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Bill

A 4194

Prohibits cooperative from receiving public works contract when cooperative-approved vendor fails to pay prevailing wage; concerns cooperative purchasing agreements with other states; and permits contracting units to award certain indefinite contracts.*

2024-2025 Regular Session Introduced by John Allen and 16 co-sponsors

New Jersey bill bars cooperatives with non-compliant vendors from public works contracts while reforming interstate purchasing agreements and indefinite contracting authority.

Substituted by S3041 (3R)
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Bill Summary · A 4194

Legislative bill overview

Bill A 4194 would prevent cooperatives from receiving public works contracts if their approved vendors fail to pay prevailing wages, while also addressing cooperative purchasing agreements across state lines and allowing contracting units to award certain indefinite-term contracts. The bill has been amended and substituted during the legislative process, most recently by Senate Bill S3041 in June 2025.

Why is this important

Prevailing wage requirements are a significant labor protection and cost factor in public works projects. This bill attempts to close a potential loophole where cooperatives could avoid accountability for vendor wage compliance, which affects both worker protections and public procurement integrity. The provisions on interstate cooperative purchasing and indefinite contracts could also streamline government contracting efficiency while raising cost implications.

Potential points of contention

  • Vendor accountability scope: Determining how far up the supply chain cooperative responsibility extends and whether vendors can be held accountable for sub-contractors' wage compliance
  • Interstate commerce concerns: Restrictions on out-of-state cooperative purchasing agreements may conflict with interstate commerce principles or limit cost-saving opportunities for municipalities
  • Indefinite contract parameters: The specifics of which contracts qualify as "indefinite" and their duration limits remain unclear and could be subject to interpretation disputes
  • Compliance burden: Cooperatives may face increased administrative costs monitoring vendor wage compliance across multiple jurisdictions

Compiled from official sources — confirm details with the bill’s official record.

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