Procurement Procedure

Procedures

I. INTRODUCTION

The purpose of Procedure on Procurement is to set forth the basic guidelines for all procurement of goods and services that comply with applicable laws.

1. Purchases Less Than 20% of the College’s Bid Threshold
   1. Pursuant to N.J.S.A. 18A:64A-25.19, awards of purchases, contracts or agreements estimated to be less than twenty percent (20%) of the College’s current bid threshold ($8,320 as of July 1, 2023) may be awarded upon the solicitation of one quote or proposal.
   2. A Business Registration Certificate is required from vendors when the purchase exceeds 15% of the College’s bid threshold ($6,240 as of July 1, 2023) and the services are being performed in New Jersey. N.J.S.A. 52:32-44, et seq.
   3. Office/Unit Head, and/or Department Vice President approval is required for purchase requisition.
2. Between 20% of the College’s Bid Threshold and $17,499
   1. Pursuant to N.J.S.A. 18A:64A-25.19, a minimum of two (2) quotes, whenever practicable, shall be solicited prior to the award of the purchase. The contract award will be made on the basis of the lowest responsible quotation received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest quote, a statement of explanation of the reasons therefore shall be placed on file with such purchase. Per College practice, three (3) quotes should be obtained if practicable.
      
      1. Whenever multiple quotations are required, the individual office/unit is responsible for soliciting the multiple quotations. The Office of Procurement will work with the office/unit to assist in locating potential alternative vendors when necessary.
   2. Additional exemptions from the multiple quote process include use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10), cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   3. Factors that may be considered if awarding to the non-lowest quotations include, but are not limited to:
      
