1. ANNA MARIE WRIGHT, QPA CAMDEN COUNTY PURCHASING AGENT
Basic Purchasing Policies and Procedures Rutgers Educational Forum April 30, 2014

2. ITEMS COVERED UNDER THE VARIOUS LAWS
PROCUEMENT LAWS
Laws to Regulate the Procurement of Goods and Services.
LOCAL PUBLIC CONTRACTS LAW N.J.S.A. 40A:11-1 ET SEQ.
PUBLIC SCHOOLS CONTRACTS LAW N.J.S.A. 18A:18A-1 ET SEQ.
COUNTY COLLEGE CONTRACTS LAW N.J.S.A 18A:64A-25.1 ET SEQ.
ADMINISTRATIVE CODE N.J.A.C. 5:34-1 ET SEQ.
ITEMS COVERED UNDER THE VARIOUS LAWS
BID THRESHOLD
QUOTE THRESHOLD
DURATION OF CONTRACTS
TYPES OF PROCUREMENT
COOPERATIVES
MANDATORY BID ITEMS
SPECIFICATIONS
AWARD OF CONTRACTS
AGGREGATION
REJECTION OF BIDS
DISQUALIFICATION OF BIDDERS

3. KEY PROVISIONS OF THE LAW
TYPES OF PROCUREMENT
Quote
Goods and Services
Does not have to be advertised
Can be negotiated
Bid
Advertised 10 days in official newspaper
Cannot be negotiated (unless tie bid)
Emergency
must address public health, safety and welfare
Try to obtain quotes if possible
TYPES OF PROCUREMENT
Competitive Contracting Request for Proposals
Hybrid of a bid and RFP
Advertised 20 days in official newspaper
Cannot be negotiated
Cooperative pricing, joint purchasing, regional cooperative and commodity resale contracts
Bid with a larger group of entities
Advertised 10 days in the newspaper
Cannot be negotiated (unless tie bid)

4. KEY PROVISIONS OF THE LAW
EXCEPTIONS 40A:11-5
Professional Services 40A:11-5(1) (a)(i)
Examples – lawyer, architect, engineer
Extraordinary Unspecifiable Services (EUS) 40A:11-5(1)(a)(ii)
Construed narrowly in favor of open competitive bidding
Local Finance Notice
Insurance 40A:11-5(1)(m)
Purchase of insurance coverage and consultant
EXCEPTIONS 40A:11-5
Other listed exceptions included but are not limited to.
Publishing of legal notices 40A:11- 5(1)(j).
The acquisition of artifacts or items of unique intrinsic, articistic or historical character 40A:11-5(1)(k).
Those goods and services necessary or required to prepare and conduct an election 40A:11-5(1)(l).
Library and educational goods and services 40A:11-5(1)(q).
Proprietary computer hardware and software 40A:11-5(1)(dd).

5. KEY PROVISIONS OF THE LAW
BID LIMIT/QUOTE THRESHOLD 40A:11-3
Bid limit is $36,000 with a Qualified Purchasing Agent
Bid limit is $17,500 without a Qualified Purchasing Agent
Quotes - 15% of the Bid limit
Two (2) quotes are required
DURATION OF CONTRACTS A:11-15
Two years – is standard unless the agency desires a shorter term.
Term may be for a longer duration as permitted in N.J.S.A. 40:A11-15
Extensions are permitted by one (1) two year or two (2) one year terms using the index rate established by the DCA at the time of the extension.
Professional services no more than twelve (12) months.
Competitive Contracts up to five years. (40A:11-4.2)

6. KEY PROVISIONS OF THE LAW
COOPERATIVE PURCHASING N.J.A.C. 5:34-7.3
Cooperative Pricing
Lead agency advertises for bids; awards a master contract with vendor for its owns needs and bid prices extend to co-op members; co-op member will issue own contract directly with vendor.
Joint Purchasing
Lead agency does the purchasing for members and certifies funding for themselves and members.
COOPERATIVE PURCHASING N.J.A.C. 5:34-7.3
Cooperative Commodity Resale System
Lead agency procures commodity and resells this to Cooperative members.
e.g. gasoline, diesel fuel, road salt
Regional Cooperative Pricing
Two or more registered Cooperative Pricing Systems and their participating units.
For Energy - Electricity, Natural Gas

7. KEY PROVISIONS OF THE LAW
COOPERATIVE PURCHASING
State Cooperative Purchasing Program
40A:11-12
State contract must be extend to you in order to use.
Quote from Vendor must be verified.
PO must have contract number and NJCP1.
National Cooperatives
Local Finance Notice
COOPERATIVE PURCHASING
Advantages and Disadvantages
Convenient
Flexible
Time Saving
Are there real financial savings?

