, does not exceed the total sum of $100,000 or, commencing January 1, 2022, the amount determined pursuant to subsection b. of section 3 of P.L.1986, c.43 (C.18A:64-54), in any fiscal year may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the board of trustees of the State college without public advertising for bids and bidding therefor.

(cf: P.L.2005, c.369, s.4)

 

     5.    Section 5 of P.L.1986, c.43 (C.18A:64-56) is amended to read as follows:

     5.    Any purchase, contract or agreement of the character described in section 4 of P.L.1986, c.43 (C.18A:64-55) may be made, negotiated or awarded by the State college by resolution at a public meeting of its board of trustees without public advertising for bids or bidding therefor if:

     a.     The subject matter thereof consists of:

     (1)   Professional services; or

     (2)   Extraordinary unspecifiable services and products which cannot reasonably be described by written specifications, subject, however, to procedures consistent with open public bidding whenever possible; or

     (3)   Materials or supplies which are not available from more than one potential bidder, including without limitation materials or supplies which are patented or copyrighted; or 

     (4)   The doing of any work by employees of the State college; or

     (5)   The printing of all legal notices and legal briefs, records and appendices to be used in any legal proceeding to which the State college may be a party  and the use of electronic data or media services, including the internet, for the printing of these legal notices and legal briefs, records and appendices; or 

     (6)   Textbooks, copyrighted materials, student produced publications and services incidental thereto, library materials including without limitation books, periodicals, newspapers, documents, pamphlets, photographs, reproductions, microfilms, pictorial or graphic works, musical scores, maps, charts, globes, sound recordings, slides, films, filmstrips, video and magnetic tapes, other printed or published matter and audiovisual and other materials of a similar nature, necessary binding or rebinding of library materials and specialized library services, including electronic databases and digital formats; or 

     (7)   Food supplies and services, including food supplies and management contracts for student centers, dining rooms and cafeterias; or 

     (8)   The supplying of any product or the rendering of any service by the public utility which is subject to the jurisdiction of the Board of Public Utilities, in accordance with tariffs and schedules of charges made, charged and exacted, filed with that board; or 

     (9)   Equipment repair service if in the nature of an extraordinary unspecifiable service and necessary parts furnished in connection with the services; or 

     (10)    Specialized machinery or equipment of a technical nature which will not reasonably permit the drawing of specifications, and the procurement thereof without advertising is in the public interest; or 

     (11)    Insurance, including the purchase of insurance coverage and consulting services, which exceptions shall be in accordance with the requirements for extraordinary unspecifiable services; or

     (12)    Publishing of legal notices in newspapers as required by law and the use of electronic data or media services, including the internet, for the publication of the legal notices; or

     (13)    The acquisition of artifacts or other items of unique intrinsic, artistic or historic character; or 

     (14)    The collection of amounts due on student loans, including without limitation loans guaranteed by or made with funds of the United States of America, and amounts due on other financial obligations to the State college, including but not limited to, the amounts due on tuition and fees and room and board; or 

     (15)    Professional consulting services; or

     (16)    Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions; or 

     (17)    Contracts employing funds created by student activities fees charged to students or otherwise raised by students and expended by student organizations; or 

     (18)    Printing, including without limitation catalogs, yearbooks and  course announcements and the production and reproduction of such material in electronic and digital formats, including compact discs; or 

     (19)    Information technology; or 

     (20)    Personnel recruitment and advertising, including without limitation advertising seeking student enrollment; or 

     (21)    Educational supplies, books, articles of clothing and other miscellaneous articles purchased by a State college for resale to college students and employees; or 

     (22)    Purchase or rental of graduation caps and gowns , and award certificates or plaques , or the rental of space and equipment used for graduation and other events and ceremonies ; or

     (23)    Items available from vendors at costs below State contract pricing for  the same product or service, which meets or exceeds the State contract terms or conditions; or

     (24)    Management contracts for bookstores, performing arts centers, residence halls, parking facilities and building operations; or

     (25)    Consulting services involving information technology, curricular or programmatic review, fund raising, transportation, safety or security; or

     (26)    Construction management services for construction, alteration or repair of any building or improvement; or

     (27)    Purchase or rental of equipment of a technical nature when the procurement thereof without advertising is necessary in order to assure standardization of equipment and interchangeability of parts in the public interest; or

     (28)    Banking and investment services; or

     (29)    Energy supply, such as electric and gas, from a third-party supplier; or

     (30)    Hazardous waste collection and disposal services; or

     (31)    Supplies and services for the administration of study abroad or remote programs; or

