New Jersey
New Jersey's cooperative purchasing authority under N.J.S.A. §52:34-6.2 scopes cooperative agreements to 'goods and services' — construction is not explicitly named. Pending 2024 legislation (S4057/A4025) would further restrict construction cooperative purchasing to contracts awarded by NJ contracting units AND fully compliant with NJ public bidding, bonding, prevailing wage, and contractor registration requirements. Subject to the New Jersey Prevailing Wage Act and Public Works Contractor Registration Act.
Cooperative Purchasing Agreements with Other States; Local Public Contracts Law N.J.S.A. §52:34-6.2 and N.J.A.C. 5:34-7
"The Director of the Division of Purchase and Property in the Department of the Treasury may enter into cooperative purchasing agreements with one or more other states, or political subdivisions thereof, for the purchase of goods and services. A cooperative purchasing agreement shall allow the jurisdictions which are parties thereto to standardize and combine their requirements for the purchase of a particular good or service into a single contract solicitation which shall be competitively bid and awarded by one of the jurisdictions on behalf of jurisdictions participating in the contract."
— N.J.S.A. §52:34-6.2 and N.J.A.C. 5:34-7, Cooperative Purchasing Agreements with Other States; Local Public Contracts Law
Plain-language summary
New Jersey's framework for cooperative purchasing requires careful attention to scope and ongoing legislative activity. The primary statute, N.J.S.A. §52:34-6.2, authorizes the Director of the Division of Purchase and Property to enter cooperative purchasing agreements with other states or their political subdivisions, BUT scope is explicitly 'goods and services' — construction is not named in the operative authority. The statute authorizes three pathways: (1) the Director may purchase through contracts awarded under cooperative purchasing agreements (§52:34-6.2(b)(1)); (2) the Director may purchase through nationally-recognized cooperative purchasing agreements developed via competitive bidding by another contracting unit (§52:34-6.2(b)(2)); and (3) any contracting unit (county, municipality, special district, school district, fire district, etc.) may make purchases through nationally-recognized cooperative purchasing agreements developed via competitive bidding by another NJ or out-of-state contracting unit, when cost savings are determined (§52:34-6.2(b)(3)). Pending legislation S4057 (Senate) and A4025 (Assembly) introduced in 2023-2024 would specifically modify the rules for construction services through cooperative purchasing agreements: contracting units could only use cooperative purchasing agreements for construction services for public works projects if the contract is awarded by a contracting unit IN THE STATE OF NEW JERSEY AND is competitively bid in compliance with ALL requirements regarding public bidding, bid security, performance guarantees, insurance, and other public contracting requirements applicable to public works contracts. The pending bills would also prohibit time-and-materials contracts through cooperatives for public works projects. Public works projects undertaken through cooperative purchasing agreements would be expressly subject to the Public Works Contractor Registration Act (P.L.1999, c.238) and the New Jersey Prevailing Wage Act (P.L.1963, c.150). Even prior to these pending amendments, NJ public works construction is subject to comprehensive separate procurement requirements under the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) and state public contracts law (N.J.S.A. 52:34-1 et seq.).
Key requirements
- →N.J.S.A. §52:34-6.2 cooperative purchasing scope is 'goods and services' — construction is not explicitly named.
- →Contracting unit may use a nationally-recognized cooperative purchasing agreement developed via competitive bidding by another contracting unit within NJ or in any other state (§52:34-6.2(b)(3)).
- →Contracting unit must determine cost savings after considering charges for service, material, and delivery before utilizing a cooperative purchasing agreement.
- →Director of Division of Purchase and Property must review and approve specifications and proposed terms before entering nationally-recognized cooperative purchasing agreements (§52:34-6.2(b)(2)).
- →PENDING legislation S4057 / A4025 (2023-2024) would require cooperative purchasing for public works construction to be awarded by a NJ contracting unit AND competitively bid in full compliance with all NJ public bidding, bonding, performance guarantee, insurance, and other public contracting requirements.
- →Pending legislation would prohibit time-and-materials contracts through cooperatives for public works projects.
- →Public works projects undertaken through cooperative purchasing agreements are subject to the Public Works Contractor Registration Act (P.L.1999, c.238 / N.J.S.A. 34:11-56.48 et seq.).
- →Public works projects subject to the New Jersey Prevailing Wage Act (P.L.1963, c.150 / N.J.S.A. 34:11-56.25 et seq.).
- →Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) governs municipal construction procurement separately.
- →Contracting unit definition includes counties, municipalities, special districts, school districts, fire districts, State colleges/universities, public research universities, county colleges, boards, commissions, committees, authorities, and agencies.
Construction services
New Jersey presents a complex and increasingly restrictive landscape for cooperative construction procurement. The primary cooperative purchasing statute (N.J.S.A. §52:34-6.2) scopes the cooperative authority to 'goods and services' — construction is not explicitly named. Pending 2023-2024 legislation (S4057/A4025) would tighten this further by requiring that cooperative purchasing agreements for construction services for public works projects can only be used if the underlying contract is awarded by a New Jersey contracting unit (not out-of-state) AND is competitively bid in full compliance with all NJ public bidding, bonding, performance guarantee, insurance, and other public contracting requirements. While the pending bills have not yet been enacted as of this writing, they signal legislative intent to tighten construction cooperative purchasing. National cooperative purchasing arrangements (OMNIA Partners, Region 14 ESC Texas) face significant challenges in New Jersey for construction work: the pending statutory changes would effectively exclude out-of-state-led cooperatives from public works, and even under existing law, public works projects are subject to the Public Works Contractor Registration Act and New Jersey Prevailing Wage Act. New Jersey public agencies considering cooperative construction procurement should engage counsel early to evaluate whether the specific use case is workable under existing law, monitor pending S4057/A4025 legislation, and expect compliance with NJ public works procurement requirements regardless of cooperative arrangement.
How New Jersey agencies access our contracts.
LNC holds multiple cooperative purchasing contracts through OMNIA Partners and Region 14 ESC Texas, all of which are available to public agencies in New Jersey under N.J.S.A. §52:34-6.2 and N.J.A.C. 5:34-7.
Your agency can use our contracts to procure construction services through certified Affiliate Vendors. Every Affiliate proposal is audited and certified by LNC before reaching you.
Talk to LNC About Your Project →This summary is provided for general informational purposes only and is not legal advice. New Jersey's procurement code may have been amended since this content was prepared. Confirm the current text of N.J.S.A. §52:34-6.2 and N.J.A.C. 5:34-7 and consult your jurisdiction's legal counsel before relying on this authority for a specific procurement.