(a) Purpose. The intent of this section and the preference system established hereunder is to benefit the local economy. For the purposes of this preference system, "local bidder" shall be deemed to be a resident business of the City of Xenia, Ohio, or Xenia Township, Greene County, Ohio, and "local bid" shall mean a bid submitted by a local bidder.
(b) System of Preferences.
(1) Subject to the system of preferences as set forth in this Chapter, contracts for the purchase of all equipment, materials, supplies, insurance, or services other than construction services for public improvements shall be awarded to the lowest and best bidder.
(2) Prior to awarding such a contract, the City shall evaluate the bids received to determine whether a bid response is from a local bidder. Information furnished in the bid response shall be relied upon but may be verified in making the determination. Any bid response that does not meet this requirement may be removed, except in those circumstances where the City determines compliance would result in the payment of an excessive price or acquiring an inferior product.
(c) Local Bidder Preference.
(1) Following the determination required by division (b)(2) of this section, the bids shall be evaluated so as to give preference to local bidders.
(2) Where the preliminary analysis of bids identifies the apparent low bidder as a local bidder, the City shall proceed with its standard contract award procedures. Where the preliminary analysis of bids identifies that no local bidders submitted any bids, the City shall proceed with its standard contract award procedures without regard to this system of preferences.
(3) Where the preliminary analysis identifies the apparent low bidder as one other than a local bidder, the City shall apply the following preferences:
A. A credit equal to three percent (3%) of the lowest bid submitted by a non-local bidder will be given to local bidders for contracts that are fifty thousand dollars ($50,000.00) or less.
B. A credit equal to two percent (2%) of the lowest bid submitted by a non-local bidder will be given to local bidders for contracts that are between fifty thousand and one dollars ($50,001.00) and two hundred fifty thousand dollars ($250,000.00).
C. A credit equal to one percent (1%) of the lowest bid submitted by a non-local bidder will be given to local bidders for contracts that are greater than two hundred fifty thousand ($250,000.00) or ten thousand dollars ($10,000.00), whichever is less.
(4) If sufficient competition does not exist, or if it is determined that the prices or bids submitted by the local bidders are excessive, or where it is determined that selection of the lowest local bidder will result in a disproportionately inferior product or service, the City may cancel the bid in its entirety, may rebid the intended contract, or may award the contract to the lowest and best nonlocal bidder. For the purposes of this section, a price is excessive if the lowest price or bid submitted by a local bidder exceeds the apparent low bid submitted by a nonlocal bidder by more than five percent (5%).
(d) Other Considerations.
(1) If, after applying the credits provided in division (c)(3) of this section, the analysis of bids still identifies the apparent low bidder as one other than a local bidder, the City shall consider the following factors:
A. Whether the goods or services can be procured from a local bidder in sufficient and reasonably available quantities and of satisfactory quality;
B. Whether a local bid has been submitted;
C. Whether the lowest local bid offers a price deemed to be an excessive price;
D. Whether the lowest local bid offers a disproportionately inferior product or service.
(2) Where the City determines the selection of the lowest local bidder will not result in an excessive price or disproportionately inferior product or service, the City may award the contract to the lowest local bidder at the bid price quoted.
(e) Not a Limitation. Where the City otherwise determines that it is not advantageous to award the contract to a local bidder, the City may proceed award the contract to the lowest and best nonlocal bidder.
(f) Notice to Bidders; Bidder Certifications. When the preference system outlined in this section is to be applied on any bid, the City shall:
(1) Indicate in its invitations to bid that it will apply a local bidder preference, as outlined in this section, in the evaluation and award of bids received.
(2) Assure that the bid packets require all bidders to complete and attest to a local bidder's certification form, which shall be provided in the bid packet and returned with the bidder's bid.
(g) Exceptions. The provisions of this section do not apply to the following contracts or situations:
(1) State and federally funded projects, where prohibited by state or federal law, regulations, or rules;
(2) Emergency procurement situations;
(3) Direct awards;
(4) Sole source purchases;
(5) Purchases made through joint purchasing programs or State cooperative purchasing programs;
(6) Requests for proposals or requests for qualifications; and/or
(7) When there are no local bidders that provide the particular goods or services being sought.
(Ord. 12-36. Adopted 07/26/12; Ord. 2021-23. Adopted 12/29/21)