Comptroller: Parsippany-Troy Hills’ $1.3 Million Renovation of Golf Club Violated Procurement Laws
Parsippany-Troy Hills’ $1.3 Million Renovation of Golf Club Violated Procurement Laws
Office of the State Comptroller says Parsippany-Troy Hills improperly used the “emergency” exception and hired a vendor without seeking competitive bids.
PRESS CONTACT: Pamela.Kruger@osc.nj.gov
TRENTON—The Township of Parsippany-Troy Hills violated New Jersey procurement law when it paid a vendor nearly $1.3 million to repair and renovate a municipally owned golf club without seeking competitive bids, according to a new report by the New Jersey Office of the State Comptroller.
OSC’s investigation—initiated after receiving an anonymous tip—found that Parsippany improperly used an “emergency exception” to bypass public bidding requirements when there was no emergency. This occurred when it hired a general contractor to repair and renovate parts of a clubhouse at the township-owned Knoll Country Club in 2020 and 2021.
Under New Jersey’s Local Public Contracts Law (LCPL), municipalities that have qualified purchasing agents, such as Parsippany, are required to publicly advertise and solicit bids if the contracts are valued at over $44,000. Local governments are permitted to use “emergency” contracts, foregoing the public bidding process, only when addressing true emergencies involving imminent public health and safety threats.
Although the improvements to the clubhouse took place during the COVID-19 pandemic, OSC found that none of the repairs and renovations directly addressed imminent risks to public health and safety. Additionally, Parsippany failed to comply with state law and its own procurement rules requiring that it document the need for the emergency contract and have the emergency contract put before the Township Council for a public vote. It could not produce any written documentation showing the then-Business Administrator had ever even approved the renovation project, as legally required.
“Procurement laws were enacted to safeguard public funds by fostering competition and reducing the risk of wasteful spending,” said Acting State Comptroller Kevin Walsh. “Circumventing these requirements increases the risks of fraud, waste, and abuse and undermines the public’s trust in government.”
In response to seeing a draft of this report, Parsippany said it agreed with OSC’s findings that the town violated state and local procurement rules and noted that the township “has separated with all employees” involved. Additionally, Parsippany said it would conduct an internal training to ensure procurement laws and rules are followed.
On March 22, 2020, one day after Governor Murphy issued a “Stay-at-Home” order due to the COVID-19 outbreak, the Township authorized a contractor to start mold and water remediation without seeking any other quotes, OSC found. Three months later, the Township authorized the same contractor to begin demolishing and rebuilding the clubhouse turrets, again without seeking competitive bids. A few months after that, the contractor began renovating the clubhouse bar and grill room, eventually converting it into a public bar and restaurant.
The total bill was nearly $1.3 million, all of it for work performed as an “emergency” and without the benefit of public bidding, according to OSC’s report.
OSC found—and Parsippany now agrees—that none of the conditions, including the mold and water damage, warranted the use of the emergency exception; since the building was closed to the public, the mold was not posing an imminent risk to the public.
Parsippany is not the only local government found by OSC to have improperly used an emergency contract during the pandemic. Gloucester County improperly awarded a $5 million “emergency” road construction contract in 2020. Another OSC report, in 2024, also found that Essex County overused emergency contracts in administering a $40 million vaccination program.
“Under the law, emergency contracts should be used sparingly,” said Walsh. “A pandemic, a hurricane, or any other disaster can not be used as a catch-all excuse to avoid competition and requirements that protect taxpayer funds.”
It also is possible that Parsippany might have gotten a better deal for taxpayers if it had given other vendors an opportunity to bid, as the law required. The Township put out for public bid two other improvement projects at the golf club. In both cases, it received multiple proposals at a range of prices.
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