      1. Prior experience (including prior experience with HCCC)
      2. References
      3. Location (so long as physical proximity of the vendor is requisite to the efficient and economical purchase or performance of the contract)
   4. Office/Unit Head, and/or Department Vice President approval is required for purchase requisition.
3. Between $17,500 and the College’s Bid Threshold - Fair and Open Process
   1. In lieu of the solicitation of multiple quotations pursuant to N.J.S.A. 18A:64A-25.19, the College may use a Fair and Open Process for purchases between $17,500 and the College’s Bid Threshold. This involves posting a Request for Proposals (RFP) on the College’s website for a minimum of ten (10) days.   The contract may be awarded based on lowest responsible responsive proposal received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest proposal, a statement of explanation of the reasons therefore shall be placed on file with such purchase.
   2. A Business Entity Disclosure Certification (BEDC) is not required when a Fair and Open Process is used by posting the RFP on the College’s website.
   3. Additional exemptions from the multiple quote process include use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10), cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   4. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
4. Between $17,500 and the College’s Bid Threshold - Non-Fair and Open Process
   1. Pursuant to N.J.S.A. 18A:64A-25.19, a minimum of two (2) quotes, whenever practicable, shall be solicited prior to the award of the purchase. The contract award will be made on the basis of the lowest responsible quotation received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest quote, a statement of explanation of the reasons therefore shall be placed on file with such purchase. Per College practice, three (3) quotes should be obtained whenever practicable.
   2. A Business Entity Disclosure Certification (BEDC) is required to award a contract to vendors when a Non-Fair and Open Process is followed. The Colleague and the Bonfire contract management systems will store all BEDCs.
   3. A Board of Trustees Resolution of award is required for all purchases under the College’s bid threshold unless there is a Board of Trustees resolution approving authority for the contracting agent to award contracts up to the bid threshold amount. The Director of Contract and Procurement has been given the authority to award contracts at the bid threshold ($41,600 as of July 1, 2023). N.J.S.A. 18A:64A-25.3 (see further explanation below).
   4. Exemptions for the requirement to solicit multiple quotations are the same as above.
   5. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
5. Purchases Less Than the College’s Bid Threshold - Resolution Authorizing the Director of Contracts and Procurement to Award Contracts Under the Bid Threshold
   1. Pursuant to N.J.S.A. 18A:64A-25.3, purchases, contracts or agreements for the performance of any work or the furnishing or hiring of materials or supplies, the cost or price of which does not exceed a college’s bid threshold, may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the Board of Trustees, without public advertising for bids and bidding therefore. The Director of Contracts and Procurement must follow the procedures of the County College Contracts law when awarding Contracts. Per College practice, three (3) quotes should be obtained whenever practicable.
   2. Multiple quotations are required to be solicited unless an exemption exists. The exemptions for the solicitation of quotations are the same as above.
   3. Board of Trustees, and Director of Contracts and Procurement approval are required for purchase requisition.
6. Purchases Equal to or in Excess of the Bid Threshold
   1. Items with a value greater than the College’s bid threshold shall be publicly advertised and bid unless exempt under 18A:64A-25.5 or other law, and shall be compliant with Play-to-Play Policy 6.4. The Director of Contracts and Procurement will prepare bid specifications or a request for proposals, as applicable, with the Director of the Department and/or CFO or designee. Bid exempt procurements (excluding professional services) still require the solicitation of multiple quotes pursuant to N.J.S.A. 18A:64A-25.5.
   2. The list of public bidding exceptions is located in N.J.S.A. 18A:64A-25.5. and include the following:
      1. Professional services;
      2. Extraordinary Unspecifiable Services (“EUS”) and products that cannot reasonably be described by written specifications, subject, however, to procedures consistent with public bidding whenever possible;
      3. Materials or supplies that are not available from more than one vendor, including, without limitation, materials or supplies that are patented or copyrighted;
      4. Work conducted by HCCC employees;
      5. Printing of legal notices and documents used in legal proceedings;
      6. Textbooks, library materials, and specialized library services;
      7. Food supplies and services including food supplies and management contracts for student centers, dining rooms and cafeterias;
      8. Services performed by a public utility that is subject to the jurisdiction of the Board of Public Utilities (BPU), in accordance with tariffs and schedules of charges approved by the BPU;
      9. Equipment repair service if in the nature of an EUS, including necessary parts;
      10. Specialized machinery or equipment of a technical nature that will not reasonably permit the drawing of specifications, and the procurement thereof, without advertising in the public interest;
      11. Insurance, including coverage and consulting services, which shall be procured in accordance with the requirements for an EUS;
      12. Publishing of legal notices in newspapers, as required by law;
      13. Acquisition of artifacts or other items of unique intrinsic, artistic or historic character;
      14. Collection of amounts due on student loans, including without limitation Federal Student Loans;
      15. Professional consulting services;
      16. Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions;
      17. Contracts using funds created by student activities fees charged or raised by students, not under the direct control of the college and expended by student organizations;
      18. Printing, including without limitations, catalogs, yearbooks and course announcements;
