New JerseyLocal governments could choose bids priced up to 10% higher
Local governments could award larger contracts to bidders charging up to 10% above the lowest qualified bid, based on overall value or past performance.
What it does
For contracts above the public bidding threshold, local governments could choose bids up to 10% above the lowest qualified bid, based on best overall value or the bidder’s strongest performance history.
Argument forConsidering overall value and past performance could help local governments choose contractors better suited to the work, even when their bids cost more.
Argument againstChoosing a bid up to 10% higher could increase what local governments spend on goods or services.
More detail
Local governing bodies could approve higher-priced bids by a majority vote. This would cover goods and services contracts above the dollar threshold requiring public bidding. The bid must meet the request’s requirements and cost no more than 10% above the lowest bid from a qualified bidder. Among the lowest qualified bid and bids within that limit, the choice must offer the best overall value or the bidder must have the strongest performance history. The written decision awarding the contract must explain the choice. The option would take effect immediately if the bill becomes law.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 19Introduced, Referred to Assembly State and Local Government CommitteeIntroduced
Government & Ethics