Policy on Procurement

PURPOSE

The purpose of this Policy on Procurement is to set forth the procedures that need to be followed so that the procurement of goods and services complies with applicable laws.

POLICY

The procurement of goods and services is governed by various laws. The College and its Board of Trustees (“Board”) are committed to complying with all laws to efficiently and effectively purchase needed goods and services. It is the policy of Hudson County Community College to procure all goods and services in accordance with applicable laws, including New Jersey’s County College Contracts Law, N.J.S.A. 18A:64A-25.1, et seq, and when applicable, Federal procurement laws.

The Board delegates to the President the responsibility for developing procedures and a system of internal controls for purchasing. The Finance Office will be responsible for implementing the policy.

Approval Matrix

HCCC PEC Meeting - August 2022

Procedures

I. INTRODUCTION

The purpose of Procedure on Procurement is to set forth the basic guidelines for all procurement of goods and services that comply with applicable laws.

1. Purchases Less Than 20% of the College’s Bid Threshold
   1. Pursuant to N.J.S.A. 18A:64A-25.19, awards of purchases, contracts or agreements estimated to be less than twenty percent (20%) of the College’s current bid threshold ($8,320 as of July 1, 2023) may be awarded upon the solicitation of one quote or proposal.
      2. A Business Registration Certificate is required from vendors when the purchase exceeds 15% of the College’s bid threshold ($6,240 as of July 1, 2023) and the services are being performed in New Jersey. N.J.S.A. 52:32-44, et seq.
      3. Office/Unit Head, and/or Department Vice President approval is required for purchase requisition.
2. Between 20% of the College’s Bid Threshold and $17,499
   1. Pursuant to N.J.S.A. 18A:64A-25.19, a minimum of two (2) quotes, whenever practicable, shall be solicited prior to the award of the purchase. The contract award will be made on the basis of the lowest responsible quotation received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest quote, a statement of explanation of the reasons therefore shall be placed on file with such purchase. Per College practice, three (3) quotes should be obtained if practicable.
      
      1. Whenever multiple quotations are required, the individual office/unit is responsible for soliciting the multiple quotations. The Office of Procurement will work with the office/unit to assist in locating potential alternative vendors when necessary.
   2. Additional exemptions from the multiple quote process include use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10), cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   3. Factors that may be considered if awarding to the non-lowest quotations include, but are not limited to:
      
