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Breaking news on Pay to Play
Date: Feb 17, 2006
From: Victoria Rosch
Hi, all.
More Pay-To-Play stuff follows. I'll update the FAQ sheet (http://www.njstatelib.org/LDB/Library_Law/index.php)
at a later date.
Do the Pay-To-Play
requirements need to be met annually for each vendor?
That depends on the length of the contract. If desired, both
Non-Fair and Open and Fair and Open contracts may be for
two-years with a two-year extension option. If a multi-year
contract is used, "the value of the contract over its entire
life of the contract is considered for determining if the
$17,500 threshold is met. Contracts for professional
services must be awarded annually.
May the "Determination of Value" and purchase order/contract
be for multiple contracts?
Yes.
Thanks to Deborah Ellis Dennis of the Moorestown Library
for the following sample:
XXXXXXXXXXXX LIBRARY
DETERMINATION OF VALUE FORM AND CERTIFICATION OF
FUNDS
PURSUANT TO NON-FAIR AND OPEN CONTRACT AWARDS
XXXXXXX, 200X
Prior to the governing body formally considering
a resolution awarding a non-fair and open
contract, an appropriate official must certify
in writing that the estimated amount of the
contract to be awarded exceeds $17,500. The
appropriate official may be the purchasing
agent, financial officer, chief administrative
officer, or an appointed or elected official
with knowledge of the contract.
The determination of the amount is based on the
value of the full contract life, not the amount
spent annually. Therefore a two-year contract
for $10,000 a year awarded through a non-fair
and open process falls under this requirement. A
single one year contract for $10,000, however,
does not. The determination should be kept on
file and made part of the resolution awarding
the contract.
Contract For: Library Materials
Contract to be Awarded to: XXXXXXXXXXX
Contract Period: Two years with options for two
additional years
January 1, 200X, through December 31, 200X
Contract For: Hardware and Software Maintenance
for Integrated Library System
Contract to be Awarded to: XXXXXXX.
Contract Period: Two years with options for two
additional years
January 1, 200X, through December 31, 200X
CERTIFICATION
I hereby certify that the estimated amounts of
the contracts to be awarded exceed $17,500.
I hereby further certify that funds to cover the
expenditures for the above-reference contracts
will be encumbered by purchase orders on an
as-needed basis (as required pursuant to N.J.A.C.
5:30-5.4.).
By __________________________________
XXXXXXXXX, Library Director
Certified Date: ______________________ |
Date: Feb 6 2006 -
9:36am
From: Victoria Rosch
Hi, all.
Does anybody have a sample "Determination of Value" that
they wish to share?
Following is some additional information you may find
useful.
1. DETERMINATION OF VALUE
Prior to the governing body formally considering a
resolution awarding a non-fair and open contract, an
appropriate official must certify in writing that the
estimated amount of the contract to be awarded exceeds
$17,500. The appropriate official may be the purchasing
agent, financial officer, chief administrative officer, or
an appointed or elected official with knowledge of the
contract.
.....
The determination should be kept on file and made part of
the resolution awarding the contract.
An agency can design its own Determination of Value form, or
use a simple memorandum that makes the statement of the
description of the goods or services to be procured and list
the anticipated amount of the contract.
Department of Community Affairs Pay-To-Play
2. BUSINESS
REGISTRATION CERTIFICATE
If you are spending $2,625 or more with a particular vendor
in a year (there are higher thresholds for contracting units
with a Qualified Purchasing Agent), you must have on file
that vendor's Business Registration Certificate. There is no
cost to the vendor to file, and renewal is unnecessary,
though changes to information must be submitted.
Department of Community Affairs
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
Date: Feb 6 2006 -
9:36am
From: Victoria Rosch
Hi all,
A new section has been added to the NJSL library law webpage
(
http://www.njstatelib.org/LDB/Library_Law/index.php ).
"Miscellaneous" has become Part 7 and "Purchasing" is now
Part 6. Included under "Purchasing" is a Pay-To-Play
information sheet, sample language and the forms associated
with the law.
Please consult your local attorney and CFO for their
interpretation of the law. Both the New Jersey State Library
and the Department of Community Affairs recommend that the
simplest procedure for the purchase of library materials not
on State contract is to use the "Non-Fair and Open" process.
The second choice is the "Fair-and-Open" process, and third
is competitive contracting. The bidding process would
generally not be a useful method of buying library materials
which are exempt from bidding but not Pay-To-Play. The
competitive contracting model allows the library to pick
several vendors so that there is back up, and to select on
other things besides price such as availability and service.
