Public contracts are meant to be awarded through a fair and transparent bidding process to ensure the best value for taxpayers. However, when officials manipulate contract values to avoid competitive bidding, it can lead to wasteful spending, favoritism, and a lack of accountability. One way this happens is through bid splitting—a practice that can cost taxpayers significantly more money in the long run.
What is Bid Splitting?
Bid splitting occurs when a municipality or government agency breaks up a single contract into smaller parts, each falling below the public bidding threshold. By doing this, they can award contracts directly to vendors of their choice instead of opening the process to competitive bidding. This not only undermines transparency but also allows potential overpricing and favoritism.
Why is This a Problem?
- Higher Costs – Competitive bidding is designed to drive costs down. When contracts are awarded without this process, taxpayers may end up paying more than necessary for services.
- Lack of Transparency – Public bidding ensures that contracts are awarded fairly. By splitting bids, officials can steer contracts toward preferred vendors, bypassing oversight.
- Potential Legal Violations – In many cases, bid splitting is against the law. The Local Public Contracts Law in New Jersey is intended to prevent such practices and ensure fair competition.
- Reduced Accountability – When contracts are not publicly advertised, the decision-making process becomes less transparent, making it harder for watchdogs and taxpayers to scrutinize spending.
How It Might Be Happening in Gloucester Township
Recent financial activity in Gloucester Township raises concerns that bid splitting may be occurring. In a recent case, a single brush pile removal project was allegedly broken down into ten separate invoices, each conveniently falling just below the public bidding threshold. Instead of a competitive bidding process, the work was divided between multiple invoices and vendors, raising red flags about the legality and fairness of the transactions.
What Can Be Done?
If bid splitting is occurring, it is important to take action:
- Demand Transparency – Local officials should provide clear documentation on why contracts are divided.
- File Complaints – Residents can submit concerns to the New Jersey Attorney General’s office or the State Comptroller for further investigation.
- Public Awareness – The more people who understand the issue, the harder it becomes for questionable practices to continue unchecked.
Public contracts should serve the public good, not special interests. As taxpayers, we have the right to demand that our money is spent wisely, fairly, and within the bounds of the law. Bid splitting, if left unchecked, erodes trust in government and increases the financial burden on residents. It’s time to hold officials accountable and ensure transparency in municipal spending.
