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 introduces a new definition for "cooperative purchasing system," which includes collaborative purchasing arrangements among local contracting units. Additionally, the bill amends the "Local Public Contracts Law" to mandate that local contracting units conduct a cost savings analysis before procurement, considering factors such as service charges and delivery costs. If the analysis indicates that cooperative purchasing will yield savings, the contracting unit must proceed with that method.

Moreover, the bill clarifies the roles and responsibilities of contracting units and agents, specifying that contracts above a certain financial threshold must be awarded to the lowest responsible bidder after public bidding, with provisions for disqualifying bidders based on past negative experiences. The Director of the Division of Local Government Services is tasked with developing guidelines for cooperative purchasing systems, detailing eligible goods and services, the bidding process, and the benefits of cooperative purchasing. A cost savings analysis template will also be created to assist municipalities and counties in comparing procurement methods.

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