06-27-11 IN THE MATTER OF PROTEST OF AWARD OF NEW JERSEY STATE CONTRACT A71188 FOR LIGHT DUTY AUTOMOTIVE PARTS A-5626-07T1
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.
We also hold that the record supports the Director's determination that the AutoZone Contract meets the statutory standard as the "most cost-effective method of procurement."
