63G-6a-1003.  Preference for resident contractors.

(1)  As used in this section, “resident contractor” means a person, partnership, corporation, or other business entity that:

Terms Used In Utah Code 63G-6a-1003

  • Bidder: means a person who submits a bid or price quote in response to an invitation for bids. See Utah Code 63G-6a-103
  • Contract: A legal written agreement that becomes binding when signed.
  • Contract: means an agreement for a procurement. See Utah Code 63G-6a-103
  • Contractor: means a person who is awarded a contract with a procurement unit. See Utah Code 63G-6a-103
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Grant: means an expenditure of public funds or other assistance, or an agreement to expend public funds or other assistance, for a public purpose authorized by law, without acquiring a procurement item in exchange. See Utah Code 63G-6a-103
  • Issuing procurement unit: means a procurement unit that:
(a) reviews a solicitation to verify that it is in proper form;
(b) causes the notice of a solicitation to be published; and
(c) negotiates and approves the terms and conditions of a contract. See Utah Code 63G-6a-103
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means :Utah Code 68-3-12.5
  • Procurement: means the acquisition of a procurement item through an expenditure of public funds, or an agreement to expend public funds, including an acquisition through a public-private partnership. See Utah Code 63G-6a-103
  • Responsible: means being capable, in all respects, of:
    (a) meeting all the requirements of a solicitation; and
    (b) fully performing all the requirements of the contract resulting from the solicitation, including being financially solvent with sufficient financial resources to perform the contract. See Utah Code 63G-6a-103
  • Responsive: means conforming in all material respects to the requirements of a solicitation. See Utah Code 63G-6a-103
  • Rulemaking authority: means :
    (a) for a legislative procurement unit, the Legislative Management Committee;
    (b) for a judicial procurement unit, the Judicial Council;
    (c) 
    (i) only to the extent of the procurement authority expressly granted to the procurement unit by statute:
    (A) for the facilities division, the facilities division;
    (B) for the Office of the Attorney General, the attorney general;
    (C) for the Department of Transportation created in Section 72-1-201, the executive director of the Department of Transportation; and
    (D) for any other executive branch department, division, office, or entity that has statutory procurement authority outside this chapter, the governing authority of the department, division, office, or entity; and
    (ii) for each other executive branch procurement unit, the board;
    (d) for a local government procurement unit:
    (i) the governing body of the local government unit; or
    (ii) an individual or body designated by the local government procurement unit;
    (e) for a school district or a public school, the board, except to the extent of a school district's own nonadministrative rules that do not conflict with the provisions of this chapter;
    (f) for a state institution of higher education, the Utah Board of Higher Education;
    (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the State Board of Education;
    (h) for a public transit district, the chief executive of the public transit district;
    (i) for a special district other than a public transit district or for a special service district, the board, except to the extent that the board of trustees of the special district or the governing body of the special service district makes its own rules:
    (i) with respect to a subject addressed by board rules; or
    (ii) that are in addition to board rules;
    (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah Board of Higher Education;
    (k) for the School and Institutional Trust Lands Administration, created in Section 53C-1-201, the School and Institutional Trust Lands Board of Trustees;
    (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201, the School and Institutional Trust Fund Board of Trustees;
    (m) for the Utah Communications Authority, established in Section 63H-7a-201, the Utah Communications Authority board, created in Section 63H-7a-203; or
    (n) for any other procurement unit, the board. See Utah Code 63G-6a-103
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Writing: includes :Utah Code 68-3-12.5
  • (a)  either has its principal place of business in Utah or that employs workers who are residents of this state when available; and

    (b)  was transacting business on the date when bids for the public contract were first solicited.
  • (2) 

    (a)  When awarding contracts for construction, an issuing procurement unit shall grant a resident contractor a reciprocal preference over a nonresident contractor from any state that gives or requires a preference to contractors from that state.

    (b)  The amount of the reciprocal preference shall be equal to the amount of the preference applied by the state of the nonresident contractor.

    (3) 

    (a)  In order to receive the reciprocal preference under this section, the bidder shall certify on the bid that the bidder qualifies as a resident contractor.

    (b)  The reciprocal preference is waived if the certification described in Subsection (2)(a) does not appear on the bid.

    (4) 

    (a)  If the responsible contractor submitting the lowest responsive bid is not a resident contractor whose principal place of business is in a state that gives or requires a preference to contractors from that state, and if a resident responsible contractor has also submitted a responsive bid, and, with the benefit of the reciprocal preference, the resident contractor’s bid is equal to or less than the original lowest bid, the issuing procurement unit shall:

    (i)  give notice to the resident contractor that the resident contractor qualifies as a preferred resident contractor; and

    (ii)  issue the contract to the resident contractor if the resident contractor agrees, in writing, to meet the low bid within 72 hours after notification that the resident contractor is a preferred resident contractor.

    (b)  The issuing procurement unit shall include the exact price submitted by the lowest bidder in the notice that the issuing procurement unit submits to the preferred resident contractor.

    (c)  The issuing procurement unit may not enter into a contract with any other bidder for the construction until 72 hours have elapsed after notification to the preferred resident contractor.

    (5) 

    (a)  If there is more than one preferred resident contractor, the issuing procurement unit shall award the contract to the willing preferred resident contractor who was the lowest preferred resident contractor originally.

    (b)  If there were two or more equally low preferred resident contractors, the issuing procurement unit shall comply with the rules of the rulemaking authority to determine which bidder should be awarded the contract.

    (6)  The provisions of this section do not apply if application of this section might jeopardize the receipt of federal funds.

    Amended by Chapter 257, 2020 General Session