NJ QPA EXAM 2024-2025 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQ, Exams of Nursing

Download NJ QPA EXAM 2024-2025 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQ and more Exams Nursing in PDF only on Docsity! 1 | P a g e NJ QPA EXAM 2024-2025 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQUENTLY TESTED QUESTIONS AND SOLUTIONS |ALREADY GRADED A+|NEWEST|GUARANTEED PASS|LATEST UPDATE Exceptions for any contract over the bid threshold my be awarded by the governing body with out public bid and shall be awarded by resolution if: Professional servises Employees doing work The formal organization of purchasing in municipalities was created by the laws of 1917 What type of contract is most common preferred form of purchase for government. Firm fixed pricing When is an emergency purchase acceptable? When it affects the public's health safety and welfare and require immediate delivery of goods and services What is a requisition? The start of purchasing process, it a form of a department requesting materials supplies or services with the vendor description of what is needed and price of the purchase What is the purpose of having a purchasing manual To have rule and regulations of purchasing laws in effect as well as having personalized procedures to follow readily available 2 | P a g e What is the bid threshold for a Qpa 40000 What is the bid threshold without a qpa 17,500 Where can a government body authorize additional rules and procedures regarding emergency purchases Policy & procedures manual Time to make award on a formal bid 60 What type of FOB is most advantageous Fob destination What is known as pl 1999c 40a:11 et seq Local public contract law Perfusion always service contracts are for a period of how many years 1 year What is the common rule The policies and procedures that comply with the state and federal law When there is a dispute between terms of two agreements, is arbitration your only option No- you can do alternate dispute resolution, fact finding or mediation Can a purchase order be served as a contract Yes The fundamental philosophy of public bidding Economy be secured and extravagance Fraud and favoritism be prevented When a discrepancy in a bid occurs and the amount in words it differs from the equivalent in figures which shall be binding The amount in words When a discrepancy in a bid occurs and there is a difference between the unit prices and the extended totals which should prevail Unit price 5 | P a g e True or false if the remaining amount exceeds the bed threshold public betting should take place as soon as possible True True or false if the remaining amount is between 15% and 100% of the unit bed threshold an additional purchases are required for the current year only public betting is the only option False you can receive authorization from the governing body or designee To solicit quotes or publicly bit If the remaining amount is between 15% and 100% of the units bid threshold and additional purchases are required for current year and subsequent year but the total is less than the bed threshold you can get authorization from the governing body or designee to solicit quotes or publicly bid True True or false contracts exceeding $2 million but not $10 million must be reported to the office of state comptroller 20 days after the award True Chewer false national cooperative contracts maybe used for public works and construction contracts False the use of national cooperative contracts uses only applies to contracts for goods and services Trust fund monies can only be used for specific items as stated on account True True or false only manufactured and farm products of United States wherever available are to be used for construction Projects False this pertains to all contracts The contracting unit has the sole discretion of approving the value engineering proposals True A contract can limit a contractors remedy for a contracting units negligence or bad faith False True or false all specifications for doing any public work for a contracting unit make fix the day before which the work can be completed False all shop fix the date before which the work shall be completed A blank insures only that the contract if awarded will be signed by the perspective contractor or vendor Bid bond bid guarantee A blank in shores that a perspective contractor will be able to obtain a blank from an insurance carrier Consent of surety/ preformance bond 6 | P a g e A blank in shores that a contractor will pay his employees subcontractors and for all the products he uses on the project Labor and material bond A blank provides protection of the products from break down during the term requested A maintenance bond Advertisement must appear blank days before the bed except for solid waste which is a blank days 10, 20, 60 Blank authority must be given in writing to the agent settling limits on products quantity and dollar amounts Expressed Blank authority is understated authority to purchase within guidelines Implied Blank authority is when the supplier believes someone to have authority to make a purchase Apparent The municipal authority finances must be blank and blank Self liquidating and funded by user fees Special items of revenue are referred to as Chapter 159 resolutions Blank and blank must approve dedication by rider's prior to the spending of public funds The division of local government services and the governing body The blank is the form that is the basis for payment Voucher also known p.o In a blank program for parties must specify the quantities amount needed in advance the lead agency certified funds for all in the program funds must be transferred to the lead agency prior to avoid contract lead agent takes care of payments and deals directly with the vendor on behalf of all parties Joint purchasing Blank is a cost reduction analysis by the contractor Value engineering proposal Shall means blank No 7 | P a g e Can or may means Yes Blank price-fixing is an agreement between vendors at the same level of distribution Of products and services Horizontal Blank price-fixing is where different levels of distribution set price for a product/service. It sets minimum and maximum prices for resale Vertical What serves as the basis for our present local public contracts law P.l 1999, C 440 The most common types of specifications are Performance and design FOB term most advantageous to an entity is FOB point of Destination How can a local Governing body and act law in furtherance of the local Public contract law By ordinance code or resolution What are contracting unit determines that a bit was not arrived at independently they must notify The Attorney General the governing body and the county prosecutor The two types of law we are governed by Are Statutory law and Common Law The local government ethics law is Title 40 a 9-22. One ET seq A form of bid rigging is Rotating Bids , bid suppression and complementary bids Advisories from the division of local government services that have the force of regulation are called Local finance notices Special improvement District budget must be approved by The governing body Equalized valuation represents 10 | P a g e Requiring excessive personel to get tue job done Laking a willingness to accept help Laking a willingness to accept ownership of any risk of the overall function 3 purposes of the ucc To simplifiy modernize and clarfiy the law Make laws uniform amongst various jurisdictions Promote expanion of comercial practices List the four elements of a contract Capable parties Mutal consent Lawful objective Suffient cause to contract 6 Rs of purchasing Right: time quality quantity price place source manner 5 factors that affect organization placement and management role of centralized purchasing Organization and management philosophy Custom Political environment and history Size of purchasing operation Resources available List types of specifications Design Preformance Design & standard Concise and restrictive Preformace & Restrictive Types of bid rigging Bid suppresion Complementary bids Horizontal price fixing Vertical price