NJ STATE CALLS OUT LAKEWOOD'S SLICK PRACTICES OF LIMITING COMPETITION IN COMPETITIVE CONTRACTING

Governing bodies are required to solicit bids for contracts above certain amounts of money. The New Jersey Local Public Contracts Law (NJSA 40A:11-4.4) provides that "the competitive contracting process shall... include all requirements deemed appropriate and necessary to allow for full and free competition between vendors; information necessary for potential vendors to submit a proposal."

However, there is also a clause in the law (NJSA 40A:11-4.5) which permits governing bodies to write their "methodology" for their proposal and to "evaluate all proposals only in accordance with the methodology described in the request for proposals."

Lakewood Township's attorneys are very slick at relying on this clause as a "loophole" to ensure that specific people win the bids without "too much" competition.

For example, the Board of Fire Commissioners write in their proposal for attorney: "The Board of Fire Commissioners... shall award a contract to the firm that best meets the needs and interests of the Board and the Fire District." Using this "methodology" the Board asserts they are free to choose an attorney "that best meets the needs and interests of the Board" even if another attorney submits a lower proposal. 

Similarly, the Lakewood Development Corporation (LDC) contracts out "consulting services." Their Request for Proposals expressly seeks applicants who possess "knowledge of non-profit corporations, the Township of Lakewood and the subject matter to be addressed under the contract... [and] have a minimum of the most recent 5 years of current experience facilitating advertising, marketing and special events in the Lakewood UEZ." The RFQ further specifies that "it is expected that applicants responding to this request for proposal will have facilities and expertise in these types of services to satisfactorily carry out the required consulting services ... to the business community." Finally, the RFQ includes a punchline that "due to the fact that the nature of effective coaching requires more often than not the physical presence of the facilitating coaches, Applicants shall be within 5 miles of Lakewood Township."

Based on this crafty wording, the LDC ensures they can award their "consulting services" contract to Lakewood Community Services Corporation (LCSC) which is headed by Rabbi Moshe Zev Weisberg. [Rabbi Weisberg also just so happens to be a board member of the LDC.]

Ditto for the Lakewood Industrial Commission (LIC). They lease The Strand to Strand Ventures which is managed by Ray Coles. Their 5-year lease solicitation, in the form of a Request for Proposals (RFP), announces very loudly that "only companies with 5 years experience in theater management need apply"! Hmm.... That sure does not sound too inclusive.

Additionally, the RFP specifies that "The Commission is not obligated to award a contract to the respondent who submits the highest price"! Hm... Why not? Seems that the Industrial Commission is purposely leaving open room to not have to accept any offers higher than the $1 per year that Strand Ventures currently pays!

Finally, just in case the first 2 items don't get their point across, the RFP continues to specify that "The Commission reserves the right to reject any and all proposals... or to abandon the project for any reason... The Commission reserves the right to enter into any contract deemed to be in the best interest of the Commission."

This quiet practice has now been noticed by Louise Davis, the Fiscal State Monitor appointed by the New Jersey Department of Education. Davis has successfully blocked the Board of Education's repeated attempts to reappoint Michael Inzelbuch to the general counsel position. One of Davis's key objections was that the Board's attempted methodology "could discourage... firms... from applying, thus limiting competition."

 

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