Chapter 9 Quiz: Set-Aside Programs

Question 1

As for NJSA 40A:11-41

Define: “Minority group members”

Answer 1

persons who are black, Hispanic, Portuguese, Asian-American, American Indian or Alaskan natives;

Question 2

As for NJSA 40A:11-41

Define: “County or municipal contracting agency”

Answer 2

the governing body of a county or municipality or any department, board, commission, committee, authority or agency of a county or municipality but shall not include school districts;

Question 3

As for NJSA 40A:11-41

Define: “Qualified women’s business enterprise”

Answer 3

a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by women and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);

Question 4

As for NJSA 40A:11-41

Define: “Qualified minority business enterprise”

Answer 4

a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by minority group members and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25);

Question 5

As for NJSA 40A:11-41

Define: “Qualified small business enterprise”

Answer 5

a business which has its principal place of business in this State, is independently owned and operated and meets all other qualifications as may be established in accordance with P.L.1981, c.283 (C.52:27H-21.1 et seq.);

Question 6

As for NJSA 40A:11-41

Define: “Set-aside contracts”

Answer 6

(1) a contract for goods, equipment, construction, or services which is designated as a contract for which bids are invited and accepted only from qualified small business enterprises, qualified veteran business enterprises, qualified minority business enterprises or qualified women’s business enterprises, as appropriate

(2) a portion of a contract when that portion has been so designated,

or

(3) any other purchase or procurement so designated;

Question 7

As for NJSA 40A:11-41

Define: “Total procurements”

Answer 7

all purchases, contracts or acquisitions of a county or municipal contracting agency, whether by competitive bidding, single source contracting, or other method of procurement, as prescribed or permitted by law;

Question 8

As for NJSA 40A:11-41

Define: “Veteran”

Answer 8

any resident of this State now or hereafter who has served in any branch of the Armed Forces of the United States or a Reserve component thereof or the National Guard of this State or another state as defined in section 1 of P.L.1963, c.109 (C.38A:1-1), and has been discharged honorably or under general honorable conditions from such service, except that the veteran shall present to the Adjutant General of the Department of Military and Veterans’ Affairs sufficient evidence of a record of service, which shall include the applicant’s DD-214, DD-215, or DD-256 form as issued by the federal government; NGB-22 or other approved separation forms as outlined by all branches of the Armed Forces; a county-issued veteran identification card pursuant to P.L.2012, c.30 (C.40A:9-78.1 et seq.); or a veteran identification card as issued by the United States Department of Veterans Affairs under the “Veterans Identification Card Act of 2015,” (38 U.S.C. s.5706) and receive a determination of status no later than the date established for the submission of bids; and

Question 9

As for NJSA 40A:11-41

Define: “Qualified veteran business enterprise”

Answer 9

a business which has its principal place of business in this State, is independently owned and operated, is at least 51 percent owned and controlled by a veteran or that wherein at least twenty five percent of the required workforce for the contract are veterans, including new hires if additional workers are required to perform the contract, and is qualified pursuant to section 25 of P.L.1971, c.198 (C.40A:11-25). The business shall also submit forms quarterly to the contracting agency showing proof of veteran status for all the veteran employees.

Question 10

What type of business set-aside programs may a county or municipality establish under NJSA 40A:11-42?

Answer 10

Qualified minority business enterprise, women’s business enterprise, small business enterprise, and veteran business enterprise set-aside programs.

Question 11

How does a governing body authorize a qualified minority business enterprise set-aside program under NJSA 40A:11-42?

Answer 11

By ordinance or resolution, establishing a goal for contracting agencies to set aside a certain percentage of total procurement dollars for qualified minority business enterprises.

Question 12

Under NJSA 40A:11-42, what is the primary goal of a qualified women’s business enterprise set-aside program?

Answer 12

To establish a goal for contracting agencies to award a percentage of total procurement dollars as set-aside contracts to qualified women’s business enterprises.

Question 13

Can a county or municipality create a set-aside program specifically for small business enterprises under NJSA 40A:11-42?

Answer 13

Yes, the governing body may establish a qualified small business enterprise set-aside program by ordinance or resolution with a goal for contracting agencies.

Question 14

Does NJSA 40A:11-42 allow for a veteran business enterprise set-aside program, and if so, what must the governing body do?

Answer 14

Yes; the governing body may establish a qualified veteran business enterprise set-aside program by ordinance or resolution, setting a goal for a percentage of procurement dollars to be awarded to qualified veteran business enterprises.

Question 15

How can a contracting agency achieve the goals established under NJSA 40A:11-43 for minority, women, small, or veteran business enterprises?

