Local Public Contracts Law Flashcards

1
Q

The governing body of a New Jersey municipality has appointed a purchasing agent holding a Qualified Purchasing Agent certification and authorized a local bidding threshold of $29,000. The purchasing agent wishes to award a professional service agreement for $15,000. Pursuant to N.J.S.A. 40A:11-3 (B) the contract period may not exceed what length of time?

a. Twelve months
b. Twenty-four months
c. Thirty-six months
d. None of the above

A

a. Twelve months

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2
Q

Every contract for goods and services that in the aggregate exceeds the bid threshold shall be awarded to the lowest responsible bidder. N.J.S.A. 40A:11-4 permits the governing body to reject the lowest bidder if the governing body is made aware of “prior negative experience” with any local contracting unit in New Jersey

a. True
b. False

A

b. False

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3
Q

N.J.S.A. 40A:11-4.1 authorizes the use of competitive contracting in lieu of public bidding. Competitive contracting may be used for all types of goods and services.

a. True
b. False

A

b. False

Specialized goods

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4
Q

Contracts awarded by competitive contracting may not be for a term exceeding what length of time, unless there is an authorized exception?

a. One year
b. Two years
c. Three years
d. Four years
e. None of the above

A

e. None of the above

5 years

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5
Q

When competitive contracting is authorized by a resolution of the governing body, it is necessary to pass a resolution each time specialized goods or services are desired.

a. True
b. False

A

a. True

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6
Q

The methodology used in the evaluation of proposals submitted under the process of competitive contracting must include the following:

a. Technical criteria
b. Cost related material
c. Management
d. b and c only
e. All of the above

A

e. All of the above

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7
Q

Currently the city of Trenton operates a public water utility. Due to budget considerations the city would like to solicit proposals for the operation of the utility using competitive contracting. As required by the Local Public Contracts Law the city will be required to do which of the following regarding affected employees.

a. Determine the cost of layoffs
b. Notify affected employees
c. Notify NJ Department of Personnel of layoffs
d. All of the above
e. None of the above

A

b. Notify affected employees

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8
Q

A local contracting unit has advertised for the same good or service on two occasions. On one occasion no bids were received and on one occasion all bids were rejected because of price. The Local contracting unit is now permitted to proceed in which of the following methods.

a. Re-bid same good or service until bids are acceptable
b. Negotiable and award contract by majority vote of governing body
c. Negotiable and award contract by a two-thirds affirmative vote of the governing body

A

c. Negotiable and award contract by a two-thirds affirmative vote of the governing body

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9
Q

A New Jersey municipality has a fleet of police cars exceeding fifty vehicles. One of the vehicles is damaged beyond repair in a motor vehicle accident. The police chief recommends authorizing the purchase of a replacement vehicle as an “emergency purchase”, which purchases are authorized by 40A:11-6. Since this vehicle is used for public safety it may be purchased without public bidding or prior governing body approval.

a. True
b. False

A

b. False

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10
Q

When in excess of the bid threshold and after documented effort by the contracting agent to secure competitive quotations, a contract for extraordinary unspecifiable services may be awarded upon a determination in writing by the contracting agent that the solicitation of competitive quotations are impracticable. Any such contract shall be awarded by resolution of the governing body.

a. True
b. False

A

a. True

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11
Q

When preparing specifications form the provision of goods or performance of services no specifications under the Local Public Contracts Law N.J.S.A. 40A:11-13 may:

a. Stipulate a residency requirement
b. Stipulate a standard not directly related to the purchase of the contract being bid
c. Stipulate the furnishing of any “brand name”
d. All of the above.
e. None of the above

A

d. All of the above

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12
Q

A contracting unit may reject all bids for which of the following reasons:

a. The governing body of the contracting unit decides to abandon the project
b. The governing body of the contracting unit decides to use the state authorized contract
c. The lowest bid substantially exceeds the contracting unit`s appropriation
d. All of the above
e. None of the above

A

d. All of the above

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13
Q

The township of Lawrence is having plans prepared for the construction of a new police facility. According to N.J.S.A. 40A:11-6 When the entire cost of this type of project will exceed the bid threshold separate plans and specifications may be prepared for which of the following:

a. Electrical
b. Structural steel work
c. Plumbing work
d. All of the above
e. None of the above