      1. Prior experience (including prior experience with HCCC)
      2. References
      3. Location (so long as physical proximity of the vendor is requisite to the efficient and economical purchase or performance of the contract)
   4. Office/Unit Head, and/or Department Vice President approval is required for purchase requisition.
3. Between $17,500 and the College’s Bid Threshold - Fair and Open Process
   1. In lieu of the solicitation of multiple quotations pursuant to N.J.S.A. 18A:64A-25.19, the College may use a Fair and Open Process for purchases between $17,500 and the College’s Bid Threshold. This involves posting a Request for Proposals (RFP) on the College’s website for a minimum of ten (10) days. The contract may be awarded based on lowest responsible responsive proposal received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest proposal, a statement of explanation of the reasons therefore shall be placed on file with such purchase.
   2. A Business Entity Disclosure Certification (BEDC) is not required when a Fair and Open Process is used by posting the RFP on the College’s website.
   3. Additional exemptions from the multiple quote process include use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10), cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   4. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
4. Between $17,500 and the College’s Bid Threshold - Non-Fair and Open Process
   1. Pursuant to N.J.S.A. 18A:64A-25.19, a minimum of two (2) quotes, whenever practicable, shall be solicited prior to the award of the purchase. The contract award will be made on the basis of the lowest responsible quotation received that is most advantageous to the College, price and other factors considered. If the award is not made to the vendor providing the lowest quote, a statement of explanation of the reasons therefore shall be placed on file with such purchase. Per College practice, three (3) quotes should be obtained whenever practicable.
   2. A Business Entity Disclosure Certification (BEDC) is required to award a contract to vendors when a Non-Fair and Open Process is followed. The Colleague and the Bonfire contract management systems will store all BEDCs.
   3. A Board of Trustees Resolution of award is required for all purchases under the College’s bid threshold unless there is a Board of Trustees resolution approving authority for the contracting agent to award contracts up to the bid threshold amount. The Director of Contract and Procurement has been given the authority to award contracts at the bid threshold ($41,600 as of July 1, 2023). N.J.S.A. 18A:64A-25.3 (see further explanation below).
   4. Exemptions for the requirement to solicit multiple quotations are the same as above.
   5. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
5. Purchases Less Than the College’s Bid Threshold - Resolution Authorizing the Director of Contracts and Procurement to Award Contracts Under the Bid Threshold
   1. Pursuant to N.J.S.A. 18A:64A-25.3, purchases, contracts or agreements for the performance of any work or the furnishing or hiring of materials or supplies, the cost or price of which does not exceed a college’s bid threshold, may be made, negotiated and awarded by a contracting agent, when so authorized by resolution of the Board of Trustees, without public advertising for bids and bidding therefore. The Director of Contracts and Procurement must follow the procedures of the County College Contracts law when awarding Contracts. Per College practice, three (3) quotes should be obtained whenever practicable.
   2. Multiple quotations are required to be solicited unless an exemption exists. The exemptions for the solicitation of quotations are the same as above.
   3. Board of Trustees, and Director of Contracts and Procurement approval are required for purchase requisition.
6. Purchases Equal to or in Excess of the Bid Threshold
   1. Items with a value greater than the College’s bid threshold shall be publicly advertised and bid unless exempt under 18A:64A-25.5 or other law, and shall be compliant with Play-to-Play Policy 6.4. The Director of Contracts and Procurement will prepare bid specifications or a request for proposals, as applicable, with the Director of the Department and/or CFO or designee. Bid exempt procurements (excluding professional services) still require the solicitation of multiple quotes pursuant to N.J.S.A. 18A:64A-25.5.
   2. The list of public bidding exceptions is located in N.J.S.A. 18A:64A-25.5. and include the following:
      1. Professional services;
      2. Extraordinary Unspecifiable Services (“EUS”) and products that cannot reasonably be described by written specifications, subject, however, to procedures consistent with public bidding whenever possible;
