Keith Mack
Ohio's laws on contract bidding include a preference for local businesses and products. The state's Revised Code and Administrative Code contain provisions for the Buy Ohio and Buy American programs, which give preference to products manufactured or mined in Ohio or the United States. This is reflected in the competitive bidding process, where bidders with a significant economic presence in Ohio are treated as if their products were produced in-state or they were domiciled in Ohio. The state also has criteria for determining whether a product qualifies as a Buy Ohio Product and whether a bidder qualifies as having a significant Ohio economic presence. These laws aim to support local businesses and the state's economy, but they also include provisions to ensure that the state receives the best value for its purchases.
| Characteristics | Values |
|---|---|
| Competitive bidding | Required for purchases, leases, or constructions exceeding $50,000 |
| Competitive bidding exemption | If the cost is less than $100,000 but at least $50,000, the county or contracting authority must solicit informal estimates from at least three potential contractors |
| Contracting authority | Determines the criteria for leasing property, including size and location |
| Contracting authority | Negotiates with prospective lessors to obtain the best and lowest price, considering fair market value and potential costs |
| Contracting authority | Must give at least two weeks' notice before opening bids |
| Contracting authority | Must include a statement that the notice is posted on their website, along with the internet address and instructions on how to access |
| Contracting authority | Must publish a general description of the contract subject, including the time and place where plans and specifications can be obtained or examined |
| Contracting authority | Must publish the existence of a system of preference for products mined and produced in Ohio and the US |
| Preference | Given to contractors with their principal place of business in Ohio, over those from states that provide in-state contractor preference |
| Preference | Given to bidders and offerors with a significant Ohio economic presence, or whose products are produced in Ohio or a border state |
| Preference | Given to goods mined or produced in the US if no preferred suppliers are available |
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What You'll Learn
- Non-Ohio businesses can qualify for contracts if they are located in a state that imposes no greater restrictions on Ohio businesses
- Competitive bidding is not required if the estimated cost is less than $100,000 but $50,000 or more
- Ohio Revised Code section 125.09 discusses bidding preferences
- The Buy Ohio program permits bids with products produced in Ohio or a border state, even if they are up to 5% more expensive
- The Ohio University purchasing department is committed to the efficient and economical acquisition of external goods and services
Non-Ohio businesses can qualify for contracts if they are located in a state that imposes no greater restrictions on Ohio businesses
Ohio's Revised Code and Administrative Code contain provisions that give preference to local businesses in contract bidding. These include the Buy Ohio program, which allows bids containing products produced in Ohio or a border state to be selected even if they exceed prices offered in out-of-state bids by no more than five percent.
However, non-Ohio businesses can qualify for contracts if they are located in a state that imposes no greater restrictions on Ohio businesses. This is outlined in the Revised Code, which states that non-Ohio businesses may qualify for a contract as long as they are located in a state that does not place more restrictions on Ohio businesses selling products or services to agencies in that state than Ohio places on non-Ohio businesses.
The criteria and procedures for this are prescribed by the director of administrative services and aim to recognize the level and regularity of interstate commerce between Ohio and its border states. This ensures that non-Ohio businesses located in bordering states are not excluded from being awarded contracts.
Additionally, bidders and offerors with a significant Ohio economic presence, in terms of the number of employees or capital investment, shall qualify for awards of contracts on the same basis as if their products were produced in Ohio or if the bidder or offeror was domiciled in the state. This further extends the opportunity for non-Ohio businesses to qualify for contracts, provided they have a substantial presence and contribution to the Ohio economy.
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Competitive bidding is not required if the estimated cost is less than $100,000 but $50,000 or more
Competitive bidding is not a requirement for contracts with a value of less than $100,000 but $50,000 or more. However, the price must be justifiable and fair. This means that the price must be proven to be reasonable, which is typically done by obtaining three quotes.
There are some exceptions to this rule. For instance, contracts for professional services are not legally required to be competitively bid, as long as the price is justifiable. Additionally, an applicant under the Healthcare Connect Fund Program with total undiscounted eligible expenses of $10,000 or less for a single year is exempt from competitive bidding requirements, provided the contract term is one year or less.
In the case of a proposed contract over $750,000 but not exceeding $15 million, the authority to make decisions rests with the advocate for competition for the procuring activity designated under specific sections of the law. For a contract exceeding $15 million, or for DoD, NASA, and the Coast Guard, not exceeding $100 million, the decision-making authority lies with the head of the procuring activity or a designated official of a certain rank.
Sealed bidding and competitive proposals are both acceptable procedures for competition requirements. Contracting officers solicit sealed bids when time permits, the award will be based on price and related factors, discussions with responding offerors are unnecessary, and multiple sealed bids are expected. On the other hand, competitive proposals are requested when sealed bids are inappropriate, and discussions with offerors are necessary due to differences in areas like law, regulations, and business practices.
