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Can a small business located out-of-state bid on county or city contracts?

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My firm is based in Columbus, Ohio, and we've been looking at a janitorial contract (NAICS 561720) for a county building in Kentucky. It's an Invitation for Bid we found on their state procurement portal. We do a lot of county and school work here in Ohio, but I've always stuck to in-state bids. This Kentucky county contract looks like a good fit, but I'm worried about residency rules. I've heard some places have local preferences or even outright restrictions for out-of-state businesses. Is this a thing for county contracts? Can my Ohio company bid on this Kentucky county contract, or will we be blocked because we're not local?

asked Marcus T. Verified vendorOwner, janitorial and facilities firm · Columbus, OH · 997 rep

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Yes, your Ohio company can bid on this Kentucky county contract, but you need to check the specific county's procurement rules for any local preferences. Federal contracting rules, like the FAR, do not apply to state and local purchases. State and local government entities follow their own procurement codes, ordinances, and policies, which can vary significantly from one jurisdiction to another.

Many state and local governments have residency requirements for vendor registration, but these typically do not block out-of-state businesses from bidding. Some jurisdictions might have a local preference that adds a factor to bids from local businesses, making them appear more competitive than an out-of-state bid, but this is different from an outright ban. You need to review the specific Invitation for Bid documents, the county's procurement website, or contact their purchasing department directly to understand their specific rules for out-of-state vendors and any local preferences. They usually have a vendor guide on their state procurement portal or their county purchasing website.

answered Tom B. Construction estimator, public works · Phoenix, AZ · 516 rep
Thanks, Tom. I'll check the county's procurement site for their rules on out-of-state vendors and any local preferences. I've seen those bid adjustments on Ohio school district work, so I know what you mean. · Marcus T. ·
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Yes, your Ohio company can bid on this Kentucky county contract, but you will need to register as a vendor with the county first. Tom is correct that state and local governments follow their own procurement codes, and registration is usually a separate process from SAM.gov. My county's purchasing office required all vendors to complete a vendor registration form, provide a W-9, and sometimes a business license or tax ID, regardless of where they were located. These registrations are often free and can be completed through the county's purchasing website or the state's procurement portal. The Invitation for Bid documents should outline the exact registration requirements and deadlines for out-of-state businesses.

answered Helen M. Former county procurement analyst · Raleigh, NC · 406 rep
Thanks, Helen. I'll check the county's purchasing website for their vendor registration form. Do you remember if they asked for a [bid bond](https://govcon.forum/glossary/bid-bond/) on that Kentucky county job? · Marcus T. ·

Your answer

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