      3. Materials or supplies that are not available from more than one vendor, including, without limitation, materials or supplies that are patented or copyrighted;
      4. Work conducted by HCCC employees;
      5. Printing of legal notices and documents used in legal proceedings;
      6. Textbooks, library materials, and specialized library services;
      7. Food supplies and services including food supplies and management contracts for student centers, dining rooms and cafeterias;
      8. Services performed by a public utility that is subject to the jurisdiction of the Board of Public Utilities (BPU), in accordance with tariffs and schedules of charges approved by the BPU;
      9. Equipment repair service if in the nature of an EUS, including necessary parts;
      10. Specialized machinery or equipment of a technical nature that will not reasonably permit the drawing of specifications, and the procurement thereof, without advertising in the public interest;
      11. Insurance, including coverage and consulting services, which shall be procured in accordance with the requirements for an EUS;
      12. Publishing of legal notices in newspapers, as required by law;
      13. Acquisition of artifacts or other items of unique intrinsic, artistic or historic character;
      14. Collection of amounts due on student loans, including without limitation Federal Student Loans;
      15. Professional consulting services;
      16. Entertainment, including without limitation theatrical presentations, band and other concerts, movies and other audiovisual productions;
      17. Contracts using funds created by student activities fees charged or raised by students, not under the direct control of the college and expended by student organizations;
      18. Printing, including without limitations, catalogs, yearbooks and course announcements;
      19. Providing goods or services for the use, support or maintenance of proprietary computer hardware, software peripherals and system development for the hardware;
      20. Personnel recruitment and advertising, including without limitation advertising seeking student enrollment;
      21. Educational supplies, books, clothing, etc. purchased by a county college bookstore, or by a service or management company under contract with a county college to operate a county college bookstore;
      22. Purchase or rental of graduation caps and gowns and award certificates or plaques;
      23. Expenses for travel or conferences;
      24. Items available from vendors at costs below State contract pricing for the same product or service, which meets or exceeds the State contract terms or conditions;
      25. Purchases made or entered into with the United States, the State of New Jersey, a county or municipality or any board, body, or officer, agency or authority or any other state or subdivision thereof.
   3. Additional exceptions to public bidding include the use of State Contracts (N.J.S.A. 18A:64A-25.9), Joint Purchasing with other county colleges, municipalities or counties within which the county college is located, institutions of higher learning, or other units of government pursuant to the Local Public Contracts Law (N.J.S.A. 18A:64A-25.10),
      cooperative pricing systems established under the laws of New Jersey (N.J.S.A. 18A:64A-25.11a (a)), and nationally-recognized and accepted cooperative purchasing agreements (N.J.S.A. 18A:64A-25.11a (b)).
   4. A Fair and Open Process for bid exempt procurements should be considered to avoid the need to obtain a Business Entity Disclosure Certificate.
   5. Third parties who write or assist with the preparation of the bid specifications or request for proposals are ineligible to bid or submit a proposal for the same contract.
   6. The award of contract from the public that requires public advertisement for bids shall be awarded by the Board of Trustees to the lowest responsible bidder. N.J.S.A. 18A:64A-25.19.
   7. Professional Services:
      1. Pursuant to N.J.S.A. 18A:64A-25.5 (a) (1), contracts whose subject matter consists of professional services are exempt from public bidding.
      2. Pursuant to N.J.S.A. 18A:64A-25.19, multiple quotations are not required for professional service contracts.
      3. A BEDC is not required if a fair-and-open process is used to procure a professional service contract.
