State of New Jersey
Executive Order #129

Governor James E. McGreevey

WHEREAS, the State of New Jersey, with the fourth highest job growth rate in the United States over the last twelve months, is among the nation's leaders in economic recovery; and

WHEREAS, in order to continue this economic prosperity, the State of New Jersey supports every opportunity to attract and retain businesses, strengthen its workforce, and build vibrant cities; and

WHEREAS, the act of corporate off-shoring can result in the relocation of New Jersey jobs overseas; and

WHEREAS, New Jersey State departments and agencies (State contracting agencies) procure annually billions of dollars worth of goods and services, by contract, through public and private vendor corporations and businesses; and

WHEREAS, New Jersey State government awards contracts based on a determination of "best value," which includes an evaluation of price and may include other factors, including, but not limited to, environmental considerations, quality, and vendor performance; and

WHEREAS, the State of New Jersey should be aware of how and where State procurement tax dollars are spent;

NOW, THEREFORE, I, JAMES E. McGREEVEY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:

  1. Consistent with State law, the State contracting agencies shall develop policies and procedures to ensure that all vendors seeking to enter into any contract in which services are procured on behalf of the State of New Jersey must disclose:

    1. The location by country where services under the contract will be performed; and

    2. Any subcontracting of services under the contract and the location by country where any subcontracted services will be performed.

    The State of New Jersey shall not award a contract to a vendor that does not provide all disclosures required above.

  2. The State of New Jersey shall not award a contract to a vendor that submits a bid proposal to perform services, or have a subcontractor perform services, pursuant to the contract at a site outside the United States, unless one of the following conditions is met:
    1. The vendor or its subcontractor provides a unique service, and no comparable domestically-provided service can adequately duplicate the unique features of the service provided by the vendor or its subcontractor; or

    2. A significant and substantial economic cost factor exists such that a failure to use the vendor's or subcontractor's services would result in economic hardship to the State of New Jersey; or

    3. The Treasurer determines that a failure to use the vendor's or subcontractor's services would be inconsistent with the public interest.

  3. If, during the term of the contract, the contractor or subcontractor has declared that services will be performed in the United States and proceeds to shift services outside of the United States, the contractor shall be deemed in breach of contract, unless the State contracting agency shall first have determined in writing that extraordinary circumstances require the shift of services or that a failure to shift the services would result in economic hardship to the State of New Jersey.

  4. In developing the policies and procedures directed under this Order, the State contracting agencies must consider the requirements of New Jersey's contracting laws, the best interests of the State of New Jersey and its citizens, as well as applicable federal and international requirements.

  5. The provisions of this Order do not apply to contracts for academic instruction, educational or research services entered into by the State's public institutions of higher education.

  6. If any section, subsection, sentence, clause, phrase or other portion of this Order is, for any reason, declared unconstitutional or invalid, in whole or in part, by any court of competent jurisdiction, such portion shall be deemed severable, and such unconstitutionality or invalidity shall not affect the validity of the remaining portions of this law, which remaining portions shall continue in full force and effect.

  7. This Order shall take effect immediately.

GIVEN, under my hand and seal this 9th day
of September in the Year of Our Lord, Two
Thousand and Four, and of the Independence
of the United States, the Two Hundred and Twenty-Ninth.

/s/ James E. McGreevey




/s/ Mark J. Fleming

Deputy Chief Counsel to the Governor