New Jersey Division of Local Government Services Local Finance Notice 2020-14
Local Finance Notice 2020-14 – Adjustment of Public Bidding Thresholds and Office of State Comptroller Reporting Thresholds Effective July 1, 2020
The State Treasurer has adjusted the bid thresholds for contracting units subject to the Local Public Contracts Law and the Public School Contracts Law effective July 1, 2020.
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.
Contracts exceeding the new threshold 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, also changes. The following table summarizes the information provided above:
Please note that the political contribution, “pay to play,” threshold remains at $17,500. All procurement over $17,500 and less than the contracting unit’s new, higher bid threshold (window contracts) are subject to those laws.
Adjustment of Reporting Threshold to the Office of the State Comptroller
As of July 1, 2020 all contracting units, which includes both Local Public Units and Public School Districts, shall notify the Office of the State Comptroller of contracts that meet or exceed the below noted thresholds:
- For contracts involving consideration or an expenditure of more than $2,500,000 but less than $12,500,000, no later than 20 business days after the contract award;
- For contracts involving consideration or an expenditure of $12,500,000 or more, not less than 30 days prior to public advertisement or other public or private solicitation; and
- For contracts issued pursuant to an emergency or public exigency involving consideration or an expenditure of more than $2,500,000, no later than 30 business days after the award of a contract.
Local Finance Notice 2020-14
Please follow the link below to read more about these items and guidance on how your local unit can implement them: https://www.nj.gov/dca/divisions/dlgs/lfns/20/2020-14.pdf
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2020-14 and its implementation feel free to reach out to Matthew Wielkotz at (973)-835-7900 ext. 101 or mbw@w-cpa.com.
