Podcast
Questions and Answers
The formal organization of purchasing in NJ municipalities was created by the laws of?
The formal organization of purchasing in NJ municipalities was created by the laws of?
1917
What type of contract is most common?
What type of contract is most common?
Firm fixed pricing
When is an emergency purchase acceptable?
When is an emergency purchase acceptable?
Affecting public's health, safety & welfare
What is a requisition?
What is a requisition?
What is the purpose of having a purchasing manual?
What is the purpose of having a purchasing manual?
Where can a government body authorize additional rules/procedure implementing emergency purchases?
Where can a government body authorize additional rules/procedure implementing emergency purchases?
What is the time you have to make an award?
What is the time you have to make an award?
What type of F.O.B is most advantageous?
What type of F.O.B is most advantageous?
What is known as P.L 1999 C. 440 NJSA 40A:11-1 ET seq?
What is known as P.L 1999 C. 440 NJSA 40A:11-1 ET seq?
Professional service contracts are for a period of how many years?
Professional service contracts are for a period of how many years?
Award to contract must take place within how many days of receipt of purchase?
Award to contract must take place within how many days of receipt of purchase?
If collusion is suspected, who do you notify?
If collusion is suspected, who do you notify?
When no bids are received, when can you negotiate with vendors?
When no bids are received, when can you negotiate with vendors?
Who can award a contract over the bid threshold?
Who can award a contract over the bid threshold?
For total aggregate, can contracts be broken down?
For total aggregate, can contracts be broken down?
Who regulates changes and establishes the law follow?
Who regulates changes and establishes the law follow?
How can a governing body enact local law in furtherance of the contracts law?
How can a governing body enact local law in furtherance of the contracts law?
What is a specification?
What is a specification?
What does MSDS stand for?
What does MSDS stand for?
What act requires the MSDS?
What act requires the MSDS?
Advertisement must happen how many days before a bid, except solid waste?
Advertisement must happen how many days before a bid, except solid waste?
What is the definition of bid bond?
What is the definition of bid bond?
Bid bond is what % of contract, not to exceed what amount?
Bid bond is what % of contract, not to exceed what amount?
Consent of surety ensures that a contractor will be able to obtain what?
Consent of surety ensures that a contractor will be able to obtain what?
What is a labor and material payment bond?
What is a labor and material payment bond?
What is a maintenance bond?
What is a maintenance bond?
Change orders can increase a contract by what percent?
Change orders can increase a contract by what percent?
Define aggregation.
Define aggregation.
What is certification of funds?
What is certification of funds?
Define encumbrance.
Define encumbrance.
When should encumbrance happen?
When should encumbrance happen?
What does UCC stand for?
What does UCC stand for?
What types of transactions are governed by the UCC?
What types of transactions are governed by the UCC?
Why was the UCC formulated?
Why was the UCC formulated?
Is there such a thing as an honest mistake?
Is there such a thing as an honest mistake?
What is replevin?
What is replevin?
What are two types of law practiced?
What are two types of law practiced?
What is common rule?
What is common rule?
When there is a dispute between terms of two agreements, is arbitration your only option?
When there is a dispute between terms of two agreements, is arbitration your only option?
Can an expressed contract be written or oral?
Can an expressed contract be written or oral?
Can a purchase order serve as a contract?
Can a purchase order serve as a contract?
The fundamental philosophy of our competitive bidding statute is?
The fundamental philosophy of our competitive bidding statute is?
During a bid, when the amount in words is different from the equivalent figures, what shall be binding?
During a bid, when the amount in words is different from the equivalent figures, what shall be binding?
During a bid, when there is a difference between the unit prices and the extended totals, which should prevail?
During a bid, when there is a difference between the unit prices and the extended totals, which should prevail?
Under the NJ Prevailing Wage Act, how many days does the contractor have to submit their certified payroll records?
Under the NJ Prevailing Wage Act, how many days does the contractor have to submit their certified payroll records?
