12.0210 Local preference.

Cite as [A.S.C.A. § 12.0210]

(a) It is the purpose of this section to establish preferences to local bidders in awarding procurement contracts, in order to promote local business development and activity.

(b) In awarding contracts for the procurement of construction, bids from off-island bidders may not be accepted where the contract value is estimated at 1.5 million dollars or less. In awarding all other contracts for the procurement of construction for which qualifying bids are received from both local bidders and off-island bidders, the bids must be evaluated so as to give preference to responsive, responsible, and reasonable local bidders by application of the following schedule of local add-on percentages to all bids submitted by the lowest responsive, responsible, and reasonable off-island bidder.

Contract Value Local Add-On Percentage

More than 1.5 million dollars 10%

(c) In awarding contracts for procurement of goods or services for which qualifying bids are received from both local bidders and off-island bidders, the bids must be evaluated so as to give preference to responsive, responsible, and reasonable local bidders by application of the following schedule of local add-on percentages to the bids submitted by the lowest responsive, responsible, and reasonable off-island bidder.

Contract Value Local Add-On Percentage

3-0-up to $10,000 25%

More than $10,000 up to $50,000 12%

More than $50,000 up to $100,000 10%

More than $100,000 up to $200,000 5%

More than $200,000 -0-

(d) If by the addition of the add-on percentage according to subsections (b) and (c) of this section the bid submitted by the lowest responsive, responsible, and reasonable local bidder is equal to or less than the bid of the lowest responsive, and reasonable off-island bidder, then the local bidder must be awarded the contract.

(e) Procurement requirements may not be artificially divided or combined so as to circumvent the provisions of this section.

(f) The Governor may suspend or reduce a local preference in this section, if he finds that this action is desirable or necessary in the public interest as a result of financial or economic conditions affecting directly or indirectly the government generally, for a period or periods not exceeding 18 months in total. The preferences suspended or reduced must be fully restored until permanent modifications are proposed to the Legislature. Suspension or reduction under this section is to be adopted under the Administrative Procedure Act, 4.1001 et seq.

(g) This section shall not apply to any procurement which is funded wholly or partially with federal funds.

History: 1983, PL I8-10 § 11; 1994, PL 23-16; amd 2000, PL 26-20.