PP1 Chapters 8&9 Study Guide

Question 1

What is the $ threshold amount for a fixed asset system per Technical Accounting Directive #85-2?

Answer 1

$5,000.00

Question 2

Under the Open Public Records Act ( OPRA) requests for public record documents must be responded to within ___________ days.

Answer 2

Seven (7). The only exception to this requirement is if the Clerk’s office requests additional time to gather information and it is granted by the requesting party.

Question 3

OPRA request complaints are handled by what State agency?

Answer 3

The Government Records Council (GRC).

Question 4

What is the purpose of Prevailing Wage?

Answer 4

To encourage competition and provide fair wage to certain craftsman.

Question 5

What is an open ended contract?

Answer 5

Those contracts for which bids were solicited on a unit basis because exact quantities were not known at the time bids were sought.

Question 6

Name two things that are unique to open ended contracts.

Answer 6

1) No certification of funds is required at the time of award, but is only required at the time of purchase.2) Zero is an acceptable minimum order of units.

Question 7

What is a change order?

Answer 7

A change order is a document properly authorized by the Governing Body which allows the contracted vendor to change the quantity of goods/services.

Question 8

Change orders are limited to what percentage of the contract?

Answer 8

The total number of change orders executed on a single contract shall not exceed 20% of the contract price.

Question 9

Are there any exceptions to the Governing Body authorizing contract change orders?

Answer 9

Yes. Minor field / site modifications may be approved by the designated representative of the Governing Body.

Question 10

If uniformed law enforcement officers are needed on a project must it be included in the bid document?

Answer 10

Yes, a statement indicating whether officers are required on a project must be included and the statement shall include a line item allowance.

Question 11

Is the contracting unit responsible for additional traffic control costs beyond the allowance included in the bid specification?

Answer 11

No, it is not responsible for additional traffic control costs beyond the number of working days specified in the construction contract.

Question 12

What is the number of tons of hot asphalt mix in a bid specification where an asphalt price adjustment is included?

Answer 12

Any project where it is estimated to use more than 1,000 tons of hot asphalt mix.

Question 13

In the bid is the asphalt price adjustment limited to 1,000 tons of hot mix asphalt?

Answer 13

No, it also addresses any bid item that contains more than 500 gallons of fuel.

Question 14

What is “prior negative experience”?

Answer 14

Means any of the following: 1) bidder was found by court, arbitration, or mediation or other ADR to have failed / unsatisfactorily completed contract with the contracting unit. 2) bidder defaulted on contract requiring contracting unit to use another contractor to complete contract. 3) Bidder defaulted on contract requiring local unit to use the bidder’s surety for completion of the contract or costs of completion. 4) bidder was debarred by State of New Jersey at the time of the contract award, whether or not action was based on experience with contracting unit.

Question 15

The Prevailing Wage Rate for municipalities is $ ___________________ and for non- municipalities is $ __________________.

Answer 15

$14,187.00 for municipalities/counties.$. 2,000.00 for non-municipalities.

Question 16

Name the reasons. Contracting unit may reject ALL bids.

Answer 16

1) Lowest bid exceeds cost estimates for the goods or services.2) Lowest bid exceeds contracting unit appropriation for goods or services.3) Governing Body decides to abandon the project.4) Contracting unit wants to substantially revise the specifications for goods or services.5) Governing Body of the contracting unit decides to use NJ State contract.

Question 17

Name the reasons a contracting unit may reject INDIVIDUAL bids.

Answer 17

1) if more than one bid is received from an individual, firm, or partnership under the same name.2) multiple bids from an agent representing competing bidders.3) the bid is I appropriately balanced.4) the bidder is determined to possess prior negative experience.5) successful bidder fails to enter contract within 21 days or as otherwise agreed upon. (owner may accept the bid of the next lowest responsible bidder).

Question 18

Is a pre-construction meeting required for all contractors / potential bidders to attend on construction projects?

Answer 18

No, but it is recommended.

Question 19

Name the Statutory references for the following:Rejection of BidsPrior Negative ExperienceAsphalt Price AdjustmentUniformed Law Enforcement OfficersChange OrdersOpen Ended Contracts

Answer 19

NJSA 40:A11-13.2 / Rejection of BidsNJSA 40A:11-4b / Prior Negative ExperienceNJSA 40A:11-16 / Asphalt Price AdjustmentNJSA 40A11-23.1/ Uniformed Law Enforcement OfficersNJAC 5:30-11.1 et seq. / Change OrdersNJAC 5:30-11.1et seq. / Open Ended Contracts

Question 20

What are liquidated damages?

Answer 20

They are costs assessed to the contractor for delays caused by contractor in completion of job as per contract terms.

