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State of New Jersey
Executive Order #71

Governor James E. McGreevey

WHEREAS, N.J.S.A. 52:32-17 et seq., formally known as the Set-Aside Act for Small Businesses, Female Businesses, and Minority Business (Set-Aside Act), was impacted by the Consent Decree in GEOD v. State of New Jersey, et al., which, in part, permanently enjoins the State from setting aside contracts for bidding by only minority and women owned firms; and

WHEREAS, the Set-Aside Act recognizes the importance of small businesses to the economic health and well being of the State; and

WHEREAS, the State of New Jersey recognizes that small businesses provide it with a strong economic backbone and are vital in order for its economy to thrive; and

WHEREAS, new regulations were promulgated to conform the Set-Aside Act with the Consent Decree, and the new rules create bidding set-asides for small businesses only; and

WHEREAS, it is reasonable to anticipate that under the new regulations the number of small businesses eligible under the Set-Aside Act will increase because many of the firms formerly certified as minority and women owned businesses qualify and may now register as small businesses; and

WHEREAS, the Set-Aside Act directs that a fair proportion, but not less than 15%, of the State's total purchases and contracts for construction, property and services be placed with small businesses; and

WHEREAS, the increase in the number of small businesses eligible to participate in the small business set aside program warrants an increase in the percentage of contracts awarded to small businesses above the minimum level established in the Set-Aside Act to ensure that a fair proportion of the State's total purchases and contracts for construction, property and services is placed with small businesses;

NOW, THEREFORE, I, JAMES E. McGREEVEY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State do hereby ORDER and DIRECT:

  1. Contracting agencies shall increase the percentage of State contracting dollars that shall be set-aside for small businesses, pursuant to N.J.S.A. 52:32-17 et seq., from the minimum percentage of 15% set by law up to 25% to ensure that a fair proportion of the State's total purchases and contracts for construction, property and services is placed with small business concerns. Contracting agencies shall consult with the Commerce and Economic Growth Commission and the Department of Treasury, as appropriate, regarding the allocation of the increased percentage among the categories of small businesses set by regulation.
  2. Contracts awarded by contracting agencies under the Set-Aside Act shall comply with the statutory and regulatory requirements for the award of contacts to small businesses.
  3. This Order shall take effect immediately.

GIVEN, under my hand and seal this 2nd day of October
in the Year of Our Lord, Two Thousand and Three, and
of the Independence of the United States, the Two Hundred
and Twenty-Eighth.

/s/ James E. McGreevey

Governor

[seal]

Attest:

/s/ Michael R. DeCotiis

Chief Counsel to the Governor

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