fixing Price fixing Collusion Alternating bids General contractor must submit names of these sub-contractors with bid Plumbing Electric 11 | P a g e HvacR Structrual steel & ironwork Forms of municipal government Boro Town City Village Township Three optional forms of government in nj Commision act Municipal manager Optional municipal chartsr Methods of source selection Competitive sealed bids Competirive contracting Competitive quotes Proprietary purchases Emergency purchases Items required in a bid and if missing not curable Consent of surety Notification of adenda Stock holder agreement (non collusion) Bid bond List of subcontractors Optional municipal charter plans {Faulkner act) Mayor and council Council manager Small municipality Mayor council admin Methods of disposition for items no longer needed Sealed bids Auction E-procurement Transfer Trade in Sales to other contracting units Ten elements of a p.o 12 | P a g e 1. P.o number 2. Vendor 3.company 4. Date 5.unit cost 6. Extended price 7. Items being purchased 8. Certification of funds sig 9. Quantitiy 10. Approval sig 11. Fob 12. Ship to addresss 13. Account number 14. State contract number Five levels of local government County Municipality School district Local authority Special district Services that require competitive contracting Lab testing Data processing Food services Emergency medical services Home and health services Concession Types of co ops Cooperative pricing system Joint purchasing Commodity resale system County regional ans national systems Requirements for fair and open contracts Draft rfp & rfq with criteria to award Publicise in paper ten days prior to opening Publicly open and announce results Review proposals and recommebd award Governing body anounces award including co ops contracts over 17500 What is a non fair and open 15 | P a g e What is NJ Administrative Code? An official publication of the State of NJ which contains all of the official rules, regulations and other documents issued by State agencies and filed in accordance with the Administrative Procedure Act of 1968. It is kept up to date by periodic supplements, which provide replacement pages and obsolete pages to be discarded. NJ Register published twice monthly indexes proposed and adopted rules and regulations. What is the Division of Local Government Services? DLGS is the most important state agency for local government financial and management functions. State supervision of local government finance under the Division. Regularly issues Local Finance Notices concerning the work of the agency and the problems of local government, and requirements of law and regulations. What is the Local Finance Board? A component of the DLGS empowered to study the entire field of local government. Supervises the financial affairs of municipalities which fall under the Fiscal Supervision Act. What are the functions of the Local Finance Board? -Approve the creation of local authorities -Review the financing of proposed projects of such authorities -Makes Recommendations in respect to such project financing following a public hearing -May also issue orders to authorities to correct deficits or to alleviate any financial difficulties, including increasing rates or charges, or to dissolve an authority Selected Functions of the DLGS 1. Technical assistance to local units regarding the LPCL 2. Approval of applications for establishment of petty cash funds and promulgation of rules and regulations therto 3. Technical advice and assistance to registered municipal accountants and local officials regarding, auditing, budgeting, accounting, purchasing, and numerous other areas of financial management 4. Technical assistance to municipalities in planning & implementing consolidation of services under shared services laws. 5. Publication of LFNs containing useful information about statutory requirements, Division rules and regulations, and statistical data. 6. Review & Register cooperative purchasing systems, approve competitive contracting exceptions and pre-qualifications of bidders. 7. Cooperation with the Center for Government Services at Rutgers in the development and presentation of training programs for local elected & appointed officials, especially relating to examination and re certification. 8. Preparation & supervision of written examinations for certifications of municipal tax collectors, municipal clerks, purchasing agents and finance officers, and public works managers; determination of applicants' eligibility, and award of certifications to qualifiers. 16 | P a g e Capital Improvements An item which as a useful life of at least 5 years and for which notes or bonds can be sold. An ordinance must be adopted to spend funds from the capital improvement fund which plays an important role in financing the municipality's capital projects. Capital Programs and Budgets Capital Program - a multi-year plan and schedule for capital projects with a prospective life of 5 years or more and a cumulative annual cost of $25K, valuable management tool. Items a Capital Budget Includes 1. acquisition and/or development of land 2. acquisition of major equipment and personal property 3. acquisition, construction, improvement and/or renovations of buildings, roads, utilities and other structures 4. improvements of public works 5. any other matter described in NJSA 40A:2-22 regardless of the financing sources No local unit may adopt a bond ordinance unless 1. It has already adopted a capital budget as part of the annual budget 2. If prior to final adoption of its annual budget, by adoption of a temporary capital budget which subsequetly shall be included in the annual budget 3. If a need is determined after adoption of the annual budget, by adoption of a capital budget or amendment to the capital budget. POPULATION: Over 10,000/6 YEAR BUDGET Under 10,000/ 3 YEAR BUDGET Flexible Chart of Accounts (FCOA) A coding system which categorizes budget appropriations and revenues with a high degree of flexibility. Every fund must contain an identification of all accounts and such accounts must be classified according to assets, liabilities, reserves, and fund balance (surplus). Each Account is a result of incomes, expenditure, governing body action (i.e. budget adoption, etc) or other legal action. General Fixed Assets Assets that have useful lives extending beyond a single reporting period. LAND AND REAL PROPERTY COMMODITIES Minimum cost of $5K, and useful life of 5 years The Annual Audit 17 | P a g e An independent annual audit is performed by a Registered Municipal Accountant. The annual audit is due within 6 months of the end of the fiscal year being audited ADOPT A CORRECTIVE ACTION PLAN Petty Cash Fund Small amount of petty cash normally required so that certain purchases may be expeditiously made. (Stamps, keys, supplies etc.). Funds should not exceed $500. Maximum draw down of $50 per individual purchase. Encumbrance of Funds An obligation incurred by a municipality, which is generally indicated on a purchase order. It may take 3 months or longer between the time an order is placed and payment is made and charged to the proper budget appropriation. By using the purchase order system, obligations are charged to the budget at the time incurred as opposed to the time of the payment. Recording the purchase order cost is placed against the unencumbered balances of an account to burden the account with obligations. The obligation restricts further charges to the account unless unencumbered balance is adequate for such future charges. CERTIFICATiON OF FUNDS ENCUMBRANCE OF FUNDS - NOTHING ELSE AGAINST FUNDS, SET ASIDE Purposeful Overspending by Officials A Crime for a public official or employee to purposely and knowingly disburse moneys or incur obligations in excess of appropriations. Commits a crime in the 4th Degree. Local Government Ethics Law NJSA 40A:9-22 1 et seq. to provide a method of assuring that standards of ethical conduct and financial disclosure requirements for local government officers and employees be clear, consistent, uniform and enforceable. Designed to provide local