Question 21

Name the Statutory Provisions Used For Bid Specifications Other than LPCL.

Answer 21

Equal Employment Opportunity (EEO) / NJSA 10:5-31 et seq.Title II of the American with Disabilities Act (ADA) of 1990 / 42 U.S.C. S12101 et seq.Non-Collusion / NJSA 52:34-15NJ Prevailing Wage Act / NJSA 34:11-56.25 et seq.Statement of Corporate Ownership / NJSA 52:25-24.2NJ Business Registration of Public Contracts / NJSA 52:32-44Public Works Contractor Registration Act / NJSA 34:11-56.48 et seq.Project Labor Agreements / NJSA 52:38-1 et seq.Prompt Payment of Construction Contracts / NJSA 2A:30A-1 et seq.NJ Worker & Community Right To Know Act (RTK) / NJSA 34:5A-1 et seq.NJ Underground Facility Protection Act / NJSA 48:2-73 et seq.

Question 22

State law requires that any excavation planned must place call for a mark out of utility facilities within how many days before project digging?

Answer 22

Not less than 3 business days or more than 10 business days before starting any excavation.

Question 23

What does MSDS stand for and what law does it come from?

Answer 23

Material Data Safety Sheets and is part of the Right To Know (RTK) Act.

Question 24

How are contractual disputes resolved under the Prompt Payment of Construction statute?

Answer 24

It provides that disputes on whether a party has failed to make payment is addressed thru ADR (Alternative Dispute Resolution).

Question 25

Project Labor Agreement means what?

Answer 25

It is a form of “Pre-hire collective bargaining” agreement.

Question 26

Name the two (2) criteria where Project Labor Agreements are used.

Answer 26

1) it is required that workers be paid under provisions of the NJ Prevailing Wage Act.2) project cost estimate exceeds $5 million.

Question 27

When must a prime contractor or named subcontractor possess a public works contractor certificate?

Answer 27

At the time the bid proposal is submitted. ( All non-listed subcontractors must bar registered with the State prior to starting work on the project.

Question 28

What is a BRC & when is it presented to the contracting unit?

Answer 28

Business Registration Certificate and; prior to time of contract, purchase order.

Question 29

What is a Stockholders Disclosure Certification?

Answer 29

Form that requires bidders to disclose whether they are a partnership, corporation, or sole partnership. ( Failure to submit this form is cause for automatic rejection of bid.

Question 30

Does the law require inclusion of the non-collusion provision in the bid specification for both State & local agencies?

Answer 30

No, it appears to only be required for the State - NOT local units.

Question 31

Does the State Plumbing License Law require that the Master Plumber on the job use only union help?

Answer 31

No, he/the firm can employ either journeyman plumbers, apprentice plumbers, or both.

Question 32

In a Fixed Asset Accounting System tangible, non-expandable personal property must have useful life of at least how many years according to TAD #85-2?

Answer 32

At least 5 years.

Question 33

Do purchases made under State Contract thru the Division of Property & Purchase require a resolution of the Governing Body?

Answer 33

Yes, under the authority of N.J.S.A. 40A:11-12 it is required for any purchases in excess of the current bid threshold.

Question 34

What is Cooperative Purchasing?

Answer 34

Generic term used to describe Joint Purchasing Systems & Cooperative Pricing Systems.

Question 35

Name the two (2) forms of Cooperative Purchasing and describe the similarities & differences between them.

Answer 35

1) Joint Purchasing System is where 2 or more local government units contractually agree that one of them will be the lead agency/purchasing agent for the group. a. As Lead Agency they do the buying for the group.2) Cooperative Pricing System is where multiple local government units contractually to purchase an item or category of items together. a. The Lead Agency solicits pricing for the group of items, but each local unit contracts directly with the vendor. It only advertises for bids etc.

Question 36

Name the four (4) benefits of ordering from State Contracts by Cooperative Purchasing Program members.

Answer 36

1) Dollar Savings resulting from volume purchasing.2) Convenience resulting from them handling all procedural requirements of public bidding process. Local unit calls vendor and places order thru encumbrance purchasing system.3) Flexibility as State Contracts offer a broader spectrum of commodities than local units would do on their own.4) Qualified Vendors and Proven Products from State using rigorous standards in qualifying vendors for program.

Question 37

What is a “Term Contract” ?

Answer 37

State Contracts that are available to Cooperative Purchasing subscribers.

Question 38

Are Local Government Units required to solicit further bids if they elect to purchase off of State Contract?

Answer 38

No, but they must still issue a purchase order under the encumbrance system.

Question 39

If a local government unit is dissatisfied with a State Contract Vendor what is the process for filing a complaint with State?

