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POLICY ON SUBCONTRACTOR AND SUB-CONSULTANT SUBSTITUTION (New Jersey Schools Development Authority)

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Request for Substitution NJSDA FORM RFS (1/2016)
POLICY ON SUBCONTRACTOR AND SUB-CONSULTANT SUBSTITUTION
32 EAST FRONT STREET
P.O. BOX 991
TRENTON, NJ 08625-0991
609-943-5955
The New Jersey Schools Development Authority (SDA) takes seriously its commitment to
ensuring fairness to all project subcontractors and sub-consultants. As such, the subcontractors
and sub-consultants identified in bids and proposals may only be replaced for legitimate business
reasons and in accordance with SDA procedures and procedures outlined below. In addition,
contractors and consultants shall not substitute a small business enterprise (SBE) unless the
substitution is for legitimate business reasons and in accordance with the SDA's rules, Affirmative
Action and Set Asides in Authority-Financed School Facility Projects, N.J.A.C. 19:39-4 and the
procedures adopted in accordance therewith.
Subcontractor Substitution - For Sub Contractors/Sub Consultants named on Form A
A contractor/consultant shall make no substitution of any subcontractor or sub consultants named
in its bid proposal or identified by the contractor as a participating SBE subcontractor/sub
consultants in SBE Form A, Schedule of SBE Participation for Contractors/Consultant, without
first submitting a request for substitution in writing to the SDA with complete justification for the
request prior to the substitution. Additionally, a contractor must have the written approval of the
SDA before such a substitution can be made, regardless of the reason for the substitution.
Contractors shall not substitute the subcontractor/consultant named in its bid proposal
subcontractor, except upon a determination by the SDA that just cause exists to support the
substitution (again, providing documentation substantiating proposed change). Furthermore, a
contractor shall not terminate for convenience SBE subcontractor/subconsultant named in its bid
proposal or an SBE subcontractor and perform the work of the terminated subcontractor with its
own forces or those of an affiliate, without the SDA's prior written consent.
If a contractor must substitute an SBE subcontractor, the contractor shall make a good faith effort
to find another SBE subcontractor to perform the same contract dollar amount (or a greater
amount) of work as had been allocated to the original SBE subcontractor.
Subconsultant Substitution - For Vendors on Form B
A vendor shall make no substitution of any vendor named in its proposal or identified by the
consultant as a participating SBE vendor in SBE Form B, Schedule of SBE Participation, without
first submitting a request for substitution in writing to the SDA with complete justification for the
request prior to the substitution. The consultant must have the written approval of the SDA
before such a substitution can be made, regardless of the reason for the substitution.
Vendors shall not substitute a vendors named in its proposal, except upon a determination by the
SDA that just cause exists to support the substitution.. Furthermore, a vendor shall not terminate
for convenience a sub-vendor, an SBE subconsultant and supply the goods and services of the
terminated sub-vendor with its own forces or those of an affiliate, without the SDA's prior written
Request for Substitution NJSDA FORM RFS (1/2016)
consent. If a vendor must substitute an SBE sub-vendor, the vendor shall make a good faith
effort to find another SBE sub-vendor to perform at least the same dollar amount of work as had
been allocated to the original SBE sub-vendor.
Sanctions
Failure to follow the proper substitution procedures will result in the imposition of sanctions by
the SDA. Because the SDA cannot and will not pay contractual services that are not performed,
or contractual obligations that are not met, the SDA shall reduce the contractor's or consultant's
compensation by a maximum of one and a half percent of the contract price by either
withholding all or part of future payments or by reducing the amount of retainage otherwise due
for release to the contractor or consultant upon contract completion. NJSDA may also exercise
any and all other remedies available to it under the terms of its contract with the contractor,
including its option to declare the contract in breach and terminate said contract. The
performance evaluation of a contractor or consultant will also be adversely and negatively
affected by noncompliance with the hiring and subcontracting requirements set forth in its
contract with the NJSDA and the substitution procedures outlined above.
Review of Request for Substitution
All subcontractor and sub-vendors substitutions will be reviewed to ensure compliance with
contractual obligations. Substitution of SBE's will receive additional review by the SDA's
Contractor and Workforce Compliance Division to ensure that contractors and consultant
continue to meet the 25% set-aside goals of the SBE program.
Reporting of Improper Substitution
To help the NJSDA ensure that its program goals are met and to ensure fairness to all project
subcontractors and sub-vendors, we request that anyone with information regarding the improper
substitution of any subcontractor or sub-vendor notify the SDA Project Manager. Information
should also be submitted to Karon Simmonds, NJSDA Risk Management & Vendor Services
Unit at, (609) 858-5360.
Request for Substitution NJSDA FORM RFS (1/2016)
Contact Name
Prime Contractor's Name:
Address:
NJSDA Contract Number:
, hereby requests the substitution of
Prime Contractor
, the designated/actual SBE subcontractor/
Current SBE Firm
with offices at:
with offices at:
I have attached the replacement designee's valid SBE Certificate and signed NJSDA Form C -
Confirmation Statement of SBE Status and Bid Price. I have read the NJSDA Policy on
Subcontractor and Sub-Consultant Substitution. In accordance therewith, the reason(s) for this
SBE substitution request is (are) as follows:
sub-consultant, and a Category
Small Business Enterprise firm (SBE)
with
Small Business Enterprise firm (SBE)
sub-consultant, and a Category
, a new SBE subcontractor/
New SBE Firm
NJSDA RISK MANAGEMENT & VENDOR SERVICES UNIT
REQUEST FOR SBE SUBCONTRACTOR/SUB-CONSULTANT SUBSTITUTION
Tel No.:
32 EAST FRONT STREET
P.O. BOX 991
TRENTON, NJ 08625-0991
609-943-5955
Request for Substitution NJSDA FORM RFS (1/2016)
Page 2
CERTIFICATION
, understands that the NJSDA will
Prime Contractor
verify the reasons provided for replacement of the SBE subcontractor/sub-consultant, which is the
will base its decision upon all the facts presented from all sources and will render its decision within
seven (7) days of receipt of all documents and information pertinent to this matter.
NOTE:
Contradictory, incomplete or inadequate information will require such further
review, attestation, certifications and other documentation as deemed necessary
by the NJSDA to render its decision
I hereby certify that the foregoing statements made by me, and/or the documents and information
provided with this Request for SBE Subcontractor/Sub-Consultant Substitution, are true and
accurate. I am aware that if any of the foregoing statements made by me, and/or documents or
information provided with this Request for SBE Subcontractor/Sub-Consultant Substitution are
false, I am subject to punishment, pursuant to applicable Statutes and Regulations.
Contractor Signature:
Date
Printed name & Title:
Date
Signed:
Printed Name:
Yes No
SDA Approval
Email Address
also understands that the NJSDA
object of substitution.
Prime Contractor
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POLICY ON SUBCONTRACTOR AND SUB-CONSULTANT SUBSTITUTION (New Jersey Schools Development Authority)

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Completed 21 July 2020

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