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Missouri Vendors to be Given Preference

I was visiting with a manufacturer last summer, and he was expressing some concern about missing a contract with the Missouri Department of Transportation for some equipment because a vendor in Illinois was a few dollars cheaper. He talked about how this really didn't seem like a good thing to do because that contract could have provided jobs needed for Missouri residents. He maintained that it seemed like a shame that our state agencies are required to purchase from the lowest and best cost vendor without other considerations. In discussing the situation, we decided that Missouri vendors should be given preference when dealing with Missouri state government agencies. This would help all of our businesses in Missouri by keeping the jobs here and it would also help improve our economy.

Someone must have been listening. Governor Holden signed an executive order in December 2003 giving Missouri vendors preference when bidding on products and services to be supplied to Missouri state agencies. That order reads:

EXECUTIVE ORDER 03-27
        WHEREAS Missouri businesses and workers are highly skilled and efficient and produce high quality products and services.

        WHEREAS, the economy of the State of Missouri benefits from keeping Missouri tax dollars in the state when state government purchases these excellent Missouri products and services. Taxpayers should expect to realize the full value for every tax dollar spent in Missouri.

        WHEREAS, product and service specifications contained in an offer for a Missouri purchasing bid continue to provide free and open competition for all vendors, including those vendors offering Missouri products and services.

        WHEREAS, the State of Missouri should purchase goods and services from in-state companies whenever possible in order to support Missouri business, grow the Missouri economy, and provide jobs for Missouri workers.

        NOW, THEREFORE, I, BOB HOLDEN, GOVERNOR OF THE STATE OF MISSOURI, by virtue of the authority vested in me as governor of the State of Missouri, do hereby order as follows:
1. For purposes of this executive order, the term "Missouri product" refers to goods or commodities, which are manufactured, mined, produced or grown by companies in Missouri, or services provided by such companies in Missouri.

2. Under Sections 34.040 and 34.042, RSMo, a Missouri state government purchaser shall purchase a product that is determined to be the "lowest and best." In addition, Sections 34.070 and 34.073, RSMo, authorize a preference for Missouri products.

3. In determining the lowest and best award, cost and other factors are considered in the evaluation process. Factors may include value, performance and quality of a product.

4. Missouri state government agencies shall purchase a Missouri product unless it is determined that the value (including, but not limited to price, performance, and quality) of the Missouri product does not meet the needs of the user.

5. In assessing value, the Commissioner of the Office of Administration and other Missouri state governmental purchasers may consider the economic impact to the State of Missouri for Missouri products versus the economic impact of products generated from out of state. This economic impact may include the revenues returned to the state through tax revenue obligations.

6. The Commissioner of the Office of Administration shall provide a listing of Missouri products and access to such listing to all state government agencies and other interested parties. The Commissioner of the Office of Administration shall also make efforts to identify and give notice of state government bidding opportunities to Missouri manufacturers or service providers. Finally, the Commissioner of the Office of Administration shall ensure state agencies follow the requirements of this Executive Order and the Missouri preference provisions set forth in Chapter 34, RSMo.

7. State government agencies shall make a good faith search of Missouri companies that provide Missouri manufactured products or services.

8. Upon request of the Missouri company, the state department for which the contract was awarded shall prepare a written explanation within 20 days of the award explaining why the Missouri manufacturer or service provider did not receive the award. This will enable Missouri companies to improve their products and services to meet Missouri government's needs and make them more competitive in the global marketplace.

9. This requirement for the purchase of Missouri products and services will become effective for all affected purchases made after December 9, 2003.

        IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Great Seal of the State of Missouri, in the City of Jefferson on this 2nd day of December 2003.
        Bob Holden, Governor

If you have been an unsuccessful bidder in the past, you may want to try again now that you have a little edge on the outside competition. And if you need help with making connections and doing business with the government, we can help. Just contact our Missouri Procurement Technical Assistance Center (MO PTAC) at the University of Missouri-Columbia, by calling 573-882-8058, or visit the web site www.missouribusiness.net/ptac for additional information about services and center locations.

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Authored by: Rick Sparks, Business and Industry Specialist, University of Missouri Extension
Source: Creating Quality Newsletter, Volume 13, Number 2, February 2004

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