Yellow Book Study Cards1

Question 1

What are Extraordinary Unspecifiable Services?

Answer 1

Means those services which are specialized and qualitative in nature requiring expertise, extensive training, and proven reputation in a field of endeavor.

Question 2

What is “Aggregation” ?

Answer 2

Means the sums expended or to be expended for the provision or performance of any goods or services with the same immediate purpose/task during the same calendar year.

Question 3

A __________________ ______________ is a form of contract.

Answer 3

Purchase Order.

Question 4

What is a concession?

Answer 4

Refers to where the contracting unit grants the license or right to act for or on behalf of them.

Question 5

Professional Service Contracts may be awarded for a period not exceeding _______________ months and all other contracts may be awarded for a period of ____________________ consecutive months.

Answer 5

12 Months ; 24 Months.

Question 6

How are contracts awarded for good and services where the cost in aggregate exceeds the bid threshold?

Answer 6

Contracts are awarded by RESOLUTION of the Governing Body.

Question 7

Disqualification of a bidder shall be for what period of time?

Answer 7

A reasonable period of time not to exceed five (5) years.

Question 8

What is Competitive Contracting?

Answer 8

Means the method of contracting for specialized goods or services in which FORMAL proposals are solicited from vendors; where FORMAL proposals are evaluated by the purchasing agent; and the Governing Body awards the contract o a vendor from among the proposals received.

Question 9

The bid threshold for local government entity with a QPA is $__________________; and for those entities WITHOUT a QPA is $_____________________.

Answer 9

$36,500 ; $17,500

Question 10

Upon the receipt of bid proposals by the local government contracting unit how many days do they have to award a contract?

Answer 10

Sixty (60) days, except where the government contracting unit has requested and received an extension for a longer period from the vendors.

Question 11

A contract is awarded to what type of bidder?

Answer 11

The Lowest Responsible & Responsive.

Question 12

Where does the authority to award contracts and reject bids rest?

Answer 12

With the Governing Body.

Question 13

Name the two (2) concepts that form the historical basis for purchasing and describe them.

Answer 13

Dillon’s Rule - postulated by Judge Dillon that emphasized role and power of state being dominant. Was a strict constructionist approach.Cooley’s Doctrine - purported the role of local government in the relationship.The blending of the two concepts came to be known as “Home Rule”.

Question 14

Any sample or model which is made part of a transaction creates this type of protection for the buyer.

Answer 14

Known as Express Warranty.

Question 15

The Uniform Commercial Code (UCC) consists of how many articles? Name five.

Answer 15

Ten (10). 1) General Provisions. 2) Sales. a.Leasing of Personal Property. 3) Commercial paper. 4) Bank deposits and collections. 5) Letters of Credit. 6) Bulk Tranfers. 7) Warehouse receipts. 8) Investment securitites. 9) Secured Transactions, Sales of Accounts, Contract Rights. 10) Uniform Construction, Savings Clauses.

Question 16

What is an extraordinary Unspecifiable service?

Answer 16

Means services which are specialized and qualitative in nature requiring expertise, extensive training, and proven reputation in the field of endeavor.

Question 17

What are proprietary goods/services?

Answer 17

Means those goods & 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 local unit as necessary for the conduct of its affairs.

Question 18

How is the bid threshold adjusted?

Answer 18

The Governor, thru the Treasury Department, shall, no later than March 1st of every fifth year after the year in which P.L. 1999, C. 440 takes effect, adjust the threshold amount which the Governing Body is permitted to establish in direct proportion to the rise or fall of the index rate and shall round it to the nearest $1,000.

Question 19

What is prior negative experience?

Answer 19

Means any of the following:1) bidder has been found, thru either court adjudication, arbitration, mediation, or other contractually stipulated alternative dispute resolution mechanism to have failed to provide or perform goods or services; failed to complete the contract in a timely manner, or otherwise performed unsatisfactorily under a prior contract with the local contracting unit.2) bidder defaulted on a contract thereby requiring the local unit to utilize the services of another contractor. 3) the bidder defaulted on a contract thereby requiring local unit to look to bidder’s surety for completion of the contract or tender of the costs of completion.4) bidder is debarred or suspended from contracting with agencies or departments of the executive branch of the State of New Jersey at the time of contract award, whether or not the action was based on experience with the local unit.

Question 20

What is the period of time for a contract to be awarded by a local contracting unit?

Answer 20

Must be made within 60 days of the receipts of proposals, except where the proposals of any vendors who consent thereto, may, at the request of the contracting unit be held for consideration for such longer period of time as may be agreed to.

Question 21

What is the period of time for advertising request for proposals on competitive contracting?

Answer 21

A notice of the availability of request for proposals shall be published in the official newspaper of the local unit at least 20 days prior to the date established for the submission of proposals. a) The contracting unit may charge a fee for the proposal documentation not to exceed $50.00 or the the cost of reproduction, whichever is greater.

