Public Purchasing

Question 1

The governing body of NJ municipality has appointed a purchasing agent holding a QPA 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 NJSA 40A:11-3b the contract period may not exceed what length of time?

Answer 1

Twelve months

Question 2

Every contract for goods and services that in the aggregate exceeds the bid threshold shall be awarded to the lowest responsible bidder. NJSA 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 NJ.

Answer 2

False…Your own “PNE” not someone else’s

Question 3

NJSA 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.

Answer 3

False….only items specifically listed.

Question 4

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

Answer 4

5 years

Question 5

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.

Answer 5

True

Question 6

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

Answer 6

Technical criteria
Cost related criteria
Management

Question 7

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.

Answer 7

Notify affected employees

Question 8

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?

Answer 8

Negotiate and award contract by a two-thirds affirmative vote of the governing body

Question 9

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.

Answer 9

False.

Question 10

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.

Answer 10

True

Question 11

When preparing specifications for the provision of goods or performance of services no specifications under the Local Public Contracts Law NJSA 40A:11-13 may

Answer 11

a. Stipulate a residency requirement
b. Stipulate a standard not directly related to the purpose of the contract being bid.
c. Stipulate the furnishing of any “brand name”

Question 12

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

Answer 12

1. The governing body of the contracting unit decides to abandon the project
2. The governing body of the contracting unit decides to use the State authorized contract
3. The lowest bid substantially exceeds the contracting unit’s appropriation
   (Must state your reason in the resolution)

Question 13

The Township of Lawrence is having plans prepared for the construction of a new police facility. According to NJSA 40A:11-16 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:

Answer 13

1. Electrical work
2. Structural steel work
3. Plumbing work

Question 14

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

Answer 14

2 percent

Question 15

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:

Answer 15

Ten percent, but not in excess of $20,000

Question 16

NJSA 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:

Answer 16

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

Question 17

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. The following are considered as mandatory items:

Answer 17

1. Bid guarantee
2. Statement of corporate ownership
3. Document acknowledge bidders receipt of any notice or revisions

Question 18

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?

Answer 18

Ten days, Sundays and holidays excepted

Question 19

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 not perishable goods, is to be sold at public auction is what amount?

Answer 19

15% of the bid threshold

Question 20

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.

Answer 20

True

Question 21

The New Jersey Administrative Code NJAC 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?

Answer 21

During the duration of a multi-year lease

Question 22

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.

Answer 22

False

Question 23

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

Answer 23

Required for all funds

Question 24

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, unspecificable service

Answer 24

False

Question 25

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

Answer 25

Cooperative/Joint Purchasing Agreement