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Highlands Today

Commission Likely To Adopt 'Buy Local' Policy

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By JIM KONKOLY

Highlands Today

Published: September 21, 2008

SEBRING - Highlands County Commissioner Don Bates said he always tries to "buy locally."
Highlands County government is on the verge of launching that same policy.
Local businesses and contractors will have a better chance of getting county business than out-of-county firms if the Highlands County commissioners adopt the pending "local preference" policy at Tuesday's commission meeting.

Approval appears likely, as three weeks ago the commissioners endorsed the idea but wanted several provisions in the policy fine tuned.
Jed Secory, county purchasing director, and county Administrator Michael Wright will present a revised policy Tuesday that addresses the two concerns raised by the commissioners and the local builders association.

If adopted, Highlands County government - like about half of the state's counties - will give contracts to the lowest local bidder even if that bid is slightly higher than bids from firms based outside of the county.

There could be a lot at stake for local businesses, as Highlands County usually awards just over $20 million in contracts a year, and sometimes more.

Secory's original proposal was to award a contract of up to $250,000 to the lowest bidder from Highlands County if that bid was no more than 5 percent higher than the lowest out-of-county bid. For contracts above $250,000, he suggested a local-preference advantage of 2 percent.

The three commissioners at that meeting endorsed the 5 percent advantage in contracts up to $250,000, but wanted a more graduated system for contracts above that.

The new proposal from Secory and Wright provides a four-tiered system. They propose: the same 5 percent advantage for locals on contracts up to $250,000; then, a 4 percent preference for contracts between $250,000 to $1 million; a 3 percent advantage on contracts between $1 million and $2 million; and, finally, a 2 percent preference on contracts above $2 million.

On contracts above $2 million, the 2 percent preference for Highlands County businesses would be capped at no more than $80,000 above a lower bid from an out-of-county company.

Wright thinks the new version will satisfy the commissioners and be approved.

"I think what they were looking for was some middle ground (provisions)," he said. "We basically had a low-end provision (up to $250,000) and a high-end provision (above $250,000). They wanted some steps in the middle, and that's what we gave them.

"It's a graduated system now, and I think it's reasonable."

The other major concern raised, especially by the Highlands County Builders Association, was how long a business has to operate in this county in order to be classified as a local Highlands County business.

Mike Secor, president of the builders association, said local contractors feared that a large company based elsewhere could open up an office here and staff it with a part-time person to answer phone calls, just so it could bid in the disguise of a "local" company.

Secory and Wright are now proposing that a company has to be doing business in Highlands County for at least 12 months in order to get the local-preference advantage in bidding for county business.

"I would think it will pass," Bates said about the revised policy. "The comments I've gotten from builders is that they'd like to see it longer than six months (to be classified as a local business), that was their main concern.

"I wouldn't be surprised," he added, "if there weren't some requests (at Tuesday's meeting) to make it more than six months." Whether the builders association will agree with the proposed 12-month requirement, Bates said he couldn't tell.

Wright and Secory said the local preference policy will provide the most help to businesses going for "low end" county contracts of up to $250,000, because most of the county's contracts are awarded in that price range. Contacts in the millions of dollars come up only occasionally, for major building projects.

One project that will be under the local preference policy, if it's adopted, is the new law enforcement building for the sheriff's office, estimated at $11 million.

Secory thinks the new version of the local preference policy has a good chance of being approved.

"It's a commissioners' decision, and I think it has a good chance, because we've updated it to what was discussed," he said.

"I think it is a good fit for the county," Secory added "What a local preference is giving is additional opportunity for established businesses within the county."

Secory said about half of the county's in Florida have a local preference policy and the number that do is likely to grow.

"There are other counties, like us, where it's in the works and being considered," he said. "At least two other counties asked for a copy of what we're submitting to the board of commissioners."

Wright was asked if there could be some problems in determining what a "local company" is, even with the requirement of operating here for 12 months.

"There will always be questions, we just have to work through them," Wright answered.

Wright has recommended getting the best policy in place now, letting it run for two years, and then analyzing how it has worked. The commissioners then could continue it, amend it or drop it.

WHAT IT MEANS

If adopted, Highlands County government will give contracts to the lowest bidder even if that bid is slightly higher than bids from firms based outside the county.

Jim Konkoly can be reached at 863-386-5855 or e-mail jkonkoly@highlandstoday.com

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