Increases bid advertising threshold on certain purchases, contracts, or agreements.

S4375

SENATE, No. 4375

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 1, 2026

Sponsored by:

Senator� JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

���� Increases bid advertising threshold on certain
purchases, contracts, or agreements.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the advertising threshold for State
contracts and amending P.L.1954, c.48.

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

���� 1.��� Section 2 of P.L.1954,
c.48 (C.52:34-7) is amended to read as follows:

���� 2.� a.� Any such purchase,
contract or agreement may be made, negotiated, or awarded by the Director of
the Division of Purchase and Property or the Director of the Division of
[
Building
]

Property
Management
and Construction, as the case may be, without advertising, in
any manner which the director may deem effective to promote full and free
competition whenever competition is practicable, if: (1) in the case of
purchases for goods or services, the aggregate amount involved does not exceed
$150,000 beginning on the effective date of P.L.2021, c.412, $200,000 beginning
on January 1, 2023, and $250,000 beginning on January 1, 2024 and thereafter,
or the amount determined pursuant to subsection b. of this section, whichever
is greater; or (2) (Deleted by amendment, P.L.1985, c.107)
;
or (3) the
aggregate amount involved including labor and construction materials does not
exceed
[
$25,000.00
]

$150,000

or the amount determined pursuant to subsection b. of this section in the case
of contracts or agreements for the erection, construction, alteration, or
repair of any public building or facility.

���� When the aggregate amount
involved does not exceed the amount specified in paragraph (1) of subsection a.
of this section, or the amount specified in paragraph (3) of subsection a. of
this section or the amount determined pursuant to subsection b. of this
section, the Director of the Division of Purchase and Property or the Director
of the Division of
[
Building
]

Property
Management
and Construction may, at the director's discretion, delegate to
the appropriate State department or using agency the director's authority to
make, negotiate, or award a contract or agreement without advertising.

���� The Director of the Division
of Purchase and Property or the Director of the Division of
[
Building
]

Property
Management
and Construction, as the case may be, shall establish, in
accordance with the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations concerning procedural requirements
for the making, negotiating or awarding of purchases, contracts or agreements
pursuant to this section, at the director's discretion.

���� b.��� The Governor, in
consultation with the Department of the Treasury, shall, no later than March 1
of every fifth year beginning in the fifth year after the year in which
P.L.1999, c.440 takes effect, adjust the threshold amount set forth in
subsection a. of this section, or the threshold amount resulting from any
adjustment under this subsection, in direct proportion to the rise or fall of
the index rate as that term is defined in section 2 of P.L.1971, c.198
(C.40A:11-2), and shall round the adjustment to the nearest $1,000. The
Governor shall, no later than June 1 of every fifth year, notify the Director
of the Division of Purchase and Property and the Director of the Division of
[
Building
]

Property
Management
and Construction of the adjustment. The adjustment shall become
effective on July 1 of the year in which it is made.

(cf: P.L.2021, c.412, s.2)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill increases, from
$25,000 to $150,000, the bid advertising threshold on certain State contracts.

���� This bill would allow smaller
construction and repair projects under $150,000 to be informally bid by the
using agency without full advertising thereby reducing the time and cost
required to complete these smaller projects.

���� Under current law, any
purchase, contract, or agreement may be made, negotiated, or awarded by the
Director of the Division of Purchase and Property or the Director of the
Division of Property Management and Construction without advertising if the
aggregate amount involved including labor and construction materials does not
exceed $25,000 or the amount adjusted by the Governor, in consultation with the
Department of the Treasury as permitted by current law.� This threshold applies
to certain contracts or agreements for the erection, construction, alteration
or repair of any public building or facility.� The most recent adjustment to
the amount was made in 2021 and is currently $71,000.� This bill increases the
bid advertising threshold in the case of purchases of labor and construction
materials to $150,000.