Nashua alderman wants to give local vendors preference when awarding contracts
“This legislation helps recognize the value of relationships with local vendors and ultimately benefits the city by saving money and providing better service,” Siegel said on Thursday. “I think it is important to recognize that there are costs associated with purchases that aren’t strictly related to the purchase price.”
While the proposed city ordinance would not affect school purchasing, Siegel said his suggestion is a step in the right direction.
“I learned a valuable lesson to stay in town and spend our money in town,” said Alderman David Deane, president of the Board of Aldermen. In dealing with a previous screen-printing order, Deane said he opted for a non-local company, and the work wasn’t completed correctly, forcing him to seek out a local business to fix the problem.
“I think it is a real struggle,” she said, admitting there have been discussions about the issue in recent years.
For instance, if there was a local bid of $1,000 for shoes, and a non-local bid of $980 for the shoes, the local preference factor could be applied and the local bid would be reduced by 5 percent, to $950. In that scenario, the local vendor would win the contract, said Siegel.
There is a provision that states local preference will not be applied to any contract associated with federal or state funds.
Specifically, Gabriel said a local preference ordinance may not encourage competition, and it could face legal challenges.
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