New Jersey

Key Agency(ies):  

• The Department of the Treasury, Division of Purchase and Property (DPP) is the central authority for state procurement, administering contracts for goods and services for executive branch agencies.

Key Statute:

• Title 52, Chapter 32-40 N.J. Stat. Ann.
  • Governs state procurement and purchasing procedures.
    • Link to New Jersey Statutes

Key Regulations:

• New Jersey Administrative Code (N.J. Admin. Code) Title 17, Chapter 12 governs the means of procurement, outlines protest procedures, and other provisions.
• Link to the New Jersey Administrative Code (NJAC)

Procurement Types/Highlights:

• Formal, Advertised, Competitive Procurement
• The primary method for state contracts; all procurements over $25,000 must be publicly advertised and competitively bid.
• Requests for Proposals (RFPs)
• Used for complex procurements where factors other than price are considered; may include negotiation and best-and-final offers.
• Sealed bids
• Traditional method for straightforward purchases; bids are submitted in sealed form (or electronically sealed) and opened publicly.
• Lowest price, responsive proposal
• Contracts awarded the lowest price, responsive bidder, provided responsiveness criteria are met.
• Weighted Evaluation Criteria
• Use of weighted criteria for evaluating proposals.

Bid Protests:

Regs Governing Bid Protests:

• New Jersey Administrative Code (N.J. Admin. Code) Title 17, Chapter 12, Subchapter 3

Eligible Protesters:

• Pre-award protests
• Any vendor intending to submit a proposal in response to an advertised RFP may file a protest.
• Post-award protests
• Any bidder who submitted a proposal in response to an RFP may protest.
• The rejection of its proposal (for non-responsiveness)
• The notice of contract award
• The cancellation of an RFP after proposals are opened.

Timeliness Rules:

• Pre-Award Protests
• Must be filed after the DPP has responded to RFP questions, but with enough time for review and action before the proposal submission deadline.
• Protests filed fewer than seven business days before the proposal deadline may be disregarded.
• Post-Award Protests
• Must be filed within 10 business days of receiving written notification of proposal rejection, contract award or RFP cancellation.
• Untimely protests may be disregarded by the director.

Protest Process:

• Protesters must timely submit a written protest to the Director of the Division of the Purchase and Property (DPP).
• The protest must:
• Identify the solicitation number.
• Specify the RFP terms, conditions, or specifications being challenged.
• State all grounds for the protest including supporting arguments, materials, and documentation.
• Indicate whether an in-person presentation is requested and the reason for the request.
• The DPP will refrain from awarding the contract until a final decision is rendered, except in cases of substantial cost or public exigency.
• The Director will issue a final written decision prior to proposal opening.
• The Director may resolve the protest by amending the RFP, extending the deadline, canceling the procurement, or other appropriate means.
• The Director’s decision is the final agency decision.

Appeals:

• The Director’s final agency decision on a protest may be appealed to the New Jersey Superior Court, Appellate Division under N.J. Admin. Code § 17:12-3.1(b)

Claims: 

• Contractors must notify the state in writing of any situation that could result in a claim, typically within 90 days of accrual.
• Claims are heard by the courts (judge, no jury) and recovery is limited – no punitive or consequential damages, and no recovery for implied warranties or contracts.

Suspension & Debarment:

• The Director of the Division of Purchase and Property (DPP) must debar a person for causes including:
• Criminal offenses related to contracts
• Violations of federal or state antitrust or anti-kickback laws
• Material false representation in a bid
• Unsatisfactory performance on prior contracts
• Other offenses
• Written notice of proposed debarment is provided, stating reasons and offering a hearing.
• Debarment is for a defined period, generally not exceeding five years, but may be extended with notice.
• Suspension is based on the same causes as debarment but may be imposed upon “adequate evidence” and in the public interest.
• Written notice of suspension is provided within 10 days, stating reasons and effective date.
• Suspension may not exceed 18 months unless legal or debarment proceedings are initiated.
• Suspended parties may be given an opportunity for a hearing if proceedings are not commenced within 60 days.
• The Director of the DPP must supply a monthly list of all debarred, suspended, or disqualified persons to the state treasurer.

Interesting/Distinctions: 

• The DPP may apply preferences for in-state bidders and is required to apply reciprocal preferences against out-of-state bidders whose home states apply such preferences.
• New Jersey requires all vendors to comply with political contribution disclosure and compliance review.
• All proposals become public documents after contract award, subject to New Jersey’s Open Public Records Act.