Question 22

What are the exceptions where a Governing Body may negotiate and award a contract without public advertising for bids?

Answer 22

A) subject matter consists of: 1) of Professional Services.2) the doing of any work by employees of the contracting unit.3) printing of legal briefs, records, & appendices to be used in a legal proceeding in which the local contracting unit may be a party.4) purchase of perishable foods as a subsistence supply.5) supplying of any product or the rendering of any service by a public utility which is subject to the jurisdiction of the Board of Public Utilities (BPU).6) acquisition of special equipment for confidential investigation, subject to prior approval of the State’s Attorney General.7) printing of bonds & documents necessary to the issuance and sale thereof y a contracting unit.8) equipment repair service if in the nature of an extraordinary unspecifiable service.9) publishing of legal notices in newspapers as required by law.10) acquisition of artifacts of historical character.11) goods & services required to conduct an election.12) insurance, including purchase of insurance coverage & consultant services.13) doing of work by handicapped individuals employed by a sheltered workshop.14) library & educational goods & services.15) marketing of recyclable materials recovers thru a recycling program.16) local unit towing & storage contracts.17) purchase of steam electricity.18) printing of municipal ordinances incurred with the revision & codification of municipal ordinances.19) agreement for purchase of interest in a water supply facility.20) contract for provision of water supply services.21) contract for provision of waste water treatment services.22) expenses for travel & conferences.23) proprietary computer hardware & software.24) operation of municipal airport.25) goods & services administered by the FCC.B) it is made or entered into with the United States of America, State of New Jersey, county or subdivision of.C) bids have been advertised foe on 2 occasions and no bids have been received or governing body has rejected such bids on 2 occasions because it was determined they are not reasonable or exceed estimate of local unit.D) contracting unit has solicited & received 3 quoted on materials / supplies for which State contract has been issued and the lowest quote is at least 10% less than identical State contract item.E) combined collection & marketing of recycled material recovered thru a recycling program.

Question 23

What is an emergency contract?

Answer 23

Any contract awarded without public advertising for bids when an emergency affects the public health, safety, or welfare requires the immediate delivery of goods or performance of services.

Question 24

Can contracts be divided to get under the bid threshold?

Answer 24

No contract in the aggregate which is single in character or which necessarily or by reason of the quantities required to effectuate the purpose of the contract includes the provision of services or goods, shall be divided so as to bring it or any of the parts thereof under the bid threshold (N.J.S.A. 40A11-7).

Question 25

Can a local government contracting unit make purchases with the State or GSA without public advertising for bids?

Answer 25

Yes, any contracting unit under this act may without advertising for bids or having rejected all bids obtained pursuant to advertising thereof purchasing goods or services to supply same on behalf of the State by the Division of Purchase & Property in the Department of Treasury.Also, a contracting unit may also use, without advertising for bids or rejected all bids obtained pursuant to advertising the Federal Supply Schedules of the General Services Administration (GSA) subject to the following conditions: 1) price of goods/services is no greater than the price offered to federal agencies 2) local contracting unit receives the benefit of federally mandated price reductions during the term of the contract. 3) price of the goods or services being procured is no greater than the price of the same or equivalent goods or services under the State Contract.

Question 26

Are there any limitations or restrictions on the way specifications are drawn up / drafted?

Answer 26

Yes. Any specifications for the provision of goods or services under the act shall be drafted in such a manner to encourage free, open, and competitive bidding. No specification may: 1) require any standard, restriction, condition, or limitation not directly related to the purpose / function of the activity for which the contract was awarded. 2) require that any bidder be a resident of or that the bidder’s place of business be located in the county or municipality in which the contract will be awarded or performed unless the proximity of the bidder is requisite to the efficient & economical performance of the contract.

Question 27

Can a bidder challenge a bid specification?

Answer 27

Yes, any prospective bidder who wishes to challenge a bid specification shall file such challenge in writing with the local contracting unit no less than 3 business days prior to the opening of bids. Challenges recieved after that time shall be considered null and void having no impact on the award of the contract.

Question 28

Can contracts be awarded for periods longer than 24 months, exclusive of those for professional services?

