Local Preference Anyone?
I’ve got a question for you. How much is a local business address worth? This Thursday we will be voting on a local preference issue that pertains to the Sammons Aquatic Center. The low bid of $1,553,183 came in from an Austin contractor. The second low bidder is located in Temple. Their bid exceeds the low bid amount by $40,373.00, which is 2.6% higher than the low bid. Both contractors have good reputations and are planning on using a lot of local sub-contractors. In the old days this was a cut and dry deal… we’d go with the low bidder. But as with anything these days there is a wrinkle. The City of Temple has the ability to award the work to a local contractor if the bid is within 5% of the low bid through the local preference legislation adopted by the State of Texas and the City of Temple. So back to my original question… Is having a local address worth a $40,000 premium. Some people think so others don’t. I look forward to a vigorous discussion at the Council meeting. Feel free to forward me any wisdom you would be willing to share. Click here to view the agenda item with all of the supporting documentation. It may take a few seconds more than usual to download this PDF due to its size.
Tags: Construction contracts, local economy, Local Preference