Governments Buying Local via "Local Preference Ordinances"

As we know, spending money locally helps the local economy, not just in the form of immediate expenditure, but the funds have a statistical tendency to circulate longer within the community.  The same principle applies to government spending. Now more and more municipalities are jumping on the "Buy Local" bandwagon by implementing spending policies that give local preference.

Government contracts have a tendency of being quite large and thus can give a small local business a very large hand up. Not only that, but local governments are in the middle of an economic crisis (which I'm sure that you've heard enough of by now...) where it is in a municipality's best interest to help bolster their local economy.

Support for the adoption of local purchasing preferences is growing at at exponential rate right now. For instance, a recently enacted Florida state law permits local agencies to award preference points based on location. Subsequently, country-level policies encouraging or mandating such are growing statewide.

Even my sleepy little hometown of Stuart, Florida voted to put such a policy into place earlier this month! Back home, my father runs a small, local underwater construction company which relies primarily on local governments and utilities for contracts. Over the past decade, he has been outbid by out of state competitors countless times -to the extent in which he considered closing his business last year. Now that this local purchasing ordinance has been passed, I forsee him gaining an edge, and hopefully, he can continue his company.


See examples below:
Martin County joined St. Lucie and Indian River counties in giving a slight edge to businesses from the Treasure Coast and Palm Beach County on competitive bids worth $25,000 or more.

Boise council approves ordinance which will allow the city to award contracts to those with "significant local presence," even if they're not the lowest bidders.

Preference for Oregon Goods and Services: For the purposes of awarding a public contract, a contracting agency shall give preference to goods or services that have been manufactured or produced in this state if price, fitness, availability and quality are otherwise equal.