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Wednesday, May 5, 2010

IN THE MATTER OF THE PROTEST OF AWARD OF NEW JERSEY ( A-5626-07T1)

IN THE MATTER OF THE PROTEST OF AWARD OF NEW JERSEY
STATE CONTRACT A71188 FOR LIGHT DUTY AUTOMOTIVE PARTS
( A-5626-07T1 ) 4-14-10

In this appeal, we consider a challenge by former suppliers
of auto parts to the State of New Jersey to a contract awarded
by the Director of the Division of Purchase and Property
pursuant to N.J.S.A. 52:34-6.2. This statute authorizes the
Director to enter into cooperative purchasing agreements between
multiple public entities in various states and a vendor. Here,
the Director awarded a contract to AutoZone to supply auto parts to the State of New Jersey in accordance with a Master Agreement
awarded by Charlotte, North Carolina, following a competitive
bidding process.

We held that suppliers of auto parts to the State of New
Jersey, whose contracts with the State had recently expired,
and their business association have standing to challenge not
only the specifications of the cooperative purchasing agreement
but also the award of the contract. To effectuate this holding,
the Director must provide notice to prospective bidders of the
intention to consider utilization of the cooperative purchasing
procurement method and notice of any award pursuant to this
authority.

While acknowledging our limited scope of review, we also
held that the record does not provide sufficient information to
determine whether the AutoZone Contract meets the statutory
standard as the "most cost-effective method of procurement" as
found by the Director. Therefore, we remanded for further
findings of fact.