One of the criticisms of local bid preference laws is that a local firm may be awarded a project at a higher
price than the out of area firm because their bid price was within the
bid preference percentage. At a time when government agencies are
struggling financially, paying more for projects, even if it promotes
use of local businesses doesn't seem like sound public policy.
Match the low bid: Some public agencies have addressed the concern about increased costs associated with preference programs by offering a bid percentage preference to local bidders who must then match the low bid from an out of area bidder in order to be awarded the project. This results in the agency paying no more than the low bid.
South Carolina: Rock Hill, South Carolina has established a bid preference program for local bidders who receive a 5% preference, capped at $25,000. But in order to be awarded the project, the local bidder must match the low bid of a non-local bidder in order to be awarded the project. For more information, click here.
For more than 40 years, I served as a contracting manager for major public agencies in Washington State (City of Seattle, Seattle Housing Authority, and University of Washington), and as an independent consultant providing consulting and training to more than 100 public agencies, industry associations, and businesses across the country on the managing the complex world of public procurement and contracting. In March 2015, I discontinued regular postings to Mike Purdy’s Public Contracting Blog to focus on speaking and writing about U.S. presidential history. My book, "101 Presidential Insults: What They Really Thought About Each Other - and What It Means to Us" was published in June 2019. In August 2022, my second book on the presidents was published. It's entitled "Presidential Friendships: How They Changed History." Please visit www.PresidentialHistory.com where you can sign up for a free email subscription to my Presidential History Blog. I am now entering into a new season of life managing my health as I deal with a lethal and incurable cancer (metastatic prostate cancer). I have written a candid and vulnerable memoir about my wild medical adventure titled “Reflections of an Uncertain Journey.” All my books are available through Amazon, Barnes & Noble, other online outlets, and in local bookstores.
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