As municipal government agencies face the challenge of increasing operating costs without the benefit of increased revenue, said agencies have adopted certain contract actions and procedures to save money. One such cost-saving strategy that agencies use to leverage their buying power is employing the Internet. However, the success of this strategy depends on the agency’s ability to comply with procurement limitations set forth in state and local law (for example, New Jersey Local Public Contracts Law N.J.S.A. 40A:11-1 et seq.).
Municipalities have developed their own unique procurement systems to support acquisition activities. These systems served specific roles in the acquisition process, such as contractor registration or performance tracking. These systems facilitate every phase of the acquisition life cycle from planning to solicitation, evaluation to award, and administration to contract close-out. These systems are the consequence of state and local procurement laws.??For example, N.Y. GMU LAW § 103 (Advertising for bids; letting of contracts) allows bids to be submitted via the Internet but forbids the use of the Internet for advertising municipal requests for bids by requiring the advertisement for bids to be published in a newspaper.
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