Contracts Up To $40,000 Can Be Signed Without Competitive Bids
JACKSON – At Tuesday night’s Township Council meeting, Jackson elected officials formally voted to raise the dollar amount of contracts that can be approved by the council without going out to bid.
So-called “no-bid contracts” are often the source of controversy, as rather than then being chosen as a result of the free market, the contracts are often given to political donors and supporters as a reward from elected officials. Holes in New Jersey’s public contract law have been well documented.
The township was able to raise the limit as a result of a recent change in New Jersey’s Local Public Contracts Law. Under N.J.S.A. 40A:11-3, state law allows a local government agency to increase the threshold from $36,000 to $40,000 provided that the government has a certified Qualified Purchasing Agent (QPA) on staff.
If a government agency does not have a QPA on staff, the threshold at which contracts must go out to bid is just $17,500.