Howard Fischer
Capitol Media Services
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The state Senate has approved legislation to spell out that if there is a tie between two firms, and one is based elsewhere, the contract has to go to the Arizona operation.
Potentially more significant, Arizona companies actually could bid more than their out-of-state competitors and still get the job.
How much, though, will vary on where the competitor is based.
"I just believe if people do business in the state of Arizona, live here, reside here, pay taxes, domicile here, they ought to get preference,'' said Senate President Russell Pearce.
"All this does is take into account taxpayers who contribute to Arizona and our economic growth,'' he said. "We just simply recognize our folks (are) kind of like our family.''
Jim Mapstead, a member of the board of Local First Arizona, said this state is one of only three that does not give some sort of preference for home-grown firms.
He said that when there is a tie, the names of the companies "are thrown into a hat and drawn blindly.'' The result, said Mapstead, is the deal could as easily go to a firm from China as one from Arizona.
Mapstead said ties are not as rare as they might sound, with the state finding itself in this situation from three to five times a year.
The proposal to actually let a higher Arizona bid undercut a lower one from elsewhere is more complex.
Under the terms of SB 1014, the state agency reviewing the bids would be required to recompute it to account for the state where the firm was based. That calculation would be based on what preferences that company's home state provides for its own home-grown firms.
A list of preferences among all states, prepared last year by the state of Virginia, showed, for example, that California currently gives a 5 percent preference to in-state firms on construction contracts for things like bridges and buildings, and for the purchase of any supplies.
In this scenario, a $10 million bid by a California firm for an Arizona project would be considered to really be a $10.5 million bid. That would require the state to instead award the contract to an Arizona firm with a $10.2 million bid.
"This would just level the playing field for all Arizona companies operating here in the state,'' Mapstead said. "Our preference is to keep the monies that we have here in the state of Arizona instead of exporting them to other states.''
Not every firm that does business in Arizona would get the preference.
To qualify, a company would have had to maintain its headquarters in Arizona for at least 12 consecutive months before submitting the bid. In fact, the measure is crafted to even define that a "headquarters'' means a principal central office where primary functions are performed, including finance, personnel, administrative and legal activities.
And the legislation also requires that the company has paid all taxes assessed against it.
The legislation, which has not had any opposition to this point, still needs House action before going to the governor.
Comments
Brittanicus wrote on Mar 10, 2011 2:59 PM:
These are self-inflicted wounds on behalf of the Sanctuary States and they deserve the hundreds of thousands of illegal immigrants who turn up on their doorsteps. Those States that have flexible illegal immigration laws, such as California, Nevada, Colorado and soon Utah, will pay a heavy price, in not listening to the citizens and legal residents. Arizona saved its own true citizens and legal residents, because of the spiraling public serves and welfare, medicade and other programs. Each Taxpayers should recognize that any support given to the invasion forces, will be an opportunity for more free loaders to come to their State.California is a great example of out-of-control spending and a State deficit that has passed 24 billion dollars. Wait tell those State are overwhelmed with illegal discount labor; dishonest contractors and sub-contractors will have a field day hiring. Crammed schools will be the next major problem as aliens move in, with the hospitals full of poor desperate people that Congress says we must treat, as a unfunded mandate. I got out of California way back, seeing the huge influx of foreigners, during the late 1980's.
IS YOUR STATE NEXT FOR ILLEGAL ALIEN OCCUPATION?
I knew what was coming and I didn't like it one bit. States lawmaker’s better start enacting laws on behalf of the American people, instead of pandering to the majority of economic refugees from Mexico and all points South, Northern Europe and other places around the world. This nation needs an orderly legal immigration of the highest echelon of skilled workers, not impoverished manual labor who we the taxpayer ends up subsidizing.With a 14 Trillion federal Treasury deficit, this nation cannot afford feeding, giving hospitalization and education anymore. GOSH! We cannot afford to look after our own people who live below the poverty line. I think America's survival depends on THE PEOPLE'S Tea Party and that' why I joined. Stop the leftist tax and spend. Demand smaller government and keep the reins on the Republican Party and Wall Street greed. Both parties have their own agenda's? A mass volume of illegal workers and families means millions of more votes for Lib-Democrats, while the Republican elitists plan is for the free flow of cheap labor, for Corporate Welfare. The blue pages of a current phone book, give you listing of State and federal Representatives. Locate the Washington phone number to blow-off steam, and demand you want the 1986 immigration laws fully enforced. "