NJ Division of Purchase and Property - Adjustment to Public Bidding Threshold

Adjustment to Public Bidding Threshold

TO: All Affected Agencies

FROM: Elizabeth Maher Muoio, State Treasurer

DATE: September 1, 2022

SUBJECT: Adjustment To Public Bidding Thresholds – 5 Year Schedule

Pursuant to the provisions of P.L. 2021, c. 412, which authorized the Director of the Division of Purchase and Property to increase the delegated purchasing authority to using agencies for goods and services, after consulting with the Governor, the Treasurer exercised the statutory authority pursuant to N.J.S.A. 52:34-7 to adjust the bid thresholds for awarding a contract without advertising as noted below. Accordingly, all covered purchases and contracts, which exceed these established thresholds, must be achieved through open competitive bidding.

These adjustments are effective immediately.

Statute	Jurisdiction	2022 Threshold
N.J.S.A. 18A:18A-3¹	Public School Districts	$32,000
N.J.S.A. 18A:18A-3	Public School Districts - With a Qualified Purchasing Agent	$44,000
N.J.S.A. 40A:11-3²	Local Public Contracts Law (Including County Bridge Commissions and Joint Sewer Plants)	$17,500
N.J.S.A. 40A:11-3	Local Public Contracts Law - With a Qualified Purchasing Agent (Including County Bridge Commissions and Joint Sewer Plants)	$44,000
N.J.S.A. 52:34-14⁴	State House Commission	$200,000
N.J.S.A. 58:1B-22	New Jersey Water Supply Authority (NJDEP) Contracts Necessary to Water Supply Management	$44,000
N.J.S.A. 5:10-21.1	New Jersey Sports and Exposition Authority	$44,000
N.J.S.A. 27:23-6.1	New Jersey Turnpike Authority	$44,000
N.J.S.A. 13:17-6.1³	Hackensack Meadowlands Development Commission	$44,000
N.J.S.A. 18A:71A-10	Higher Education Student Assistance Authority	$44,000
N.J.S.A. 27:25A-8⁴	South Jersey Transportation Authority	$200,000
N.J.S.A. 52:25-23 N.J.S.A. 52:34-7⁴	Division of Purchase and Property	$250,000
N.J.S.A. 52:34-7	Division of Property Management and Construction Professional consultant services for construction	$44,000
N.J.S.A. 52:34-7	Division of Property Management and Construction Construction Contracts	$71,000
N.J.S.A. 27:25-11(g)(1)⁴	New Jersey Transit Corporation	$200,000

All threshold adjustments are based upon the Division of Law's interpretation of the particular entity's statutory authority and language. Any questions or comments regarding this memo should be directed to the Department of Community Affairs, Division of Local Government Services - Purchasing & Procurement Unit at (609) 292-6110 or to the Department of the Treasury, Division of Purchase and Property – Contract Compliance and Audit Unit at 609-292-5400.

¹Pursuant to N.J.S.A. 18A:18A-3(a), "the board of education may adopt a resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations."

²Pursuant to N.J.S.A. 40A:11-3 and Local Finance Notice 2011-15, the bid threshold, for entities without a Qualified Purchasing Agent, under the Local Public Contracts Law was set at $17,500 and is not subject to the Governor's adjustment. Additionally pursuant to N.J.S.A. 40A:11-3(a) "the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotes."

³In February 2015 the Hackensack Meadowlands Development Commission (N.J.S.A. 13:17-6.1) a/k/a New Jersey Meadowlands Commission was consolidated into the New Jersey Sports and Exposition Authority.

⁴Pursuant to Circular Letter 24-16-DPP Delegated Purchasing Authority (DPA) For Goods and Services effective January 1, 2024 the DPA threshold increased from $200,000.00 to $250,000.00.