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Ohio Revised Code section 125.09 discusses bidding preferences
Bidders claiming the preference outlined in this chapter must designate in their bid whether the product is mined, excavated, produced, manufactured, raised, or grown in the United States, and is either a Buy Ohio product, or that the bidder qualifies as having a significant economic presence in the state or a bordering state. The criteria and procedures also recognise the level of interstate commerce between Ohio and its border states. Non-Ohio businesses may qualify for a contract award as long as they are located in a state that imposes no greater restrictions on Ohio businesses.
Additionally, the code states that a non-Ohio business shall not bid on a contract for state printing if their state excludes Ohio businesses from bidding on similar contracts. There are also criteria and procedures to qualify bidders whose manufactured products are produced in other states or North America but have a significant Ohio economic presence. Bidders with a significant Ohio economic presence qualify for a contract award on the same basis as if their products were produced in Ohio.
The director of administrative services may also grant waivers of the requirements of division (B) of section 125.11 of the Revised Code on a contract-by-contract basis if compliance would not be in the state's best interest.
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The Buy Ohio program permits bids with products produced in Ohio or a border state, even if they are up to 5% more expensive
The state of Ohio does have a preference law for contract bidding, which is defined by section 125.11 of the Revised Code and section 123:5-1-06 of the Administrative Code. This law is known as the "Buy Ohio program".
The Buy Ohio program permits bids with products produced in Ohio or a bordering state to be selected for contract awards, even if they are up to 5% more expensive than out-of-state bids. This is to encourage the use of local businesses and to support the state's economy. The program also specifies that bidders from states bordering Ohio qualify on an equal basis as an Ohio bidder, provided the border state does not levy a preference against Ohio bidders.
The criteria for determining whether a product is considered a "Buy Ohio Product" are prescribed by the director of administrative services, who also outlines the procedures for qualifying bidders located in states bordering Ohio. The director of administrative services also prescribes criteria for determining whether a product is mined, excavated, produced, manufactured, raised, or grown in the United States, as well as information to be submitted by bidders regarding the nature and location of their products.
Ohio University is required to participate in the Buy Ohio program and applies these preferences when making purchases under their direct purchase authority. The university is also a member of the Inter-University Council Purchasing Group (IUC-PG), a purchasing consortium composed of state-assisted colleges and universities, technical schools, and community colleges. Through the IUC-PG, members jointly establish and utilize price agreements, and the university's purchasing department is committed to the efficient and economical acquisition of quality external goods and services.
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The Ohio University purchasing department is committed to the efficient and economical acquisition of external goods and services
Ohio University's purchasing department follows specific guidelines to ensure the efficient and economical acquisition of goods and services. For instance, the department must publicly bid on purchases exceeding Revised Code limits or the university's board of trustees' competitive bidding thresholds. Additionally, the Safety department must approve the purchase of all chemicals of interest, as defined by the Department of Homeland Security, and special agents and toxins, as defined by the Center for Disease Control.
The university also requires purchases from preferred and contracted suppliers, who are awarded through a competitive bid process for specific goods or services. This process ensures that the university acquires quality goods and services while reducing overall costs. Ohio University is committed to complying with state laws, regulations, and requirements, including section 125.081 of the Revised Code, and reconciling them with relevant federal laws and regulations.
Furthermore, Ohio University prioritizes maintaining economical, competitive, and ethical purchasing practices. The university aims to provide timely and efficient supply while ensuring that purchasing decisions are based on the best value, taking into account factors such as quality, cost, service, and technical capability. Ohio University also participates in programs such as the Small Business Development Program and the Veterans-Owned Business Program, reflecting its commitment to supporting diverse businesses.
In summary, the Ohio University purchasing department is dedicated to efficient and economical practices, ensuring the best value for the university while complying with legal requirements. Their commitment to external goods and services is evident through their participation in consortia, adherence to bidding processes, and focus on maintaining ethical and competitive practices.
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Frequently asked questions
Yes, Ohio has a preference law in contract bidding, as outlined in the Ohio Revised Code and the Administrative Code.
The preference law in contract bidding in Ohio, also known as the "Buy Ohio" program, gives preference to bids containing products produced in Ohio or a border state. These bids can be selected even if they exceed prices offered by out-of-state bids by up to five percent.
No, the preference law does not apply to all contracts in Ohio. It specifically applies to contracts administered by the state and its institutions, such as universities and colleges.
Yes, there are exceptions to the preference law. For example, competitive bidding is not always required and may be exempted for specific reasons outlined in the Ohio Revised Code. Additionally, when preferred suppliers are unable to meet the business needs, a purchasing exception may be requested.
The preference in contract bidding in Ohio is determined by the contracting authority, which develops requests for proposals and specifies the criteria that will be considered. The contracting authority then negotiates with prospective suppliers or lessors to obtain the best and lowest price, considering various factors such as fair market value and relocation costs.
