Issue: Emergency generator rental costs were not competitively bid despite knowing replacements would take over a year.
Requirement: NJ statute NJSA:40A:11-3 mandates competitive bidding under certain conditions.
Follow-up: Review and ensure compliance with competitive bidding requirements for future contracts.
Finding Text
We Selected five contracts funded by the Capital Fund Program. We noted that the costs related to the rental of emergency generators were not competitively bid after it was known that the replacement standby generators would take more than a year to replace and install. NJ statute NJSA:40A:11-3 is the controlling statute for determining when competitive bidding is required.
Corrective Action Plan
The authority will implement more stringent controls to the extent necessary to ensure that labor and material are provided and completed within 90 days from the date of an emergency contract awarded without public bidding pursuant to N.J.S.A 40A:11-6.