officers or employees with advice and information concerning possible conflicts of interest, which might arise in the conduct of their public duties. Financial Disclosure Statement (FDS) Local government officials must file their FDS with the municipal or county clerk and with the Local Finance Board by April 30th of each year. Financial Disclosure Statement must include the following (LFN 2012-8) 1. each source of earned or unearned income exceeding $2k received by the local officer or any member of his or her immediate family during the preceding calendar year 2. each source of fees and honorarium exceeding $250 from any single source for personal appearances, 20 | P a g e * Scanners * Transformers * Vending Machines Life Cycle Analysis designed to minimize expenditures by basing purchasing decisions on variety of factors: * Initial Costs * Training Costs * Operating and Maintenance Costs * Disposal Costs DILLON'S RULE state supremacy over local government Cooley Doctrine there exists an inherent right of local government Home Rule blending of Dillon's Rule and Cooley Doctrine Forms of Municipal Government Boroughs Commission Municipal Manager Townships Villages Towns Cities Municipal Charter Plans (Faulkner Act) Mayor-Council Plan Council-Manager Plan Small Municipality Plan Mayor-Council-Administrator Plan County Governments Board Form County Executive Plan County Manager Plan County Supervisor Plan Board President Plan Common Rule 21 | P a g e Where state or federal positions appear to be inconsistent or contradictory. In such cases the "stricter" or more stringent provision which encourages the most competition must be adopted. UCC Code - Article 1 a. to simplify, clarify and modernize the law governing commercial transaction; b. to permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and c. to make uniform the law among the various jurisdictions UCC Code - Article 2 regulates the purchase of goods between parties, and thus has the greatest applicability of all of the articles of the UCC to state and local procurement. Battle of the Forms buyers and sellers forms are fundamentally different from one another Warranty of Title a. Good Title - seller conveys "Good title" to the goods. b. the seller warrants no encumbrances to the title (monetary, patents, trademarks) Express Warranties by Affirmation a. the seller's promises to the buyer become part of the basis of the bargain that the goods shall conform as promised. b. any sample or model which is made part of the basis of the bargain creates an express warranty the the whole of the goods shall conform to the sample or model. c. Seller's opinions do not constitute a warranty. Implied Warranty the goods are intended for a particular purpose F.O.B (Free on Board) Seller pays freight charges, seller owns goods in transit, seller files shipping claims. Buyers Right to inspect Goods a. Buyer may inspect goods at any reasonable place and time and in any reasonable manner. b. Expenses of inspection must be borne by the buyer, but may be recovered from the seller if the goods do not conform and are rejected. Agency 22 | P a g e the fiduciary relation resulting from the manifestation of consent by one person to another that the other shall act on his or her behalf and subject to his or her control, and consent by the other so to act. (an agency relationship is one in which an agent, (employee) agrees to act on behalf of the principal (employer)) Single Agent the purchasing agent acting on behalf of the local contracting unit. Authority is provided to the purchasing to agent by Resolution authorizing the ability to spend funds. Various Agents Some agents have limited authority in that they are only authorized to perform certain functions at certain dollar thresholds. Authority of Agent Agents are given authority by the principal to deal with third parties in one of three ways. Express Authority, Implied Authority, Apparent Authority. Express Authority Authority is is explicitly stated in writing. Provides guidelines of what products, dollar amount restrictions, or quantity restrictions. Implied Authority Unstated authority necessary to perform one's duties within guidelines established by policies and procedures of an organization. Apparent Authority supplier believes that someone has the authority to make a purchase and the principal does not object. True or False All Contracts shall be in writing True or False Contract any agreement, including but not limited to a purchase order or a formal agreement, which is a legally binding relationship enforceable by law between a vendor and a contracting unit. Purchase Order a document issued by the contracting agent authorizing a purchase transaction with a vendor. Purchase order is a contract. Four Elements in Contractual Situations Capable Parties Mutual Consent 25 | P a g e Competitive Sealed Bidding Competitive Contracting Competitive Quotations Proprietary Purchases Emergency Purchases Competitive Sealed Bidding Preferred Method of Procurement Publicly inviting bids, publicly opening bids, and award of contract to lowest responsive and responsible bidder. Competitive Contracting (RFP) - Award based on price and other factors Formal proposals are evaluated by appropriate agent, and governing body awards contract. Negotiations are not authorized. Competitive Quotations Quotation: response to a formal or informal request for goods or services. Formal request (quote must be in writing, between 15% and bid threshold) Informal request (quote could be in writing or taken verbally under 15% of bid threshold) Proprietary Purchases Purchase of goods or services of a specialized nature, that may be made or marketed by a person having the exclusive right to make or sell them. Emergency Purchases purchase over the bid threshold without public advertising only if the emergency purchase remedies an emergency affecting public health, safety, or welfare. Public Purchasing process of procuring goods and services for public purposes in accordance with law and procedures that are intended to result in the economical expenditure of public funds. Distinction of Public Purchasing Expenditure of public funds Private Purchasing Expenditure of revenues earned from customers or clients for goods and services. The Six R's Right Quality Right Quantity Right Time 26 | P a g e Right Price Right Source Right Manner Purchasing position contributes to the contracting unit's: Efficiency Effectiveness Economy Purchasing Agent Mission Authority Responsibility Accountability Principles of Centralization (Three C's) Cooperation Communication Coordination Planning and Coordination should include the following three steps: 1. identification of major purchase categories 2. Establishing bidding timetables 3. Coordination and incorporation of all department or agency requirements into the bidding timetable. The following affect the organizational placement and management role of purchasing. 