Can contracts be divided to evade bidding requirements?

The correct answer emphasizes that contracts should not be divided to evade bidding requirements because combining them allows for a comprehensive assessment of costs and thresholds. This principle is based on the need for transparency, competition, and fair pricing in public contracting processes. By aggregating contracts, governments ensure that all potential bidders have an equal opportunity to participate, thereby fostering a competitive purchasing environment.

When contracts are split, it can undermine the integrity of the bidding process by artificially lowering the perceived value of each individual contract under the bidding threshold, which could lead to the exclusion of competitive bids and restrict accountability. Therefore, understanding the requirement to combine contracts serves to uphold the fairness and integrity of the procurement system in public purchasing practices, as mandated by New Jersey regulations.

The rationale behind this approach helps to prevent manipulation of the procurement process and ensures that public funds are utilized efficiently, maintaining public trust and adherence to legal standards.