Local Public Contracts – How GT could be avoiding following the law

The Township does not have its own money. Every dollar it spends comes from the hard-earned money of taxpayers. Because of this, spending should be handled with the utmost care. To ensure responsible spending, laws exist to prevent local governments from overspending or misusing public funds.

Under New Jersey law, any contract exceeding a threshold set by the Governor must be publicly advertised through a Request for Proposal (RFP), Request for Quote (RFQ), or similar process. This promotes fair competition and helps ensure that public funds are spent efficiently. Each municipality operates differently, with varying qualification levels for procurement. In Gloucester Township (GT), we have a Qualified Purchasing Agent (QPA). While this designation certifies an individual’s qualifications, it does not guarantee optimal decision-making.

As of 2023, the bid threshold in New Jersey for municipalities with a QPA is $44,000. These thresholds are periodically adjusted based on economic factors, with the next scheduled review set for July 1, 2025.

Financial Concerns in Gloucester Township

Due to Gloucester Township’s borrowing practices, certain financial decisions have raised concerns. One example is the potential misuse of borrowing to create the appearance of financial stability. This is comparable to an individual in financial distress obtaining a loan to claim they have funds available.

At the February 10, 2025, council meeting, Tom Cardis proposed borrowing roughly $11 million. During this meeting, he also presented a justification for purchasing a Grinder and Grappling Hook for $1.4million, claiming it would save the township $400,000 annually by eliminating outsourcing costs. To verify this claim, I submitted an Open Public Records Act (OPRA) request for documentation, which can be reviewed by [CLICKING HERE].

In speaking with a Public Works employee, I learned that a previously used machine was allegedly damaged due to misuse by former employees. According to reports, some employees intentionally fed metal pipes and other debris into the machine to avoid work, ultimately rendering it inoperable.

Possible Bid Law Evasion

If a township wanted to circumvent bidding laws, it could do so by splitting payments to a vendor into amounts just below the bid threshold. There are indications that this may have occurred with the outsourcing of the brush pile removal in Gloucester Township.

Removing a brush pile is a single job, even if it takes multiple days to complete. Treating each day’s work as a separate project would be akin to claiming that ongoing roadwork at the I-295/Route 42 interchange consists of thousands of individual projects rather than a single, large-scale undertaking. Take that example 1 step further and say that laying the asphalt is a different job than moving the dirt.

By not putting this job out for competitive bidding, there is a risk that contracts may be awarded in ways that benefit a select few rather than the public as a whole. Laws exist to protect taxpayers from such practices, ensuring transparency and accountability in municipal spending.

In this case, the job appears to have been broken down into two main tasks, each further divided into four separate invoices, totaling eight invoices for what is essentially one job. Later, two additional invoices were added, bringing the total to ten. Notably, each invoice is just below the bid threshold. One company charged for grinding, while another charged for debris removal.

Note below how in 2023, the invoice was for 25%, but in 2024 the dollar amount stays the same while the percentage of the job goes down, which in turn would add an additional $42,900 to the vendor.

Seeking Accountability

In the coming weeks, it will be interesting to see how officials justify dividing one job into ten separate invoices. While there could be various explanations for this approach, Occam’s Razor suggests that the simplest explanation is usually the correct one.

I reached out to both companies involved. Stella Contracting has not responded, while Bergholz confirmed they handle debris removal but provided no further details. I am awaiting additional responses and will update this article as more information becomes available.