of New Jersey
James E. McGreevey
WHEREAS, the State of New Jersey, with the fourth highest job growth
rate in the United States over the last twelve months, is among the nation's
leaders in economic recovery; and
WHEREAS, in order to continue this economic prosperity, the State of
New Jersey supports every opportunity to attract and retain businesses,
strengthen its workforce, and build vibrant cities; and
WHEREAS, the act of corporate off-shoring can result in the relocation
of New Jersey jobs overseas; and
WHEREAS, New Jersey State departments and agencies (State contracting
agencies) procure annually billions of dollars worth of goods and services,
by contract, through public and private vendor corporations and businesses;
WHEREAS, New Jersey State government awards contracts based on a determination
of "best value," which includes an evaluation of price and may include
other factors, including, but not limited to, environmental considerations,
quality, and vendor performance; and
WHEREAS, the State of New Jersey should be aware of how and where State
procurement tax dollars are spent;
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:
- Consistent with State law, the State contracting agencies shall develop
policies and procedures to ensure that all vendors seeking to enter into
any contract in which services are procured on behalf of the State of
New Jersey must disclose:
- The location by country where services under the contract will
be performed; and
- Any subcontracting of services under the contract and the location
by country where any subcontracted services will be performed.
The State of New Jersey shall not award a contract to a vendor that
does not provide all disclosures required above.
- The State of New Jersey shall not award a contract to a vendor that
submits a bid proposal to perform services, or have a subcontractor perform
services, pursuant to the contract at a site outside the United States,
unless one of the following conditions is met:
- The vendor or its subcontractor provides a unique service, and no
comparable domestically-provided service can adequately duplicate the
unique features of the service provided by the vendor or its subcontractor;
- A significant and substantial economic cost factor exists such that
a failure to use the vendor's or subcontractor's services would result
in economic hardship to the State of New Jersey; or
- The Treasurer determines that a failure to use the vendor's or subcontractor's
services would be inconsistent with the public interest.
- If, during the term of the contract, the contractor or subcontractor
has declared that services will be performed in the United States and
proceeds to shift services outside of the United States, the contractor
shall be deemed in breach of contract, unless the State contracting agency
shall first have determined in writing that extraordinary circumstances
require the shift of services or that a failure to shift the services
would result in economic hardship to the State of New Jersey.
- In developing the policies and procedures directed under this Order,
the State contracting agencies must consider the requirements of New Jersey's
contracting laws, the best interests of the State of New Jersey and its
citizens, as well as applicable federal and international requirements.
- The provisions of this Order do not apply to contracts for academic
instruction, educational or research services entered into by the State's
public institutions of higher education.
- If any section, subsection, sentence, clause, phrase or other portion
of this Order is, for any reason, declared unconstitutional or invalid,
in whole or in part, by any court of competent jurisdiction, such portion
shall be deemed severable, and such unconstitutionality or invalidity
shall not affect the validity of the remaining portions of this law, which
remaining portions shall continue in full force and effect.
- This Order shall take effect immediately.
GIVEN, under my hand and seal this 9th day
of September in the Year of Our Lord, Two
Thousand and Four, and of the Independence
of the United States, the Two Hundred and Twenty-Ninth.
/s/ James E. McGreevey
/s/ Mark J. Fleming
Deputy Chief Counsel to the Governor