Answer 15

By either designating entire contracts to these enterprises or by requiring that a portion of a contract be subcontracted to them.

Question 16

What is required of each contracting agency in relation to goals set by the governing body under NJSA 40A:11-43?

Answer 16

Each contracting agency must make a good faith effort to attain the goals established by the governing body.

Question 17

How does the governing body evaluate a contracting agency’s performance in meeting set-aside goals under NJSA 40A:11-43?

Answer 17

By comparing the percentage of the dollar value of the agency’s total procurements awarded to qualified enterprises to the percentage of the dollar value of the county’s or municipality’s total procurements awarded to those enterprises.

Question 18

How do the provisions of the Local Public Contracts Law (NJSA 40A:11-1 et seq.) relate to purchases, contracts, and agreements made under NJSA 40A:11-44?

Answer 18

All provisions of the Local Public Contracts Law and its supplements apply to such purchases, contracts, and agreements unless specifically superseded by the provisions of this act.

Question 19

Under NJSA 40A:11-45, when must a contracting agency designate a contract as a set-aside for a qualified small business, veteran, minority, or women’s business enterprise?

Answer 19

A designation must be made prior to any advertisement for bids if the agency is likely to receive bids from at least two qualified enterprises at a fair and reasonable price.

Question 20

What must an advertisement for a set-aside contract indicate according to NJSA 40A:11-45?

Answer 20

The advertisement must indicate that the contract is a qualified small business, veteran, minority, or women’s business enterprise set-aside contract, as appropriate.

Question 21

What are the publication requirements for advertisements of set-aside contracts under NJSA 40A:11-45?

Answer 21

Advertisements must be published in at least one newspaper likely to provide notice to qualified enterprises, sufficiently in advance to promote competitive bidding, but not less than 10 days prior to the date fixed for receiving bids.

Question 22

Under NJSA 40A:11-46(a), what action may a contracting agency take if it cannot obtain at least two bids from qualified small, veteran, minority, or women’s business enterprises for a set-aside contract?

Answer 22

The contracting agency may withdraw the set-aside designation and resolicit bids on an unrestricted basis under the provisions of the Local Public Contracts Law (P.L. 1971, c. 198).

Question 23

According to NJSA 40A:11-46(b), what must a contracting agency do if accepting the lowest responsible bid would result in an unreasonable price?

Answer 23

The agency must reject all bids, withdraw the set-aside designation, and notify qualified small, veteran, minority, or women’s business enterprises in writing of the cancellation, the reasons for rejection, and the intent to resolicit bids on an unrestricted basis.

Question 24

How does the cancellation of a set-aside contract under NJSA 40A:11-46 affect the calculation of the percentage of contracts awarded to qualified enterprises under section 3 of the act?

Answer 24

Cancelled set-aside contracts are not counted when determining the percentage of contracts awarded to qualified small, veteran, minority, or women’s business enterprises.

Question 25

Under NJSA 40A:11-47, what action can a governing body take if a business is found to have knowingly supplied false information to qualify as a small, veteran, minority, or women’s business enterprise and received a contract it would not otherwise have received?

Answer 25

The governing body may: Assess the difference between the awarded contract and what the cost would have been if the contract had not been awarded; Impose a penalty up to 10% of the contract amount; Order the business ineligible to transact with the governing body for a period determined by the governing body.

Question 26

What penalty limit is specified in NJSA 40A:11-47(b) for a business that knowingly provides false information to qualify as a set-aside enterprise?

Answer 26

A penalty of not more than 10% of the amount of the contract involved.

Question 27

Before imposing penalties or determining ineligibility under NJSA 40A:11-47, what procedural right must be afforded to the business?

Answer 27

The business must be afforded an opportunity for a hearing on the reasons for the imposition of the penalties or ineligibility.

Question 28

By what date must each contracting agency report to its governing body regarding efforts to attain set-aside goals under NJSA 40A:11-48?

Answer 28

By January 31 of each year. The report must describe the agency's efforts and the percentage of total procurements awarded to set-aside enterprises.

Question 29

Under NJSA 40A:11-48, by what date must the governing body publish a list of each agency’s attainments in set-aside goals, and where must it be published?

Answer 29

By March 1 of each year, in at least one newspaper circulating in the county or municipality, including the county or municipal average.

Question 30

Under NJSA 40A:11-49, who has the authority to adopt rules and regulations to effectuate the purposes of the set-aside programs, and under what procedure?

Answer 30

The Director of the Division of Local Government Services in the Department of Community Affairs, pursuant to the "Administrative Procedure Act," P.L. 1968, c. 410 (C.52:14B-1 et seq.).