An examination of New Jersey's procurement laws and regulations: analyzing the impact on private sector competition

Abstract

The New Jersey Legislature must take a closer look at the current public procurement process in order to create a more competitive environment and encourage more private sector enterprises to participate. This study utilized quantitative data supplied in two different survey instruments – one presented to public procurement professionals (n=165) -- and the other to private sector leaders (n=154). In both surveys, respondents were asked to share their opinions on a number of specific components within New Jersey’s procurement process and the impact that these components had in encouraging or discouraging a larger base of potential suppliers.

A comparison of the quantitative data generated by both surveys illustrated strong positive associations between the two on a number of different aspects of the New Jersey procurement system including: the vast amount of paperwork in a bid document, the time between a bid’s advertisement and its opening; government payment timetables; “low-ball” bidding, and the inefficient bidding process. The findings published in this manuscript demonstrate that there are notable flaws in New Jersey’s existing procurement process that need to be addressed through further detailed study as well as the implementation of consequent adjustments designed to create a more effective, efficient, and competitive procurement system for New Jersey’s public agencies.