The bill requires municipalities and counties in New Jersey to adopt cost-saving practices by utilizing cooperative purchasing systems for energy-related goods and services. It amends the Local Public Contracts Law to define "cooperative purchasing system" as a collaborative arrangement among local contracting units for procurement. The bill also updates definitions for key terms such as "contracting unit," "governing body," and "contracting agent," clarifying their roles in the procurement process. It mandates that contracts exceeding a specified financial threshold be awarded to the lowest responsible bidder after public bidding, while allowing for the disqualification of bidders based on previous negative experiences.

Additionally, the bill requires local contracting units to conduct a cost savings analysis before procuring energy-related goods and services, considering factors like service charges and delivery costs. If the analysis indicates that a cooperative purchasing system would be more cost-effective, the contracting unit must proceed with that option. The Director of the Division of Local Government Services is tasked with developing guidelines for cooperative purchasing systems and creating a cost savings analysis template to assist municipalities and counties. This initiative aims to improve efficiency and transparency in the procurement of energy-related services throughout New Jersey.

Statutes affected:
Introduced: 40A:11-2, 40A:11-4, 40A:11-4.1