BID THRESHOLD AND QUOTES
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1 April 27 th & 28 th, 2016 As Presented By: Matthew Cavallo, Township Manager for the Township of Verona & Gerald T Reiner Jr., Purchasing Agent for the County of Bergen BID THRESHOLD AND QUOTES Jurisdiction Current Maximum Threshold Allowed Pay to Play Threshold Quote Threshold 15% of Bid Threshold P.S.C.L. N.J.S.A 18A:18A-3 Without QPA P.S.C.L. N.J.S.A 18A:18A-3 With QPA L.P.C.L. N.J.S.A. 40A:11-3 Without QPA L.P.C.L. N.J.S.A. 40A:11-3 With QPA $29,000 $17,500 $4,350 $40,000 $17,500 $6,000 $17,500 $17,500 $2,625 $40,000 $17,500 $6,000 EFFECTIVE JULY 1,
2 BASIC GOODS AND SERVICES Basic Goods and Services are typically transactional in nature, meaning they involve a specific purchase of a product or service. Examples of basic goods and services are; Vehicles Rock Salt Office Supplies Computers Sports Equipment ALL BASIC GOODS AND SERIVCES ABOVE YOUR* BID THRESHOLD CAN ONLY BE AWARDED BASED ON THE LOWEST RESPONSIVE RESPONSIBLE BIDDER *Although the maximum available bid threshold of $40, is available each local unit may set a bid threshold at any level they wish to up to that limit. CONSTRUCTION PROJECTS Can Only Be Awarded to the Lowest Responsive Responsible Bidder All Responsive Bidders Must Include in their bids; NJ Public Works Contractor Registration Certificate Provide copies of any and all applicable trade licenses; i.e. Plumbing & Electrical licenses Identify and provide documentation and licenses for prime sub contractors i.e. Plumbing, Electrical, Masonry and Ornamental Steel 2
3 CONSTRUCTION PROJECTS Prevailing Wage Know your applicable wage rates! For The Majority of New Jersey Based Public Construction Projects the Applicable Prevailing Wage Rate is Set by NJ DOL For some projects which have a Federal Funding Source the Davis Bacon Act rate will be in effect; EXEMPTIONS TO BIDDING Statutory Reference and Unique Citations: LPSCL 18A:18A-5 Exception to advertising component of bidding requirements (6) Food supplies, including food supplies for home economics classes, when purchased pursuant to rules and regulations of the State board and in accordance with the provisions of N.J.S.18A:18A-6 ; (West) (21) Goods and services paid with funds that: are raised by or collected from students to support the purchase of student-oriented items or materials, such as yearbooks, class rings, and a class gift; and are deposited in school or student activity accounts; and require no budget appropriation from the board of education; (West) (22) Food services provided by food service management companies pursuant to procedures established by the New Jersey Department of Agriculture, Bureau of Child Nutrition Programs; (West) (23) Vending machines providing food or drink. (West) LPCL 40A:11-5 Exceptions to Bidding (g) The acquisition, subject to prior approval of the Attorney General, of special equipment for confidential investigation; (West) (u) Contracting unit towing and storage contracts, (West) (y) An agreement for the purchase of an equitable interest in a water supply facility or for the provision of water supply services entered into pursuant to section 2 of P.L.1993, c.381 (West) N.J. Stat. Ann. 18A:18A-5 (West) N.J. Stat. Ann. 40A:11-5 (West) 3
4 EXEMPTIONS TO BIDDING The Most Often Used Exemption To Bidding is Professional Services Including: Lawyers, Architects, Engineers and Accountants Bid Exemptions Pay to Play Exemptions N.J.S.A. 19:44A-20.4 et seq. (West) EXEMPTIONS TO BIDDING All Exempted Services Need to be Awarded In one of two ways; I. Fair and Open Process II. Non Fair and Open Process A Fair and Open Process Includes, but is not limited to; Requests for Qualifications (RFQ) Requests for Proposals Competitive Contracting Bidding A Non Fair and Open Process is; A direct award by the governing body, that requires additional disclosures and could bring public scrutiny to the contract being awarded. 4
5 EXEMPTIONS TO BIDDING Even though it s Exempted from Bidding. Why not bid it? Q: What is Competitive Contracting? A: The strict definition as cited in N.J.A.C. 5: of Competitive contracting" means the method described in N.J.S.A. 40A: et seq. and 18A:18A-4.1 et seq. of contracting for specialized goods and services in which formal proposals are solicited from vendors. In short Competitive Contracting may be used under specific circumstances to solicit and award contracts using price and OTHER factors. 5
6 Q: Why Use Competitive Contracting? A: The goals of competitive contracting are designed for those goods and services where going with only the Lowest, Responsive, Responsible bidder, wouldn t necessarily garner the best end result for the Local Unit. For example, if a local unit were to choose a consultant only by their hourly rate with all other factors being excluded, the end product which the consultant was being retained for may suffer. However if the local unit were able to look at years of experience, references and other factors than price the local unit is more likely to contract with a consultant who can provide for a better end product. Examples for which Competitive Contracting May Be Used For Allowable Under LPCL 40A:11 & NJPSCL 18A:18 Concessions Operation, Management, or Admin of Data Processing Services Laboratory Testing Services Goods and Services Which Are Exempt from Bidding Allowable Without DLGS Permission Only Under NJPSCL 18A:18 Driver Education Courses The purchase of specialized machinery or equipment of a technical nature, or servicing thereof, which will not reasonably permit the drawing of specifications Allowable Without Permission Only Under LPCL 40A:11 Emergency medical services, Maintenance, custodial, and grounds keeping services Consultants It is important to note the listed services provided on this slide is not a complete list, also that theses services listed are those which do not require the permission of the Division of Local Government Services to initiate Competitive Contracting. Both the LPCL and NJPSCL provide that competitive contracting may also be used as follows: The operation, management or administration of other services, with the approval of the Director of the Division of Local Government Services 6