     (32)    Transportation services; or

     (33)    Vehicle maintenance; or

     (34)    Vending services; or

     (35)    Medical testing.

     b.    It is to be made or entered into with the United States of America, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof. 

     c.     The State college has advertised for bids pursuant to section 4 of P.L.1986, c.43 (C.18A:64-55) on two occasions and (i) has received no bids on both occasions in response to its advertisement, or (ii) has rejected the bids on two occasions because the State college has determined that they are not reasonable as to price, on the basis of cost estimates prepared for or by the State college prior to the advertising therefor, or have not been independently arrived at in open competition, or (iii) on one occasion no bids were received pursuant to (i) and on one occasion all bids were rejected pursuant to (ii), in whatever sequence; any contract or agreement may then be negotiated by a two-thirds affirmative vote of the authorized membership of the board of trustees authorizing the contract or agreement; provided that:

     (1)   A reasonable effort is just made by the contracting agent to determine that the same or equivalent materials or supplies at a cost which is lower than the negotiated price are not available from any agency or authority of the United States, the State of New Jersey or of the county in which the State college is located, or any municipality in close proximity to the State college;

     (2)   The terms, conditions, restrictions and specifications set forth in the negotiated contract or agreement are not substantially different from those which were the subject of competitive bidding pursuant to section 4 of this article; and 

     (3)   Any minor amendment or modification of any of the terms, conditions, restrictions and specifications, which were the subject of competitive bidding pursuant to section 4 of P.L.1986, c.43 (C.18A:64-55), shall be stated in the resolution awarding the contract or agreement; except that if on the second occasion the bids received are rejected as unreasonable as to price, the State college shall notify each responsible bidder submitting bids on the second occasion of its intention to negotiate and afford each bidder a reasonable opportunity to negotiate, but the State college shall not award the contract or agreement unless the negotiated price is lower than the lowest rejected bid price submitted on the second occasion by a responsible bidder, is the lowest negotiated price offered by any reasonable vendor, and is a reasonable price for the work, materials, supplies or services. Whenever a State college shall determine that a bid was not arrived at independently in open competition pursuant to subsection c. (ii) of this section, it shall thereupon notify the Attorney General of the facts upon which its determination is based and, when appropriate, it may institute appropriate proceedings in any State or federal court of competent jurisdiction for a violation of any State or federal antitrust law or laws relating to the unlawful restraint of trade.

     d.    It is to be awarded through a reverse auction for the purchase of utilities and other commodities. 

(cf: P.L.2005, c.369, s.5)

 

     6.    Section 6 of P.L.1986, c.43 (C.18A:64-57) is amended to read as follows:

     6.    Any purchase, contract, or agreement may be made, negotiated or awarded by a State college without public advertising for bids and bidding therefor, notwithstanding that the cost or contract price will exceed [$26,200] 1[$100,000 or, commencing January 1, 2005, the amount determined pursuant to subsection b. of] the appropriate threshold amount, as adjusted and established pursuant to1 section 3 of P.L.1986, c.43 (C.18A:64-54), when an emergency affecting the health, safety or welfare of occupants of college property requires the immediate delivery of the materials or supplies or the performance of the work, if the purchases, contracts or agreements are awarded or made in the following manner:

     a.     A written requisition for the performance of the work or the furnishing of materials or supplies, certified by the employee in charge of the building, facility or equipment where the emergency occurred, is filed with the contracting agent or his deputy in charge describing the nature of the emergency, the time of its occurrence, and the need for invoking this section.  The contracting agent, or his deputy in charge, being satisfied that the emergency exists, is authorized to award a contract for the work, materials or supplies.

     b.    Upon the furnishing of the work, materials or supplies in accordance with the terms of the contract or agreement, the contractor furnishing the work, materials or supplies is entitled  to be paid therefor and the State college is obligated for the payment.

     c.     The board of trustees may prescribe rules and procedures to implement the requirements of this section.

(cf: P.L.2005, c.369, s.6)

 

     7.    Section 19 of P.L.1986, c.43 (C.18A:64-70) is amended to read as follows:

     19.  All contracts or agreements for the purchase of goods and services, as distinct from contracts or agreements for the construction of buildings and other improvements, which require public advertisement for bids shall be awarded by the board of trustees to the responsible bidder whose bid, conforming to the invitation for bids, will be most advantageous to the State college, price and other factors considered , except that a bid may be disqualified due to prior negative experience pursuant to the provisions of section 10 of P.L.   , c.    (C.     ) (pending before the Legislature as this bill).