The stockholder disclosure statement lists names & addresses of all stockholders in the corp/partnership which owns what percent or more?
The stockholder disclosure statement lists names & addresses of all stockholders in the corp/partnership which owns what percent or more?
When it is necessary to make changes to the specifications being bid upon, what must be issued to all prospective bidders?
When it is necessary to make changes to the specifications being bid upon, what must be issued to all prospective bidders?
Can you charge a fee for bidding specifications to prospective bidders?
Can you charge a fee for bidding specifications to prospective bidders?
When using F.O.B shipping point, origin, when does the ownership of goods occur?
When using F.O.B shipping point, origin, when does the ownership of goods occur?
Can you use a GSA Account for materials & supplies?
Can you use a GSA Account for materials & supplies?
Up to what amount can be contributed to a political party and still be able to bid?
Up to what amount can be contributed to a political party and still be able to bid?
How many times must a lead agent of a CO-OP advertise?
How many times must a lead agent of a CO-OP advertise?
Can a governing body award over the bid threshold?
Can a governing body award over the bid threshold?
What is the best way to ship?
What is the best way to ship?
What must all RFP participants sign in order to be on the evaluating committee?
What must all RFP participants sign in order to be on the evaluating committee?
A municipality may alter a budget appropriation which is no longer needed during its budget year with?
A municipality may alter a budget appropriation which is no longer needed during its budget year with?
What is the quote threshold?
What is the quote threshold?
What are the branches of law?
What are the branches of law?
Contracts shall be signed within how many days of the award of contract unless both parties agree to an extension?
Contracts shall be signed within how many days of the award of contract unless both parties agree to an extension?
The statutes are designed to?
The statutes are designed to?
How, when and by whom is the bid threshold increased?
How, when and by whom is the bid threshold increased?
What is S.O.W?
What is S.O.W?
What is a window contract and who can award?
What is a window contract and who can award?
What is competitive contracting?
What is competitive contracting?
When bid threshold is changed, is it rounded to the nearest $1,000.00?
When bid threshold is changed, is it rounded to the nearest $1,000.00?
What is a warranty?
What is a warranty?
What is a guarantee?
What is a guarantee?
What is NJSA 40A:12?
What is NJSA 40A:12?
What is NJSA 19:44A-A?
What is NJSA 19:44A-A?
Define bid bond.
Define bid bond.
Define consent of surety.
Define consent of surety.
Define labor & material bond.
Define labor & material bond.
Define maintenance bond.
Define maintenance bond.
Advertisement must appear how many days before bid?
Advertisement must appear how many days before bid?
How many days must you advertise solid waste?
How many days must you advertise solid waste?
What are the 3 ways authority is given to agents to deal with 3rd parties?
What are the 3 ways authority is given to agents to deal with 3rd parties?
Define implied authority.
Define implied authority.
Define express authority.
Define express authority.
Define apparent authority.
Define apparent authority.
What is the statute for local public contract law?
What is the statute for local public contract law?
F.O.B terms most advantageous to an entity is?
F.O.B terms most advantageous to an entity is?
How can a local governing body enact local law in furtherance of the LPCL?
How can a local governing body enact local law in furtherance of the LPCL?
When a contracting unit determines that a bid was not arrived at independently, who must you notify?
When a contracting unit determines that a bid was not arrived at independently, who must you notify?
Two types of laws we are governed by?
Two types of laws we are governed by?
List the forms of bid rigging.
List the forms of bid rigging.
Advisories from the Division of Local Government Services that have the force of regulation are called?
Advisories from the Division of Local Government Services that have the force of regulation are called?
Advertising/bidding not needed for sale or disposition of property selling to?
Advertising/bidding not needed for sale or disposition of property selling to?
What are the advertising guidelines?
What are the advertising guidelines?
List the reasons for bid rejection.
List the reasons for bid rejection.
List types of concessions.
List types of concessions.
List the three purposes of the UCC.
