It is almost heartbreaking for me to sign a contract for a city construction project when the contractor is from out of town. Add to that the fact that a local contractor missed the bid by just one or two percent. This happens regularly and millions of city dollars are at stake.
In my 30 years as an attorney in Flagstaff I represented many contractors. I know how much risk they take in their business and how much time they put into their bids. I know how they put their income back into the local economy and how tough it can be to keep a crew employed year-round. To take a large amount of city money and give it to a Phoenix contractor really hurts.
The current City Council has repeatedly discussed the possibility of giving local contractors a five percent preference in their bids. We were close to voting on such an ordinance when Tucson got sued for its local preference law. We decided to hold off until that lawsuit is resolved and we know whether it is legal to give a preference. Also, if federal funds are involved there cannot be a local preference.
In the meantime, we are looking at some related issues:
(1) Is it legal to give a local company the option to match a lower bid from an out-of-town company?
(2) Is it legal to give a local company preference because of the “carbon impact” an out-of-town company makes by driving to Flagstaff?
(3) Is it legal to prefer a company that has more disabled or disadvantaged workers?
Local preference comes up not only in construction but also in any purchase by the city. We want to spend our city dollars with local companies. Sometimes it is hard to define what “local” means. Sometimes a local company just does not have the skill or product needed. And sometimes the law gets in the way. But, we recognize the need to “shop local.” FBN
Jerry Nabours is the mayor of the City of Flagstaff.