Pursuant to N.J.S.A. 40A:11-3(c) and 18A:18A-3(b), the state treasurer has exercised her authority to adjust bid thresholds for contracting units subject to the Local Public Contracts Law and the Public School Contracts Law, according to a local finance notice published by the Division of Local Government Services.These adjustments became effective July 1, 2020.
For contracting units that have appointed a qualified purchasing agent, pursuant to N.J.S.A 40A:11-9(b) and avail themselves of the related higher bid threshold pursuant to N.J.S.A 40A:11-3 and 18A:18A-3, the maximum bid threshold has been increased from $40,000 to $44,000. If a contracting unit governed by the Local Public Contracts Law (N.J.S.A 40:11-1 et seq.) does not have a qualified purchasing agent, the maximum bid threshold remains at $17,500. The maximum bid threshold for those contracting units subject to the Public School Contracts Law (N.J.S.A. 18A:18A-1 et seq.) that do not have a qualified purchasing agent has been increased from $29,000 to $32,000. Contracting units should, as appropriate, review their procurement policies and enabling resolutions or ordinances to determine what action, if any, is needed to take advantage of the higher bid and quotation thresholds.
For example, where the contracting unit has set fixed amounts, including if resolutions appointing a qualified purchasing agent used fixed threshold amounts, the governing body may take action to adjust the bid and quotation threshold amounts. Contracting units may elect to set their bid thresholds at a lower amount. Contracts exceeding the new threshold amount are subject to the appropriate requirements of the Local Public Contracts Law and the Public School Contracts Law. As a result of the change in bid threshold, the threshold for the informal receipt of quotations, which is 15% of the bid threshold in accordance with 40A:11-6.1(a) and 18A:18A-37(a), also changes.
Local Finance Notice 2023-15 is available here and includes detailed information, including the updated bidding thresholds and an updated link to the state comptroller’s contract submission webpage. Otherwise, the guidance remains identical to that in Local Finance Notice 2020-14R.