Answer 39

After the local government unit has made telephone call to vendor in attempt to resolve the dispute the following steps would be taken:1) Contact the Department’s Business Manager/Fiscal Officer to review complaint.2) Submit PB-36 Form to Contract Compliance & Administration Unit (CCAU) of the State Treasury Department per N.J.A.C. 17:12-4.1.

Question 40

Once a vendor is notified by the State CCAU (Contract Compliance & Administration Unit) that there is a complaint about their non-compliance with a contract how many days do they have to respond?

Answer 40

Response to the complaint must BE RECEIVED within 10 days. Failure to do so MAY result in immediate termination of the contract.

Question 41

Where are all State Cooperative Purchasing contracts listed?

Answer 41

It is listed on the NJ Department of Treasury, Division of Property & Purchase website at www.state.nj.us/treasury/purchase/coop purchase contracts.

Question 42

What is a “T” Number and what is a Contract Number? Explain the difference.

Answer 42

1) A “T” Number is a generic number given to a specific group of contracts to quickly identify the product/service.2) A “Contract” Number is a number assigned to a specific vendor once contract has been awarded.

Question 43

Can a State Contract awarded vendor substitute one product for the existing one?

Answer 43

Yes, but ONLY if it has been approved by the State. Cannot be done on the assumption that the State will do so.

Question 44

Can a Local Unit purchase from a vendor if they offer to sell the item/good at a discount below the State Contract price?

Answer 44

Yes, if it is at least 10% below the State Contract Price. Also, the following documentation must be provided:1) Copy of Purchase Order2) Copy of the Requisition.3) Written certification from Purchasing Agent that it is at least 10% less than State Contract price.4) Documentation that the materials/goods are identical.5) Copy of each quote request issued by the purchasing agent.6) Copy of 3 quotations recieved.7) Copy of the resolution from the Governing Body approving the award.

Question 45

What is the rule “Disbursements Without Vendor Certification”?

Answer 45

It refers to rule adopted by the LFB permitting the use of procurement cards (p-cards) and certain types of electronic transfers.P-Cards are similar to credit /debit cards, but has a higher level of management control and is subject to strict limits on its use. Rules on use are identified in N.J.A.C. 5:30-9A. Use was permitted by change to N.J.S.A.40A:5-16 which waived requirement for claimant’s signature on voucher in certain circumstances. Does not allow for use of DEBIT CARDS & CREDIT CARDS.

Question 46

What is an Electronic Funds Transfer (EFT)?

Answer 46

It is any method of transferring money that does not involve the physical presentation of a paper check, including, but not limited to wire transfers, ACH transfers. IT IS USED TO PAY AN OBLIGATION NOT CREATE ONE.

Question 47

What is the penalty for knowingly incurring an obligation and overspending a budget appropriation for a department?

Answer 47

It is a 4th degree crime subject to a prison term up to 18 months and restitution or fine (N.J.A.C. Chapter 131).

Question 48

Applications to establish a Petty Cash Fund are filed with what State Agency?

Answer 48

The Department of Community Affairs (DCA), Division of Local Government Services. (N.J.S.A. 40A:5-21).

Question 49

What are the requirements for the person having custody of the Petty Cash Fund?

Answer 49

They must be bonded with a corporate surety in an amount not less than $1,000.00.

Question 50

What are the requirements of a Bid Guarantee?

Answer 50

It shall be submitted by a bidder in the form of a certified check, cashier’s check, or bid bond in an amount of 10% of the total price of the bid, but NOT in excess of $20,000.00.

Question 51

What is a Performance Bond?

Answer 51

Submitted by successful bidder with executed contract in an amount 100% of the bid to ensure faithful performance/completion of the contract project/good. a. It is NOT released until Final Acceptance of the job by the local government unit and: b. After any liens or claims have been satisfied.

Question 52

What is the procedure for a contractor seeking clarification of a question on a bid specification from the local government contracting unit?

Answer 52

Must submit request/question in writing AT LEAST seven (7) days prior to the date fixed for the bid opening.

Question 53

What is a Consent of Surety?

Answer 53

Certificate submitted by bidders from a Surety Company stating that the company will provide a performance bond for the project if awarded the bid.Consent of Surety is required on all construction projects over $100,000.00.

Question 54

Under “Pay to Play” businesses are required to file annual disclosure statements of their political contributions with what entity and if they receive public contracts in excess of what $ amount?

Answer 54

1) The New Jersey Election Law Enforcement Commission (ELEC) / N.J.S.A. 19:44A-20.272) $50,000

Question 55

If during the life of a contract with a public entity the contractor disposes of his/her business by acquisiton, merger, sale or transfer to another party can the contract be cancelled? If so, how many days advanced notice must be given to the contractor?

Answer 55

Yes. 60 days advance notice.