New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 34 - LOCAL PUBLIC AND PUBLIC SCHOOL CONTRACTS LAWS
Subchapter 8 - CONTRACTS SUBJECT TO PUBLIC BIDDING
Section 5:34-8.3 - When determinations of aggregation are found to be incorrect

Universal Citation: NJ Admin Code 5:34-8.3

Current through Register Vol. 56, No. 6, March 18, 2024

(a) In each instance of (a)1 and 2 below, the amount required to be procured, is hereinafter defined to be the "remaining amount." This section shall affect determinations of aggregation pursuant to 40A:11-3, 40A:11-4 and 40A:11-7, and as set forth in 18A:18A-3, 18A:18A-4, and 18A:18A-8, and is adopted pursuant to 40A:11-7.1 and 18A:18A-8.1 when:

1. Initial estimates of goods or services needed during the contract year are incorrectly anticipated to be less than the bid threshold; or

2. Initial estimates of goods or services needed during the contract year that had been exempt from public bidding are later found to be incorrect.

(b) When either of the conditions in (a)1 or 2 above exist, the provisions of this section shall apply.

(c) If the remaining amount exceeds the bid threshold, public bidding for the remaining amount should take place as soon as practicable after the purchasing agent or contracting agent becomes aware of the change in needs. (see chapter Appendix A)

(d) Subject to the provisions of (d)1 and 2 below, the contracting agent or purchasing agent may seek authorization from the governing body or its designee to solicit quotations or publically bid the remaining amount. If the remaining amount is between 15 percent and 100 percent of the contracting unit's bid threshold, then:

1. The governing body may designate in advance an elected official to determine whether public bidding or the solicitation of quotations would be most advantageous in these circumstances; or

2. If the governing body fails to designate an elected official, it retains the responsibility to make the determination by resolution. (See chapter Appendix A)

(e) If the remaining amount to be procured by the contracting unit is less than 15 percent of its bid threshold, the contracting agent or purchasing agent may solicit quotations for the remaining amount.

(f) In seeking the governing body's or its designee's authorization to solicit quotations under (d) and (e) above, the contracting agent or purchasing agent shall:

1. Certify to the governing body or its designee, as appropriate, the need for additional goods and services;

2. Provide a description of how similar goods or services have been procured during the contract year to date;

3. Obtain a resolution from the governing body or written approval from its designee, as appropriate, approving the purchase; and

4. Provide a report of all procurements made under this section to the full governing body.

(g) No additional goods or services shall be procured through the solicitation of quotations under (d) above until the resolution or written approval approving the purchase has been passed by the governing body or in the case of a designated elected official, other required form of written approval has been obtained. (see chapter Appendix A)

(h) If the actual need for goods or services that are publicly bid are found during the course of the contract to be greater than the amount bid, the change order procedures set forth in N.J.A.C. 5:30-11 or 6A:23A-21.9 shall be used, as appropriate.

(i) Contracts issued pursuant to this section shall include a reference to the subsection under which the purchase is authorized.

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