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Message Comments on A-2786 for League of Municipalities


·       All NJ government contracting units now have the authority to use a wide range of national contracts when bid and awarded by governments in other states. 

·       The Division of Local Government Services is developing guidance to explain about national contracts and the authority granted to contracting units under the law.  The guidance should be released after Thanksgiving.  Until then, local units should proceed with prudence to ensure their actions are compliant with the law

·       In using the law, it is intended that NJ business not be injured or put at a disadvantage because of the difference between NJ public contracting law and that of other jurisdictions.

·       The new law does not supersede existing laws designed to ensure the public trust.  The Divisionís guidance will address this issue in more detail.

·       Contracting units should treat the law as another tool for procurement and can be part of a contracting unitís procurement policies.

·       Contracting officials should be cautious to ensure that the authority is not abused.  Local officials continue to have responsibility to choose vendors in an open and transparent manner to ensure public confidence in the integrity of government spending.

·       Best practices should include ensuring that pricing under the national model is competitive and that economy in the form of low pricing is not unduly compromised through efficiency of some national contractors.

·       When using online ordering systems, local officials must establish and maintain internal controls to ensure quote and bid thresholds are maintained, encumbrances are established, purchases are documented, and there is an audit trail.

·       The Division is asking the Division of Law for some clarifications on some points of the law.

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