Dictionary of Procurement Terms

Procurement laws mandating that bid prices for a preferred class of bidders be given special consideration when comparing their bid prices with those of other bidders not in the preferred class (for example, local suppliers may be given a bid preference over suppliers that are not defined as “local.”) See also: Buy Local, Local Preference.

A policy adopted by an entity that gives preference to a local bidder only if the bid is identical to a bid from a nonresident bidder, all other aspects of the bid being equal; a way to break a tie bid. Other preferences may include awarding the tie bid to a diverse or disadvantaged business or a bidder that resides within the state in which the bidding occurred.