Special Notice – DPA Threshold

Location:	New Jersey
Posted:	Jun 25, 2026
Due:
Agency:	State Government of New Jersey
Type of Government:	State & Local
Category:	J - Maintenance, Repair, and Rebuilding of Equipment
Publication URL:	To access bid details, please log in.

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CIRCULAR

STATE OF NEW JERSEY

DEPARTMENT OF THE TREASURY

NO.: 23-09-DPP

ORIGINATING AGENCY: DIVISION OF PURCHASE AND PROPERTY

PAGE 1 OF 8

EFFECTIVE DATE: IMMEDIATE EXPIRATION DATE: INDEFINITE

SUPERSEDES: 22-09-DPP

SUBJECT: DELEGATED PURCHASING AUTHORITY (DPA) FOR GOODS AND SERVICES

ATTENTION: DIRECTORS OF ADMINISTRATION AND EXECUTIVE BRANCH PROCUREMENT OFFICERS

FOR INFORMATION CONTACT:

ASSISTANT DIRECTOR, CONTRACT COMPLIANCE AND AUDIT UNIT

PHONE: (609) 292-5400

E-MAIL: CCAU.Mailbox@treas.nj.gov

PURPOSE

Pursuant to N.J.S.A. 52:25-23, the Director, Division of Purchase and Property (“DPP”) may delegate

certain purchases to State agencies. The purpose of this Circular is to establish the policies and

procedures for agencies to follow in utilizing their Delegated Purchasing Authority for Goods and

Services.

This Circular is to be used in conjunction with the other Treasury Circulars and policy directives

referenced herein.

II. POLICY

Effective January 1, 2023, the DPA threshold was increased from $150,000 to $200,000 for goods and

services. In the event the Governor declares an emergency through Executive Order, the Director of

DPP may increase the DPA threshold to $1,000,000 for necessary supplies and services related to the

declared emergency, and purchased during the declared emergency period.

A DPA purchase is defined as a transaction that cannot be procured through one of the following four

primary contracting methods:

1) a current State contract, including contracts acquired through Waivers of Advertising;

2) the State Distribution and Support Services Center (“DSS”);

3) the Bureau of State Use Industries (“DEPTCOR”); or

4) the Central Non-profit Agency CNA/ACCSES NJ (“CNA").

AND is within an agency’s current DPA threshold.

Pursuant to N.J.S.A. 52:25-23(a), purchases or contracts exceeding the DPA threshold, shall not be

divided by vendor, dollar amount, supplies or services, to circumvent the dollar limit imposed. Similar

supplies and services, as defined by the three-digit commodity class code

(https://www.nj.gov/treasury/purchase/commcode.shtml), should be combined, where possible, as one

quote to increase purchasing volume, leading the way to potentially lower prices.

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Agencies may not circumvent any one of the four primary contracting methods identified above. If a

similar supply or service is available under State contract, or available from DSS, DEPTCOR or CNA,

AND the similar supply or service addresses the primary performance and/or functionality

requirements, then DPA should not be utilized. Minor differences in functionality and/or

performance between the desired supply, or service, and a similar supply or service under State

contract, or available from DSS, DEPTCOR or CNA are not valid reasons for purchasing such

supply or service via DPA.

Agencies must also adhere to the State’s set-aside requirements concerning small business (N.J.S.A.

52:32-17 et seq., establishing a goal that contracting entities award at least 25% of their contracts to

small businesses) and disabled veteran owned business (N.J.S.A. 52:32-31.1 et seq., establishing a

goal that that contracting entities award at least 3% of their contracts to disabled veteran owned

businesses) vendors. Agencies are also encouraged to do business with minority and women owned

business vendors and veteran owned business. By utilizing DPA authority, entities are contracting

agencies required to make a good faith effort to attain these goals as established in N.J.S.A. 52:32-21.

For goods or services that are not covered by one of these primary contracting methods, an agency

should review its requirements for supplies or services against its anticipated fiscal year needs by

reviewing its purchase history. If the anticipated fiscal year volume for a supply or service exceeds the

DPA threshold, the agency must develop a scope of work for the Procurement Bureau to conduct an

advertised procurement. However, if the anticipated fiscal year need for a good or service does not

exceed the DPA threshold, the agency should properly utilize its DPA for the purchase of that service.

Prior to issuing purchase orders, it will be the agency's responsibility to verify the availability of funding

for the purchase and to verify that the good or service is not available under a State contract, or from

DSS, DEPTCOR, CNA, or Waiver of Advertising.

III. PROCEDURES

A. $1,000 or LESS: A limited dollar order (“LDO”) can be issued without price competition for a

purchase less than or equal to $1,000, i.e., no competitive quotes or vendor forms other than the

Affirmative Action Form in section IV - J below are required.

Note: Agencies are encouraged to use the State’s Purchasing Card (“P-Card”) to process

transactions for $1,000 or less. When a P-Card is not accepted by a vendor, the agency should

use the Open Market requisition type in NJSTART for such purchases.

