Year NJ formed organization of purchasing "An Act Concerning Municipalities" - ANSWER
1917
Year Congress provided for Centralized Purchasing under Treasury - ANSWER 1792
Year NJSA 40A:11-1 et seq Local Public Contracts Law was enacted - ANSWER 1971
Local Public Contracts Law - ANSWER NJSA 40A:11-1 et seq
Forms of NJ Municipal Government - ANSWER Boroughs
Cities
Commissions
Municipal Manager
Town
Township
Village
Optional Municipal Charter
Optional Municipal Charter Plans (Faulkner Act) - ANSWER Mayor-Council Plan
Council-Manager Plan
Small Municipality Plan
Mayor-Council-Admin Plan
1
,Forms of NJ County Government - ANSWER Board Form
Optional County Charter Plans (County Executive Plan)
Purchasing Cycle - ANSWER Suitability of goods
Availability of goods
Proper timing of purchases
Securing proper quantities
Paying correct price
Objectives & Advantages of Centralized Purchasing - ANSWER 1. To achieve savings
through efficient management techniques
2. To devote specialized effort to coordinate purchasing requirements for all departments
Concepts of a Centralized Purchasing System - ANSWER 1. Clear statement of authority,
responsibility and accountability
2. Purchasing must be management oriented rather than service oriented
Government Purchasing is - ANSWER An Act of Agency
UCC - ANSWER Uniform Commercial Code - laws governing commercial transactions and
establishing claims for collateral.
NJ UCC laws - ANSWER NJSA 12A:1 et seq
Statute of Frauds - ANSWER Contracts valued more than $500 shall be in writing
Battle of the Forms - ANSWER Where buyers send out purchase orders and sellers re-
spond with sales acknowledgement forms but, although fronts of the docs match up, backs
are different.
2
,Mutuality of Agreement - ANSWER Any terms of one paper that materially alters terms of
another must be agreed to by both parties
2 important attributes of efficient mangement - ANSWER Planning
Coordination
2 advantages of Encumbrance System - ANSWER 1. overspending can be prevented
2. departments can obtain info as to the status of their appropriation balances
6 R's of the National Institute of Government Purchasing (NIGP) - ANSWER In the right
quality and quantity
At the right time and price
From the right source
In the right manner
Davis-Bacon Act - ANSWER Set minimum wages on Federal Construction Contracts
Walsh-Healy Act - ANSWER Upgraded wages and conditions of employment on Federal
supply contracts
Miller Act - ANSWER Requiring payment bonds to protect subcontractors and material
suppliers on Federal construction jobs
Copeland Act - ANSWER Preventing salary kickbacks on Federal construction work
Buy American Act - ANSWER Promoted both business and labor interests by giving pref-
erence to domestic sources for Federal purchases
3
, Dillon's Rule - ANSWER Strict Construction Approach - State Supremecy over local gov-
ernment. Municipal corporations possess powers granted by the State in express terms.
Cooley Doctrine - ANSWER Local Government existed before State Government.
1. Inherent right of local government
2. Right to local self government to be absolute right which could not be abridged
3. Many local governments existed before state government
4. Local governments come out of the "fabric" of American life & were the "cradle" and
guardian of American liberty and democracy
Purchasing Policy Manual - ANSWER Includes purchasing laws, rules and administrative
procedures. Identifies legal authority.
Purchasing operations or procedures manual - ANSWER Internal practices basic purchas-
ing documents and forms. Establish internal procedures
Vendor manual - ANSWER form booklet "How to do business with City of Linwood"
Methods of Disposal - ANSWER 1. Sale at public auction
2. Sealed bids
3. Sell to another local contracting unit
4. Trade-in
5. Transfer
Pay to Play - ANSWER NJSA 19:44A-20.4
Contracts over $17,500
Non-fair & open - ANSWER 1. No bid process
4
1917
Year Congress provided for Centralized Purchasing under Treasury - ANSWER 1792
Year NJSA 40A:11-1 et seq Local Public Contracts Law was enacted - ANSWER 1971
Local Public Contracts Law - ANSWER NJSA 40A:11-1 et seq
Forms of NJ Municipal Government - ANSWER Boroughs
Cities
Commissions
Municipal Manager
Town
Township
Village
Optional Municipal Charter
Optional Municipal Charter Plans (Faulkner Act) - ANSWER Mayor-Council Plan
Council-Manager Plan
Small Municipality Plan
Mayor-Council-Admin Plan
1
,Forms of NJ County Government - ANSWER Board Form
Optional County Charter Plans (County Executive Plan)
Purchasing Cycle - ANSWER Suitability of goods
Availability of goods
Proper timing of purchases
Securing proper quantities
Paying correct price
Objectives & Advantages of Centralized Purchasing - ANSWER 1. To achieve savings
through efficient management techniques
2. To devote specialized effort to coordinate purchasing requirements for all departments
Concepts of a Centralized Purchasing System - ANSWER 1. Clear statement of authority,
responsibility and accountability
2. Purchasing must be management oriented rather than service oriented
Government Purchasing is - ANSWER An Act of Agency
UCC - ANSWER Uniform Commercial Code - laws governing commercial transactions and
establishing claims for collateral.
NJ UCC laws - ANSWER NJSA 12A:1 et seq
Statute of Frauds - ANSWER Contracts valued more than $500 shall be in writing
Battle of the Forms - ANSWER Where buyers send out purchase orders and sellers re-
spond with sales acknowledgement forms but, although fronts of the docs match up, backs
are different.
2
,Mutuality of Agreement - ANSWER Any terms of one paper that materially alters terms of
another must be agreed to by both parties
2 important attributes of efficient mangement - ANSWER Planning
Coordination
2 advantages of Encumbrance System - ANSWER 1. overspending can be prevented
2. departments can obtain info as to the status of their appropriation balances
6 R's of the National Institute of Government Purchasing (NIGP) - ANSWER In the right
quality and quantity
At the right time and price
From the right source
In the right manner
Davis-Bacon Act - ANSWER Set minimum wages on Federal Construction Contracts
Walsh-Healy Act - ANSWER Upgraded wages and conditions of employment on Federal
supply contracts
Miller Act - ANSWER Requiring payment bonds to protect subcontractors and material
suppliers on Federal construction jobs
Copeland Act - ANSWER Preventing salary kickbacks on Federal construction work
Buy American Act - ANSWER Promoted both business and labor interests by giving pref-
erence to domestic sources for Federal purchases
3
, Dillon's Rule - ANSWER Strict Construction Approach - State Supremecy over local gov-
ernment. Municipal corporations possess powers granted by the State in express terms.
Cooley Doctrine - ANSWER Local Government existed before State Government.
1. Inherent right of local government
2. Right to local self government to be absolute right which could not be abridged
3. Many local governments existed before state government
4. Local governments come out of the "fabric" of American life & were the "cradle" and
guardian of American liberty and democracy
Purchasing Policy Manual - ANSWER Includes purchasing laws, rules and administrative
procedures. Identifies legal authority.
Purchasing operations or procedures manual - ANSWER Internal practices basic purchas-
ing documents and forms. Establish internal procedures
Vendor manual - ANSWER form booklet "How to do business with City of Linwood"
Methods of Disposal - ANSWER 1. Sale at public auction
2. Sealed bids
3. Sell to another local contracting unit
4. Trade-in
5. Transfer
Pay to Play - ANSWER NJSA 19:44A-20.4
Contracts over $17,500
Non-fair & open - ANSWER 1. No bid process
4
