The Division of Local Government Services (DLGS) increases the NJ Minimum Bid Threshold beginning July 1, 2020.
Governmental entities in NJ such as, municipalities, public schools, fire districts and sewer utilities must comply with N.J.S.A 52-34-7, in which all purchases and contracts exceeding the established thresholds must be achieved through an open and fair bidding process. Every 5 years, the Governor and Department of Treasury review and update the threshold amounts. In addition, the quote threshold is 15% of the bid threshold, which adjusts accordingly. Entities with a Qualified Purchasing Agent (QPA) will have a more advantageous threshold amount.
Below is a summary of the changes:
Bid Threshold beginning 7/1/2020:
- Public School with QPA: $44,000 (previously $40,000)
- Public School without QPA: $32,000 (previously $29,000)
- Municipalities/Fire Districts/Sewer Utilities with QPA: $44,000 (previously $40,000)
- Municipalities/Fire Districts/Sewer Utilities without QPA: $17,500 (no change)
Quote Threshold beginning 7/1/2020:
- Public School with QPA: $6,600 (previously $6,000)
- Public School without QPA: $4,800 (previously $4,350)
- Municipalities with QPA $6,600 (previously $6,000)
- Municipalities without QPA: $2,625 (no change)