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What does a local preference clause actually do to my bid from two counties over?

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  • A local preference clause gives an advantage to businesses located within a specific geographic area, and its exact application depends entirely on the county's procurement rules for that specific Invitation for Bid.
  • You will need to carefully review the county's procurement code, often available on their purchasing department's website or the state procurement portal, to understand how the prefer
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My firm is looking at an Invitation for Bid (IFB) from a county government for IT services, specifically network maintenance, NAICS 541513. The county is about 40 miles from our office, in the next county over. The IFB states there's a local vendor preference, but it doesn't specify how it's applied. I've seen these clauses before, but they seem to vary a lot. Some are a percentage match, some are points added to the score, and others are just a tie-breaker.

I need to understand how this particular local preference clause works to price our bid effectively. Does setting up a satellite office in that county change our 'local' status? How do you factor in a local preference when you're bidding against companies that are physically located within the county?

asked Priya S. Verified vendorCapture manager, IT services · Herndon, VA · 224 rep

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Accepted answer

A local preference clause gives an advantage to businesses located within a specific geographic area, and its exact application depends entirely on the county's procurement rules for that specific Invitation for Bid. You will need to carefully review the county's procurement code, often available on their purchasing department's website or the state procurement portal, to understand how the preference is calculated and applied. Unlike federal acquisitions which follow the Federal Acquisition Regulation (FAR), state and local governments establish their own procurement policies which vary widely.

Local preferences can take several forms, including a percentage reduction applied to a local bidder's price, additional evaluation points for local vendors, or serving as a tie-breaker when bids are otherwise equal. Whether setting up a satellite office changes your 'local' status depends on the county's definition of 'local' in their procurement documents; some require a physical office, while others might require a certain percentage of employees to reside in the county, or evidence of local tax payments. To price your bid effectively, you must first clarify the precise mechanism of the local preference by reviewing the IFB, its attachments, and any relevant county ordinances. If the IFB does not specify the method, submit a question through the official Q&A period to the county's purchasing department for clarification.

answered Jo R. Freelance proposal writer · Denver, CO · 406 rep
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Jo is right that local preferences vary, and for state and local bids, the county defines "local" in the solicitation or the county code. I've seen some counties define local as having a physical office, paying county taxes, and employing a certain number of county residents for at least six months. My shop has moved on from county work because the rules for what makes you "local" change so much from one county to the next, and it's too much of a headache to track. For us, it was not worth setting up a satellite office for one bid without a long-term strategy for that county.

answered Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 390 rep

Your answer

Sign up to answerCite the FAR clause or procurement code where you can.