The city council is considering a resolution to up the city’s minimum bid threshold to $40,000, taking advantage of a recent law change that permits a municipality with a qualified purchasing agent to increase the threshold.
Council president William McKoy asked business administrator Nellie Pou why the city was looking to increase the bid threshold.
Pou said a recent changes in public contracting law allows the city to increase its bid threshold from the current $29,000 to $40,000 if it has a qualified purchasing agent.
The threshold increase will allow mayor Jose “Joey” Torres administration to award contracts under $40,000 without going through the competitive bidding process.
Pou said the increased threshold will provide greater flexibility and minimize the amount of work that’s needed to go through the biding process. The new threshold will also reduce cost for the city, said Pou.
Former New Jersey treasurer Andrew Sidamon-Eristoff adjusted the bid threshold for various public entities in a memorandum issued on July 1st, 2015. Sidamon-Eristoff‘s adjustment allows municipalities to increase their bid threshold from $36,000 to $40,000, according to the memo.
The $40,000 minimum threshold requires a city to have a purchasing agent who holds a state Qualified Purchasing Agent certificate. Harry Cevallos, who has been serving as the city’s purchasing agent since 2005, has the requisite qualifications, according to city records.