purchasing

Alabama Resident Bidder Preference

Revised August 14, 2024

Alabama Code
Title 23. Highways, Roads, Bridges, And Ferries.
Chapter 1. Alabama Highways.
Article 2. State Department of Transportation.

§ 23-1-51. Purchase of motor fuels, oils, greases, and lubricants.

(a) All motor fuels, oils, greases, and lubricants bought by or for the State Department of Transportation for use in each county in which the construction, maintenance, and repair of the county roads and bridges have been transferred to the State Department of Transportation shall be purchased from vendors and suppliers residing in the county where such motor fuels, oils, greases, and lubricants are to be used. All such purchases shall be made on the basis of competitive bids, and contracts and purchase orders shall be awarded to the lowest responsible bidder as provided by law.

Alabama Code
Title 39. Public Works.
Chapter 3. Use of Domestic Products & Resident Workmen For Public Works, Improvements, Etc.

§ 39-3-5. Preference to resident contractors in letting of certain public contracts.

(a) In the letting of public contracts in which any state, county, or municipal funds are utilized, except those contracts funded in whole or in part with funds received from a federal agency, preference shall be given to resident contractors, and a nonresident bidder domiciled in a state having laws granting preference to local contractors shall be awarded Alabama public contracts only on the same basis as the nonresident bidder's state awards contracts to Alabama contractors bidding under similar circumstances; and resident contractors in Alabama, as defined in Section 39-2-12, be they corporate, individuals, or partnerships, are to be granted preference over nonresidents in awarding of contracts in the same manner and to the same extent as provided by the laws of the state of domicile of the nonresident.

Alabama Code
Title 41. State Government.
Chapter 4. Department of Finance.
Article 5. Division of Procurement.
Division 3. Source Selection and Contract Formation.

§ 41-4-130. Definitions.

As used in this division, the following terms shall have the following meanings:

(4) PREFERRED VENDOR . A person that is granted preference priority according to the following:

a. Priority #1. Produces or manufactures the product within the state.

b. Priority #2. Has an assembly plant or distribution facility for the product within the state.

c. Priority #3. Is organized for business under the applicable laws of the state as a corporation, partnership, or professional association and has maintained at least one retail outlet or service center for the product or service within the state for not less than one year prior to the deadline date for the competitive bid.

d. Priority #4. Is physically located in the state and is more than 50 percent owned by a person who was discharged or released under conditions other than dishonorable and who has at least 24 months of active service in the United States military, naval, or air service, or who has less than 24 months of active service in any of the foregoing and was separated with a service-connected disability, or a national guardsman or reservist who completed active federal service for purposes other than training or who served at least 180 days of continuous service for purposes other than training.

§ 41-4-131. Methods for awarding state contracts.

(a) Unless otherwise authorized by law, all state contracts shall be awarded by the use of one of the following methods:

(1) Competitive sealed bids, pursuant to Section 41-4-132.

(2) Competitive sealed proposals, pursuant to Section 41-4-133.

(3) Small purchase procedures pursuant to Section 41-4-134.

(4) A sole source procurement pursuant to Section 41-4-135.

(5) An emergency procurement pursuant to Section 41-4-136.

(6) A special procurement pursuant to Section 41-4-137.

(b) In the event a bid or offer is received for the supplies or services from a person deemed to be a responsible bidder or offeror and a preferred vendor and the bid is no more than five percent greater than the bid of the lowest responsible bidder or offeror who is not deemed to be a preferred vendor, the Chief Procurement Officer or purchasing agency may award the contract to the preferred vendor.

Alabama Code
Title 41. State Government.
Chapter 16. Public Contracts.
Article 3. Competitive Bidding on Contracts of Certain State and Local Agencies, Etc.

§ 41-16-50 . Contracts for which competitive bidding required.

(a) With the exception of contracts for public works whose competitive bidding requirements are governed exclusively by Title 39, all expenditure of funds for labor, services, work, or for the purchase of materials, equipment, supplies, or other personal property involving thirty thousand dollars ($30,000) or more, and the lease of materials, equipment, supplies, or other personal property where the lessee is, or becomes legally and contractually, bound under the terms of the lease, to pay a total amount of thirty thousand dollars ($30,000) or more, made by or on behalf of the Alabama Fire College, the district boards of education of independent school districts, the county commissions, the governing bodies of the municipalities of the state, and the governing boards of instrumentalities of counties and municipalities, including waterworks boards, sewer boards, gas boards, and other like utility boards and commissions, except as otherwise provided in this article, shall be made under contractual agreement entered into by free and open competitive bidding, on sealed bids, to the lowest responsible and responsive bidder.

(b)(1) Prior to advertising for bids for an item of personal property or services, where a county, a municipality, or an instrumentality thereof is the awarding authority, the awarding authority may establish a local preference zone consisting of any of the following:

a. The legal boundaries or jurisdiction of the awarding authority.

b. The boundaries of the county in which the awarding authority is located.

c. The boundaries of the Core Based Statistical Area in which the awarding authority is located.

(2) If no action is taken by the awarding authority under subdivision (1), the boundaries of the local preference zone shall be deemed to be the same as the legal boundaries or jurisdiction of the awarding authority.

(3) If a bid is received for an item of personal property or services to be purchased or contracted for from a person, firm, or corporation deemed to be a responsible bidder, having a place of business within the local preference zone where the county, a municipality, or an instrumentality thereof is the awarding authority, and the bid is no more than five percent greater than the bid of the lowest responsible bidder, the awarding authority may award the contract to the resident responsible bidder.

(4) If no bids or only one bid is received at the time stated in the advertisement for bids, the awarding authority may advertise for and seek other competitive bids, or the awarding authority may negotiate through the receipt of informal bids not subject to the requirements of this article. Where only one responsible and responsive bid has been received, any negotiation for the work shall be for a price lower than that bid.

(5) If both or all bids exceed the awarding authority's anticipated budget, the awarding authority may negotiate with the lowest responsible and responsive bidder, provided the negotiated price is lower than the bid price.

(e) Notwithstanding subsection (a), in the event the lowest bid for an item of personal property or services to be purchased or contracted for is received from a foreign entity, where the county, a municipality, or an instrumentality thereof is the awarding authority, the awarding authority may award the contract to a responsible bidder whose bid is no more than 10 percent greater than the foreign entity if the bidder has a place of business within the local preference zone or is a responsible bidder from a business within the state that is a woman-owned enterprise, an enterprise of small business, as defined in Section 25-10-3, a minority-owned business enterprise, a veteran-owned business enterprise, or a disadvantaged-owned business enterprise. For the purposes of this subsection, foreign entity means a business entity that does not have a place of business within the state.

§ 41-16-57 . Municipal or county contracts for certain services exempt from competitive bid requirements.

(b) The awarding authority in the purchase of or contract for goods or services shall give preference, provided there is no sacrifice or loss in price or quality, to commodities produced in Alabama or sold by Alabama persons, firms, or corporations. Notwithstanding the foregoing, no county official, county commission, city council or city councilmen, or other public official charged with the letting of contracts or purchase of goods or services may specify the use of materials or systems by a sole source, unless:

(1) The governmental body can document that the sole source goods or services are of an indispensable nature, all other viable alternatives have been explored, and it has been determined that only these goods or services will fulfill the function for which the product is needed. Frivolous features will not be considered.

(2) No other vendor offers substantially equivalent goods or services that can accomplish the purpose for which the goods or services are required.

(3) All information substantiating the use of a sole source specification is documented in writing and is filed into the project file.