      19. Providing goods or services for the use, support or maintenance of proprietary computer hardware, software peripherals and system development for the hardware;
      20. Personnel recruitment and advertising, including without limitation advertising seeking student enrollment;
      21. Educational supplies, books, clothing, etc. purchased by a county college bookstore, or by a service or management company under contract with a county college to operate a county college bookstore;
      22. Purchase or rental of graduation caps and gowns and award certificates or plaques;
      23. Expenses for travel or conferences;
      24. Items available from vendors at costs below State contract pricing for the same product or service, which meets or exceeds the State contract terms or conditions;
      25. Purchases made or entered into with the United States, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof.
   3. Additional exceptions to public bidding include the use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10), cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   4. A Fair and Open Process for bid exempt procurements should be considered to avoid the need to obtain a Business Entity Disclosure Certificate.
   5. Third parties who write or assist with the preparation of the bid specifications or request for proposals are ineligible to bid or submit a proposal for the same contract.
   6. The award of contract from the public that requires public advertisement for bids shall be awarded by the Board of Trustees to the lowest responsible bidder. N.J.S.A. 18A:64A-25.19.
   7. Professional Services:
      1. Pursuant to N.J.S.A. 18A:64A-25.5 (a) (1), contracts whose subject matter consists of professional services are exempt from public bidding.
      2. Pursuant to N.J.S.A. 18A:64A-25.19, multiple quotations are not required for professional service contracts.
      3. A BEDC is not required if a fair-and-open process is used to procure a professional service contract.
      4. Professional Services are defined as “services rendered or performed by a person authorized by law to practice a recognized profession and whose practice is regulated by law and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction, apprenticeship or training. Professional services also mean services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor.”
   8. Emergency Purchases:
      1. Pursuant to N.J.S.A. 18A:64A-25.6, any purchase may be made, negotiated or awarded by the College without public advertising for bids, when an emergency affecting the health, safety or welfare of the occupants of college property requires the immediate delivery of the materials or supplies or the performance of the work.
      2. A written requisition for the purchase, by the employee in charge of the building, facility or equipment where the emergency occurred, shall be filed with the Director of Contracts and Procurement, describing the nature of the emergency, the time of its occurrence, and the need for invoking the emergency purchasing exception. The President and the Director of Contracting and Procurement are authorized to award a contract for the purchase if the Director is satisfied that the emergency exists.
      3. Upon the furnishing of the work, materials or supplies, the contractor shall be entitled to be paid therefore and the College shall be obligated for the payment.
      4. Multiple quotations are not required for emergency purchases.
   9. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
7. Execution of Contracts
   1. All contracts shall be forwarded to Director of Contracts and Procurement for review in conjunction with the College’s Legal Counsel. The contracts are then reviewed by the CFO and forwarded to the President or his/her designee for signature.
   2. Office/Unit Heads are not authorized to execute contracts.
   3. The Director of Contracts and Procurement may execute contracts that come under the Director’s authority issued by the Board of Trustees (contracts under the bid threshold).
   4. President, Chief Financial Officer, and/or Director of Contracts and Procurement approval is required for purchase requisition.
8. Computer Equipment – Hardware and Software
   1. The CIO will work with the Director of Contracts and Procurement to acquire all ITS equipment requests for the College.
   2. An Equipment Justification Form must be completed and authorized by all parties. Upon approval of the justification form, the Department needs to complete a requisition.
   3. The purchase order will be issued upon approval of the requisition and forwarded to the vendor.
   4. The IT department will receive, configure and install the equipment.
   5. Divisional Vice President, CFO, CIO, and/or Director of Contracts and Procurement approval are required for purchase requisition.
9. Supplier Diversity
   1. Advertisement for Bids and Request for Proposals (“RFP”)
      1. Purchasing department advertises bids and request for proposals on the College website for all local and diverse businesses to the fair and open bidding process.
      2. Purchasing alerts Women-owned businesses (WBE), Minority-owned businesses (MBE), Veteran-owned businesses (VBE or VOSB), businesses owned by economically disadvantaged individuals (DBE), and businesses owned by LGBT individuals (LGBTBE) when bids are available to assure diverse submissions.
      3. Reviews bids to ensure specifications for people with disabilities are met.
      4. Investigate whether submitted vendors apply to a Supplier Diversity group.
   2. Diversity Group Engagement
      1. Prioritizes diverse vendors verified by State Contracts and Cooperatives.
      2. Director or Contracts and Procurement is involved in many diversity groups, as well as joint purchasing groups, to obtain information on various companies of different ethnicities to diversify purchasing power.
      3. Continue membership with the New York/New Jersey Minority Supplier Diversity Council, which provides listings of certified Minority Suppliers.
      4. Vendors met by attending various conferences, seminars, and workshops that focus on supplier diversity, in Conjunction with the Diversity Equity and Inclusion department, the Hudson County, Jersey City, and State Diversity organizations.

Approved: March 2022
Approved by: Cabinet
Category: Purchasing
Subcategory: Procurement
Scheduled for Review: March 2024
Responsible Department: Finance

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