8. KEY PROVISIONS OF THE LAW
EMERGENCY CONTRACTS 40A:11-6
Must affect public health, safety and welfare and requires immediate deliver of goods or performance or services.
Must designate who can declare emergency within organization.
Should be the Official in charge.
When unavailable or incapacitated a designee will act on behalf of Official in charge.
EMERGENCY CONTRACTS 40A:11-6
Must notify purchasing agent or person of authority.
SHOULD develop protocol in advance and have a written policy and procedure.
SHOULD try to obtain quotes if possible.
Failure to plan is NOT an Emergency!

9. KEY PROVISIONS OF THE LAW
MANDATORY BID REQUIREMENTS MUST BE SUBMITTED WITH BID 40A:
A guarantee (Bid Bond) - optional
Required when bid exceeds $100,000 for “construction” .
A certificate from a surety company (performance bond) optional.
Required when bid exceeds $100,000 for “construction”.
A statement of Corporate Ownership. (N.J.S.A. 52: )
MANDATORY BID REQUIREMENTS MUST BE SUBMITTED WITH BID 40A:
A listing of “specialty trade” subcontractors pursuant to N.J.S.A. 40A:11-16.
Acknowledgment of receipt of addenda.
Any document stated to be required by the agency.

10. KEY PROVISIONS OF THE LAW
SPECIFICATIONS 40A:11-13
A specification is a statement of a set of requirements to be satisfied by a product, material or a process.
Any specification shall be drafted to encourage free, open and competitive bidding.
Specification shall require the furnishing of any “brand name” but may in all cases require “brand name or equivalent”.
SPECIFICATIONS 40A:11-13
A good specification shall:
Identify minimum requirements.
Allow for competitive bidding.
List reproducible test methods to be used for compliance.
Provide for an equitable award.
Well written specifications are essential
No loopholes for vendors .
But need to be fair to the vendors.
Capable of being met by several vendors.
Must be clear as to bid will be awarded.
Simple but exact.

11. KEY PROVISIONS OF THE LAW
ADVERTISEMENT 40A:11-23
Bid – goods and services - minimum 10 days.
Bid – Solid Waste – min. 60 days.
Competitive Contracting – min. 20 days. N.J.S.A. 40A:11-4.5
. Must include
Bidders are required to comply with the requirements of N.J.S.A. 10:5-31 et seq. and N.J.A.C. 17:27-1 et seq.
ADVERTISEMENT 40A:11-23
Must include
Bidders are required to comply with the requirements of P.L , c. 238, (N.J.S.A. 34: et seq.) where applicable.
Entities name and address.
Bid Opening Date and Location.
Bid number and description.
Package Pick up Location.
Pre-Bid information (if applicable).

12. SAMPLE INVITATION TO BID
 Notice is hereby given that sealed bids for Bid #   
will be received, opened and read in public at the Camden County Division of Purchasing, Courthouse - 17th Floor, 520 Market Street, Camden, New Jersey on , at prevailing time by the Camden County Purchasing Agent or his designee.
Copies of the bid documents may be obtained at the Camden County Division of Purchasing during regular business hours. Copies of the bid documents may be obtained at the Camden County Division of Purchasing during regular business hours. Proposers can register to download all documents from the Camden County website:
 All bidders are strongly urged to attend a non-mandatory pre-bid conference to be held at  on at prevailing time.
Proposers are required to comply with the requirements of P.L. 1975, c.127 (N.J.A.C. 17:27) and N.J.S.A. 10:5- 31 et seq. and to comply with the requirements of P.L. 1999, c.238, (N.J.S.A. 34: et seq.) where applicable.
All bidders are responsible for obtaining complete bid documentation from the County at the address listed above. In the event of any inconsistencies between this advertisement, as published, and the bid documentation, the bid documentation shall control.
By order of the Board of Chosen Freeholders of Camden County, New Jersey.
 Anna Marie Wright, Camden County Purchasing Agent

13. KEY PROVISIONS OF THE LAW
OUTSIDE THE LOCAL PUBLIC CONTRACTS LAW
Pay To Play N.J.S.A. 19:44A et seq.
Affirmative Action NJ.S.A. 10:5-31 et seq.: N.J.A.C. 17:27
Statement of Corporate Ownership N.J.S.A. 52:
Non Collusion N.J.S.A. 52:34.15
Business Registration Act N.J.S.A. 52:32.44
OUTSIDE THE LOCAL PUBLIC CONTRACTS LAW
Disclosure of Investment Activities in Iran. Public Law 2012, c. 25
Prevailing Wage N.J.S.A. 34: et seq.
Public Works Contractor Registration Act N.J.S.A. 34: et seq.
Certification regarding debarment
Required for federally funded projects.

14. PURCHASING POLICIES Purchasing Policies Purchasing Policies
To provide guidance and clarify purchasing procedures.
Defines Purchasing’s Roles and Responsibilities.
Defines the responsibilities of the using Departments.
Purchasing Policies
Outline management's Commitment to Ethical Behavior.
Know when to Buy
Right Quality, Right Quantity, Right Time, Right Place, Right Source, Right Manner

15. Purchasing Policies Challenges
Purchasing managers must participate in the formulation of the policies involving purchasing issues.
Must clearly define what is expected of the using department.
Cannot operate in a vacuum.
Purchasing Policies Challenges
Purchasing professional must protect a public entity’s assets against the danger of loss or misuse.
They must ensure all procurement and financial transactions are properly authorized.
Policies should be adopted by the governing body.

