N.J. Admin. Code § 17:13-4.1

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:13-4.1 - Set-aside program goals and procedures

(a) Each State contracting agency, consistent with its contracting authority, shall establish and administer a set-aside program which provides, with regard to goods and services contracts, a goal toward at least 25 percent of the dollar value of its contracts to be awarded to eligible small businesses, as follows: at least 10 percent shall be awarded to small businesses whose gross revenues do not exceed $ 500,000; at least an additional 15 percent shall be awarded to the additional categories of small businesses whose gross revenues do not exceed $ 12 million or the applicable Federal revenue standards established at 13 CFR 121.201, incorporated herein by reference, whichever is higher. For design and construction contracts, the goal is to award 25 percent of the total contract value to either prime contractors or subcontractors that qualify as small businesses with revenues that do not exceed the annual revenue standards established by the Federal standard at 13 CFR 121.201.

1. Percentages shall be measured by the total dollar value of all such set-aside contracts in comparison to the total dollar value of all publicly advertised contracts awarded by the agency within a fiscal year.

2. The State contracting agencies shall designate specific contracts for each of the three set-aside categories.

(b) Each State contracting agency shall establish written procedures and maintain records as necessary to define, document and report its good faith efforts to attain the established set-aside contracting goals, including contracts executed under its bidding threshold, as established by 52:34-7 et seq. The set-aside procedures shall include the following provisions:

1. The State contracting agency shall review its schedule of contracting opportunities and establish a method of determining which upcoming contracts will be offered as part of the agency's set-aside program.

i. A contract may be considered suitable for set-aside whenever the contracting agency can establish a reasonable expectation that bids may be obtained from at least three qualified eligible businesses capable of furnishing the specified products or services.

ii. The designation as a set-aside contract shall be made prior to public advertisement for bids.

(c) When a State contracting agency has made a determination that a contract is suitable for set-aside purposes, the following provisions apply:

1. Public advertisement of the set-aside contracting opportunity shall be consistent with the contracting agency's standard bidding procedures and may be supplemented by special notification efforts to maximize participation.

2. Invitations for bids, or a portion thereof, shall be specifically set aside for small businesses whose gross revenues do not exceed $ 500,000 or small businesses whose gross revenues do not exceed $ 12 million or the applicable Federal revenue standards established at 13 CFR 121.201, incorporated herein by reference, whichever is higher, and bids from other bidders shall be rejected.

3. The State contracting agency shall reject all bids and withdraw the designation as a set-aside contract when the agency determines that acceptance of the lowest responsive bid would result in the payment of an unreasonable price or in a contract that is otherwise unacceptable pursuant to that agency's contracting statutes and rules.

4. The State contracting agency shall notify all participating bidders of the bid cancellation, stating the reasons for the cancellation and the agency's intent to re-solicit bids on an unrestricted basis.

5. The award of any contract designated as a set-aside contract shall be made in accordance with the agency's contracting statutes, rules and procedures.

N.J. Admin. Code § 17:13-4.1

Adopted by 49 N.J.R. 3784(b), effective 12/4/2017