1. organizational and management philosophy 2. custom 3. political environment and history 4. size of the purchasing operation 5. resources available Bid Proposals or Quote Forms (Purchasing Forms) used to solicit and receive bids or quotes from vendors. Must include description of the item(s) requires, quantity, and all other pertinent information. Requisition (Purchasing Forms) form the user department or agency submits to request goods or services. It describes the equipment or item to be purchased and quantity. Purchase Order (Purchasing Forms) 27 | P a g e authorizes the vendor to provide goods or perform services requested. Must describe goods or services to be supplies, quantity, price, and indicate point of delivery and terms. Receiving Report (Purchasing Forms) acknowledgment goods have been received and services performed. Voucher (Purchasing Forms) Basis for payment in NJ. indicates the vendor delivered what was ordered. Methods of Disposal for excess, surplus, and obsolete equipment and items Sealed Bids Public Auction E-Procurement (online auction) Transfers Trade-ins Sales to other Local Contracting Units Specification concise statement of a set of requirements to be satisfied by a product, material, or a process. Be prepared to justify and defend your specifications Forms Required in Specifications *Notice to Bidders *Bid Proposal Form *Consent of Surety *Acknowledgement of Receipt of Addenda *Affirmative Action Compliance Notice *Mandatory Affirmative Action Language for Good and Services (Including Professional Services) Contracts. *Americans with Disabilities Act of 1990 *Stockholder Disclosure Certification *Business Registration Certificate *Request for Prevailing Wage Determination *Public Works Contractor Registration *Non-Collusion Affidavit *Forms to be Provided by ELEC (Pay-to-Play) *Bid Document Checklist *Equipment Certification *Mandatory Affirmative Action Language for Construction Contracts *Iran Disclosure 30 | P a g e means conforming in all material respects to the terms and conditions, specifications, legal requirements, and other provisions of the request. Exemptions for any contract exceeding the bid threshold and awarded by the governing body without public advertising for bids shall be awarded by resolution if the subject matter thereof consists of: a. Profesional Services b.. doing of any work by employees for the contracting unit c. Printing of legal briefs d. furnishing of a tax map or maps for the contracting unit e. purchase of perishable foods f. publishing of legal notices in newspapers as required by law g. Insurance - including purchase of insurance coverage and consultant services & EUS h. Library and educational goods and services i. Expenses for travel and conferences Award of Professional Services Contract The governing body shall in each instance * state supporting reasons for its action in the resolution awarding each contract *shall forthwith cause to be printed once, in the official newspaper, - a brief notice stating the nature, duration, service - amount of the contract - resolution and contract are on file and available for public inspection in the office of the clerk of the county or municipality Where do you report that a bid was not arrived at independently in open competition? Notify the prosecutor of the county and the Attorney General Contracting agent (Definition) means the governing body of a contracting unit, or appointed membership of a State authority authorized to enter into a cooperative purchasing agreement pursuant to P.L.2013, c.4, or its authorized designee, which has the power to prepare the advertisements, to advertise for and receive bids and, as permitted by this act, to make awards for the contracting unit in connection with purchases, contracts or agreements. Aggregate (Definition) means the sums expended or to be expended for the provision or performance of any goods or services in connection with the same immediate purpose or task, or the furnishing of similar goods or services, during the same contract year through a contract awarded by a contracting agent. Bid threshold (Definition) 31 | P a g e means the dollar amount set in section 3 of P.L.1971, c.198 (C.40A:11-3), above which a contracting unit shall advertise for and receive sealed bids in accordance with procedures set forth in P.L.1999, c.440 (C.40A:11-4.1 et al.). Contract (Definition) means any agreement, including but not limited to a purchase order or a formal agreement, which is a legally binding relationship enforceable by law, between a vendor who agrees to provide or perform goods or services and a contracting unit which agrees to compensate a vendor, as defined by and subject to the terms and conditions of the agreement. A contract also may include an arrangement whereby a vendor compensates a contracting unit for the vendor's right to perform a service, such as, but not limited to, operating a concession. Competitive contracting (Definition) means the method described in sections 1 through 5 of P.L.1999, c.440 (C.40A:11-4.1 thru 40A:11-4.5) of contracting for specialized goods and services in which formal proposals are solicited from vendors; formal proposals are evaluated by the purchasing agent or counsel or administrator; and the governing body awards a contract to a vendor or vendors from among the formal proposals received. Lowest price (Definition) means the least possible amount that meets all requirements of the request of a contracting agent. Lowest responsible bidder or vendor means the bidder or vendor: (a) whose response to a request for bids offers the lowest price and is responsive; and (b) who is responsible. Goods and services (Definition) means any work, labor, commodities, equipment, materials, or supplies of any tangible or intangible nature, except real property or any interest therein, provided or performed through a contract awarded by a contracting agent, including goods and property subject to N.J.S.12A:2-101 et seq. Purchase order (Definition) means a document issued by the contracting agent authorizing a purchase transaction with a vendor to provide or perform goods or services to the contracting unit, which, when fulfilled in accordance with the terms and conditions of a request of a contracting agent and other provisions and procedures that may be established by the contracting unit, will result in payment by the contracting unit. Purchasing agent (Definition) means the individual duly assigned the authority, responsibility, and accountability for the purchasing activity of the contracting unit, and who has such duties as are defined by an authority appropriate to the form and structure of the contracting unit, and P.L.1971, c.198 (C.40A:11-1 et seq.) and who possesses a qualified purchasing agent certificate. 32 | P a g e Proprietary (Definition) means goods or services of a specialized nature, that may be made or marketed by a person or persons having the exclusive right to make or sell them, when the need for such goods or services has been certified in writing by the governing body of the contracting unit to be necessary for the conduct of its affairs. Service or services (Definition) means the performance of work, or the furnishing of labor, time, or effort, or any combination thereof, not involving or connected to the delivery or ownership of a specified end product or goods or a manufacturing process. Service or services may also include an arrangement in which a vendor compensates the contracting unit for the vendor's right to operate a concession. Bid Threshold/Period of Contracts When the cost or price of any contract awarded by the contracting agent in the aggregate does not exceed in a contract year the total sum of $17,500, the contract may be awarded by a purchasing agent or other employee so designated by the governing body when so authorized by ordinance or resolution, as appropriate to the contracting unit, without public advertising for bids, except that the governing body of any contracting unit may adopt an ordinance or resolution to set a lower threshold for the receipt of public bids or the solicitation of competitive quotations. Exemptions for any contract exceeding the bid threshold and awarded by the governing body without public advertising - STATE CONTRACTS - at least three quotations on materials, supplies or equipment for which a State contract has been issued -the lowest responsible quotation is at least 10% less than the price the contracting unit would be charged for the identical materials, supplies or equipment, in the same quantities, under the State contract. Award of Emergency Contracts a.Official in charge shall notify the purchasing agent or supervisor of the purchasing agent of the need for performance of the contract (CHAIN OF COMMAND SHOULD BE IN PLACE) b. Contracting unit shall be obligated for payment in accordance with the terms of the contract when goods or services are furnished c. DCA prescribes rules for emergency contracts Award of Contracts In aggregate less than the bid threshold or 15% of $40K ($6 - $17.5K 2 quotes must be solicited No Quote is a Quote Award of Contracts $17.5K and up 35 | P a g e proposals. When requested by such employees, the governing body shall provide such information