§ 143-59. Preference given to North Carolina products and citizens, and articles manufactured by State agencies; reciprocal preferences. - North Carolina Statutes

§ 143‑59.  Preference given to North Carolinaproducts and citizens, and articles manufactured by State agencies; reciprocalpreferences.

(a)        Preference. – The Secretary of Administration and any Stateagency authorized to purchase foodstuff or other products, shall, in thepurchase of or in the contracting for foods, supplies, materials, equipment,printing or services give preference as far as may be practicable to suchproducts or services manufactured or produced in North Carolina or furnished byor through citizens of North Carolina: Provided, however, that in giving suchpreference no sacrifice or loss in price or quality shall be permitted; andprovided further, that preference in all cases shall be given to surplusproducts or articles produced and manufactured by other State departments,institutions, or agencies which are available for distribution.

(b)        Reciprocal Preference. – For the purpose only of determiningthe low bidder on all contracts for equipment, materials, supplies, andservices valued over twenty‑five thousand dollars ($25,000), a percent ofincrease shall be added to a bid of a nonresident bidder that is equal to thepercent of increase, if any, that the state in which the bidder is a residentadds to bids from bidders who do not reside in that state. Any amount due undera contract awarded to a nonresident bidder shall not be increased by the amountof the increase added by this subsection. On or before January 1 of each year,the Secretary of Administration shall electronically publish a list of statesthat give preference to in‑State bidders and the amount of the percentincrease added to out‑of‑state bids. All departments, institutions,and agencies of the State shall use this list when evaluating bids. If thereciprocal preference causes the nonresident bidder to no longer be the lowestbidder, the Secretary of Administration may, after consultation with the Boardof Awards, waive the reciprocal preference. In determining whether to waive thereciprocal preference, the Secretary of Administration and the Board of Awardsshall consider factors that include competition, price, product origination,and available resources.

(c)        Definitions. – The following definitions apply in thissection:

(1)        Resident bidder. – A bidder that has paid unemployment taxesor income taxes in this State and whose principal place of business is locatedin this State.

(2)        Nonresident bidder. – A bidder that is not a resident bidderas defined in subdivision (1) of this subsection.

(3)        Principal place of business. – The principal place fromwhich the trade or business of the bidder is directed or managed.

(d)        Exemptions. – Subsection (b) of this section shall not applyto contracts entered into under G.S. 143‑53(a)(5) or G.S. 143‑57.

(e)        When a contract is awarded by the Secretary using theprovisions of subsection (b) of this section, a report of the nature of thecontract, the bids received, and the award to the successful bidder shall beposted on the Internet as soon as practicable.

(f)         Resident Bidder Notification. – When the Secretary puts acontract up for competitive bidding, the Secretary shall endeavor to providenotice to all resident bidders who have expressed an interest in bidding oncontracts of that nature. The Secretary may opt to provide notice under thissection by electronic means only. (1931, c. 261, s.10; 1933, c. 441, s. 2; 1957, c. 269, s. 3; 1971, c. 587, s. 1; 1975, c. 879,s. 46; 2001‑240, s. 1; 2005‑213, ss. 1, 3.)