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The Daily Tar Heel

Bidding to better N.C.: Allowing North Carolina companies to match bids from out-of-state ?rms on contracts will provide a boost

Gov. Bev Perdue’s initiative to support North Carolina-based businesses by giving them an advantage when bidding on state government contracts is a great way to sustain a positive rate of growth, particularly during trying economic times.

Last month, Perdue signed Executive Order No. 50, which introduces a procedure that provides North Carolina businesses with the opportunity to match the price of out-of-state company bids if the out-of-state business’s bids are the lowest.

During the standard submission and review process, all proposed bid amounts are confidential and undisclosed until a selection has been made.

Principles of competition are heavily emphasized in selection guidelines that North Carolina uses when it purchases goods and services.

As a result of Perdue’s new order, the government allows in-state businesses whose original bids are within a 5 percent or $10,000 range of the lowest bid the opportunity to match it, provided that the lowest bid has been offered by an out-of-state business.

Thus, North Carolina businesses are given a slight competitive advantage when bidding on state government contracts.

In today’s tough market, businesses are scrambling for customers to cover their inventory costs, and they are more inclined to sell their products at the minimum price as a result.

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Perdue’s move to give in-state businesses the opportunity to match lower out-of-state offers will ensure continued growth by providing revenue to North Carolina companies and, in turn, helping stave off further job losses within the state.

This is particularly important when the state is receiving federal stimulus money. Creating a contractual advantage for state businesses is necessary to make sure economic benefits are contained within the state.

Perdue should be commended for taking the necessary measures to promote North Carolina-based business and ensure that taxpayer dollars stay here.