Core Issue: A 50% deposit for an emergency contract was made without a surety bond, violating funding protocols.
Impacted Requirements: The work was delayed for over a year, and the elevator project was not competitively bid as required by NJ statute NJSA:40A:11-3.
Recommended Follow-Up: Ensure compliance with competitive bidding requirements and review contract processes to prevent similar issues in the future.
Finding Text
We Selected five contracts funded by the Capital Fund Program. We noted that the 50% deposit given in April 2024 to a contractor on an emergency basis was not supported by a surety bond. Additionally, the work done for the emergency did not occur for over one year. The elevator was not competitively bid after it was known that the work did not take place on an expedited basis due to the emergency designation. 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.