regarding budgets and the costs of performing the services by such employees as may be available. d. The proposals shall be evaluated only in accordance with the methodology described in the RFP. After proposals are evaluated, the purchasing agent, counsel, or administrator prepares a reportvevaluating and recommending the award of a contract or contracts. The report shall list the names of all potential vendors who submitted a proposal and shall summarize the proposals of each vendor. The report shall rank vendors in order of evaluation, shall recommend the selection of a vendor or vendors, as appropriate, for a contract, shall be clear in the reasons why the vendor or vendors have been selected among others considered, and shall detail the terms, conditions, scope of services, fees, and other matters to be incorporated into a contract. The report shall be made available to the public at least 48 hours prior to the awarding of the contract, or when made available to the governing body, whichever is sooner. e. Award of a contract shall be made by resolution within 60 days of the receipt of the proposals, except that the proposals of any vendors who consent thereto, at the request of the contracting unit, be held for consideration for such longer period as may be agreed. f. The report prepared pursuant to subsection d. of this section shall become part of the public record and shall reflect the final action of the governing body. Contracts shall be executed pursuant to section 14 of P.L.1971, c.198 (C.40A:11-14). List of Sources for Green Product purchasing List of sources developed by the State Treasurer through the Div.. of Purchase & Property consultation with DEP Updates on Dept. of Treasury web page True or false cooperative pricing system and joint purchase agreements are established by the Inter local Services Act False- Inter local Services Act no longer exists It is SHARED SERVICES State Contract Can use without advertising for bids or having rejected all bids obtained pursuant to advertising Cooperative Pricing System county government may establish for use of contracting units within the county - no border towns Competitive Contract REQUEST FOR PROPOSALS 36 | P a g e a. The purchasing agent or counsel or administrator shall prepare a request for proposal documentation, which shall include: all requirements to allow for full and free competition between vendors; information necessary for potential vendors to submit a proposal; and a methodology by which the contracting unit will evaluate and rank proposals received from vendors. b. The methodology for the awarding of competitive contracts shall be based on an evaluation and ranking, which shall include technical, management, and cost related criteria, and may include a weighting of criteria, all developed in a way that is intended to meet the specific needs of the contracting unit, and where such criteria shall not unfairly or illegally discriminate against or exclude otherwise capable vendors. When an evaluation methodology uses a weighting of criteria, at the option of the contracting unit the weighting to be accorded to each criterion may be disclosed to vendors prior to receipt of the proposals. The methodology for awarding competitive contracts shall comply with such rules and regulations as the director may adopt, after consultation with the Commissioner of Education, pursuant to the "Administrative Procedure Act". c. At no time during the proposal solicitation process shall the purchasing agent or counsel or administrator convey information, including price, to any potential vendor which could confer an unfair advantage upon that vendor over any other potential vendor. If a purchasing agent or counsel or administrator desires to change proposal documentation, the purchasing agent or counsel or administrator shall notify only those potential vendors who received the proposal documentation of any and all changes in writing and all existing documentation shall be changed appropriately. d. all proposals and contracts require submission of a statement of corporate ownership and EEO affirmative action. Contract Length Any contract may be awarded for a period of 24 consecutive months, except that contracts for professional services which may be awarded for a period not exceeding 12 consecutive months. NJ Governor sets bid threshold The Governor, in consultation with the Department of the Treasury, shall, no later than March 1 of every fifth year (years ending in Zero and Five) adjust the threshold amount, in direct proportion to the rise or fall of the index rate and shall round the adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made. Competitive Contract PROCESS competitive contracting process shall be administered by a purchasing agent, legal counsel, or by an administrator of the contracting unit. 37 | P a g e Competitive Contract TERMS Not to exceed Five Years Prior Negative Experience (Definition) (1) the bidder has been found, through either court adjudication, arbitration, mediation, or other contractually stipulated alternate dispute resolution mechanism, to have: failed to provide or perform goods or services; or failed to complete the contract in a timely manner; or otherwise performed unsatisfactorily under a prior contract with the contracting unit; (2) the bidder defaulted on a contract, thereby requiring the local unit to utilize the services of another contractor to provide the goods or perform the services or to correct or complete the contract; (3) the bidder defaulted on a contract, thereby requiring the local unit to look to the bidder's surety for completion of the contract or tender of the costs of completion; or (4) the bidder is debarred or suspended from contracting with any of the agencies or departments of the executive branch of the State of New Jersey at the time of the contract award, whether or not the action was based on experience with the contracting unit. Conditions the Governing Body must follow if disqualifying a bidder (1) The existence of any of the indicators of prior negative experience shall not require that a bidder be disqualified. In each instance, the decision to disqualify shall be made within the discretion of the governing body and shall be rendered in the best interests of the contracting unit. (2) All mitigating factors shall be considered in determining the seriousness of the prior negative experience and in deciding whether disqualification is warranted. (3) The bidder shall be furnished by the governing body with a written notice (a) stating that a disqualification is being considered; (b) setting forth the reason for the disqualification; and (c) indicating that the bidder shall be accorded an opportunity for a hearing before the governing body if the bidder so requests within a stated period of time. At the hearing, the bidder shall show good cause why the bidder should not be disqualified by presenting documents and testimony. If the governing body determines that good cause has not been shown by the bidder, it may vote to find the bidder lacking in responsibility and, thus, disqualified. (4) Disqualification shall be for a reasonable, defined period of time which shall not exceed five years. (5) A disqualification, other than a disqualification pursuant to which a governing body is prohibited by law from entering into a contract with a bidder, may be voided or the period thereof may be reduced, in the discretion of the governing body, upon the submission of a good faith application under oath, supported by documentary evidence, setting forth substantial and appropriate grounds for the granting of relief, such as reversal of a judgment, or actual change of ownership, management or control of the bidder. (6) An opportunity for a hearing need not be offered to a bidder whose disqualification is based on its suspension or debarment by an agency or department of the executive branch of the State 40 | P a g e (1) 2 year or (2) 1 year extensions limitations for Contract Exensions 1. Contract shall be awarded by resolution of the governing body 2. No such contract shall be extended so that it runs for more than a total of 5 consecutive years 3. any price change shall not exceed the change in the index rate for 12 mos preceding the most recent quarterly calculation available at the time of renewal 4. Terms and conditions of contract remain substantially the same. Cease of Contract All contract shall cease at the end of the contracted period unless mutually agreed by both parties at the commencement of the original contract. When can an architect or engineer prepare separate plans and specs for branches of work? When specs are for construction, alteration or repair of any public building and exceed the bid threshold Bids specs for each subcontractor rather than a general contractor Branch work - contract directly with each sub, separate bids, for specialized industries ie. electrical, plumbing, steel,HVAC (if work exceeds 35% of bid have to be named) What is the percentage of the amount you can withhold on each partial payment ? 