New Jersey Permanent Statutes
Title 52. State Government, Departments and Officers
N.J. STAT. ANN. § 52:34-6.2 Cooperative purchasing agreements with other states for purchase of goods, services; rules, regulations.
a. Notwithstanding the provisions of any other law to the contrary except the provisions of R.S.30:4-95, and as an alternative to the procedures concerning the awarding of public contracts provided in P.L.1954, c.48 (C.52:34-6 et seq.), the Director of the Division of Purchase and Property in the Department of the Treasury may enter into cooperative purchasing agreements with one or more other states, or political subdivisions thereof, for the purchase of goods and services. A cooperative purchasing agreement shall allow the jurisdictions which are parties thereto to standardize and combine their requirements for the purchase of a particular good or service into a single contract solicitation which shall be competitively bid and awarded by one of the jurisdictions on behalf of jurisdictions participating in the contract.
b. (1) The director may elect to purchase goods or services through a contract awarded pursuant to a cooperative purchasing agreement whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded or already awarded through a cooperative purchasing agreement, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(2) The director may also elect to purchase goods or services through a contract awarded pursuant to a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, in which other states participate, whenever the director determines this to be the most cost-effective method of procurement. Prior to entering into any contract to be awarded through a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process, the director shall review and approve the specifications and proposed terms and conditions of the contract.
(3) Notwithstanding any other law to the contrary, any contracting unit authorized to purchase goods, or to contract for services, may make purchases and contract for services through the use of a nationally-recognized and accepted cooperative purchasing agreement that has been developed utilizing a competitive bidding process by another contracting unit within the State of New Jersey, or within any other state, when available. Prior to making purchases or contracting for services, the contracting unit shall determine that the use of the cooperative purchasing agreement shall result in cost savings after all factors, including charges for service, material, and delivery, have been considered.
For purposes of this paragraph, “contracting unit” means any county, municipality, special district, school district, fire district, or any board, commission, committee, authority or agency, which is not a State board, commission, committee, authority or agency, and which has administrative jurisdiction over any district, included or operating in whole or in part, within the territorial boundaries of any county or municipality which exercises functions which are appropriate for the exercise by one or more units of local government, and which has statutory power to make purchases and enter into contracts awarded by a contracting agent for the provision or performance of goods or services.
New Jersey Administrative Code
Title 17. Treasury – General
Chapter 12. Division of Purchase and Property: Procurement Bureau; Contract Compliance and Audit Unit; And Distribution Support Services Unit
Subchapter 1A. Procurement Methodology
N.J.A.C. § 17:12-1A.2 Exceptions to formal, advertised, competitive procurement
(a) All contracts issued by the Division shall be formally advertised and competitively procured with requirements for the submission of sealed proposals, except for the following types of contracts:
- Cooperative procurement agreements with one or more other states, or political subdivisions thereof or of New Jersey, or with a nationally recognized and accepted cooperative procurement entity in which other states participate, pursuant to the provisions of N.J.A.C. 17:12-1A.3;
N.J.A.C. § 17:12-1A.3 Cooperative agreements
(a) Pursuant to the provisions of N.J.S.A. 52:34-6.2, the Director may, prior to, during, or after an advertised competitive procurement for the purchase of goods and/or services conducted by another state or other states, or political subdivision(s) thereof or of New Jersey, or by a nationally recognized and accepted cooperative procurement entity in which another state participates, or other states participate, or after the award of contract(s) thereof, enter into a cooperative agreement with said state(s), political subdivision(s), or entity when the Director deems such agreement to be the most cost-effective contractual solution. Cost effectiveness shall be determined by considering pertinent factors, such as the following:
- Lower than current State contract pricing that will afford material cost savings;
- Lower than pricing for comparable goods or services of other State or public entity contracts;
- Expanded product or service availability;
- The ability to avoid the cost and time of a State procurement;
- A record of satisfactory vendor performance;
- Lower minimum purchase requirements;
- A comparatively better quality of goods or services; and
- Administrative cost factors required to participate in the cooperative agreement.
(b) Any such cooperative agreement shall provide for the combined requirements of the cooperating parties to be, or to have been, procured through an advertised competitive bidding process.
(c) Prior to entering into any purchasing agreement or procurement agreement, the Director shall:
- Review and approve the specifications and proposed terms and conditions of the contract between the product or service provider and the other state(s), political subdivision(s) thereof, or nationally recognized and accepted cooperative procurement entity in which another state or other states participate;
- Comply with legal provisions for notification, as applicable; and
- Require the contractor or scheduled contract awardee to execute an addendum containing the State contracting terms and conditions and any other terms making the procurement agreement more favorable to the State, as determined by the Director.
(d) The Director may solicit and award such contracts, provided that the cooperative agreement specifies that each party to the agreement is solely responsible for purchases made by such entity under the terms of any resultant contract.
New Jersey Department of Community Affairs
Division of Local Government Services
Local Finance Notice 2012-10
May 14, 2012