Reforming N.J.'s Public Bidding System

In January, the New Jersey Department of the Treasury announced plans to implement a privately designed electronic management system for public contract bidding. The purpose of the anticipated system, which is expected to require all bid proposals for state contracts to be submitted electronically, is to reduce the number of errors and illegal provisions contained in both bids and contracts for public work. This announcement came only days before President Obama signed into law the $50.5 billion Hurricane Sandy relief package (large portions of which no doubt will be distributed through the New Jersey public bidding process), and almost one year to the day after Gov. Chris Christie ordered a comprehensive review of New Jersey’s public bidding process and procurement laws.

While the planning for the new system is still in its early stages, and its impact is not yet known, many are hopeful that the system will prove to be a meaningful step down the long road of New Jersey public bidding and procurement reform. Still, it is unlikely that the implementation of the new system will cure New Jersey’s confusing body of public bidding laws. This area has long been a complicated maze for vendors attempting to do business, on both the state and local levels, with New Jersey public entities. The acknowledged likelihood of errors in the bid award process, compounded with the many precarious and conflicting aspects of the public bidding laws that the new electronic system is unlikely to remedy, compels the conclusion that those seeking to do business with New Jersey public entities must employ both vigilance and competent legal counsel at all stages of the procurement process.

Disclosed Data Reveals Frequent Errors in Awarded Public Contracts