1. Need to Revise the State College Contracts Law
Michael W. Klein, JD, PhD
Executive Director
New Jersey Association of State Colleges & Universities
NJASCU Higher Education Symposium
October 19, 2017

2. Standards from 1986 Are a Poor Fit for 2017, Costing Time and Money
Construction
Public-Private Partnerships
Purchasing
State colleges and universities should have same contracting standards as NJ’s public research universities: improve efficiency, save on cost, and thrive

3. Construction
Public research universities can award contracts based on bids that “will be most advantageous to the university, price and other factors considered.”
State colleges and universities must select “the lowest responsible bidder whose bid, conforming to the invitation for bids, will be the most advantageous to the State college.”
Cannot consider “other factors” beyond price.

4. Public-Private Partnerships Part of the New Jersey Economic Stimulus Act of 2009 Expired Aug. 1, 2015
Key provisions
a. A State college or county college may enter into a contract with a private entity that permits the private entity to assume full financial and administrative responsibility for the on-campus construction, reconstruction, repair, alteration, improvement or extension of a building, structure, or facility of the institution, provided that the project is financed in whole by the private entity and that the State or institution of higher education, as applicable, retains full ownership of the land upon which the project is completed.
b. A private entity that assumes financial and administrative responsibility for a project pursuant to subsection a. of this section shall not be subject to the procurement and contracting requirements of all statutes applicable to the institution of higher education at which the project is completed, including, but not limited to, the “State College Contracts Law,” P.L.1986, c.43 (C.18A:64-52 et seq.), and the “County College Contracts Law,” P.L.1982, c.189 (C.18A:64A-25.1 et seq.).

5. Examples of P3 Projects with Our Sponsors
Provident Resources Group
Montclair State University, The Heights
Two residence halls: 1,978 beds; 24,000 ft2 dining area
$230 million
Opened Fall 2011

6. Examples of P3 Projects with Our Sponsors
Provident Resources Group
Kean University
385-bed residence hall
$43.3 million
August 2018

7. Examples of P3 Projects with Our Sponsors
Provident Resources Group
Rowan University, Holly Pointe Commons
1,415 beds, 550-seat Glassworks Eatery, grab-and-go café, 303,000 ft2
$145 million
Opened September 2016

8. Examples of P3 Projects with Our Sponsors
PRC Group
The College of New Jersey, Campus Town
280,000 ft2 of housing (446 beds), stores, and restaurants
$120 million
Opened August 2015

9. More Examples of P3 Projects
National Energy Partners
Ramapo College
5.2MW solar array consisting of carports, fixed-tilt roof and ground array

10. More Examples of P3 Projects
Nautilus Solar Energy and SunDurance Energy
William Paterson University: Largest university-based solar facility in the U.S.
Supplies 15-20% of university’s energy needs, saving $4.3 million over 15 years

11. More Examples of P3 Projects
Atlantic City Development Company (AC Devco)
Stockton University’s Atlantic City Gateway Project on Boardwalk
Academic building for 1,800 students; housing for 520 students; parking garage; offices for South Jersey Gas
$156 million
Opening Fall 2018

12. More Examples of P3 Projects New Jersey City University, University Place, $400M
West Campus Village
113 new units, 425 new beds, 101 renovated units, 202 renovated beds
Completed Aug. 2016
301 market-rate apartments across two buildings; 11,000 ft2 of commercial space
$83 million
Opening Fall 2018

13. Purchasing: Time Limits on Contracts Restrict Ability to Save
Public research universities have no limits on the length of contracts
State colleges and universities generally limited to contracts of 36 months.
5-year maximum:
Utilities • Snow plowing
Information technology • Garbage collection
Insurance • Banking and financial services
Motor vehicle leases • Building maintenance
30-year maximum
Food supplies and services
Alternative energy
Management and operation of
Bookstores • Parking facilities
Performing arts centers • Building operations
Residence halls