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11.0649 Local Bidder Preference and Evaluation.

Cite as [A.S.A.C. § 11.0649]

A. For construction procurement where the contract value is estimated by LBJ at $50,000 or less, the procurement shall be set aside and restricted to local bidders only. Bids received from off-island bidders will be rejected.

B. For all construction procurement where the contract value is estimated by LBJ to exceed $50,000, bids from off-island bidders shall be evaluated after bid opening so as to give preference to responsive, responsible and reasonable local bidders by application of the following schedule of add-on percentages to the bid amount submitted by the lowest responsive, responsible, and reasonable off-island bidder:

1. Estimated value is between $50,000 and $100,000 add 10%.

2. Estimated value is between $100,001 and $200,000 add $10,000 plus 5%.

3. Estimated value exceeds $200,000 add $15,000.

C. For all procurement of goods or service (other than construction for which qualifying bids are received from both local bidders and off-island bidders) the bids shall be evaluated after bid opening so as to give preference to responsive, responsible and reasonable local bidder by application of the following schedule of add-on percentages to the bid amount submitted by the lowest responsive, responsible and reasonable off-island bidder:

1. Estimated value up to $10,000 add 25%.

2. Estimated value $10,001 to $50,000 add $2,500 plus 12% of amount in excess of $10,000.

3. Estimated value $50,001 to $100,000 add $7,300 plus 10% of the amount in excess of $50,000.

4. Estimated value $100,001 to $200,000 add $12,300 plus 5% of the amount in excess of $100,000.

5. Estimated value in excess of $200,000 add $17,300.

D. If, after the addition of the applicable add-on percentage amount, the bid submitted by the lowest responsive, responsible, and reasonable local bidder is equal to or less than the evaluated bid (bid plus applicable add-on percentage) of the lowest responsive, responsible, and reasonable off-island bidder, then the local bidder shall 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 LBJ Chief Executive Officer may suspend or reduce a local preference set forth in this Section if he finds that such action is desirable or necessary in the public interest as a result of financial or economic conditions affecting directly or indirectly LBJ generally, for a period or periods not exceeding 18 months unless permanent modifications are proposed to the LBJ Board of Directors, or, if appropriate, the Legislature of American Samoa. Suspension or reduction shall be adopted under the Administrative Procedure Act, 4.1001 ASCA et. seq.

History: Rule 8, eff. March 3, 1999.