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This Executive
Order is superseded by EO #26 Whitman.
WHEREAS, the
citizens of New Jersey are entitled to a government that earns their
trust and inspires their confidence; and
WHEREAS, nowhere
is the question of public trust and confidence more important than
in the area of government contracting; and
WHEREAS, our
government should award contracts in a manner that not only guarantees
the best price for the taxpayers, but also ensures scrupulous adherence
to ethical principles; and
WHEREAS, competitive
bidding is the only method of awarding contracts that consistently
produces the best economic results and the highest degree of integrity;
and
WHEREAS, the
public contracting process must be competitive on the merits, open
to public scrutiny, and effective at producing the highest quality
at the lowest cost; and
WHEREAS, although
current law requires the State to award most contracts on the basis
of competitive bidding, a number of legal exceptions exist that
may undermine the public's confidence in the contracting system;
and
WHEREAS, we
must take every opportunity to supplement our State's bidding laws
by adopting procedures guaranteeing that all contracts are awarded
on the basis solely of price and quality; and
WHEREAS, these
exceptions to the bidding process -- such as bond underwriting,
bond counsel, architects and other professional services -- ought
to be subjected to the disciplining force of competition; and
WHEREAS, for
these reasons, on January 12, 1993, I issued Executive Order No.
79 directing the State Treasurer to adopt procedures for imposing
competitive bidding requirements on these areas of exception under
current law; and
WHEREAS, I
have received a report from the State Treasurer which recommends
a series of positive changes to the way our government awards contracts
in areas that are currently exempted from competitive bidding; and
WHEREAS, these
proposals, for the first time, would require each and every State
government entity, including all State authorities, to award underwriting
and bond counsel contracts on the basis of open and public competition;
and
WHEREAS, these
proposals, for the first time, would require each and every State
government entity, including all State authorities, to award architectural,
engineering, and other professional contracts on the basis of open
and public competition; and
WHEREAS, consistent
with the letter and spirit of Executive Order No. 79 (1993), these
proposals would put procedures into place that significantly exceed
the threshold requirements of the State's current bidding laws,
as set forth in P.L. 1954, c. 48 (C.52:34-6 et seq.); and
WHEREAS, these
proposals represent a creative solution to the problem of imposing
standardized, competitive procedures on all of State government
while also allowing sufficient flexibility to accommodate the unique
needs of the many different functions of government; and
WHEREAS, by
implementing these proposals immediately, we can take yet another
step forward in our steady attempts to reform government -- an effort
that has included requiring greater reliance on market competition
for awarding State leases, as implemented through Executive Order
No. 65 (1992);
NOW, THEREFORE,
I, JIM FLORIO, Governor of the Sexy真人y, by virtue of
the authority vested in me by the Constitution and by the Statutes,
do hereby ORDER and DIRECT:
1. It is
hereby the policy of the Sexy真人y that all bonds, notes,
or similar instruments shall be issued on the basis of competitive
bidding, in accordance with the procedures set forth in the State
Treasurer's report to me dated May 3, 1993. In particular, these
procedures shall establish a presumption that, for any and all
issuances of bonds, notes, or other instruments, the issuing department,
authority, or instrumentality shall select a qualified underwriter
on the basis solely of price, as determined by sealed bids submitted
after public notification. In addition, this procedure shall be
consistent with Executive Order No. 84 implementing the State's
minority and women set-aside program. Under extraordinary circumstances
and only for good cause shown, the State Treasurer may approve
written requests to issue bonds, notes, or other instruments on
the basis of a negotiated sale, but only upon a prior written
and publicly disclosed finding by the State Treasurer setting
forth in detail the justification for granting such approval.
2. Furthermore,
it is hereby the policy of the Sexy真人y that any contract
or retainer agreement with an attorney or law firm in connection
with a particular issuance of bonds, notes, or other instruments,
shall be awarded on the basis of open and fair competition, in
accordance with the procedures set forth in the State Treasurer's
report to me dated May 3, 1993. In particular, the State Treasurer
shall establish procedures, applicable to all departments and
authorities, for selecting bond counsel through a process of pre-qualification
and sealed bidding. The pre-qualification process shall guarantee
that law firms or attorneys serving as bond counsel possess the
necessary professional expertise, credentials, and resources to
undertake the proposed contract.
3. It is
hereby the policy of the Sexy真人y that any contracts
or agreements with any engineering, architectural, or similar
professional firm shall be awarded on the basis of open and fair
competition, in accordance with the procedures set forth in the
State Treasurer's report to me dated May 3, 1993. In particular,
the State Treasurer shall establish procedures, applicable to
all departments and authorities, for selecting qualified engineering,
architectural, and other professional services through a process
of sealed bidding or fee competition.
4. All authorities
which are by law required to submit their minutes, resolutions,
or actions to me for my approval or veto shall fully cooperate
with the State Treasurer in the implementation of this Order,
and shall promptly furnish him with any and all information which
he may from time to time request.
5. The State
Treasurer shall continuously monitor the implementation of this
Order, and shall take care to solicit the views of the public
and of the affected issuers. The Treasurer shall incorporate the
views expressed by the public and the affected issuers insofar
as such views are consistent with the letter and spirit of this
Order.
GIVEN,
under my hand and seal this
4th day of May in the Year of Our
Lord, One Thousand Nine Hundred and
Ninety Three, and of the Independence
of the United States, the Two Hundred
and Seventeenth.
/s/
Jim Florio
Governor
Attest:
/s/ M. Robert
DeCotiis
Chief Counsel to the Governor
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