New Jersey may require public bidding for more contracts

The New Jersey Senate is considering legislation that would require a competitive bidding process for all public business contracts. The bill recently cleared a committee and is now under review by the whole Senate.

The legislation comes in the wake of a former New Jersey mayor’s conviction on federal bribery charges. He was convicted of taking more than $12,000 in bribes from a school district’s insurance broker in exchange for promising to influence the school board’s votes whether to renew the broker’s contract.

A federal grand jury recently handed down an eight-count indictment of another New Jersey mayor for bribery charges. No-bid contracts make it easier for corruption to influence municipal agencies in order to earn public contracts.

These convictions gave strength to activists who called for the school board to award all of its contracts through competitive bidding. Now more people want to close the loopholes that allow such bribery to happen.

The bill would affect all professional and technical service contracts with state, county, municipal and school district contracts. The sponsors of the legislation, two Democrats, may amend the bill to include colleges and universities in the requirements. They hope the new law will make government more open and honest to the benefit of the entire state.

If you are facing an issue surrounding business contracts it may be wise to speak with an experienced business law attorney. They can help you navigate relevant laws and regulations to strive for the best possible outcome for you and your business.

Source:, “”Mercer County’s state senators propose law requiring competitive bidding on all public contracts,” Mike Davis, Dec. 6, 2012

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