Each YEAR, the state awards millions of dollars in contracts without advertising, and while chasing this business can be tough for small and midsize businesses, experts say the opportunities often are worth the trouble.
The government office that oversees most of the state’s purchases last year paid more than one-third of the $1.8 billion in contracts without any public advertising. The state issues “waivers” from advertising for a variety of reasons, including when a utility or similar company is the only one that provides a service.
However, many contracts that are not advertised still are bid on by multiple companies, state officials said. Consultants who work with businesses encourage them to reach out to state officials to pursue these unadvertised contracts.
Division of Purchase and Property Acting Director Alice K. Small said the state is seeing “a demonstrable reduction in the number of waivers,” although statistics for past the 12 months aren’t yet available.
The process for pursuing advertised competitive contracts is straightforward: Businesses must register with the state, and small businesses can register to pursue small-business set-asides. Then, businesses must keep track of advertised contracts, in newspapers, trade publications, on the state Web site or through e-mail.
Pursuing a contract that is not advertised is more complicated.
If the purchasing staff members in a state agency believe that a contract should be given a waiver, they must submit an application that is reviewed by the state attorney general’s office and a procurement analyst, according to state officials. After these reviews, the state treasurer makes a judgment about granting a waiver. Only contracts above $29,000 are subject to competitive bidding.
Businesses seeking contracts that aren’t advertised still have a chance if they have registered with the state, but they must be contacted by state officials.
After the waiver is granted, the agency awarding the contract must seek quotes. Small said agencies look at the list of businesses with government-purchasing codes that cover the area of the contract. In addition, they review the list of businesses registered with the state Office of Supplier Diversity, including small-, minority- and women-owned businesses, officials said.
While the state’s Division of Minority and Women Business Development focuses on competitive contracts, its director, Francis Blanco, said officials encourage business owners to be aware of all contracts.
Henry Savelli, a consultant for companies seeking state contracts and a former Treasury purchasing official, said it is impossible to judge just from the percentage of contracts that are given waivers whether these waivers are inappropriate.
“You have to look at each waiver on its merit,” said Savelli, who owns Henry Savelli & Associates, in Trenton. For instance, one area where state officials may have more discretion in offering waivers is in consulting services, he said.
Savelli said companies that want to be considered for quotes should work to become familiar with the purchasing agents for the different state departments, as many state agencies maintain a list of vendors.
While state officials declined to respond to Savelli’s suggestion, “it’s not harmful to reach out” to officials, Small said.
Business owners should keep tabs on when waiver contracts in their field of expertise are expiring, Savelli said.
Savelli said small-business owners can have difficulty finding their way through the state process.
“They think the state is a morass of paperwork and bureaucracy,” he said, adding that businesses can learn to navigate the system. “It is confusing — it is intimidating.” |