Answer 28

Yes. They are as follows: 1) supplying thermal energy by a cogenerational facility. Term not exceeding 40 years when contract is approved by BPU. 2) collection & disposal of municipal solid waste. Term not exceeding in the aggregate 5 years. 3) collection & recycling of methane gas from a sanitary landfill facility. Term not exceeding 25 years. 4) data processing service. Term not exceeding 7 years. 5) insurance, including the purchase of coverage, claims administration, & consulting services or joint insurance fund, risk management program. 6) leasing or servicing of automobiles. Term not to exceed 5 years. 7) service by company providing voice,data, transmission or switching services. Term not exceeding 5 years. 8) construction of public buildings or facilities. Length of time necessary for completion of actual construction. 9) providing food services. Term not exceeding 3 years. 10) on site inspections by private agencies pursuant to the State Uniform Construction Code Act (P.L. 1975, c. 217). Term not exceeding 3 years. 11) leasing of motor vehicles or other equipment used primarily to fight fires. Term not to exceed 10 years. 12) provision of water supply services or design/construction of a water supply facility, including a water filtration plant. Term not to exceed 40 years. 13) supplying lighting of public streets. Term not to exceed 5 years. 14) provision of emergency medical services. Term not to exceed 5 years. 15) towing & storage contracts. Term not to exceed 3 years. 16) provision of transportation services to the elderly , disabled, or indigent persons. Term not to exceed 3 years. 17) supplying of oxygen or other chemicals. Term not to exceed 5 years. 18) Fuel oil for motor vehicles. Term not to exceed 3 years. 19) Fuel oil for heating purposes. Term not to exceed 3 years. 20) plowing & removal of snow & ice. Term not to exceed 3 years.Note: Any contract for services other than professional services, the statutory length of which contract is for 3 years or less, may include provisions for no more than one 2 year or two 1 year extensions subject to certain limitations.

Question 29

On construction projects when does retainage come into play?

Answer 29

Whenever any contract exceeds $100,000 it is required that there be a withholding of payment of a percentage in the manner prescribed in the contract. a. the amount withheld shall be deposited with a banking/savings institution in an interest bearing account at the rate paid by them. b. the retainage shall be 2% of the amount due on each partial payment due pending completion of the contract. c. all amounts being withheld shall be released and paid in full to the contractor within 45 days of the final acceptance date agreed upon as the contract being completed.

Question 30

Must american goods be used on construction projects?

Answer 30

Each local unit shall provide in the specifications for all contracts for county / municipal work that only manufactured and farm products of the United States, wherever available, be used in such work.

Question 31

When must bids be advertised in the newspaper on public construction projects?

Answer 31

Shall be published in the official newspaper of the local unit at least 10 days in advance of the date fixed for receiving bids, except that advertisements for collection and disposal of solid waste shall be published not less than 60 days prior to the date. a. for all contracts the date fixed for receiving bids shall not fall on a Monday, or any day directly following a State or federal holiday.

Question 32

What is the time for making awards?

Answer 32

Contracting unit shall award or reject all bids within such time as specified in the invitation to bid, but in no case more than 60 days, except that the bidders consent to at the request of the local unit.

Question 33

How long are the bid security’s held after submission of the bids?

Answer 33

All bid security, except for the three apparent lowest responsible bidders, shall be returned within 10 days after opening of the bids, Sundays and holidays excepted.

Question 34

What is the time for execution of a contract?

Answer 34

Must be signed by both parties within the time limit set in specifications which shall not exceed 21 days, Sundays & holidays excepted, after making the award.

Question 35

How does a public entity dispose of personal property?

Answer 35

The Governing Body may authorize by resolution a sealed bid or public auction the sale of personal property not needed for public use. 1) if the estimated fair value to be sold exceeds 15% of the bid threshold it shall be sold at public auction to the highest bidder. 2) local unit need not advertise for bids when it makes such a sale to the United States, State of New Jersey, or another contracting unit, or governmental unit of the United States. 3) sale shall be held not less than 7 nor more than 14 days after the last published notice in the newspaper of the items to be sold and condition. 4) if no bids are received the property may then be sold at a private sale without further publication but must be at fair market value. 5) contracting unit may reject all bids if it determines such rejection to be in the public interest. 6) if the estimated fair market value does not exceed the bid threshold then it may be sold at private sale without advertising for bids.

Question 36

What is the Procedure for increasing the bid threshold of a public contracting unit? Shall be done by resolution of the Governing Body authorizing the higher amount not to exceed statutory maximum. A certified copy shall be filed with the Director of the DLGS ; a copy of the local units purchasing agents QPA certification.

Answer 36

hall be done by resolution of the Governing Body authorizing the higher amount not to exceed statutory maximum. A certified copy shall be filed with the Director of the DLGS ; a copy of the local units purchasing agents QPA certification.

Question 37

Do contracting units have the option to buy leased equipment that extends beyond the fiscal year?

Answer 37

Yes, in addition to providing for use of equipment during period of lease it may provide for rental payments to be credited towards purchase price for acquisition if included in original specifications. Leases shall not provide for acquisition at beginning of the lease term.

Question 38

What are the three model evaluation techniques?

Answer 38

1) Technical 2) Management 3) Cost.

Question 39

What does ELEC stand for?

Answer 39

New Jersey Election Law Enforcement Commission. Report is filed with them by those contractors/businesses who do more than $50,000 in contracts with public entities during a year.