List the three purposes of the UCC.
List the four elements of a contract.
List the four elements of a contract.
List the 6 R's in purchasing.
List the 6 R's in purchasing.
General contractor must submit names of these subcontractors with bid.
General contractor must submit names of these subcontractors with bid.
List the forms of municipal government.
List the forms of municipal government.
Three optional forms of government in NJ are?
Three optional forms of government in NJ are?
List method of source selection.
List method of source selection.
List items required in a bid and if missing is not curable.
List items required in a bid and if missing is not curable.
What are the types of cooperative purchasing systems?
What are the types of cooperative purchasing systems?
What is required for a fair & open contract?
What is required for a fair & open contract?
Study Notes
Purchasing Laws and Contracts in New Jersey
- The formal organization of purchasing in NJ Municipalities established in 1917.
- Most common contract type is firm fixed pricing.
- Emergency purchases allowed for public health, safety, and welfare needs.
- A requisition initiates a Purchase Order, signaling a department's request for items.
- Purchasing manuals provide essential guidelines for procurement processes.
- A purchasing manual can authorize additional rules for emergency purchases, including a defined chain of command.
Bidding Processes and Requirements
- Awards must occur within 60 days of the bid opening.
- FOB destination is the most beneficial shipping term for buyers.
- Local Public Contracts Law is defined as P.L. 1999, C. 440 NJSA 40A:11-1 ET seq.
- Professional service contracts are valid for one year (12 months).
- Contracts need to be awarded within 21 days after receiving a purchase.
Ethical Considerations and Regulations
- Report suspected collusion to the governing body, county prosecutor, or attorney general.
- If no bids are received, rebid before negotiating with vendors.
- Governing bodies have the authority to award contracts above bid thresholds.
- Contracts cannot be aggregated; total payments are computed individually.
Bonds and Insurance
- Bid bonds are 10% of the contract value, capped at $20,000.
- Consent of surety ensures a contractor can obtain a performance bond.
- Labor and material payment bonds guarantee payment for labor and materials.
- Maintenance bonds guarantee correction of defects for a specified duration.
Financial Management and Compliance
- Encumbrance is setting aside funds in anticipation of expenses via Purchase Orders.
- Certification of funds confirms monetary availability for procurement.
- Any changes to specifications during bidding must be communicated via addenda.
Local Government and Regulations
- Enacting local laws requires resolution or ordinance.
- Advertising must occur 10 days prior to bidding (60 days for solid waste).
- UCC regulates commercial transactions, providing uniform statutes across the states.
- Public contracts must comply with state and federal laws and prevent fraud and favoritism.
Contractual Terms and Obligations
- Contracts must typically be signed within 21 days post-award.
- Changes to a contract can increase costs by up to 20%.
- The statute for local public contract law is specifically P.L. 1999, C. 440.
Procedures and Practices
- The quote threshold is set at 15% of the total bid threshold.
- Bid rigging includes price fixing and collusion among bidders.
- RFP participants must sign conflict of interest certifications for evaluation.
Types of Government and Purchasing Systems
- Various forms of municipal government in NJ include boroughs, townships, cities, and more.
- Cooperative purchasing systems include joint and national cooperatives.
Key Definitions and Principles
- A specification is a detailed set of requirements for a product.
- MSDS stands for Material Safety Data Sheet, mandated under the Workers Right to Know Act.
- The four essential elements of a contract: capable parties, mutual consent, lawful objective, and consideration.
Summary of Best Practices
- Follow the 6 R's in purchasing: right time, quality, quantity, price, source, and manner.
- Employ competitive methods for source selection: sealed bids, competitive contracting, and quotes.
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Description
This quiz explores the regulations and processes governing purchasing laws and contracts in New Jersey municipalities. It covers topics such as bidding processes, contract types, and ethical considerations necessary for sound procurement practices. Test your knowledge on the formal organization established in 1917 and the current laws that guide local purchasing.
