N.J. Admin. Code § 19:9-2.7

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:9-2.7 - Procedure for prequalification to bid on construction contracts

(a) All prospective bidders for construction contracts in excess of $ 50,000 shall annually apply to be prequalified by the Chief Engineer by submitting a Contractor's Qualifying Statement. Prospective bidders will be prequalified in a category of work at a maximum classification rating for which they are entitled to bid in accordance with the Contractor Classifications and Ratings Schedule available on the Authority's website at www.njta.com. The Chief Engineer may, from time to time, add additional specialized work categories to the Contractor Classifications and Ratings Schedule. Bidders shall have effective classification rating in an amount not less than the amount of their respective bids. Instructions for prequalification for award of construction contracts are located on the Authority's website at www.njta.com.

(b) In order to prequalify, prospective bidders shall submit annually, or at least 21 calendar days prior to bid opening, proof of the items listed in this subsection. In determining the prequalification of a prospective bidder, only that work performed by the prospective bidder on a contract(s) shall be considered:

1. As to type of work, recent satisfactory experience as a contractor on a contract involving substantially the same or similar work as the classification being sought;

2. As to value of work, satisfactory experience within the past three years by the contractor, either on a single contract performed in a single year, or several contracts performed in a single year, having the following minimum values of contract work for such single year, for the specified classification ratings listed below:

i. Less than $ 1,200,000 worth of contract work in a year for a classification rating up to $ 1,000,000 maximum;

ii. $ 1,200,000 to $ 2,999,999 worth of contract work in a year for a classification rating up to $ 2,000,000 maximum;

iii. $ 3,000,000 to $ 5,999,999 worth of contract work in a year for a classification rating up to $ 5,000,000 maximum;

iv. $ 6,000,000 up to $ 11,999,999 worth of contract work in a year for a classification rating up to $ 10,000,000 maximum;

v. $ 12,000,000 up to $ 29,999,999 worth of contract work in a year for a classification rating up to $ 20,000,000 maximum;

vi. $ 30,000,000 to $ 49,999,999 worth of contract work in a year for a classification rating up to $ 50,000,000 maximum; and

vii. $ 50,000,000 or greater worth of contract work in a year for a classification rating of unlimited;

3. Satisfactory financial condition of the prospective bidder. The Contractor's Qualifying Statement must be accompanied by audited financial statements or a CPA review of financial statements. The financial statements shall be complete, with a balance sheet, related statements of income and retained earnings and cash flows, or equivalent generally accepted accounting principles (GAAP)-compliant statement. The financial statements shall be audited by a certified public accountant, as established at N.J.S.A. 45:2B-49 et seq., who is independent of, and not an employee of, the contractor for which the financial statements are being provided.

i. The audited financial statements shall have an unqualified opinion. The CPA review of financial statements shall be in conformity with GAAP. Both the audited and CPA-reviewed financial statements shall be for a full one-year accounting cycle.

ii. Submission of a consolidated financial statement is acceptable. It may be submitted with the Contractor's Qualifying Statement completed in the name of the parent company. A consolidated financial statement submitted with a Contractor's Qualifying Statement and completed in the name of the subsidiary shall include a separate breakdown of the financial statements, and a separate unqualified opinion that includes balance sheet, income statement, statement of changes in financial position, and cash flows, or equivalent GAAP-compliant statement, all in the name of the subsidiary.

iii. Submission of a combined financial statement is not acceptable.

iv. If a contractor does not submit audited financial statements, then the maximum classification rating that the contractor may be granted is $ 10,000,000; in addition, the lack of audited financial statements will result in a reduction by one rating of the classification rating to which the contractor would have otherwise been entitled;

4. Adequate facilities, including, but not limited to, plant, equipment and experience of key personnel and officers of the prospective bidder;

5. That the prospective bidder is not now, nor has been involved, directly or indirectly, in any proceeding, conduct, or activity adversely relating to, or adversely reflecting upon, the moral integrity of the prospective bidder by means of sworn affidavit;

6. A satisfactory workplace safety record based on projects listed in a Contractor's Qualifying Statement and any other workplace safety records or information requested by the Chief Engineer; and

7. When submitting a proposal, prequalified bidders need not submit another Contractor's Qualifying Statement but shall instead submit a prequalification recapitulation in such form as may be prescribed by the Chief Engineer.

(c) The Chief Engineer, or his or her designee(s), shall review the Contractor's Qualifying Statement and other information submitted by the prospective bidder and shall provide written notice to the prospective bidder of the decision. The classification will be valid for a period of one year from the date of the Chief Engineer's decision, and the prospective bidder will be allowed to bid on all Authority contracts within its classification limits for this one-year period without the need of additional prequalification, subject to (d) and (g) below. At the end of this one-year period, the prequalification of the prospective bidder will expire, and to be renewed, the prospective bidder must meet the requirements at (b) above.

(d) The Chief Engineer shall reserve the right to require a prospective bidder to submit such additional evidence of qualifications as deemed necessary, and shall consider any evidence available of the financial, technical, and other qualifications and ability of the prospective bidder. The Chief Engineer may change or revoke at any time the classifications of any prospective bidder upon any evidence that such prospective bidder does not meet the financial, technical, moral, or other qualifications of the classification. The Chief Engineer may direct a Request for Qualifications Information (RFQI) process to be used in prequalifying contractors under classifications not listed in Contractor Classifications and Ratings Schedule on the Authority's website at www.njta.com, but appropriate for specialized projects involving homeland security or other exigent circumstances.

(e) The Chief Engineer may deny prequalification to any prospective bidder who fails to satisfy the requirements of this subchapter and, further, may recommend rejection of any bid requiring prequalification where the bidder has failed to be prequalified.

(f) The Authority reserves the right to waive the prequalification procedures and requirements in contracting in an emergency situation.

(g) Bidders on all other contracts not requiring prequalification shall, however, comply with the provisions at (b)3, 4, 5, and 6 above.

N.J. Admin. Code § 19:9-2.7

Amended by 49 N.J.R. 3236(b), effective 9/18/2017

Amended by 57 N.J.R. 55(c), effective 1/6/2025