Township of Franklin, NJ Cooperative Pricing

The Mayor of the Township of Franklin and Township Administrator are hereby authorized to enter into separate cooperative pricing agreements with the participating governmental units and said agreements shall be deemed a single agreement. A copy of the sample agreement is attached hereto and made a part hereof.[1]

SOUTHERN GLOUCESTER COUNTY COOPERATIVE PRICING AGREEMENT
This Agreement made and entered into this ____ day of 199__, by and between the Township of Franklin and _____________________, and other public bodies located within County of Gloucester or adjoining counties who choose to participate in the Cooperative Pricing System.
W I T N E S S E T H
WHEREAS, N.J.S.A. 4OA:11-11(5) specifically authorizes two or more contracting units to enter into a Cooperative Pricing Agreement for the purchase of work, materials and supplies; and
WHEREAS, the Township of Franklin is conducting a voluntary Cooperative Pricing System with other authorized contracting units within County of Gloucester or adjoining counties utilizing the administrative purchasing services and facilities of the Township of Franklin; and
WHEREAS, this Cooperative Pricing Agreement is to effect substantial economies in the purchase of work, materials and supplies; and
WHEREAS, all parties hereto have approved the within Agreement by ordinance or resolution as appropriate, in accordance with the aforesaid statute; and
WHEREAS, it is the desire of all parties to enter into such Agreement for said purposes;
NOW THEREFORE, IN CONSIDERATION OF the premises of the covenants, terms and conditions hereinafter set forth, it is mutually agreed as follows:
1.	The work, materials or supplies to be priced cooperatively may include such items as two or more participating contracting units in the system agree can be purchased on a cooperative basis.
2.	The items and classes of items which may be designated by the participating contracting units hereto may be purchased cooperatively for the period commencing with the execution of this Agreement and continuing until terminated as hereinafter provided.
3.	The Lead Agency, on behalf of all participating contracting units, shall upon approval of the System's registration and annually thereafter [(1) Either on the anniversary of the system's registration or (2) In January of each succeeding year] publish a legal ad in such format as required by N.J.A.C. 5:34-7.12 in a newspaper normally used for such purposes by it to include such information as:
	(A)	The name of Lead Agency soliciting competitive bids or informal quotations, and
	(B)	The address and telephone number of Lead Agency, and
	(C)	The names of participating contracting units, and
	(D)	The State Identification Code for the Cooperative Pricing System, and
	(E)	The expiration date of the Cooperative Pricing Agreement.
4.	Each of the participating contracting units shall designate, in writing, to the Lead Agency, the items to be purchased and indicate therein the approximate quantities desired, the location for delivery and other requirements, to permit the preparation of specifications as provided by law.
5.	The specifications shall be prepared and approved by the Lead Agency and no changes shall thereafter be made except as permitted by law. Nothing herein shall be deemed to prevent changes in specifications for subsequent purchases.
6.	A single advertisement for bids or the solicitation of informal quotations for the work, materials or supplies to be purchased shall be prepared by the Lead Agency on behalf of all of the participating contracting units desiring to purchase any item.
7.	The Lead Agency that advertises for bids or the solicitation of informal quotations shall receive bids or quotations on behalf of all participating contracting units. Following the receipt of bids, the Lead Agency shall review said bids and on behalf of all participating contracting units, either reject all or certain of the bids or make one award to the lowest responsible bidder or bidders for each separate item. This award shall result in the Lead Agency entering into a master contract with the successful bidder(s) providing for two categories of purchases:
	(A)	The quantities ordered for the Lead Agency's own needs, and
	(B)	The estimated aggregate quantities to be ordered by other participating contracting units by separate contracts, subject to the specifications and prices set forth in the Lead Agency's overall master contract.
8.	The Lead Agency shall enter into a formal written contract(s), when required by law, directly with the successful bidder(s) only after it has certified the funds available for its own needs.
9.	Each participating contracting unit shall also certify the funds available only for its own needs ordered; enter into a formal written contract, when required by law, directly with the successful bidder(s); issue purchase orders in its own name directly to successful bidder(s) against said contract; accept its own deliveries; be invoiced by and receive statements from the successful bidder(s); make payment directly to the successful bidder(s), and be responsible for any tax liability.
10.	No participating contracting unit in the Cooperative Pricing System shall be responsible for payment for any items ordered or for performance generally, by any other participating contracting unit. Each participating contracting unit shall accordingly be liable only for its own performance and for items ordered and received by it and none assumes any additional responsibility or liability.
11.	The provisions of Paragraphs 7, 8, 9, and 10 above shall be quoted or referred to and sufficiently described in all specifications so that each bidder shall be on notice as to the respective responsibilities and liabilities of the participating contracting units.
12.	No participating contracting unit in the Cooperative Pricing System shall issue a purchase order or issue a contract for a price which exceeds any other price available to it from any other such system in which it is authorized to participate or from bids which it has itself received.
13.	The Lead Agency reserves the right to exclude any items or commodity from within said system if, in its opinion, the pooling of purchasing requirements or needs of the participating contracting units is either not beneficial or not workable.
14.	The Lead Agency shall appropriate sufficient funds to enable it to perform the administrative responsibilities assumed pursuant to this Agreement.
15.	It is understood and agreed that there may be certain administrative costs attributable to serving as the Lead Agency. The participating units agree to consider these costs at a future date following the first anniversary of the Agreement and, after an analysis of these costs, may agree to develop a payment schedule, voted on by the majority of units to pay the Lead Agency an annual fee in an estimated prorated share of the administrative costs incurred by the Lead Agency.
16.	For the first year of the term of this Agreement, the Township of Franklin shall serve as the Lead Agency. For each succeeding year, the Lead Agency designation may be rotated among the System members at their discretion. The Director of the Division of Local Government Services within the State Department of Community Affairs shall be notified within 30 days of any change in the designated Lead Agency.
17.	This Agreement shall become effective on _________, 199__ subject to the review and approval of the Director of the Division of Local Government Services and shall continue in effect for a period not to exceed five years from said date unless any party to this Agreement shall give written notice of its intention to terminate its participation at least 30 days prior to the expiration of the first year or any of the succeeding four years.
18.	All records and documents maintained or utilized pursuant to terms of this Agreement shall be identified by the code number assigned by the Director, Division of Local Government Services, and such other numbers as are assigned by the Lead Agency for purposes of identifying each contract and item awarded.
19.	This Agreement shall be binding upon and enure to the benefit of the successors and assigns of the respective parties hereto.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed and executed by their authorized officials and/or officers and their respective seals to be hereto affixed the day and year above written.
TOWNSHIP OF FRANKLIN
BY: _________________		ATTEST BY:__________________
HARRY KENNEDY, MAYOR		EDWARD M. SASDELLI, ADMINISTRATOR
FOR THE PARTICIPATING UNIT
BY:___________________		ATTEST BY: __________________
(NAME AND TITLE)		(NAME AND TITLE)

[1]

Editor's Note: The sample agreement is included at the end of this chapter.