DOCUMENT

POL - Memo RE Local Preference Laws 2003

  • YEAR CREATED: 2003
  • ENTITY TYPE: City/Township
  • TYPE OF DOCUMENT: POL - Policies/Procedures
The document is a memorandum from the City Manager to various city officials regarding the issue of local vendor preference. The memorandum discusses the concept of preference laws, which give advantages to certain vendors or products, and specifically focuses on local vendor preferences. It explains that local vendor preferences typically involve giving a monetary advantage to local vendors in bid comparisons. The memorandum also provides the results of a survey conducted by the Procurement Division to determine the extent of local vendor preference legislation in local governments. The survey found that the majority of agencies do not provide any type of local vendor preference. The memorandum also mentions that the annual preference survey of the National Institute of Governmental Purchasing (NIGP) reported that only 26 large cities and 12 states have local preference laws or policies. The document highlights the need for a thorough examination of the details and definitions of "local" before pursuing local preference legislation. It also discusses the administrative challenges and costs associated with implementing and verifying local preferences. The issue of reciprocity is mentioned, as some neighboring cities have added percentages to bids from cities with local preference policies. The document also raises the issue of regional cooperation and how a local preference policy may run contrary to the goals of reducing costs and increasing efficiency. The memorandum concludes with a recommendation to not adopt any form of local vendor preference based on the need for equity among vendors and obtaining the best value for city tax dollars.
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