At the end of June, the Dallas City Council approved a local bid preference measure
that allows them to favor local businesses for certain projects.
Recent changes to state law: The ordinance
takes advantage of recent changes to Texas state law that expands the
circumstances where municipal governments are allowed to use local preference.
Last year, the Texas legislature
removed population caps restricting the size of cities and counties allowed to
implement certain local preferences and raised the maximum amount for purchases
using local preference from $100,000 to $500,000.
Different preferences for different contracts: The new city law
gives the city council discretion to award certain contracts to local bidders
whose bid is not the lowest, but is within a certain percentage of the low bid.
To use local preference on a given project, the city council must make a written
determination that it will give the city the best combined benefit considering
both project price and economic impact from using a local company. The law
allows providing the following percentage advantages to local bidders for
contracts of the given types and amounts:
Goods | General Services | Construction Services | |
$50,000 - $100,000 | 5% | 5% | 5% |
$100,000 - $500,000 | 5% | 5% | none |
above $500,000 | 3% | none | none |
Mike Purdy's Public Contracting Blog© 2012 by Michael E. Purdy Associates, LLChttp://PublicContracting.blogspot.com
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