N.J. Admin. Code § 5:34-5.15

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

Section 5:34-5.15 - Contracts with electronic procurement platform vendors

(a) All contracts between a local unit and an electronic procurement platform vendor shall:

1. In addition to being reviewed by legal counsel if deemed necessary by the local unit, be reviewed by a qualified purchasing agent or, in lieu of a qualified purchasing agent, the chief financial officer or equivalent, or the school business administrator, as appropriate to the type of entity, prior to the execution of the contract as to the terms, including satisfaction of the requirements of this section;

2. Be awarded by the governing body, notwithstanding the value of the contract, or whether the contract was procured competitively or through cooperative purchasing, except in circumstances where an emergency contract may be entered into pursuant to law; and

3. Contain adequate provisions for compensating the local unit against losses caused as a result of negligence or misconduct on the part of the platform vendor and the platform vendor's employees and agents.

(b) The following terms shall not be enforceable in a contract between a local unit and an electronic procurement platform vendor:

1. A provision requiring the local unit to indemnify or hold harmless a platform vendor or its employees and agents; and

2. A provision requiring binding arbitration as a means of dispute resolution between the local unit and the platform vendor.

(c) All disputes between the parties and disputes concerning the contract or its operation shall be in writing and forwarded to the other party through registered or certified mail. New Jersey law shall apply to and govern the contract and the relationship between the local unit and the platform vendor. All contracts shall have appropriate provisions for service of process to the vendor.

(d) All contracts entered into between the local unit and the electronic procurement platform vendor shall be in writing, executed by all parties, and have appropriate provisions for termination of the contract, including, but not limited to, termination for failure to perform on the part of the vendor.

(e) Contracts for electronic procurement platforms shall not be considered data processing service contracts pursuant to N.J.S.A. 40A:11-15(5), and the total duration of a contract for an electronic procurement platform shall not exceed five years.

N.J. Admin. Code § 5:34-5.15

Adopted by 53 N.J.R. 501(a), effective 4/5/2021