N.J. Admin. Code § 17:13-4.2

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

Section 17:13-4.2 - Subcontracting target program and procedures

(a) When it deems appropriate, any State contracting agency, consistent with its contracting authority, may establish and administer a subcontracting target program in lieu of or as a supplement to the set-aside program.

(b) Each State contracting agency shall establish written procedures and maintain records as necessary to define, document, and report subcontracts awarded pursuant to this program. The 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 are suitable for the subcontracting target program.

i. Factors to be considered when making the determination that a particular contract is suitable for inclusion in this program include, but are not limited to: the total dollar amount of the project and subcontracting opportunities on the project and the number of eligible businesses in geographical proximity to the project site.

ii. The designation of a particular RFP as a small business set-aside subcontracting opportunity may be made prior to the public advertisement for bids or established pursuant to addenda.

(c) For construction contracts, the State contracting agency reviews the project to determine if small business set-aside goals are appropriate or can be reasonably attained given the elements of the job. The State contracting agency may review the Division's list of classified contractors to determine the number of eligible small businesses, as established in N.J.A.C. 17:14-2.1 that may reasonably be expected to participate in the project, giving consideration to the geographic location, required trades, and estimated dollar value of the project.

1. The Small Business Enterprise (SBE) goal for construction projects set-aside can be reached either at the prime or subcontractor level.

2. The public advertisement shall include a notice to prospective bidders disclosing the SBE goal for the contract.

3. Bidders shall provide sufficient documentation of its good faith efforts to meet the SBE set-aside goal either with its bid or within 10 days of a request by the State contracting agency or other State agency. Failure to comply may preclude award of a contract to a bidder.

(d) Nothing in this subchapter shall be construed as requiring or permitting a State contracting agency to depart from its statutory restrictions or documented policies governing the percentage of a contract which may be subcontracted.

(e) The public advertisement shall include a notice to prospective bidders identifying small business categories applicable to the RFP.

(f) In the event that a goods and services RFP is designated as a small business set-aside subcontracting opportunity, the RFP shall contain a detailed notice to bidders advising of the following:

1. The bidding package includes a subcontractor utilization that must be completed and included as part of the bidder's proposal if the bidder intends to subcontract; and

2. The steps the bidder would need to take to either:

i. Meet the targets of the set-aside subcontracting requirement; or

ii. Document the bidder's good faith effort to meet the targets of the set-aside subcontracting requirement.

3. Bidders shall provide sufficient documentation of good faith efforts to meet the targets of the set-aside requirement either with a bid proposal or within seven days of the State contracting agency's request. Failure to comply shall preclude award of a contract to a bidder.

(g) Each bidder awarded a contract for a procurement that contains the set-aside subcontracting goal requirement shall fully cooperate in any studies or surveys that may be conducted by the State contracting agency to determine the extent of the bidder's compliance with this chapter.

N.J. Admin. Code § 17:13-4.2

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