      4. Professional Services are defined as “services rendered or performed by a person authorized by law to practice a recognized profession and whose practice is regulated by law and the performance of which services requires knowledge of an advanced type in a field of learning acquired by a prolonged formal course of specialized instruction and study as distinguished from general academic instruction, apprenticeship or training. Professional services also mean services rendered in the performance of work that is original and creative in character in a recognized field of artistic endeavor.”
   8. Emergency Purchases:
      1. Pursuant to N.J.S.A. 18A:64A-25.6, any purchase may be made, negotiated or awarded by the College without public advertising for bids, when an emergency affecting the health, safety or welfare of the occupants of college property requires the immediate delivery of the materials or supplies or the performance of the work.
      2. A written requisition for the purchase, by the employee in charge of the building, facility or equipment where the emergency occurred, shall be filed with the Director of Contracts and Procurement, describing the nature of the emergency, the time of its occurrence, and the need for invoking the emergency purchasing exception. The President and the Director of Contracting and Procurement are authorized to award a contract for the purchase if the Director is satisfied that the emergency exists.
      3. Upon the furnishing of the work, materials or supplies, the contractor shall be entitled to be paid therefore and the College shall be obligated for the
      4. Multiple quotations are not required for emergency purchases.
   9. Office/Unit Head, Department Vice President, CFO, or Designee approval is required for purchase requisition.
7. Execution of Contracts
   1. All contracts shall be forwarded to Director of Contracts and Procurement for review in conjunction with the College’s Legal Counsel. The contracts are then reviewed by the CFO and forwarded to the President or his/her designee for signature.
   2. Office/Unit Heads are not authorized to execute
   3. The Director of Contracts and Procurement may execute contracts that come under the Director’s authority issued by the Board of Trustees (contracts under the bid threshold).
   4. President, Chief Financial Officer, and/or Director of Contracts and Procurement approval is required for purchase requisition.
8. Computer Equipment – Hardware and Software
   1. The CIO will work with the Director of Contracts and Procurement to acquire all ITS equipment requests for the College.
   2. An Equipment Justification Form must be completed and authorized by all parties. Upon approval of the justification form, the Department needs to complete a requisition.
   3. The purchase order will be issued upon approval of the requisition and forwarded to the vendor.
   4. The IT department will receive, configure, and install the equipment.
   5. Divisional Vice President, CFO, CIO, and/or Director of Contracts and Procurement approval are required for purchase requisition.
9. Supplier Diversity
   1. Advertisement for Bids and Request for Proposals (“RFP”)
      1. Purchasing department advertises bids and request for proposals on the College website for all local and diverse businesses to the fair and open bidding
      2. Purchasing alerts Women-owned businesses (WBE), Minority-owned businesses (MBE), Veteran-owned businesses (VBE or VOSB), businesses owned by economically disadvantaged individuals (DBE), and businesses owned by LGBT individuals (LGBTBE) when bids are available to assure diverse submissions.
      3. Reviews bids to ensure specifications for people with disabilities are met.
      4. Investigate whether submitted vendors apply to a Supplier Diversity group.
   2. Diversity Group Engagement
      1. Prioritizes diverse vendors verified by State Contracts and Cooperatives.
      2. Director or Contracts and Procurement is involved in many diversity groups, as well as joint purchasing groups, to obtain information on various companies of different ethnicities to diversify purchasing power.
      3. Continue membership with the New York/New Jersey Minority Supplier Diversity Council, which provides listings of certified Minority Suppliers.
      4. Vendors met by attending various conferences, seminars, and workshops that focus on supplier diversity, in Conjunction with the Diversity Equity and Inclusion department, the Hudson County, Jersey City, and State Diversity organizations.
10. Federal Funds Procurement Requirements
    § 200.318 of 2 CFR Part 200 requires recipients of federal awards to follow State, local, and tribal laws and regulations when conducting procurements under those awards. This means that if a state has stricter conflict-of-interest rules or more rigorous documentation requirements, those must be met even if they exceed federal standards.
    