Please let me know if you have any further questions.
Best wishes,
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
Date: Jan 10, 2006
From: Victoria Rosch
Hi, all.
I am still working on your many emails regarding this issue
and hope to have something for you soon.
FYI: Additional Pay To Play law has been adopted.
A3013 STATEMENT
The purpose of this bill is twofold. First, the bill
provides that the provisions of P.L. , c. (C. )(now pending
before the Legislature as Senate, No. 2 of 2004) should not
be construed to supersede or preempt any ordinance,
resolution or regulation of a local government unit that
limits political contributions by business entities
performing or seeking to perform contracts for those units.
Any ordinance, resolution or regulation in effect on the
effective date of P.L. , c. (C. ) (now pending before the
Legislature as Senate, No. 2 of 2004) would remain in effect
and those adopted after the effective date would be valid
and enforceable.
Second, the bill requires that, prior to entering into any
contract above a certain value, whether or not publicly
advertised for bids, a State agency must require any
business entity bidding thereon or negotiating therefor, to
submit with its bid or price quote, a list of all political
contributions that were made by the business entity, or a
person or entity with an interest in that business entity,
during the preceding 12 month period, along with the date
and amount of each contribution and the name of the
recipient of each contribution.
More information at:
http://www.njleg.state.nj.us/bills/BillView.asp
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
Date: Dec 29, 2005
From: Victoria Rosch
Many of you have given
me excellent information on Pay To Play, and also many have
asked questions. As soon as there is time to put it all
together, I will post the information. Jim Hecht sent me
information about what Somerset County Library is doing and
I sent it to the Department of Community Affairs for their
comments. They think it is excellent and are discussing how
to extend it for the use of a cooperative, or for several
county libraries to share the process. If you want to see a
DCA approved method, go to
www.somerset.lib.nj.us - click on the red button
to the left labeled "Exempt Services RFP Notice".
Thanks to all of you who are helping with this.
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
Date: Dec 22, 2005
From: Victoria Rosch
The following
information is to the best of my knowledge. For legal
advice, please consult your lawyer.
Association libraries as well as libraries that pay no
single vendor more than $17,500 per year (subject to the
principle of aggregation rules in NJAC 5:34-8.2), probably
do not need to be concerned about this law. If you do pay a
vendor more than $17,500, please go to www.nj.gov/dca/lgs/p2p
for information. The effective date for this law is January
1, 2006. I have been advised that library materials are NOT
exempt. Purchases from not-for-profits are also not exempt,
if I am reading the law correctly. I do not know how this
impacts on consortia, but I am investigating this issue. It
has been suggested that you may want to join other libraries
to create a purchasing co-op, and award a fair and open
contract (2 years, with a 2 year extension option) for
library material purchases.
If you buy from a state contract vendor (the usual vendors
were not included this year and this is another issue we are
working on for next year), you do not need to collect any
Pay To Play paperwork. The following are current state
contract vendors for library material:
CURRENT STATE CONTRACT VENDORS
-
Demco Media
-
Rainbow Book
Company
-
Avanti Enterprises,
Inc.
-
Davidson Titles,
Inc.
-
Ambassador Book
Services, Inc.
-
W.T. Cox
Subscriptions, Inc.
Pay to Play
requirements, as well as the fact that the companies most
used for library materials are not on state contract this
year, have made the purchasing of library materials
complicated. Under these circumstances, it would be best if
you consulted your municipality/county regarding appropriate
procedure.
Please let me know if you have good information on this
subject that I may share with others (Pay Two Play or P2P in
the subject line, please). I will keep you informed of any
new information.
Best wishes,
Victoria
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
Date: Nov 1, 2005
From: Victoria Rosch
The Department of
Community Affairs will be issuing guidance on the
"Pay-to-Play" law (http://www.state.nj.us/cgi-bin/governor/njnewsline/view_article.pl?id=2427)
at the League of Municipalities convention in November. As
soon as it is made available, the information will be shared
with you. The effective date for this law is January 1,
2006. If your library purchases no more than $17,500 in
library materials per year, you probably do not need to be
concerned about this law. If your library purchases more
than $17,500, you do need to be concerned. It appears that
the Pay-to-Play law applies to all exempted items and that
includes library materials. I do not have any further
information except that some sort of process will need to be
followed. We will have to wait until November to see what
that process will be.
Best wishes,
Victoria
Victoria Rosch
Consultant - Library Development Bureau
vrosch@njstatelib.org
; 609.292.7854; FAX 609.633.3963
New Jersey State Library, P.O. Box 520, Trenton, NJ
08625-0520
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