# N.J. Stat. § 40A:11-3: Bid threshold; period of contracts

> New Jersey · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-3

## Section

- **Citation:** N.J. Stat. § 40A:11-3
- **Heading:** Bid threshold; period of contracts
- **Jurisdiction:** New Jersey
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** NJ Code / Title 40A / Chapter 11 / Section 11-3

## Text

3. a. (1) When the cost or price of a contract, in the aggregate, does not exceed in a contract year the total sum of $17,500, the governing body, by ordinance or resolution, as appropriate to the contracting unit, may authorize a purchasing agent or other designated employee to award the contract without public advertising for bids. (2) Notwithstanding the provisions of any other law, rule, or regulation to the contrary, a contract having an anticipated value in excess of $17,500, but below the contracting unit's applicable public bidding threshold, is not required to be awarded by the governing body of the contracting unit and may be awarded by the qualified purchasing agent of the contracting unit. (3) The governing body of a contracting unit that has designated a purchasing agent pursuant to subsection a. of section 9 of P.L.1971, c.198 (C.40A:11-9) may establish a bid threshold of up to $25,000 or the threshold amount adjusted by the Governor pursuant to subsection c. of this section. (4) 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. (5) Bidding thresholds established by the governing body of a contracting unit pursuant to paragraphs (2) or (3) of this subsection may be granted for each contract or by a general delegation of the power to negotiate and award the contracts pursuant to this section. b. Any contract made pursuant to this section may be awarded for a period of up to 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 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. L.1971, c.198, s.3; amended 1975, c.353, s.2; 1977, c.53, s.1; 1979, c.350, s.1; 1985, c.60, s.1; 1985, c.469, s.6; 1991, c.143, s.1; 1996, c.113, s.18; 1999, c.440, s.7; 2009, c.166, s.2; 2023, c.252, s.6.

## Nearby sections

- [N.J. Stat. § 40A:11-1 Short title; citation](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-1.md)
- [N.J. Stat. § 40A:11-2 Definitions.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-2.md)
- [N.J. Stat. § 40A:11-2.1 Civil action brought on behalf of local contracting unit.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-2.1.md)
- [N.J. Stat. § 40A:11-2.2 Local contracting unit, compliance; report of false certification.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-2.2.md)
- [N.J. Stat. § 40A:11-3 Bid threshold; period of contracts.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-3.md)
- [N.J. Stat. § 40A:11-4 Contracts required to be advertised, disqualification of bidder.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.md)
- [N.J. Stat. § 40A:11-4.1 Purposes for which competitive contracting may be used by local units.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.1.md)
- [N.J. Stat. § 40A:11-4.2 Term of contract; exceptions.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.2.md)
- [N.J. Stat. § 40A:11-4.3 Competitive contracting process; resolution, administration.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.3.md)
- [N.J. Stat. § 40A:11-4.4 Request for proposals; documentation; provisions.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.4.md)
- [N.J. Stat. § 40A:11-4.5 Competitive contracting proposal solicitation.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.5.md)
- [N.J. Stat. § 40A:11-4.6 Implementation of energy savings improvement program by contracting unit; definitions.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.6.md)
- [N.J. Stat. § 40A:11-4.7 Short title.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.7.md)
- [N.J. Stat. § 40A:11-4.8 Findings, declarations relative to electronic purchase of certain commodities.](https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-4.8.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_NJ_T40A_C11_S11-3. Check the current official text before relying on it. Not legal advice.