    1. Key points when state laws are stricter:
       1. Compliance with both federal and state rules: Federal recipients must follow the FAR and agency supplements, but also adhere to any more restrictive state/local laws.
       2. Conflict-of-interest standards: State laws may require broader disqualifications or more detailed disclosure requirements than the FAR.
       3. Documentation: States may demand additional records or more detailed justifications for procurement decisions.
       4. Emergency procurement: State emergency purchase rules may be more restrictive than federal emergency provisions.
       5. Enforcement: State agencies can impose penalties for noncompliance with their own procurement statutes, even if the federal award is valid.
    2. Practical effect for businesses:
       If you are bidding on a project funded by a federal agency but located in a state with stricter procurement rules, you must prepare for both sets of requirements. This may involve:
       1. Adapting your bid documents to meet state-specific formats or thresholds.
       2. Ensuring your compliance program covers both federal FAR requirements and state/local statutes.
       3. Training staff on the more stringent state rules.
          
          In short, federal procurement laws set the baseline, but state laws can impose additional obligations that must be met to win and maintain contracts in that jurisdiction.
    3. SAM.gov / Debarment & Suspension (2 CFR §200.214)
       1. When purchases are made with federal grant funds, the College shall not award contracts or subawards to any vendor, contractor, or subrecipient that is debarred, suspended, or otherwise excluded from participation in federal programs. Prior to executing any federally funded purchase order, contract, or subaward, the Office of Procurement or designee must verify the entity’s status in SAM.gov, document the verification (e.g., date-stamped screenshot or equivalent), and ensure the documentation is retained in the procurement and grant file. Re-verification is required at least annually or upon contract renewal for multi-year agreements.
    4. Domestic Preference & Recovered Materials (2 CFR §§200.322–323)
       1. For procurements supported by federal funds, the College will apply domestic preference and recovered materials requirements consistent with 2 CFR §§200.322–323 and applicable federal statutes. When practicable and permitted by law, the College will provide a preference for U.S.-produced goods, products, and materials and will procure items containing recovered materials in accordance with federal guidelines, while also complying with New Jersey Community College contract law and the College sustainability goals. These requirements shall be reflected in solicitation and purchasing documents for federally funded acquisitions.
    5. Procurement History Documentation (2 CFR §200.318(i))
       1. For purchases made with federal grant funds, procurement files must be sufficient to document the full history of the procurement in accordance with 2 CFR §200.318(i). At a minimum, records shall include: the method of procurement used; the type of contract selected and the rationale for that choice; documentation of quotes, bids, or proposals; the basis for contractor selection or rejection; and the basis for the contract price. This documentation is in addition to standard the College requirements such as purchase orders, invoices, and receiving records.
    6. Cost/Price Analysis (2 CFR §200.324)
       1. When the value of a procurement funded in whole or in part with federal grant funds exceeds the Simplified Acquisition Threshold, or when otherwise required by the funding agency, the College will perform and document an appropriate cost or price analysis in accordance with 2 CFR §200.324. The level of analysis will be commensurate with the complexity and risk of the purchase and may include independent estimates, comparison of competitive quotes or bids, and separate consideration of contractor profit when there is no price competition. The resulting analysis must be retained in the procurement file.
    7. Noncompetitive (Sole Source) Procurement Conditions (2 CFR §200.320(c))
       1. When federal grant funds are used, noncompetitive (sole source) procurement may only be used under the limited circumstances permitted by 2 CFR §200.320(c). These include: purchases at or below the micro-purchase threshold; situations where the item or service is available only from a single source; public exigency or emergency conditions that do not allow time for competitive solicitation; express written authorization from the federal awarding agency or pass-through entity; or where, after soliciting a number of sources, competition is determined to be inadequate. All such procurements must be fully justified, documented, and approved in accordance with the College procedures and retained in the procurement file.
    8. Segregation of Duties (Procurement vs. Cash Drawdowns)
       1. To maintain strong internal controls and comply with federal grant requirements, the College will segregate duties between personnel who initiate and approve purchases and those who process cash drawdowns or reimbursement requests on federally funded accounts. Individuals responsible for authorizing or approving purchase transactions should not be the same individuals who initiate or approve corresponding federal drawdown requests whenever practicable. The Offices of Procurement, Finance, and Grants will coordinate to ensure roles are assigned in a manner that minimizes conflicts and reduces the risk of error or fraud.
    9. Federal Equipment Procurement Requirements (2 CFR §§200.310–316)
       1. When equipment is purchased with federal grant funds, the College must follow the federal property standards outlined in 2 CFR§§200.310–316. These standards apply in addition to the College’s general inventory requirements and ensure proper acquisition, use, safeguarding, and disposition of federally funded equipment.
    10. Lease vs. Purchase Analysis (2 CFR §200.318(d))
        1. Before acquiring equipment with federal funds, the College must conduct and document a lease-versus-purchase cost analysis to determine the most economical option. This analysis must be retained in the procurement and grant file and must be completed prior to initiating the purchase requisition.
    11. Priority of Use for Federally Funded Equipment (2 CFR §200.313(c))
        1. Equipment purchased with federal funds must be used first for the project or program for which it was acquired and then made available for use on other federally funded projects, as long as such use does not interfere with the original project. When no longer needed for any federal purpose, the equipment may be used for non-federal the College activities in accordance with federal and institutional policies.
    12. Federal Equipment Disposal Requirements (2 CFR §200.313(e)
        1. For equipment with a current per-unit fair-market value greater than $5,000, the College must obtain prior written approval from the federal awarding agency before disposal or sale. The College must follow the federal agency’s disposition instructions and return any required share of proceeds. Disposal of federally funded equipment must be coordinated through the Offices of Procurement and Grants.
    13. Loss, Damage, or Theft Reporting (2 CFR §200.313(d))
        1. Any loss, damage, or theft of equipment purchased with federal funds must be reported immediately to the Offices of Procurement, Information Technology Services, Grants, and Public Safety and Security. When required, the College will also notify the federal awarding agency. Documentation of the incident and corrective actions must be retained in the procurement and grant files.
    14. Subrecipient Equipment Requirements (2 CFR §§200.313 & 200.331)
        1. When federally funded equipment is provided to or purchased by a subrecipient, the College must ensure the subrecipient adheres to all federal equipment management standards, including safeguarding, tracking, reporting, and disposition. These requirements must be included in subaward agreements and monitored as part of the College’s subrecipient monitoring procedures.
    15. Equipment Inventory Frequency (2 CFR §200.313(d)(2))
        1. Federal regulations require that equipment purchased with federal funds be inventoried at least once every two years. The College conducts an annual physical inventory, which satisfies and exceeds this federal requirement. Offices of Procurement and Information Technology Services must ensure federally funded equipment is included in the College’s annual inventory process.
11. Perkins Procurement
    1. During the purchasing/Purchase Order process a CIP code and subcode must be provided for inclusion.
    2. Information for disbarment must be provided to accompany any purchase, as per Perkins standards.

Approved: March 2022
Approved by: Cabinet
Category: Purchasing
Subcategory: Procurement
Scheduled for Review: March 2024
Responsible Department: Finance

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