7 Special Circumstances If the contracting unit, at the time of solicitation, utilizes its own employees to provide the goods or perform the services, or both, considered for competitive contracting, the governing body shall, at any time prior to, but no later than the time of solicitation for competitive contracting proposals, notify affected employees of the governing body's intention to solicit competitive contracting proposals. Employees or their representatives shall be permitted to submit recommendations and proposals affecting wages, hours, and terms and conditions of employment in such a manner as to meet the goals of the competitive contract. If employees are represented by an organization that has negotiated a contract with the contracting unit, only the bargaining unit shall be authorized to submit such recommendations or proposals. When requested by such employees, the governing body shall provide such information regarding budgets and the costs of performing the services by such employees as may be available. Nothing shall prevent such employees from making recommendations that may include modifications to existing labor agreements in order to reduce such costs in lieu of award of a competitive contract, and agreements implementing such recommendations may be considered as cause for rejecting all other proposals. Q: Initiating the use of Competitive Contracting A: In order to initiate competitive contracting, the governing body shall pass a resolution authorizing the use of competitive contracting each time specialized goods or services are desired to be contracted. If the desired goods or services have previously been contracted for using the competitive contracting process then the original resolution of the governing body shall suffice. 7
8 The Basic Steps of Administering the Competitive Contracting Process as per NJAC 5:34-4 After passage of the authorizing resolution the following individuals are authorized to administer the Competitive Contracting Process. NJAC 5:34-4 "Administrator" means: 1. In the case of a municipality, a municipal administrator appointed pursuant to N.J.S.A. 40A:9-136 and N.J.S.A. 40A:9-137; a business administrator, a municipal manager or a municipal administrator appointed pursuant to the Optional Municipal Charter Law, P.L. 1950, c.210 (N.J.S.A. 40:69A-1 et seq.); or a municipal manager appointed pursuant to the municipal manager form of government law. N.J.S.A. 40:79-1 et seq.; April, 2014 Page In the case of a county, an individual appointed pursuant to N.J.S.A. 40A:9-42, 40:41A-42, 40:41A-47, or 40:41A- 82; 3. In the case of an authority, as defined in the Local Authorities Fiscal Control Law, P.L. 1983, c. 313 (N.J.S.A. 40A:5A-1 et seq.), a full-time professional employee of the authority found by the governing body to possess the experience and skill necessary to properly administer the competitive contracting process; or 4. In the case of a board of education, the administrator shall be defined pursuant to N.J.S.A. 18A:18A-4.3.b. "Authorized agent" means a duly-appointed qualified purchasing agent, legal counsel, or administrator of a contracting unit using competitive contracting in accordance with this subchapter. Timeline and Evaluation Committee Timeline: The minimum number of calendar days in which a competitive contracting request for proposals may be advertised for is 20 days. Although this is the minimum, it is suggested due to the complexity of these projects to advertise these for at least 30 days. This should allow ample time for the maximum number of respondents to prepare proposals and also allow the contracting unit time to issue addenda if necessary. Evaluation Committee: An evaluation committee may be made up of 1 or more individuals who have certified that they do not have a conflict of interest as follows; I hereby certify that I have reviewed the conflict of interest standards in the Local Government Ethics Law or the School Ethics Act, as appropriate, and that I do not have a conflict of interest with respect to the evaluation of this proposal. I further certify that I am not engaged in any negotiations or arrangements for prospective employment or association with any of those submitting proposals or their parent or subsidiary organization. Each committee member are to review and score proposals both individually and as a body of the whole. 8
9 Evaluating and Scoring Competitive Contracting Proposals (a) The following, as appropriate to individual circumstances, shall be used as criteria for evaluating requests for proposals (RFPs) under the competitive contracting process described in N.J.S.A. 40A: et seq. and 18A:18A-4.1 et seq. These criteria are not intended to be limiting or all-inclusive, and they may be adapted or supplemented in order to meet a contracting unit's individual needs as competitive contracting may dictate. No criteria shall unfairly or illegally discriminate or exclude otherwise capable vendors. 1. Technical criteria: 2. Management criteria: 3. Cost criteria: Evaluating and Scoring Competitive Contracting Proposals Continued The Specific weights of each criteria may be included in the Request for Proposal (RFP) during the solicitation or may be announced outload directly prior to the opening of the proposals. If scores were included in the original RFP, they can not be changed after proposals are taken. ALL PROPOSALS received must be scored both individually and as a committee of the whole. Each criteria which the RFP s are being judged against must be defended in detail citing specific parts of an respondents proposal. The Committee shall designate a member of the committee to draft a final scoring and award recommendation to the governing body. 9
10 Award of a Competitive Contract The Technical Evaluation Report shall be made available to the public at least 48 hours prior to the awarding of the contract, or when made available to the governing body, whichever is sooner. Award of a contract shall be made by resolution of the governing body of the contracting unit within 60 days of the receipt of the proposals, except that the proposals of any vendors who consent thereto, may, at the request of the contracting unit, be held for consideration for such longer period as may be agreed. The clerk or secretary of the contracting unit shall publish a notice in the official newspaper of the contracting unit summarizing the award of a contract, which shall include but not be limited to, the nature, duration, and amount of the contract, the name of the vendor and a statement that the resolution and contract are on file and available for public inspection in the office of the clerk or secretary of the municipality, county, local public authority or special district of the governing body. 10
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