     Prior to the award of any contract or agreement which does not require public advertisement, the estimated cost of which is 20% or more of the amount set forth in this act or, commencing January 1, 1985, 20% of the amount determined by the Governor pursuant to subsection b. of section 3 of this act, the contracting agent shall, except in the case of professional services, solicit quotations therefor whenever practicable, and the award thereof shall be made, in accordance with section 3 of this article, on the basis of the quotation, conforming to the request for proposals, which is most advantageous to the State college, price and other factors considered; however, if the contracting agent deems it impractical to solicit competitive quotations or having sought the quotations determines that the award should not be made on that basis, the contracting agent shall file a statement of explanation of the reason or reasons therefor, which shall be placed on file with the purchase, contract, or agreement.

(cf: P.L.2005, c.369, s.12)

     8.    Section 2 of P.L.1992, c.61 (C.18A:64-76.1) is amended to read as follows:

     2.    a.  Whenever the entire cost for the construction, alteration or repair of any building by a State college will exceed the amount determined pursuant to subsection b. of section 3 of P.L.1986, c.43 (C.18A:64-54), the contracting agent shall advertise for and receive in the manner provided by law:

     (1)   separate bids for branches of work in the following categories:

     (a)   the plumbing and gas fitting work;

     (b)   the refrigeration, heating and ventilating systems and equipment;

     (c)   the electrical work, including any electrical power plants, tele-date, fire alarm, or security systems;

     (d)   the structural steel and ornamental iron work;

     (e)   general construction, which shall include all other work and materials required for the completion of the project, or

     (2)   bids for all work and materials required to complete the entire project if awarded as a single contract, or

     (3)   both (1) and (2) above.

     In the case of separate bids under paragraph (1) or (3) of this subsection, prime contractors for categories (a) through (d) shall not be required to name subcontractors in their bid. In the case of a single bid under paragraph (2) or (3), all bids submitted shall set forth the names and license numbers of all subcontractors to whom the general contractor will subcontract the work described in the foregoing categories (a) through (d). Subcontractors who furnish non-specialty trade work pursuant to category (e) in paragraph (1) of this subsection or subcontractors who furnish work to named subcontractors pursuant to categories (a) through (d) in paragraph (1) of this subsection shall not be named in the bid.  Notwithstanding the foregoing provisions of this subsection, a State college may choose to require in its bid specification that a subcontractor shall be named in a bid when, in the case of paragraph (1), separate bids for each category, the work of that subcontractor exceeds 35 percent of the State college's estimated amount of value of the work, which shall be set forth in the bid specification.

     b.    Contracts shall be awarded to the lowest responsible bidder whose bid, conforming to the invitation for bids, will be the most advantageous to the State college , except that a bid may be disqualified due to prior negative experience pursuant to the provisions of section 10 of P.L.   , c.    (C.     ) (pending before the Legislature as this bill).  Whenever two or more bids of equal amounts are the lowest bids submitted by responsible parties, the college may award the contract to any of the parties, as, in its discretion, it may determine.

(cf: P.L.2012, c.59, s.2)

     9.    Section 27 of P.L.1986, c.43 (C.18A:64-78) is amended to read as follows:

     27.  Any college may, by resolution of its board of trustees, authorize the sale in the following manner of its personal property not needed for college purposes:

     a.     If the estimated fair value of the property to be sold exceeds [$26,200] $100,000 or, commencing January 1,2005, the amount determined pursuant to subsection b. of section 3 of P.L.1986, c.43 (C.18A:64-54), in any one sale and the property does not consist of perishable goods, it shall be sold at public sale to the highest bidder.

     b.    Notice of the date, time and place of the public sale, together with a description of the items to be sold and the conditions of sale, shall be published once in a legal newspaper.  Sales shall be held not less than seven nor more than 14 days after the publication of the notice thereof.

     c.     Personal property may be sold to the United States, the State of New Jersey, another college or to any body politic by private sale without advertising for bids.

     d.    If no bids are received, the property may then be sold at private sale without further publication or notice thereof but in no event at less than the estimated fair value; or the State college may, if it so elects, reoffer the property at public sale.  As used herein, "estimated fair value" means the market value of the property if sold by a willing seller to a willing buyer less the cost to the college of continuing to store or maintain the property.

     e.     A State college may reject all bids if it determines a rejection to be in the public interest.  In any case in which the college has rejected all bids, it may readvertise the personal property for a subsequent public sale. If it elects to reject all bids at a second public sale pursuant to this section, it may then sell the personal property without further publication or notice thereof at private sale, but in no event shall the negotiated price at the private sale be less than the amount of the highest bid rejected at the preceding two public sales, nor shall the terms or conditions of sale be changed or amended.

     f.     If the estimated fair value of the property to be sold does not exceed [$26,200] $100,000 or, commencing January 1, 2005, the amount determined pursuant to subsection b. of section 3 of P.L.1986, c.43 (C.18A:64-54), in any one sale or the property consists of perishable goods, it may be sold at private sale without advertising for bids.

