New Hampshire Considers In-State Bidding Preference

A task force of the New Hampshire legislature is examining whether the state should adopt bidding preferences for New Hampshire firms competing against out-of-state firms on state contracts. The task force will report their recommendations on December 1, 2010.

Low Bid:  Current New Hampshire law calls for officials to award contracts based only on the lowest price. 

Reciprocal Laws May Hurt NH Firms:  Some New Hampshire officials have expressed concerns about the state adopting an in-state preference because of the negative impact it may have on New Hampshire firms bidding in other states.  Most states have adopted a reciprocal preference law that calls for adding to an out-of-state firm's bid a percentage equal to the amount of the preference that firm would receive in its own state.  For a list of states with reciprocal preference laws, visit the website of the Oregon State Procurement Office.

Tie-Bid Preference Approved:  As a step toward approving in-state preference, New Hampshire requires, as of September 18, 2010, that a contract to be awarded to an in-state firm for certain contracts if the price is the same as that offered by an out-of-state firm.  Ties in bids, however, do not occur very frequently.

To read an article about the subject from the Union Leader, click here.