The bill mandates that boards of education, municipalities, counties, and certain local contracting units adopt cost-saving practices in their procurement of goods and services. It requires these units to conduct a cost savings analysis, considering factors such as service charges, materials, delivery, and costs associated with traditional bidding processes. If a purchasing agent determines that utilizing a cooperative purchasing system will yield cost savings, the contracting unit must proceed with this method unless the procurement involves new building construction or expansion. Additionally, the bill emphasizes compliance with state and federal laws regarding anti-discrimination, business registration, and prevailing wage requirements for contractors and subcontractors.

To enhance efficiency and transparency, the bill introduces new definitions related to procurement and establishes guidelines for cooperative purchasing systems. It directs the Director of the Division of Local Government Services, in consultation with the Commissioner of Education, to create harmonized guidelines that outline the types of goods and services that can be procured, the bidding process, and compliance requirements. The division is also tasked with developing a cost savings analysis template to assist contracting units in comparing cooperative purchasing systems with other procurement methods. Overall, the bill aims to streamline procurement processes while ensuring accountability and compliance with existing regulations.

Statutes affected:
Introduced: 18A:18A-4.1, 40A:11-2, 40A:11-3, 40A:11-4, 40A:11-4.1