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Contents
State Contracting OpportunitiesFrequent Requirements for State ContractingContracting with the Federal GovernmentResources and Support
State Contracting Opportunities
The State of New Jersey has many contracting opportunities – everything from requests for goods (envelopes, paper, etc.) to services (information technology, building trades, design).
All businesses bidding for projects or other work with the state must be registered with the Division of Revenue and Enterprise Services (DORES) in the Department of Treasury.
Many organizations across the state issue contracts for goods, services, and construction. Below are some opportunities that colleges, universities, and other agencies may also offer contracting opportunities. Each state agency may have its own opportunities as well.
Goods and Services Related Contracts
The Division of Purchase and Property (DPP), within the Department of the Treasury, serves as the State's central procurement agency for goods and services contracts, including construction projects. Procurement is the process where the government buys goods or services from businesses. To find and be notified of goods and services bidding opportunities administered through DPP, we suggest registering at NJSTART (DPP’s eProcurement system).
DPP’s goods and services procurement brochure provides guidance on the procurement process and may also offer information that is common to other State entities that issue contracting opportunities. New Jersey’s Division of Enterprise and Revenue Services (DORES) provides specific business registration information according to your business structure.
The NJ Division of Purchase and Property publishes a list of vendor awards, which shows companies that have contracted to provide products and services to the State of New Jersey.
Property Management and Construction Related Contracts
The Department of Treasury’s Division of Property Management and Construction (DPMC) advertises its bidding opportunities on its website. DPMC procures and manages construction projects for thirteen State Departments and Agencies.
Contractors who wish to do business with the State must be classified while engineers or architects must be pre-qualified by DPMC. The classification application, Form DPMC-27, and the prequalification application, Form 48A, can be found on DPMC’s website. If you have questions, contact DPMC at (609) 633-2725.
Classified Contractor Search is a tool to search for classified contractors designed by specific trade or specialty from the DPMC.
Other State Contracting Opportunities
While NJ’s Department of Treasury leads many of the State’s contracts, most agencies share opportunities or release requests for proposals (RFPs) for work unique to their agency. The list below links directly to each agency’s page on contracting opportunities.
- Casino Reinvestment Development Authority
- NJ Dept. of Banking & Insurance
- NJ Dept. of Community Affairs
- NJ Dept. of Environmental Protection
- NJ Dept. of Health
- NJ Dept. of Human Services
- NJ Dept. of State
- New Jersey Economic Development Authority
- New Jersey Educational Facilities Authority
- New Jersey Housing and Mortgage Finance Agency
- NJ Transit Corporation
- New Jersey Turnpike Authority/Garden State Parkway
- New Jersey Schools Development Authority
- Port Authority of NY & NJ
- South Jersey Transportation Authority
- Sports and Exposition Authority
State Contracting Set-Asides for Small and Disabled Veteran-Owned Businesses
Set-aside programs reserve a certain percentage of State contract purchases for certain groups of the business community. New Jersey offers two set-aside programs:
- 25% for certified Small Business Enterprises.
- 3% for Disabled Veteran-Owned Business Enterprises.
Also, note that the State offers minority and woman-owned business certification services. Certification provides state-backed documentation of your business status, which can be beneficial in pursuing contracting opportunities at the local and federal levels, as well as in the private sector.
Understand What to Do Once Awarded a State Contract
To familiarize yourself with the types of forms that may be required to become a State contractor, you may visit the DPP forms page. However, vendors should be aware that these are the forms required for goods and services contracting with DPP and are likely all of the forms required by other contracting State entities.
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Recent Regulations and Resources
Frequent Requirements for State Contracting
- Proper Registration with the State: Your business must be formed and registered with the State.
- Capability Statement: This is a representation that your company has performed contracts that are of equivalent scope to what you are bidding on
- Surety Bonds: A surety bond ensures your completion of a job by creating a financial guarantee that another organization makes on behalf of your business. A surety bond is required for many government contracts
- A Business Registration Certificate from DORES, which will be required during any state bidding process
Surety Bonds
Surety companies want to work with businesses that have the necessary capital to support expected project costs, are in good standing with a bank, and are well-managed. Because a surety bond is a type of guarantee, obtaining one is similar to obtaining a bank line of credit--the surety companies want to know a business well before committing their own assets.
For example, if you offer construction services, a client might ask you to have a surety bond. In the event they think the work is insufficient, the client could file a claim with the surety company to pay for the cost of a new contractor to do the work.
There are a few types of surety bonds:
- Bid bonds: Provides financial assurance that the bid has been submitted in good faith and that the contractor intends to enter into the contract at the price bid
- Performance bonds: Protects the owner from financial loss should the contractor fail to fulfill the contract requirements by the terms and conditions of the contract documents
- Payment bonds: Guarantees that the contractor will pay certain labor and material bills associated with the project
Basic steps to obtain a bond include:
- Identify a bonding agent (preferably one who specializes in your particular industry). Start by speaking with your insurance agent.
