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Vendor Preference


Take the Survey


Citizens of Lakeland, we would like to invite you to participate in our newest Citizen Perspectives Survey: Vendor Preference that proposes local vendors bidding on City projects/services are allowed a price differential based on percentage points. The Lakeland City Commission is considering a policy change that would allow local vendors receive bid awards even though their pricing may be higher. For example, if a vendor from outside the local jurisdiction submitted the lowest responsible bid and a local vendor submitted a higher bid that was within the allowable percent points of the lowest bid, the local vendor would get the contract.


Objective

To gather input from Lakeland citizens and businesses regarding proposed changes to the City of Lakeland’s Local Preference Policy.

A “local preference” occurs when a Lakeland business is favored over non-Lakeland businesses in the public bidding process for reasons not directly related to the bid itself, typically to support the local economy.  

Background

Approximately 29 years ago, the Lakeland City Commission approved a Local Preference Policy that when competitive bids were received for the purchase of, or contract for, goods or services, with persons, firms or corporations whose principal place of business is located within the City limits, the City may give an additional allowance: 

  • The allowance is that preference given to local companies cannot exceed 2% of the bid price of the non-local vendor up to a maximum of $10,000, and
  • Local persons, firms or corporations be defined as those that maintain a place of significant business activity within the municipal boundaries of the City.

For example, XYZ Company, Inc., a vendor based in Savannah, GA is the low bidder for the construction of a new Recreation building for $400,000.  Jim’s Can-Do Enterprises, Inc., a vendor based in Lakeland submits a bid for $408,000. The bid award would be to Jim’s Can-Do Enterprises, Inc. for $408,000, as they are a local vendor within Lakeland City limits and their bid price is within 2% of low bidder ($400,000 x 2% = $8,000 which is the difference between the two bids).

Considered Changes

The City Commission is considering the following changes to the above policy:

  • 10% local preference for purchases or contracts up to $250,000

    In the example above, if XYZ Company, Inc. was the low bidder for the purchase of a Solid Waste Collection truck for $175,000 and Jim’s Can-Do Enterprises, Inc. submits a bid for $192,000, the bid award would be to Jim’s Can-Do Enterprises, Inc. for $192,500, as they are local and within 10% of the low bidder ($175,000 x 10% = $17,500 which is the difference between the two bids).

  • 7.5% local preference for purchases or contracts between $250,001 - $500,000

    If XYZ Company, Inc. was the low bidder for the purchase of two (2) Solid Waste Collection trucks for a total of $300,000 and Jim’s Can-Do Enterprises, Inc. submits a bid for $322,500, the bid award would be to Jim’s Can-Do Enterprises, Inc. for $322,500, as they are local and within 7.5% of the low bidder ($300,000 x 7.5% = $22,500 which is the difference between the two bids).

  • 5% local preference for purchases or contracts between $500,001 - $1 million

    If XYZ Company, Inc. was the low bidder for the renovation of a Water Department building for a total of $600,000 and Jim’s Can-Do Enterprises, Inc. submits a bid for $630,000, the bid award would be to Jim’s Can-Do Enterprises, Inc. for $630,000, as they are local and within 5% of the low bidder ($600,000 x 5% = $30,000 which is the difference between the two bids).

  • 2.5% local preference for purchases or contracts between $1,000,001 and $2 million

    If XYZ Company, Inc. was the low bidder for the construction of a soccer facility for the Parks & Recreation Department for a total of $1,500,000 and Jim’s Can-Do Enterprises, Inc. submits a bid for $1,537,500, the bid award would be to Jim’s Can-Do Enterprises, Inc. for $1,537,500, as they are local and within 2.5% of the low bidder ($1,500,000 x 2.5% = $37,500 which is the difference between the two bids).

Additionally, the above preferences would be extended to persons, firms or corporations with Lakeland zip codes.