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  • December 23, 2011

    Division of Purchase & Property Issues New Contracting Rules, Including Fee Assessment on All Vendors

    Written By: Megan M. Schwartz

    The Department of the Treasury, Division of Purchase and Property (the “Division”) has issued new and revised rules regarding its responsibilities for conducting the review of all State agency and authority contracts and purchases.

    Among the Division’s new rules is a provision requiring the Director to make an assessment from each contractor in the amount of one quarter of one percent of the value of all transactions on contracts as defined in the request for proposals. According to the new rule, the intention of this assessment is to maintain the efficiency of the State’s procurement system at a level common to industry standards.

    The term “transactions” is undefined in the proposed rules. As such, the extent to which this assessment applies is unclear. If this proposed rule becomes law, vendors are encouraged to carefully review specifications relating to this assessment. Hill Wallack’s Government Contracting Practice Group is extremely skilled in specification review.

    Vendors are also encouraged to click here to review the entirety of the Division’s rule proposal and to make comments on same. Hill Wallack’s Government Contracting Practice Group is available for assistance in developing and submitting comments. Comments are due to the Division by February 17, 2012.

    Hill Wallack LLP’s Government Contracting Practice Group has a long history providing cutting edge advice to vendors, as well as governmental contracting units, involved in government contracting, on a broad range of legal matters, including specification review and rule comments. Our counsel on governmental processes keeps public entities and private sector vendors ahead of the curve in these ever-changing areas of law. 

    This article provides information of general interest and is not intended, and should not be used, as a substitute for consultation with legal counsel. Any questions regarding the specific issues raised in this article should be directed to the authors or to your contacts at Hill Wallack LLP.