New Jersey Increases Bid Threshold Effective July 1, 2015
Jul 29, 2015 | Written by: Share|
The Division of Local Government Services (DLGS) recently announced bid threshold increases that will impact the award of public contracts by New Jersey public entities. Effective July 1, 2015, pursuant to N.J.S.A. 40A:11-3, the State Treasurer has increased the minimum bid threshold from $36,000 to $40,000 for entities, including municipalities, subject to the Local Public Contracts Law that utilize a Qualified Purchasing Agent (QPA) possessing the requisite certificate issued by the DLGS. Accordingly, the new quote threshold for municipalities with a QPA is $6,000 (15% of the $40,000 QPA bid threshold). Municipalities that do not utilize a QPA remain subject to the $17,500 minimum bid threshold pursuant to N.J.S.A. 40A:11-3 and 40A:11-9a, with the quote threshold remaining at $2,625 (15% of the $17,500 non-QPA bid threshold). The minimum bid threshold for school districts utilizing a QPA-certified purchasing agent has increased from $36,000 to $40,000, with the quote threshold increasing to $6,000. The minimum bid threshold for school districts that do not utilize a QPA-certified purchasing agent has been increased from $26,000 to $29,000, with the threshold increasing to $4,350.
Municipalities and school boards should pass resolutions increasing their bid thresholds as soon as possible in order to take advantage of the statutorily increased threshold.