Municipal As Needed Contract

[AnilArkais]

My company recently won a bid from a local municipality to run Cat5e cables on a as needed basis with the contract lasting a year and started on September 20, 2015. The price given was per cable run with assumptions on length. The municipality just contacted me and said they would like to run many more cable runs then initially anticipated so they would like me to see if I can give them a lower rate since it is more runs at once. They also said that they would be contacting 2 other companies to get pricing from them since it is more runs.
They also would like me to give them a quote on the next highest grade of the same type of cable quoted which is Cat6 serving the same purpose.
Can they go with either of the other 2 companies if their price comes in lower then mines on the original cable type quoted in the contract?
Can they go with either of the 2 companies if their price comes in lower if they decide to go with the higher cable type not technically in the original contract?

Thanks for your help.

 

[justalayman]

It will depend on exactly what your contract with them says and for that you need to take it to s local attorney who can read it and give you his opinion as to whether the municipality can do what they are proposing.

 

[quincy]

My company recently won a bid from a local municipality to run Cat5e cables on a as needed basis with the contract lasting a year and started on September 20, 2015. The price given was per cable run with assumptions on length. The municipality just contacted me and said they would like to run many more cable runs then initially anticipated so they would like me to see if I can give them a lower rate since it is more runs at once. They also said that they would be contacting 2 other companies to get pricing from them since it is more runs.
They also would like me to give them a quote on the next highest grade of the same type of cable quoted which is Cat6 serving the same purpose.
Can they go with either of the other 2 companies if their price comes in lower then mines on the original cable type quoted in the contract?
Can they go with either of the 2 companies if their price comes in lower if they decide to go with the higher cable type not technically in the original contract?

Thanks for your help.

What is the name of your state, AnilArkais?

I agree with justalayman that what can and can't be done without breaching the contract the municipality has with your company depends on the terms of your contract. It is possible that the terms of your contract allow for a voiding of the contract if the requirements for the job changes.

Either read your contract carefully or, better, have an attorney in your area review the contract in its entirety, to see where your company stands legally.

 

[AnilArkais]

I am located in NJ.
The contract says nothing about voiding the contract for term changes. But it does make a reference to contract not to exceed $17,500 as per NJSA 40A:11 and P.L. 2005, c271.

 

[quincy]

I am located in NJ.
The contract says nothing about voiding the contract for term changes. But it does make a reference to contract not to exceed $17,500 as per NJSA 40A:11 and P.L. 2005, c271.

There have been several changes in municipal contracts this year, including an increase in the bid threshold for some contracting units. I do not know if or how that plays into your questions and I am not sure what political contributions have to do with your contract (P.L. 2005, c271).

I really think you need to have your contract reviewed by a professional in your area so that you can get adequate answers to your questions. Following are two links to New Jersey procurement news, updated in October of this year, and you might find some of the information provided helpful:

http://www.nj.gov/govconnect/news/procurement/

http://www.nj.gov/dca/divisions/dlgs/lnfs/15/2015-20.pdf

 

[AnilArkais]

I am also looking into getting a local attorney to look over the contract. The contract itself is only 1 page but it does reference that NJSA document which has a lot of information.
I did see the increase in the bid threshold but currently the amount of work proposed will not even exceed $10,000 so I am not even worried about getting close to that number at this point.
I looked through the whole NJSA document and saw nothing that allows them to use another company for the work that we are in contract with them for.

 

[quincy]

I am also looking into getting a local attorney to look over the contract. The contract itself is only 1 page but it does reference that NJSA document which has a lot of information.
I did see the increase in the bid threshold but currently the amount of work proposed will not even exceed $10,000 so I am not even worried about getting close to that number at this point.
I looked through the whole NJSA document and saw nothing that allows them to use another company for the work that we are in contract with them for.

It is good that you are looking into getting a local attorney to look over the contract specifics. Municipal contracts are dependent on so many factors that it is difficult to provide advice in a forum setting.

Good luck, AnilArkais.