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Bids and Public Bidding Threshold

If a contract is expected to exceed a Municipality’s Public Bidding Threshold, it needs to be Publicly Advertised, for bids or proposals, per the requirements and procedures specified in the Local Public Contracts Law. Professional Services currently are exempt from this requirement, as well as a listing of other types of contracts specified in the Law. Additionally, materials and services purchased on Teaneck’s behalf, as a participating member of a Cooperative Purchasing Program, such as contracts issued by the New Jersey State Cooperative Purchasing Program and the Bergen County Cooperative Purchasing Program are also exempt from this requirement. Since Teaneck’s Purchasing Agent has been certified a Qualified Purchasing Agent by New Jersey’s Department of Community Affairs, Teaneck’s current Bidding Threshold is currently set at $36,000.00. The chart below shows current Contracting Threshold Amounts for various Governmental entities within the State of New Jersey.

 

Table of Local Public Contracts Law and
Public School Contracts Law Contracting Thresholds

 

Public Bidding Thresholds under the
Local Public Contracts Law and Public School Contracts Law

N.J.S.A.40A:11-3(a) and (c); 18A:18A-3(a) and (c)

LPCL as of
January 1, 2011

PSCL as of
January 1, 2011

Bid threshold with a QPA*

$36,000

$36,000

Quote Threshold with a QPA (15% of bid threshold)

$5,400

$5,400

Bid Threshold without a QPA

$17,500

$26,000

Quote threshold without a QPA (15% of bid threshold)

$2,625

$3,900

 

• As of January 1, 2011, the previous “lower” bid threshold for LPCL contracting units without a QPA was eliminated and set at $17,500. This did not effect PSCL Boards of Education.
• These bid and quote thresholds will be adjusted again on July 1, 2015.
• Current thresholds are based on 2-year and 5-year bidding threshold calculations of the Department of the Treasury and reflected in Local Finance Notice 2011-1. The Treasury calculations include specialized purpose bid thresholds.

* Qualified Purchasing Agent (N.J.S.A. 40A:11-9(b) and N.J.A.C. 5:34-5.

 

Related Bid Thresholds*

Statutory Reference

Description

Old Threshold

New Threshold

N.J.S.A 18A:39-3

School Districts, Boards of Education Transporting Pupils

$16,200

$17,200

N.J.S.A 27:2-1

State, County, Municipal-Contracts for Work on Public Thoroughfares (paving)

$16,200

$17,200

N.J.S.A. 27:16-16

County Road Improvements

$16,200

$17,200

N.J.S.A. 40:68-48

Local Government – Beach Erosion Control Districts Waterfront Improvements

$16,200

$17,200

 

*These bid thresholds are scheduled for change on July 1, 2011. Click here for the current Department of Treasury threshold document.

 

Prevailing Wage Thresholds

Statutory Reference

Description

Old Threshold

New Threshold

N.J.S.A. 34:11-56.25

Prevailing Wage Contracts for Municipalities (five-year cycle ended in 2009)

$11,892

$14,187

N.J.S.A. 34:11-56.25

Prevailing Wage Contracts for All Other Contracting Units

$2,000

$2,000