The bill mandates that boards of education, municipalities, counties, and local contracting units implement cost-saving practices in their procurement processes for goods and services. It introduces a requirement for purchasing agents to conduct a cost savings analysis, developed by the Division of Local Government Services in consultation with the Commissioner of Education, to evaluate factors such as service charges and delivery costs. If the analysis suggests that a cooperative purchasing system would be more cost-effective, the contracting unit must utilize this method. Additionally, the bill emphasizes compliance with state and federal laws regarding contractors and subcontractors before finalizing contracts.

Key amendments include the adjustment of bid thresholds every five years, allowing for a maximum threshold of $25,000 for contracts awarded by qualified purchasing agents, and the establishment of conditions for disqualifying bidders based on prior negative experiences. The bill also clarifies definitions related to cooperative purchasing and procurement processes, and it requires the Director of the Division of Local Government Services to create guidelines for cooperative purchasing systems. These guidelines will detail eligible goods and services, the bidding process, and compliance requirements, ensuring that all relevant information is accessible to municipalities, counties, and school districts.

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