A

d. All of the above

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14
Q

Local units entering into contracts in excess of $100,000 for the improvement of real property are permitted to withhold a percentage of partial payments if agreed to by the contractor. The maximum amount that may be withheld pursuant to N.J.S.A. 40A:11-16.3 is:

a. One percent
b. Two percent
c. Three percent
d. Four percent
e. Five percent

A

b. Two percent

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15
Q

When a local unit is publicly bidding construction or improvements to real property and the total price will exceed $100,000 the bidder shall furnish a bid guarantee. The amount of said guarantee shall be in the amount of:

a. Ten Percent, but not in excess of $20,000
b. Twenty percent, but not in excess of $10,000
c. Ten percent, but not in excess of $10,000
d. Twenty percent, but not in excess of $20,000

A

a. Ten Percent, but not in excess of $20,000

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16
Q

N.J.S.A. 40A:11-23 prescribes the general requirements for the advertisement for the receipt of bids. Per this section the minimum requirements that must be satisfied are:

a. The Official that should be contacted for specifications
b. Certification of availability of funds
c. The manner of submitting and receiving bids, including the time and place the bids will be received
d. All of the above
e. None of the above

A

c. The manner of submitting and receiving bids, including the time and place the bids will be received

17
Q

When required by the bid plans and specifications, there is documentation considered as mandatory when submitting the bid proposal. Failure to submit any one of the mandatory items shall be deemed a fatal defect that shall render the bid proposal unresponsive and that cannot be cured by the governing body. Which of the following are considered as a mandatory item?

a. Bid guarantee
b. Statement of corporate ownership
c. Document acknowledge bidders receipts of any notice or revisions
d. All of the above
e. A and b only

A

d. All of the above

18
Q

A local contracting unit has accepted bids. The bids must be reviewed by the appropriate officials. The length of time to conclude this process is uncertain. The prospective contractors submitted bid guarantees. What is the number of days that the local unit must return said bid guarantees to all but the three apparent lowest responsible bidders?

a. Five days, Sundays and holidays excepted
b. Seven days, Sundays and holidays excepted
c. Ten days, Sundays and holidays excepted
d. Fourteen days, Sundays and holidays excepted

A

c. Ten days, Sundays and holidays excepted

19
Q

By resolution of the governing body a contracting unit may sell personal property not needed for public use and the sale is by sealed bid or public auction. The threshold for determining if the property, provided it is neither livestock nor perishable goods, is to be sold at public auction is what amount?

a. $2,500
b. 15% of the bid threshold
c. 15% of the original purchase price
d. 15% of the fair market value
e. None of the above

A

b. 15% of the bid threshold

20
Q

All construction contract documents entered into in accordance with the provisions of the Local Public Contracts Law shall provide that disputes arising under the contract shall be submitted to a process of resolution pursuant to alternative dispute resolution practices prior to being submitted to a court for adjudication.

a. True
b. False

A

a. True

21
Q

The New Jersey Administrative Code (N.J.A.C. 5:34-3.2 (a)) requires that all leases and service agreements authorized by the Local Public Contracts Law shall be subject to competitive bidding if the amount of the lease exceeds the bid threshold for what period of time.

a. During any twelve-month period
b. During any fiscal year period
c. During the duration of a multi-year lease
d. None of the above

A

c. During the duration of a multi-year lease

22
Q

A change order would not be permitted to change the number of units or items originally advertised and contracted for, even though unit prices were sought in the original specifications.

a. True
b. False

A

b. False

23
Q

An encumbrance accounting system shall be maintained for which of the following funds:

a. current fund only
b. current fund, capital fund
c. current fund, capital fund, utility fund
d. current fund, capital fund, trust fund, utility fund

A

d. current fund, capital fund, trust fund, utility fund

24
Q

The assertion that a service can only be provided by a single contractor shall be sufficient to justify avoidance of competitive bidding as an extraordinary, unspecifiable service.

a. True
b. False

A

b. False

25
Q

Two or more contRacting units may join together to form what type of system for the provision and performance of goods and services.

a. Municipal financing pool
b. Shared services agreement
c. Interlocal Services Agreement
d. Cooperative/Joint Purchasing Agreement

A

d. Cooperative/Joint Purchasing Agreement