Sunday, May 1, 2011

Miami Considers Boosting Local Preference Law

The City of Miami may give even greater priority to local companies bidding on city projects if legislation currently on the drawing board ends up becoming law.

Existing Local Preference: Miami procurement law gives a "second chance" advantage to local bidders: if the low bid is from an out of city bidder, businesses with a "local office" are given the opportunity to match the low bid price, provided their original bid did not exceed it by more than 10%.

Proposed Change: Some city commissioners have suggested increasing the window of opportunity for local companies to match a low bid to 15%.

Concerns Voiced: While the system sounds like an all-around win for the city (local vendors get a leg up and the city still pays the lowest price), some are concerned that over time the policy may discourage competition, causing prices to creep up. "If I were a bidder outside the jurisdiction, I would be discouraged from bidding," said former Miami-Dade County manager Merrett Stierheim about the proposed increase, which he called "excessive" (as quoted in Miami Today).

More Resources:
Mike Purdy's Public Contracting Blog 
© 2011 by Michael E. Purdy Associates, LLC

1 comment:

Joseph M. Goldstein said...

The State of Florida is currently considering adding a preference for in-state contractors.