Operation of Centralized Purchasing in New Jersey

• Author: Joseph M. Coyle
• DOI: 10.1177/000271622411300139
• Published date: 01 May 1924
• Date: 01 May 1924
• Subject Matter: Articles

OPERATION OF CENTRALIZED PURCHASING IN NEW JERSEY
291
and ledger papers, so a choice is some-
40-1,000 square inches and substance
times presented between a lightweight
weights on this basis in steps of 10 and
high-grade paper and a heavier weight
25 pounds.
lower grade paper.
The weights of bonds, linens, ledgers
LARGE SAVINGS POSSIBLE IN
and flat writings are expressed by the
STANDARDIZING FORMS
weight of a ream of 500 sheets 17 x 22,
this weight being called the substance
It is difficult to express quantita-
number.
tively the savings possible in standard-
The standard substance numbers
izing forms. The increased facility
adopted by the National Paper Trade
in handling and reduction in invest-
Association April 17, 1917 are 13, 16,
ment cannot be measured, but the
20, 24, 28, 32, 36, 40 and 44.
actual reduction in printing bills may.
As the substance weights of other
A saving of at least 20 per cent may
classes of paper are based on other sizes,
be made in paper costs and 10 per cent
the National Paper Trade Association
is small for the printing costs. Thou-
and the American Paper and Pulp
sands of dollars have been saved in
Association have recommended the
small organizations and in the case of
adoption of the plan proposed in 1922
one railroad over $~.00,000 was saved
by S. L. Willson, special paper expert
and New
York State reduced its print-
of the Bureau of Standards. This plan
ing bill $453,000 through standardiza-
proposes the use of a sheet size 25 x
tion.
Operation of Centralized Purchasing in New Jersey
By JOSEPH M. COYLE
Assistant State Purchasing Agent, New Jersey State Purchasing Department
BY a statute enacted in 1916, the ever, upon application made and for
power to purchase all supplies,
sufficient reason, may exempt any
material and equipment for use of or
other items from purchase through the
to be used by all state boards, com-
centralized department, or may exempt
missions, departments, institutions or
all items for any particular sub-division
other subdivisions of the state govern-
of the state government.
ment of New Jersey, is vested in the
The statute provides that the State
State House Commission, consisting of
House Commission shall execute its
the Governor, State Treasurer and the
provisions through the State Purchas-
State Comptroller.
ing Agent appointed by the Governor
This power is exclusively vested, the
for a period of five years, which ap-
only statutory exceptions made being
pointment has to be confirmed by the
purchases of material for the construc-
state Senate. It also provides that all
tion or maintenance of highways, for
other assistance needed in this work be
the construction of, additions to or
furnished from the competitive classi-
alterations of buildings, and for the
fied list of the Civil Service Commis-
construction
and
maintenance of
sion.
bridges.
The power to purchase carries with it
The State House Commission, how-
the authority to make any and all rules

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292
THE ANNALS OF THE AMERICAN ACADEMY
or regulations necessary for the opera-
A WORKING BASIS
tion of the statute. It also provides
for the use of
At
any and all laboratories,
the outset, it was determined, as a
apparatus or technical personnel that
matter of policy, to follow as closely as
may be deemed necessary to properly
possible the procedure in force in pur-
carry on the work of purchase, and the
chasing for the various state agencies
State House Commission has the fur-
prior to the enactment of this statute.
ther authority to fix periods for which
Accordingly, the advisory board was
all agencies must make known their
organized and divided into groups, each
requirements, to standardize and clas-
group having allotted to it a certain
sify all items to be purchased, to con-
portion of the work, making all the
struct or lease and maintain warehouses
necessary arrangements and prepara-
or store-rooms, and to change, alter,
tions for the purchase of the items so
add to or substract from any applica-
allotted. When all of the items, which
tion for purchase made by any sub-
numbered in excess of 3,000, were
division of the state government which,
finally classified, the divisions were as
for the purposes of the act, are desig-
follows:
nated as state agencies. It is also
1. Food Supplies
provided that each agency may have
2. Clothing Supplies, Material and
one representative on an advisory
Equipment
board, which board shall advise and
3. Household Supplies, Material and
co-operate with the State House Com-
Equipment
mission in all matters of purchase,
4. Medical and Surgical Supplies,
adoption of standards or preparation of
Material and Equipment
specifications. In the event that any
5. Farm, Stable and Grounds Sup-
item requested for purchase does not
plies, Material and Equipment
meet with the approval of the State
6. Fuel, Light and Power Supplies,
House Commission, the agency re-
Material and Equipment
questing such purchase may be given
7. Repairs Supplies, Material and
a hearing to show the necessity for such
Equipment
purchase. No money may be paid out
8. Miscellaneous Supplies, Material
of the state treasury for any purchases
and Equipment
made unless in accordance with the
provisions of this
The first
statute, and
periods were fixed, the nec-
any
contracts for purchase made contrary
essary applications filed and proposals
solicited
to its provisions
through newspaper advertis-
are void and without
effect.
ing. It was soon learned, however,
that this method was not the most
In order to qualify for appointment,
practicable nor economical. This was
the Purchasing Agent had to have
due to the fact that the sources of sup-
practical purchasing experience in ei-
ply were restricted to the area of circu-
ther private or public employ, and this
lation of the various newspaper
requirement was met in the appoint-
publications and, consequently, after
ment of the first Purchasing Agent in
the first year, the Department availed
April, 1916, whose...