2% of the amount Length and percentage of Maintenance Bond? Shall be No longer than 2 years and shall be no more than 100% of the project costs "Value engineering construction change order" A change order that results in cost reduction to a project or any portion of the work from the original bid specs after a construction contract is awarded "Value engineering construction proposal" A cost reduction proposal based based on analysis by a contractor of the items needed for the completion of the contract . Contracts $5,000,000 or higher shall allow for value engineering construction change orders to be approved after the award of the contract Number of working days specified spec shall fix the date before which the work shall be completed or the number of working days to be allowed for its completion (supplied by engineer or architect) 41 | P a g e Deduction for late finish of project Spec shall contain a provision for a deduction, from the contract price or any wages paid by the contracting unit American goods and products to be used where possible Has to be in bid spec. Only manufactured and farm products of the US where available -mandatory requirement -where possible is different Liquidated Damages Contract may include liquidated damages for the violation of any of the terms and conditions of the contract What does a certificate of bidder show? Showing that that he owns, leases, or controls all the necessary equipment required by plans, specs and advertisements under which bids are asked for (if not owner cert from owner granting to the bidder the control of the equipment) Guarantee to be furnished with bid Contracts for erection, alterations or repair of a public building structure or other improvement to real property, TOTAL EXCEEDS $100,000 Amount of bid guarantee 10% of the Bid, not to exceed $20,000 3 Types of Bid Guarantee 1. Bid bond 2. Cashiers Check 3. Certified Check Surety Company Certificate After bid award, Required if over $100,000 Advertisement for Bids 10 Days Prior Award of Bid Opening 60 Days True or False A Bid opening can be on a Monday or day directly following a State or Federal holiday 42 | P a g e FALSE Bid Advertisement Includes a. Manner of submitting b. method of receiving the bids c. time and place where bids will be received Opening of Bids -publicly receives bids, proceeds to unseal them -publicly announces the contents (announcement shall be made in the presence of any parities bidding or their agents -Make proper record of the prices and terms Revisions of Addenda For all contracts EXCEPT for construction work and municipal solid waste collection Shall be published no later than 7 days prior to the date for acceptance of bids to any person who has submitted a bid or who has received a bid package Methods of delivering addenda 1. in writing by certified mail , certified fax (produces a receipt), delivery service 2. Construction work notice shall be provided no later than 7 days prior to the date for acceptance of bids in writing mail, fax or delivery service 3. Solid waste collection publish in an official newspaper of the contracting unit and in at least one newspaper of general circulation published in the state no later than 7 days prior to the date for acceptance of bids Write letter to Director of DLGS to use competitive contracting for non listed services Services that are not listed in NJSA 40A:11 4.1 must be approved by the Director. WRITE A LETTER EMERGENCY PURCHASE REQUIREMENTS (affecting public health, safety, and welfare) An actual or imminent emergency must exist requiring the immediate delivery of the goods or the performance of the service CHAIN OF COMMAND Regional Cooperative Pricing System Two or more registered cooperative pricing systems may join together for the provision and performance of goods and services, including the purchasing of energy. 45 | P a g e - must be done by ordinance or resolution of the gov body -set aside a certain percentage of dollar value of total procurement's to be awarded -minority -women's -small -veterans What is A.D.R.? Alternative Dispute Resolution (Construction Contract Disputes) A.D.R. definition methods to resolve disputes are written into the construction contract such as: mediation, binding arbitration, or non-binding arbitration pursuant to industry standards, prior to being submitted to a court for adjudication. Remaining Amount means the value of similar goods and services that are needed for the remainder of the current contract year, plus those similar goods and services to be needed in the subsequent contract year. (What is needed now? and what is needed in the next 12 months?) Lease Agreement with option to purchase The rental payments are to be credited towards the purchase price for purpose of acquisition. IF the contracting unit decides to buy the equipment (Option must have been included in original specs and contracts) Equipment Upgrades within lease agreement Equipment leased shall not be expanded, upgraded or otherwise materially changed or increased in cost during the term of the lease without competitive bidding, Exceptions to Equipment Upgrades under lease agreement 1,If the equipment changes were in the original bid specs do not need to re-bid 2. Discontinued or replaced with a comparable model by manufacturer do not have to re-bid, IF does not exceed costs in the orig.. contract Evaluation Criteria for RFPs 1. Technical criteria 2. management criteria 3. cost criteria Evaluating Proposals and Awarding Competitive Contracts - provide the opportunity for vendors to provide clarification regarding their submission. The presentation shall not be used for negotiation of a contract 46 | P a g e - The process of establishing weighting criteria and evaluating proposals shall result in a finding that a specific proposal is the most advantageous, price and other factors considered, or that all proposals should be rejected. -Each individual evaluating proposals shall certify they do not have conflict of interrest QPA Continuing Education Units (CEUs) 20 contact hours, every 3 years Multi-year Contract (Subject to Public Bidding) a.) shall be subject to competitive bidding if the cumulative amount to be expended during the duration of the multi-year lease or contract exceeds the threshold for competitive bidding for the contracting unit. b.) a contract award that was based upon receipt of quotations shall not be extended if the total value of the contract exceeds the bid threshold, Including original award plus any extension. Contract Aggregation Determination (Subject to Public Bidding) a.)This section shall affect determinations of aggregation for purposes of whether a contract is subject to public bidding, except to those goods or services where the work is single in character and for those goods or services that are necessary for the completion of such a contract. b.)determine if goods or services that are expected to be used will reach the bid threshold during the contract year; *use professional judgment based on prior experience of the contracting unit, *estimates and plans for the upcoming contract year based on information such as the contracting unit's budget and purchasing history, *and the amount purchased in the previous contract year. When calculating the amount purchased in the previous contract year, the calculation shall be based on the period of 12 consecutive months following the award of a contract. c.)determine if goods or services that are expected to be used during a contract year should be combined with other similar goods or services in a single bid *Purchasing Agent should coordinate with all departments *Search the Marketplace to maximize potential cost savings and vendor participation *In considering if a particular good or service is subject to public bidding, the amount of money spent with a given vendor shall not in itself be a determining factor of reaching the threshold. (just because you spend a lot with a vendor throughout the year is not cause to try to give them more business.) *review the goods/services required not the vendor's you purchase the goods/service from. *Items purchased on State Contract or Co-op do not get included toward aggregation. 