16. Purchasing Policies Challenges
Integrity, honesty and ethics are essential traits of a purchaser, as the money we spend is not our own.
Public purchasing officials must perform their job with sound business shrewdness and abide by statutory requirements.
Purchasing Policies Challenges
Purchasing Officials must manage all phases of the purchasing operation.
Reduce or eliminate rush orders.
Discourage favoritism and increase competition.
Have knowledge of buying trends and technology.

17. PURCHASING FORMS PURCHASING FORMS PURCHASING FORMS
Purchasing Manual
Advertisement
Requisition
Voucher
Purchase Orders
Emergency Purchase Form
Quotation Form
PURCHASING FORMS
Bid Boilerplate/Template
Bid Award Sheet
OPRA Request
Fixed Assets Form
Resolution/Ordinance

18. PURCHASING FORMS PURCHASING MANUAL PURCHASING MANUAL
Establishes and describes internal procedures.
Written for use by all personnel in the Purchasing Department and employees that perform the purchasing functions.
Manual should describe all of the steps of the purchasing function.
PURCHASING MANUAL
Needs to address conflict of interest and ethical issues.
Needs to address the following.
Requisitions
Purchase orders
Required Signatures
Resolution or ordinance request
Guidance on bidding documents
Award of contracts
Record retention
Accounts payable procedures

19. PURCHASING FORMS QUOTE FORM
Should have a sample solicitation of quotation record form for all using departments.
Should have all quotes in writing.
Quotes can be negotiated.
QUOTATION NUMBER:
QUOTATION MUST BE RETURNED NO LATER THAN: _ _
PRICES MUST INCLUDE DELIVERIES TO THE INSTITUTIONS.  
Quotations must be made on these sheets; no other form will be accepted.
Camden County is exempt from any/all sales taxes.   
The County of Camden reserves the right to accept or reject any part or parts thereof.
Delivery to be made not later than It is understood that prices include containers, except where specified.
SUBMITTED BY_________________________
Phone Number/Fax: _________________________

20. REQUISITION REQUISITION PURCHASING FORMS
All required signatures
Internal vendor number
Business Registration Number
Account number
REQUISITION
Description of goods or services
Quotes attached
State Contract number

21. PURCHASING FORM REQUSITIONS

22. PURCHASING FORMS PURCHASE ORDERS PURCHASE ORDERS
Purchase orders are normally accompanied by terms and conditions which form the contractual agreement.
The vendor delivers the product or service and delivery is recorded.
PURCHASE ORDERS
An invoice is sent by the vendor which is cross-checked with the purchase order and documents specifying the goods have been received.
Invoice and voucher are submitted for payment.

23. PURCHASING FORMS CHANGE ORDERS
CAMDEN COUNTY DEPARTMENT OF PURCHASING
 ADJUSTMENTS TO PURCHASE ORDERS INCREASE/DECREASE/CANCEL OR OTHER CHANGES
This form must be submitted in duplicate with a copy of original purchase order attached.
Department requesting the adjustment: _______________________________________
Purchase Order Number: __________________ Buyer listed on P.O. ______________
Account number(s) Purchase Order is charged to: _______________________________
Check one: Increase ___ Decrease ___ Cancellation ___ Other ___
   
Original PO amount: ______________________________________________________
Amount of increase/decrease:_______________________________________________
Total Dollar Amount of PO after Increase or Decrease: ___________________________
Reason for Increase/Decrease/Cancellation or Change: ___________________________   
**PLEASE NOTE: Cancelled PO’s will not be printed…Attach this returned copy to your department copy for future reference.

24. BIDDING PROCESS BIDDING PROCESS PURCHASING FORMS Bidding Timeline.
Process should outline the steps needed to be taken by the using department to start the procurement process.
Requisition to start the process.
Memo regarding cost estimate.
Sufficient funds for project.
Specifications or Scope of Work to be bid.
BIDDING PROCESS
Bidding Timeline.
Review of Bids Received with an award recommendation.
Bid Award – by resolution or ordinance.

25. PURCHASING FORM SAMPLE BID SUMMARYSHEET
BID TITLE AND NO. _______________________________________________________ Camden County Purchasing
17TH Floor, Courthouse, Camden
BID RETURN DATE: _______________________________________________________  
ARCHITECT / SPEC WRITE: _______________________________________________ BID AWARD SHEET
TABULATION
BIDDERS
BID BOND
CONSENT OF SURETY
AFFIRM ACTION
NON-COLLUSION
OWNER CH. 33
DEBARMENT
BID TOTAL

26. CONCLUSION
A sound purchasing policy and procedure will help facilitate timely purchases and eliminate costly expenditures.
Always look for support from your administration and governing body.
Reach out to your purchasing peers for support and guidance.