a. When the cost or price of any contract awarded by the contracting agent in the
aggregate does not exceed in a contract year the total sum of $17,500, the contract
may be awarded by a purchasing agent or other employee so designated by the governing body when so authorized by ordinance or resolution, as appropriate to the contracting
unit, without public advertising for bids, except that the governing body of any contracting
unit may adopt an ordinance or resolution to set a lower threshold for the receipt
of public bids or the solicitation of competitive quotations. If a purchasing agent has been appointed, the governing body of the contracting unit may establish that the bid threshold
may be up to $25,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this
section. Such authorization may be granted for each contract or by a general delegation of
the power to negotiate and award such contracts pursuant to this section.
b. Any contract made pursuant to this section may be awarded for a period of 24 consecutive
months, except that contracts for professional services pursuant to subparagraph (i)
of paragraph (a) of subsection (1) of section 5 of P.L.1971, c. 198 (C.40A:11-5) may be awarded for a period not exceeding 12 consecutive months. The Division of Local Government Services shall adopt and promulgate rules and regulations
concerning the methods of accounting for all contracts that do not coincide with the
contracting unit's fiscal year.
c. The Governor, in consultation with the Department of the Treasury, shall, no later
than March 1 of every fifth year beginning in the fifth year after the year in which
P.L.1999, c. 440 takes effect, adjust the threshold amount , in direct proportion to the rise or fall of the index rate as that term is defined
in section 2 of P.L.1971, c. 198 (C.40A:11-2), and shall round the adjustment to the nearest $1,000. The Governor shall, no later than June 1 of every fifth year, notify each governing
body of the adjustment. The adjustment shall become effective on July 1 of the year in which it is made.
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