47 | P a g e Remaining Amount Definition amount required to be procured Aggregation is Incorrect 1. estimates of goods/services needed during the year are incorrectly anticipated to be less than the bid threshold 2. goods/services were incorrectly determined to be exempt from bid 3. Governing body or elected official can determine if public bidding or solicitation of quotations is most advantageous. 4. If less than 15% of bid threshold, QPA may solicit quotes for the remaining amount 5. When seeking authorization to solicit quotes the QPA must certify the need for additional goods/services, provide description of how similar goods/services have been provided during the contract year to date, obtain a resolution from the governing body approving the purchase, provide a report of all procuremens made to the full governing body Proprietary Source (Sole Source) "Specialized nature" - unique characteristics that only goods/services of a single vendor are capable of meeting the contracting units needs. "Necessary for the conduct of its affairs" - the public need for proprietary designation overshadows the public benefit of permitting "brand name or equivalent"and the benefits of such competition. 1. Prior to advertising for the receipt of bids that include proprietary goods/services the QPA shall certify in writing to the CEO and explanation of why the goods or services are necessary are to the local contracting unit. The certification shall be included as part of the bid document. 2. The resolution of the governing body shall include a description why the goods/ services are necessary are to the local contracting unit. Prior to Use of Brand Name or Equivalent Prior to using Brand Name or Equivalent Consider using a spec based on any of the following: 1. standard issued by a national or international testing or standards setting organization. 2. Generic spec available through a commercial or non-commercial service - Masterspec 3. Specialized programs such as a listing in the Building Products Pre Approval Program maintained by the National Institute of Building Sciences. True or False: If a product/service has no equals or if the nature of the brand name good or service effectively restricts bidders to that single good or service the QPA must review the provisions of proprietary goods/services. TRUE 50 | P a g e published in the official newspaper of the contracting unit, such a notice shall be published no later than 20 calendar days after the passage of the resolution awarding the contract. (d) Use of mediation to reach a finding of prior negative experience, if the mediation activity included a requirement of confidentiality and if no final determination of responsibility was reached, such mediation activity shall not be considered as a cause for a finding of prior negative experience, unless stipulation was made to the contrary. Encumbrance System Definition ALL Local Units MUST maintain an encumbrance accounting system for all funds: At a minimum the encumbrance system shall record charges to amounts appropriated for '"Other Expenses" Certification of Availability of Funds 1. Signed by The Chief Financial Officer or certifying finance officer 2. approved by governing body by resolution 3. Must have specific budget line item number(s) Methods of Accounting Temporary Budget - 26.25% of total budget (until March 31, 90 days) Local unit may enter into a contract extending past the time period funded by the budget. *If a contract cannot be fully funded by the temp budget, prorate for the temp budget period. Open End Contracts - When a contract provides for certain goods or services to be provided upon request, up to an established maximum, and the local unit is not obligated to order, accept or pay for said goods or services except when it orders them, then the certification of available funds shall be as follows: 1. The full maximum amount covered by the contract shall be charged against the budget at the time the contract is awarded, and the full amount shall be certified; or 2. No amount shall be chargeable or certified until such time as goods or services are ordered or otherwise called for. Prior to incurring the liability by placing the order, the certification of available funds shall be made by the chief financial officer or certifying finance officer, as appropriate, and attached to the file copy of the purchase order or other such document. It shall be the responsibility of the official responsible for issuing the purchase order to notify and seek the certification of availability of funds from the chief financial officer or certifying finance officer, as appropriate. Contracts up to 12 months not coinciding with fiscal year: When a contract is awarded for a period of up to 12 months not coinciding with the established fiscal year of the local unit, the following methods shall be followed for purposes of accounting and providing the certification of available funds. 1. If the contract is for a professional service or is essentially a single undertaking or project with one 51 | P a g e basic work project required (such as, but not limited to, contracts for revaluation, codification, management studies and feasibility surveys), rather than being divisible into separate steps or actions which in themselves are independently acceptable as complete work products, then the full cost of the contract shall be chargeable to and certified against the budget or appropriation of the year in which the contract is awarded. This method may also, at local option, be followed for contracts described in (c)2 below. 2. If the contract is not of the character described in (c)1 above, and provides for goods or services to be provided at separate intervals over the contract period, then the amounts for which liability is to be incurred shall be charged and certified to the two respective years' appropriations at the times, as appropriate, of the contract being awarded (with respect to the amount from the first fiscal year); the adoption of the temporary budget Multi-year contract requirements are as follows: 1. Contracts entered into pursuant to N.J.S.A. 40A:11-15 for periods in excess of 12 months shall be charged and certified as follows: i. For construction and related services authorized by N.J.S.A. 40A:11- 15(9), to the budget or appropriation in full at the time of contract award; ii. For other contracts, to the respective budgets in accordance with the time(s) at which the respective work or services are performed or liability for payment otherwise incurred, and subject to such requirements of this section as might apply with respect to temporary budgets, open-end contracts or contracts not commencing at the beginning of the fiscal year. 2. All multi-year leases and contracts except contracts specifically exempted pursuant to N.J.S.A. 40A:11- 15 shall contain a clause making them subject to the availability and appropriation annually of sufficient funds as may be required to meet the extended obligation or contain an annual cancellation clause. Advance award of contracts: No contract shall be awarded in one fiscal year if the date on which it properly takes effect falls in the next fiscal year unless the contract includes a provision making it subject to the availability and appropriation of sufficient funds in the year in which it takes effect. Payment from proceeds shall be as follows: 1. Under the circumstances when a contractual liability may be lawfully incurred and a payment may lawfully be made without an appropriation, such as for professional services for liquidation or foreclosure of tax title liens as provided by N.J.S.A. 40:50-6, the certification of available funds should recite that fact and cite the statute. 