(cf: P.L.2005, c.369, s.15)

 

     10.  (New section)  a.  A board of trustees of a State college may, by resolution approved by a majority of the board and subject to subsections b. and c. of this section, disqualify a bidder who would otherwise be determined to be the lowest responsible bidder or the responsible bidder whose bid would otherwise be determined to be most advantageous to the State college as applicable, if the board finds that a board of an institution of higher education in the State has had prior negative experience with the bidder within the past 15 years.

     b.    As used in this section, "prior negative experience" means any of the following:

     (1) the bidder has been found, through either court adjudication, arbitration, mediation, or other contractually stipulated alternate dispute resolution mechanism, to have: failed to provide or perform goods or services; or failed to complete the contract in a timely manner; or otherwise performed unsatisfactorily under a prior  contract with a State college;

     (2) the bidder defaulted on a contract, thereby requiring a State college to utilize the services of another contractor to provide the goods or perform the services or to correct or complete the contract;

     (3) the bidder defaulted on a contract, thereby requiring a State college to look to the bidder's surety for completion of the contract or tender of the costs of completion; or

     (4) the bidder is debarred or suspended from contracting with any of the agencies or departments of the executive branch of the State of New Jersey at the time of the contract award, whether or not the action was based on experience with a State college.

     c.     The following conditions shall apply if the State college is contemplating a disqualification based on prior negative experience:

     (1)   The existence of any of the indicators of prior negative experience set forth in this section shall not require that a bidder be disqualified.  In each instance, the decision to disqualify shall be made within the discretion of the State college and shall be rendered in the best interests of the State college.

     (2)   All mitigating factors shall be considered in determining the seriousness of the prior negative experience and in deciding whether disqualification is warranted.

     (3)   The bidder shall be furnished by the State college with a written notice (a) stating that a disqualification is being considered; (b) setting forth the reason for the disqualification; and (c) indicating that the bidder shall be accorded an opportunity for a hearing before the State college if the bidder so requests within a stated period of time.  At the hearing, the bidder shall show good cause why the bidder should not be disqualified by presenting documents and testimony.  If the State college determines that good cause has not been shown by the bidder, it may vote to find the bidder lacking in responsibility and, thus, disqualified.

     (4)   Disqualification shall be for a reasonable, defined period of time which shall not exceed five years.

     (5)   A disqualification, other than a disqualification pursuant to which a State college is prohibited by law from entering into a contract with a bidder, may be voided or the period thereof may be reduced, in the discretion of the State college, upon the submission of a good faith application under oath, supported by documentary evidence, setting forth substantial and appropriate grounds for the granting of relief, such as reversal of a judgment, or actual change of ownership, management or control of the bidder.

     (6) An opportunity for a hearing need not be offered to a bidder whose disqualification is based on its suspension or debarment by an agency or department of the executive branch of the State of New Jersey.  The term of such a disqualification shall be concurrent with the term of the suspension or debarment by the State agency or department.

 

     111.  (New section)  a.  (1)  The governing board of a public institution of higher education may by resolution establish a cooperative pricing system with the governing boards of other public institutions of higher education.

     (2)   A lead agency shall procure goods and services through a cooperative pricing system using a master contract.  A master contract shall be secured in accordance with all applicable State contracting and procurement laws. 

     (3)   A participating contracting unit may use the master contract during the contract period to procure goods or services of the same specification, quality, and price as that contained in the master contract with the lead agency.

     b.    No vendor shall be required to extend bid prices to participating contracting units in a cooperative pricing system unless so specified in the bids.

     c.     As used in this section:

     “Cooperative pricing system” means a purchasing system in which one public institution of higher education acts as the lead agency in establishing a master contract with a vendor for the provision of goods or services and through which other public institutions of higher education may subsequently procure goods or services using the master contract.

     “Lead agency” means a public institution of higher education that enters into a master contract under a cooperative pricing system pursuant to the provisions of this section.

     “Participating contracting unit” means a public institution of higher education, other than the lead agency, that procures goods or services from a vendor using a master contract.1

 

     1[11.] 12.1    This act shall take effect on the 30th day after the date of enactment.