The Division of Local Government Services (DLGS) in the Department of Community Affairs recently announced several bid threshold adjustments that will impact New Jersey municipality’s award of public contracts.
Unless certain exceptions apply, all contracts for the procurement of goods or services by municipalities that in the aggregate exceed the bid threshold must be awarded through the public bidding process set forth in the Local Public Contracts Law (LPCL). The bid thresholds are adjusted by the Department of Treasury every five years.
Below is a brief summary of the most recent changes:
- The minimum bid threshold increased from $36,000 to $40,000 for entities which are subject to the LPCL whose purchasing agents possess a Qualified Purchasing Agent (QPA) certificate awarded by the DLGS. Accordingly, the new quote threshold for local units with QPAs is $6,000 (or 15 percent of the $40,000 QPA bid threshold). Entities that do not have a QPA maintain the $17,500 bid threshold and $2,625 for quotes.
- The minimum bid thresholds for school districts with QPA-certified purchasing agents increased from $36,000 to $40,000. Like local units with QPAs, the new quote threshold for school districts with QPAs is $6,000.
- The minimum bid threshold for those school districts without QPA-certified purchasing agents has also been increased from $26,000 to $29,000, with the corresponding quote threshold increased to $4,350 (15 percent of the $29,000 non-QPA school district bid threshold).
The bid threshold adjustments took effect as of July 1, 2015.
For more information about the increased bid thresholds or how it may impact your municipality, we encourage you to contact a member of Scarinci Hollenbeck’s Government Law Group.