TOWN OF TRUCKEE LOCAL PREFERENCE POLICY
Unless prohibited by the funding sources used to construct the project or other any applicable state or federal law, preference shall be provided to local businesses when making purchases (supplies and equipment) or awarding contracts (services, professional services, and public construction contracts). A reduction of five percent (5%) to the local business cost or bid shall be applied for purposes of comparing the prices, bids, or estimates. Application of the reduction factor in the award of the contract or bid shall not actually reduce the amount ultimately paid by the Town to the successful bidder and/or selected contractor. It is the supplier, consultant, or contractor’s responsibility to identify itself as a local business.
2. Purchases (Supplies and Equipment)
For purposes of applying a local preference to purchases of supplies and equipment, local business shall mean any business which regularly maintains an office or place of business within the corporate limits of the Town, and has maintained such office or place of business for at least six (6) months prior to publication of the call for bids. A local preference credit of five percent (5%) shall be granted to the local business bid for purposes of evaluating bids. It is the responsibility of the business providing the bid to identify itself as local.
3. Contracts (Services)
For purposes of applying a local preference to contracts for services, local business shall mean any business which regularly maintains an office or place of business within the corporate limits of the Town, and has maintained such office or place of business for at least six (6) months prior to publication of the call for bids. The Town will take the local status of a business into consideration in awarding contracts for services, but shall not award a specific credit amount. It is the responsibility of the business providing the bid to identify itself as local.
4. Public Project Construction Contracts
Unless prohibited by the funding sources used to construct the project, for any Town public works which is subject to public bidding requirements under local or state law, a qualified local contractor shall receive in the evaluation of bids a five percent (5%) local contractor’s preference if consistent with the provisions of this resolution. This preference shall be calculated by reducing the portion of a bid that is proposed to be expended on qualified local contractors by five percent (5%) for low bid comparison purposes.
A qualified local contractor shall be defined as a contractor holding all licenses required to construct its respective portion of the public works project, and which in the prior year paid at least forty percent (40%) of its total wages to employees whose mailing addresses are in the Town limits.
For projects that contain a prime (or general) contractor and one or more subcontractors, only the portions of the project that are to be completed by the locally qualified prime contractor or subcontractors shall be eligible for the local preference. Any portion of a bid which is not to be performed by local contractors or subcontractors will not be eligible for the preference.
For bid proposals in which a joint venture (JV) is formed between one or more locally certified contractor(s) and one or more non-locally certified contractor(s), only the portions of the work to be performed by the locally certified contractor(s) portion(s) of the joint venture shall be eligible for the local contractor preference. This same rationale shall be applied to limited liability corporations, limited liability partnerships, and other entities that may be formed for the purposes of bidding on a Town public works project.
To be eligible for the local preference, a local contractor must complete and sign attached Exhibit A: “Town of Truckee Application for Local Contractor Preference,” which contains the licensee's name, physical address, mailing address, license information, telephone, fax, and email. To be eligible for the local preference, the contractor and the contractor's accountant or enrolled agent must also complete and sign attached Exhibit B: “Affidavit of Contractor and Certified Public Accountant or Enrolled Agent" certifying that in the prior calendar year the contractor paid at least forty percent (40%) of its total wages to employees whose mailing addresses are in the Town limits.
The bidder's preference shall be valid for contractors who were certified as qualified local contractors for the calendar year prior to the calendar year that a project bid opening occurs unless the bid opening occurs during the months of January or February in which case the preference shall be applied if the contractor was certified in either of the two calendar years prior to the calendar year of the bid opening.
Exhibit A and Exhibit B shall be completed and submitted as a part of the bid package at the date and time of bid opening. A photocopy of the original Exhibits is acceptable at the date and time of bid opening. One set of forms is required for each contractor or subcontractor for which a local preference is being claimed on the respective project bid. Should the forms not be submitted or be deemed incomplete by the Town Clerk, any local preference credit claimed for the contractors failing to submit the forms or not properly completing the forms will be disqualified for purposes of determining the low bid.
For any bid submittal in which a local contractor preference affects the determination of low bid amount, it shall be the low bidder’s responsibility, within three (3) business days of the date and time of the bid submittal, to provide original copies of Exhibit A and Exhibit B to the Town Clerk. Within the same three (3) business days of the date and time of bid opening for any bid submittal where a local contractors preference affects the determination of low bid, it shall be the low bidder’s responsibility to cause to be filled out and submitted attached Exhibit C and Exhibit D which provide a listing of the contractors and subcontractors for whom the local preference is being claimed along with the dollar value of work and materials proposed to be provided by each local contractor or subcontractor for which the preference is being claimed. Failure to submit the above documents within three (3) business days of the date and time of bid opening will negate the application of local preference of those portions of the bid for which local preference is claimed but for which the relevant Exhibits are not provided and fully completed.
The Public Works Director/Town Engineer will have the authority to clarify the policy through the creation of construction specifications for individual projects, should such clarification become necessary to avoid a project delay or bidding dispute. The Town Clerk shall establish a certification processing fee equal to the expected cost of implementing the program authorized by this resolution.
There will be no fee charged by the Town for the program authorized by this resolution.
For more information please contact Records@townoftruckee.com, or phone 530-582-2464.