East Lansing businesses might receive preference when submitting bids for city projects if an amendment to the city’s purchasing policy is enacted at the Sept. 15 City Council meeting at City Hall, 410 Abbot Road.
At Tuesday’s City Council work session, members of council discussed a resolution amending purchasing policies to allow preference for local and regional businesses bidding for city-contracted projects.
The amendment stated if a local business placed a bid 7.5 percent above the lowest bid, it could bid again to match the lowest bid. Regional businesses would need to be
5 percent above the lowest bid.
Finance Director Mary Haskell said the purpose for the change would be to promote economic activity through the region, specifically in East Lansing.
If the amendment passes, businesses with a physical office in the city or in the tri-county region will receive a preference when the city places bids. To be considered, the business will have to maintain the same quality and price that competing nonregional businesses would place.
Councilmember Nathan Triplett said the resolution was made to encourage vendors who could provide the same quality services but might have felt discouraged to bid because of their size.
“This is encouraging bidders to get involved in the process who would normally be dissuaded to bid on a contract,” Triplett said.
Some members of the council expressed concern that the change was not a good idea for the city.
Mayor Vic Loomis cited other places where a similar change had been enacted and the problems it posed. One of Loomis’ main concerns was that preferential treatment on bids might not back uniform business practice.
“I’m not comfortable with this,” Loomis said. “I really think this hurts the integrity of the business process. The business community doesn’t advise this practice at any level.”
Other concerns included the quality of the services provided by local vendors.
But Triplett said the quality of the product received by local and regional vendors would be the same as the nonregional vendors.
He added that if quality was sacrificed, the council could overturn the decision to use a local or regional vendor.
“We maintain our right to determine their qualifications,” he said.
Also on Tuesday, the council approved its resolution urging Congress to enact the Comprehensive Health Care Reform Legislation.
The resolution was a part of the U.S. Conference of Mayors initiative to support health care reform and to gain attention in smaller municipalities across the nation.
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