4. PURCHASING THRESHOLDS

Purchases that exceed $40,000
Pursuant to State Law N.J.S.A. 18A:18A-5 all purchases and contracts exceeding the bid threshold of $40,000 shall be awarded by board resolution at a public meeting of the Board of Education after a formal advertised bid process. The Business Office administers the bid process which takes approximately six weeks from the development of the bid specification to the Board of Education award.

Purchases between $6,000 and $40,000
All purchases within the range of $6,000 and $40,000 require two (2) quotes with the award to the vendor providing the lowest quote. This is a district wide cumulative total and includes orders from July 1 through June 30 for both schools. The Morris Hills Regional District quote threshold is $3,000.

!The following are the ONLY exceptions to the above thresholds:

State Contract Vendors
State Contract Vendors are those who have been awarded contracts for supplies and services by the State of New Jersey after responding to an advertised bid. MHRD may use State Contract Vendors without obtaining quotes or using the advertised bid process.

Purchasing Consortiums
MHRD is a member of various consortiums that have awarded contracts to vendors after responding to an advertised bid. MHRD may issue purchase orders to vendors that have contracts with Educational Services Commission of New Jersey formally, Middlesex Regional Educational Services (MRESC), Educational Data, the Morris County Cooperative Pricing Consortium and the Hunterdon County ESC Cooperative Purchasing Consortium.

*What is a purchasing consortium? A purchasing consortium can be defined as a collaborative arrangement in which two or more organizations join together to combine their individual requirements for goods, work, or services to gain better prices, design, supply availability, and assurance benefits compared to if each purchased the goods or services alone. Think Sams Club or BJs Wholesale.

Professional Contracts
Contracts with professionals licensed by the State of New Jersey such as architects, auditors, physicians, attorneys, and other medical personnel are exempt from the purchasing threshold requirements.

Example of special education contracts are ABA, OPT, BCBA services, etc.

• All professional services require a Board approved contract prior to the issuance of a purchase order.
• All professional service contracts cannot exceed one calendar year.
• The preferred method for securing a professional services contract is through an RFP.
  

!There are additional exceptions such as textbooks, library and educational goods; legal notices, utilities, insurance, election expenses, travel and conferences. Please contact the Business Office for further explanation.