2. Contracts for services to be paid from savings generated by or from State or Federal aid funds not yet received and appropriated are not permitted unless an appropriation is made prior to the time the expenditure of funds is authorized. Accounting for Fixed Assests All local units must have and maintain a fixed assets reporting system 52 | P a g e General Ledger Accounting Systems a) All local units shall have and maintain a general ledger for at least the current fund. Nothing shall prohibit a local unit from maintaining a general ledger for other funds. b) The general ledger shall be the official permanent financial record of the local unit. Change Order Definition a properly prepared document authorized by the governing body which directs and authorizes a vendor providing goods or performing services to a contracting unit pursuant to a contract awarded by governing body resolution to change the quantity or character of goods provided or services performed from that originally specified or estimated and to correspondingly change the payment due therefore. Change Order RULES * Each change order shall be in writing and shall be numbered consecutively starting with 1 and attached to the original PO or Contract. * Change orders that result in payment reduction will follow local unit procedure * Change orders are not to be used to change quantities that would have nullified the effect of the competitive determination of lowest responsible bidder. *Governing body can not delegate authorization of change orders except for mild field modifications (recommendation of professional) * Change orders shall be used to change the number of units or items originally advertised and contracted for, provided that: i. Unit prices or a price methodology were sought in the original specifications and included in the contract; ii. The original specification and the contract included a provision that the unit prices could be so used; and iii. If (a)i and ii above were not contained in the original specification, a change order shall not be issued. * Change orders are not a part of the LPCL * Change orders exceeding 20% of the contract price - STOP the work (does not apply to emergencies) * change orders require a certification of funds * Change order authorizations shall not be withheld until the completion of the entire contract. Change orders for Professional Services and EUS 1.) The 20 percent limitation of N.J.A.C. 5:30-11.3(a)9 shall not apply to professional and consultant contracts. 2.) If the change is not within the scope of activities of the original contract and the contract was awarded without competitive bidding being required by law or rule, as is the case for professional services and certain authorized extraordinary unspecifiable services in accordance with N.J.S.A. 40A:11-5(1)(a)(i), any change beyond the original scope of activities shall be made by amendatory contract approved by the governing body 55 | P a g e By what date every year does the contracting unit notify the State of their P.A.C.O.? (Public Agency Compliance Officer) January 10 EEO mandatory language "Exhibit A" for goods and services and professional services contracts EEO mandatory language "Exhibit B" construction contracts LFN 2005 -15 Look for Forms LIZ THIS ONE IS INCOMPLETE Americans With Disabilities Act of 1990 Mandatory language starting with bid threshold. no signature required. Include in the contract to be read. Non-Collusion Affidavit Include affidavit in bid. This is not mandatory by law, but can be made mandatory by the local unit. New Jersey Prevailing Wage for Public Works/Construction Projects -Off-site manufacturing -Custom fabrication -Furnishing of Materials -Articles -Supplies -Equipment Prevailing Wage Rates MUNICIPALITIES $15,444 Non-Municipalities $2,000 Any contract for maintenance work that exceeds $50,000 must be prevailing wage. (not applicable to goods and services) NJ Business Registration Certificate (BRC) Not required with the bid Needs to supplied before the contract Also necessary from vendors over 15% of bid threshold NON-PROFITs are not subject to BRC registration 56 | P a g e The Public Works Contractor Registration Act Requires that a general or prime contractor and any named subcontractors (4 prime subs) listed in the bid proposal shall be registered at the time the bid is submitted. The Registration(s) for contractor and named subs must be submitted after the bids and prior to the award of contract. This Act also applies when exceeding prevailing wage threshold $15,444/$2,000 Emergency work is not excluded from the provisions of Prevailing Wage Act or Public Works Contractor Registration Act compliance. Payment should be withheld until compliance is sought Project Labor Agreements OPTIONAL-- form of Pre-Hire collective bargaining agreement covering terms and conditions of a specific project. Public Works Project Public Works project excluding utility work and exceeding $5 million. Prompt Payment of Construction Contracts Contracting unit has 20 calendar days to dispute a bill and notify the contractor why the bill is being partially paid, or not at all. After 20 days, the contracting unit must pay the bill in full by the 30th day. Types of Bills "Periodic Payment", "Final Payment", Retainage Monies" NJ Worker and Community Right to Know Act (RTK) Mandatory labeling of chemical substances or mixtures. Safety Data Sheets (SDS) NJ Underground Facility Protection Act NJ One Call - call before you dig The State Plumbing License Law of 1968 the Master Plumber must be self employed or a own at least 10% of the General Contractors business The Electrical Contractors Licensing Act of 1962 Electrical prime-sub must have a business permit Office of the State Comptroller (OSC) 57 | P a g e State comptroller must be notified no later than 20 BUSINESS DAYS after the award of contract for contracts exceeding $2 Million and under $10 Million. State comptroller must be notified when a contract is anticipated to exceed $10 Million (before bids, RFPS) Bid Rigging Must be Reported To: County Prosecutor Attorney General Sherman Act (Responsibility of Anti-Trust Division of the US Dept of Justice) prohibits any agreement among competitors to fix prices Forms of Collusion -Price-Fixing -Bid Rigging -Bid Suppression -Complementary Bidding -Bid Rotation Price Fixing Agreement upon competitors to raise, fix, or otherwise maintain the price at which their goods or service are sold. Examples of Price Fixing 1. Establish or adhere to price discounts 2. eliminate discounts 3. adopt a standard formula for computing prices 4. Maintain certain price differentials between different types, sizes, or quantities of products Bid Rigging -Conspiring competitors effectively raise price where purchasers often federal, state or local governments - acquire goods or services by soliciting competitive bids. -Competitors agree in advance who will submit the winning bid on a contract. Bid Rigging Categories Bid Suppression - one or more competitors who would otherwise be expected to bid or have previously bid, agree to refrain from bidding or withdraw a previously submitted bid so that the designated winning competitor's bid will be accepted Complementary Bidding (cover or courtesy bidding) occurs when some competitors agree to submit bids that are too high to be accepted or contain special terms that will not be acceptable to the buyer.