B. OVER $1,000 to $17,500: Three quotations (using Form PB-119, or equivalent) are required for

all transactions over $1,000 and up to $17,500. All vendor forms in section IV – J are required to

be obtained.

1. Record quotations on Form PB-119, or on an equivalent document, and include the completed

PB-119 Form in the agency DPA file, along with a copy of the DPA-agency purchase order.

2. For all such solicitations, it is the responsibility of the agency to ensure that competition is

conducted in a fair and even manner. All vendors shall be provided with the same New Jersey

Standard Terms and Conditions, including the same information on the proposed service, or

supply needed, to submit quotes.

3. Internet pricing should, whenever possible, utilize a pricing comparison engine that lists costs

by vendor in ascending order. If the agency does not utilize Form PB-119 to record internet

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pricing, then all the information required on the PB-119 must also be detailed on the received

quotation. In addition, for internet pricing or quotations, the agency must print out and retain

in its file, the quote, or pricing obtained from each vendor site solicited. The agency

procurement officer shall also note on the printed quote the time and date such pricing was

obtained and shall sign off on the printed quote to verify the date and time.

4. For services, including consulting services, the agency must secure written verification from

the selected vendor, prior to the start of the contract, as to total cost, the deliverable(s) and

timeframe(s) for the delivery of the deliverable(s). Such verification must be included in the

agency's DPA file.

C. OVER $17,500 to $200,000: Solicit a minimum of three written quotes for purchases over $17,500

and up to $200,000 using Form PB-120, or an equivalent form, "Agency Request for Proposal."

Telephone quotes shall not be accepted for such purchases. Each agency is encouraged to place

agency-solicited requests on its website to increase competition for needed supplies and services.

All vendor forms in Section IV – J are required to be obtained. The agency must obtain, process,

and file quotes as follows:

1. Forward "Agency Request for Proposal" simultaneously to a minimum of three vendors. Allow

sufficient time from the forwarding date of the Agency Request for Proposal to the vendors for

the review, completion and return of proposals by the vendors. The return date and hour should

be clearly shown in the Agency Request for Proposal. No quotes can be accepted if received

by the agency after the return date and hour noted on the Agency Request for Proposal.

2. It is the responsibility of the agency to establish internal control procedures for the acceptance,

security review and evaluation of quotes for competitive purchases conducted pursuant to this

Circular. Such procedures must include time stamping of quotes; maintaining quotes in a

secure location; no review of quotes until the time specified for submittal has passed; and no

acceptance of quotes after the time specified for submittal has passed. For e-mailed quotes,

the agency shall immediately print a copy of the received e-mailed quote, which will include the

date and time of receipt.

3. All quotes should be opened and reviewed at the time specified in the Agency Request for

Proposal for submission of sealed quotes.

4. In the event a signature is required, unsigned quotes shall be rejected.

5. Agencies shall not alter any quotes.

IV. GENERAL POLICIES AND PROCEDURES

A. ONE RESPONSE TO A SOLICITATION: A single response to a DPA solicitation for a purchase

over $1,000 and up to $200,000 does not preclude the issuance of a purchase order to the single

respondent. A DPA agency purchase order may be issued to a single respondent provided the

agency has contacted the appropriate number of bona fide vendors as previously outlined and the

quote received from the single respondent is responsive, i.e., fully complies with the agency's

specifications and the State of New Jersey Terms and Conditions. The Agency Approval Officer

must prepare a memorandum to the DPA file to this effect.

B. QUOTE EVALUATION: Generally, the vendor with the lowest price is entitled to the award,

provided the lowest vendor's quote fully conforms to the terms and conditions of the agency's

specifications and the State of New Jersey Terms and Conditions. Should the lowest quote fail to

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fully conform, the quote shall be deemed "non-responsive" and shall be ineligible for award. Award

can be made only to a "responsive" vendor, i.e., a vendor whose quote fully complies with the terms

and the conditions of the agency's specifications and the State of New Jersey Terms and

Conditions. However, an agency can "bypass" the lowest responsive vendor in favor of a higher

priced responsive vendor, if the agency determines that the higher priced responsive vendor's

quote better serves the State's interest. If the agency makes an award to a vendor other than the

low cost responsive vendor, the agency must document, with substantive justification, the selection

of the selected vendor. In the event of either a finding that a vendor's quote is non-responsive, or

a bypass, the Agency Approval Officer must notify the non-responsive vendor and/or any bypassed

vendor in writing of the reason for the non-responsive determination, or bypass determination.

C. AGENCY DEBARMENT, SUSPENSION AND DISQUALIFICATION ACTIONS: Pursuant to

Executive Orders #34 (1976) and #189 (1988), debarment, suspension and disqualification are

measures which shall be invoked by the State to exclude, or render ineligible, certain persons from

participation in contracts and subcontracts with the State. Prior to award, it is the agency’s

responsibility to review the State of New Jersey Consolidated Debarment Report at

http://www.state.nj.us/treasury/revenue/debarment/index.shtml. The agency should also consider

reviewing other State’s debarment lists, as well as the Federal debarment list, when federal funds

are utilized in the purchase.

