This Executive Order is superseded by EO #26 Whitman.

WHEREAS, regulation of the process of making or awarding public contracts should serve the purposes of preserving to the State all of the economic benefits of full and free competition and guarding against favoritism, improvidence, extravagance, or corruption; and

WHEREAS, the Legislature has established such regulation in the form of laws which provide that purchases, contracts, or agreements which are to be paid for out of State funds or other public funds should only be made or awarded after public advertisement for bids, unless the purchase, contract, or agreement is authorized by law to be made without such public advertisement; and

WHEREAS, the Legislature has determined that, even in cases where public advertising is not required, the process used to make or award the purchase, contract, or agreement should be one which promotes full and free competition whenever competition is practicable; and

WHEREAS, through the enactment of P.L. 1992, c. 130, and the issuance of Executive Order No. 65 (1992), provision has been made for the effective regulation of one type of agreement to which the general public advertising requirement does not apply -- State agency leases; and

WHEREAS, further action is needed to assure the public that purchases, contracts, or agreements which are not required to be made or awarded after public advertisement for bids are nonetheless made or awarded pursuant to procedures that promote full and free comepetition whenever competition is practicable and that provide for disclosure and accountability;

NOW, THEREFORE, I, JAMES J. FLORIO, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:

1. The State Treasurer shall establish, by regulation, procedures, which may be tailored to particular procurement needs, to require the use of a modified competitive process for purchases, contracts, or agreements for which public advertising for bids is not required pursuant to the provisions of sections 4 and 5 of P.L. 1954, c. 48 (C.52:34-6 et seq.). These procedures shall apply to all principal departments and any entities allocated thereto by law, notwithstanding whether they are subject to P.L. 1954, c. 48 (C.52:34-6 et seq.) or other similar provisions contained in the laws or regulations applicable to such entities.

2. The procedures established pursuant to section 1 of this Executive Order shall include a requirement that the individual or entity making or awarding the purchase, contract, or agreement state in writing the reason why a particular vendor was selected over any other competing vendors.

3. This Order shall not apply to lease agreements that are subject to the provisions of P.L. 1992, c. 130, or Executive Order No. 65 (1992).

4. This Order shall take effect immediately.

GIVEN, under my hand and seal this
12th day of January in the Year of Our
Lord, One Thousand Nine Hundred and
Ninety Three, and of the Independence
of the United States, the Two Hundred
and Seventeenth

/s/ Jim Florio
GOVERNOR

Attest:

/s/ M. Robert DeCotiis
Chief Counsel to the Governor