- Ask people in your industry which agent obtains bonds for them.
- Visit at least 3 bonding agents. Find out what they offer and explain your firm’s marketing goal.
- Select your bonding agent and provide them with a business plan and organization chart (including resumés of key principals with a description of the largest completed jobs, including names and telephone numbers of owners, financial statements, tax returns, and bank relationships).
- Select an independent Certified Public Accountant (CPA). Bonding agents will require financial statements of your company prepared by an independent accountant. Fiscal-year-end and 6-month financial statements will be submitted regularly to your bonding agent.
The New Jersey Economic Development Authority runs a program that helps small businesses prepare to apply for surety bonds.
Small contractors who require surety bonds to perform on construction or service contracts, can apply to the U.S. Small Business Administration (SBA) for bonding under the Surety Bond Guaranty program. The SBA can guarantee surety bonds on contracts up to $2,000,000. The fee charged by the SBA for the guaranty is $6 per $1,000 of the contract amount.
New Jersey Wage Hub
The New Jersey Wage Hub is a site that allows public works contractors and public bodies (also known as contracting agencies) to submit and view certified payroll records and other information about public works contracts in New Jersey. The Wage Hub also allows contractors to submit their annual Equal Pay Act form to the Department. The Wage Hub will also allow the general public to view both certified payroll records submitted by public works contractors under the State’s Prevailing Wage Act (and Equal Pay Act).
New legislation was enacted on August 16, 2023, requiring public works contractors to submit certified payroll records online. The online application is designed to promote fair wage practices according to the Prevailing Wage Act and Diane B. Allen Equal Pay Act and make compliance easy for businesses in the state. More information about public works, prevailing wage, and certified payroll requirements is available on the NJ Department of Labor's website.
NJSTART Registration
Businesses must register with NJSTART to do business with the state. NJSTART provides:
- Direct notifications about new bidding opportunities emailed to vendors, based on the commodity codes (category numbers for goods or services) they select during registration
- An online repository for vendor forms
On NJSTART, vendors can:
- View their remittance (payments) and email addresses to ensure their accuracy and select their preferred form of payment
- See which certifications they need to do business with the State, which certifications they have, and which are missing or expired
Public Works Contracts Requirements
Contractors or subcontractors involved in state-funded construction projects must:
- Register as “Public Works Contractors” with the Department of Labor
- Establish prevailing wages based on county and job function
Contracting with the Federal Government
The General Services Administration (GSA) offers multiple contract opportunities that allow businesses to provide products and services to federal agencies. Businesses can view current contract vehicles, contracts, and vendors on their Acquisitions Solutions Navigator.
The federal government provides several set-aside programs for small businesses, including:
- U.S. Small Business Administration (SBA) Government Contracting Program
- Minority Small Business & Capital Ownership Development (8(a) Program)
- Historically Underutilized Business (HUBZone) Program
U.S. Small Business Administration’s (SBA) Government Contracting Program
The Government Contracting Program of SBA ensures that small businesses receive their fair share of federal contracts. SBA’s programs include the establishment of small business set-asides, certification of small businesses to perform on federal contracts, and opportunities in subcontracting to large business prime contractors.
The Government Contracting Program of SBA works to make sure small businesses get at least 23% of all federal contracting dollars.
Additionally, the government tries to award a certain percentage of all federal prime contracting dollars to small businesses each year called Set-asides, that meet certain socio-economic conditions. They include Minority-owned, Women-owned, Service-disabled veteran-owned, and HUBZone-certified small businesses.
SBA also provides information and assistance to firms that are interested in obtaining federal contracts.
For additional assistance, contact SBA representatives at locations in New Jersey or Washington, D.C.
SBA staff can be contacted for additional information at the following locations:
Lakehurst, NJ: (732) 284-8064
Picatinny Arsenal, Dover, NJ: (973) 724-6574
Washington, DC: (202) 205-6459
Minority Small Business & Capital Ownership Development (MSB/COD) 8(a) Program
The 8(a) Program is SBA’s effort to promote equal access for socially and economically disadvantaged individuals to participate in the business sector of the nation’s economy.
Socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and others designated by the SBA.
The program recognizes the historical lack of equal access that minorities and other disadvantaged individuals have had to the resources needed to develop their small businesses. The program assists 8(a) approved firms to participate in the business sector and to become independently competitive in the marketplace. The assistance available includes access to federal government contracts as well as management and technical assistance programs.
The Small Business Administration provides additional details on the benefits and eligibility for each certification. You can also contact them at (973) 645-2531.
Historically Underutilized Business (HUB) Zones
The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company business must also maintain a “principal office” in one of these specially designated areas. Here is a map of HUBZones in New Jersey.
Resources and Support
New Jersey Institute of Technology (NJIT) Procurement Technical Assistance Center (PTAC) provides free counseling in addition to training and technical resources to New Jersey-based businesses, including those looking to successfully identify and bid on government contracts. Its resources help clients navigate the procurement process.