D. TIE QUOTES: Should identical pricing be offered by more than one responsive vendor, and the

quality of the supply or service offered is identical, the agency shall, with full documentation of its

actions, apply the following factors, listed in order of priority, in determining the vendor to which the

award will be made:

1. Tie-breaking provision(s) set forth in the quote;

2. A usable cash or volume-based discount that renders one quote more favorably priced;

3. Delivery advantage, specifically shorter proposed timeframes for delivery and/or closer

proximity to the point of delivery;

4. Active registration as a small business at the time of quote opening as an approved small

business with the Department of the Treasury unit responsible for administering the State’s

small business registration program, or Veteran-owned business as defined in N.J.S.A. 52:32-

49, and;

5. In-State location.

E. SOLE SOURCE: If only one source can provide the supply, or service, a memorandum of sole

source justification must be written and signed by the Agency Approval Officer. The determination

is relatively simple: a demonstrable need which can be satisfied by only one vendor. A vendor

that is “best qualified” is not the only vendor who can provide the supply or service. An

accompanying letter from the vendor must also be placed in the DPA file indicating why this is the

only vendor that can provide the supplies or services.

F. BRAND NAMES: Any reference to a brand name must be followed by the language "or functional

equivalent”. The agency must provide relevant and appropriate specifications to all vendors to

permit the submission of competitive proposals. It is essential that all vendors be given the same

information to maintain an equal competitive footing among vendors.

NO.: 23-09-DPP

ORIGINATING

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G. EMERGENCY DPA PURCHASES: In cases of life, safety and health emergencies, when the

public exigency requires the immediate delivery of the supply, or service, and time does not permit

competitive prices to be obtained from the required number of vendors, a single quotation is

permitted. Telephone quotations are also acceptable for emergency purchases. A memorandum

of the particular public exigency that precluded the solicitation of quotations from the required

number of vendors must be prepared and signed by the Agency Approval Officer and made part

of the DPA file.

H. RECORD RETENTION/AUDIT: Pursuant to N.J.S.A. 52:25-23(c), records of all purchases made

shall be maintained by the agency and shall include proper documentation that the purchase was

competitively awarded, where required. The agency shall make available to the Director, DPP,

upon request, all documents relating to the solicitation and award of the purchase, including but

not limited to, all quotations and purchase orders. Files must be made available for public

inspection upon request (under the supervision of a responsible agency employee) and retained

for a period of seven years. Files are also subject to audit by Treasury’s Office of Management

and Budget (“OMB”), the Office of Legislative Services (“OLS”) and DPP’s Contract Compliance

and Audit Unit (“CCAU”). Agencies must maintain records showing that price competition was

solicited from the required number of vendors for all DPAs exceeding $1,000, except those verified

and documented as either emergencies or sole source by the agency.

I. AGENCY/VENDOR DISPUTE: In the event of a protest or dispute between an agency and a

vendor regarding a DPA selection, the vendor shall be provided due process via review by the

agency Director of Administration, or Fiscal Officer. If the matter cannot be resolved by the agency,

the Assistant Director of CCAU will conduct a review and make a determination in accordance with

N.J.A.C. 17:12-3.

The State Contract Manager, or Fiscal Officer, is also responsible to formally report, to the Assistant

Director of CCAU, using the CC-36 Formal Complaint form, all instances when deliverables, i.e.

supplies and/or services do not comply with the contract specifications, or scope of work contained

in the quote request. Variances from contract pricing shall be reported in this same manner to

ensure that State and other using agencies receive the supplies and/or services at the pricing

established at the time of contract award.

J. FORMS: All forms, except Business Registration Certificates, are available on the DPP website,

including the Information Sheet and Checklist for Waivers and Delegated Purchasing Authority

(DPA) Transactions located at http://www.state.nj.us/treasury/purchase/forms.shtml. The agency

must review all forms for completeness and acceptability. Questions relating to the acceptability

of completed forms can be directed to the DPA contact identified within this Circular. All original

forms or screen prints from NJSTART, with the exception of the Affirmative Action Employee

Information Report, shall be made part of the agency's DPA file for the particular purchase. The

Employee Information Report (Form AA-302) and the required $150.00 processing fee may be

electronically

submitted

the

vendor

https://www.state.nj.us/treasury/contract_compliance/index.shtml or mailed to the Department of

the Treasury, Division of Purchase and Property, CCAU, P.O. Box 206, 33 W. State Street,

Trenton, New Jersey, 08625-0206. A copy of the vendor’s Certificate of Employee Information

Report, or Federal Letter of Approval verifying it is operating under a federally approved or

sanctioned Affirmative Action Program, or a screen print of the vendor’s profile in NJSTART

indicating the vendor has a valid Certificate of Employee Information Report, shall be made part of

the agency's DPA file for the particular purchase.

This is the opportunity summary page. It provides an overview of this opportunity and a preview of the attached documentation.

Date	Title
01.31.2022	Special Notice – DPA Threshold

Special Notice – DPA Threshold

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