purchasing

New Mexico Resident Bidder Preference

Revised March 2, 2015

New Mexico Statutes, §13-1-21. When making a purchase using a formal bid process (competitive sealed bid process), public bodies should deem a bid submitted by a New Mexico:

  • (1) resident business to be 5.0% lower than the bid actually submitted;
  • (2) resident veteran business with annual revenues of one million dollars or less to be 10% lower than the bid actually submitted;
  • (3) resident veteran business with annual revenues of more than one million dollars but less than five million dollars to be 8.0% lower than the bid actually submitted; and
  • (4) resident veteran business with annual revenues of five million dollars or more to be 7.0% lower than the bid actually submitted.

When a public body makes a purchase using a formal bid process and the bids are received for both recycled content goods and nonrecycled content goods, the public body shall deem:

  • (1) bids submitted for recycled content goods from any business, except a resident veteran business, to be 5.0% lower than the bids actually submitted;
  • (2) bids submitted for recycled content goods from a resident veteran business with annual revenues of one million dollars or less to be 10% lower than the bids actually submitted;
  • (3) bids submitted for recycled content goods from a resident veteran business with annual revenues of more than one million dollars but less than five million dollars to be 8.0% lower than the bids actually submitted; and
  • (4) bids submitted for recycled content goods from a resident veteran business with annual revenues of five million dollars or more to be 7.0% lower than the bids actually submitted.

When a public body makes a purchase using a formal request for proposals process (competitive sealed proposal process), not including contracts awarded on a point-based system, the public body shall award an additional:

  • (1) 5.0% of the total weight of all the factors used in evaluating the proposals to a resident business;
  • (2) 10% of the total weight of all the factors used in evaluating the proposals to a resident veteran business that has annual revenues of one million dollars or less;
  • (3) 8.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran business that has annual revenues of more than one million dollars but less than five million dollars; and
  • (4) 7.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran business that has annual revenues of five million dollars or more.

When a public body makes a purchase using a formal request for proposals process, and the contract is awarded based on a point-based system, the public body shall award an additional percentage of the equivalent as follows:

  • (1) 5.0% of the total possible points to a resident business;
  • (2) 10% of the total possible points to a resident veteran business that has annual revenues of one million dollars or less;
  • (3) 8.0% of the total possible points to a resident veteran business that has annual revenues of more than one million dollars but less than five million dollars; and
  • (4) 7.0% of the total possible points to a resident veteran business that has annual revenues of five million dollars or more.

When a joint bid or joint proposal is submitted by a combination of resident veteran, resident or nonresident businesses, these preferences shall be calculated in proportion to the percentage of the contract, based on the dollar amount of the goods or services provided under the contract, that will be performed by each business as specified in the joint bid or proposal. The preferences in this section pertaining to resident veteran businesses with annual revenues of more than $1,000,000 but less than $5,000,000 and those pertaining to annual revenues of $5,000,000 or more are limited to an aggregate ten million dollars per year. A business shall not be awarded both a resident business preference and a resident veteran business preference.

New Mexico Statutes, §13-1-120. For each proposed state public works project, local public works project or construction management contract, the architect, engineer, landscape architect, construction management and surveyor selection committee, state highway and transportation department selection committee or local selection committee, as appropriate, must consider the following criteria, among others: the amount of design work that will be produced by a New Mexico business within this state and proximity to or familiarity with the area in which the project is located.

New Mexico Statutes, §13-4-1. All contracts for construction of public works or for repair, reconstruction, including highway reconstruction, demolition or alteration thereof, must be awarded to resident contractor whenever practicable.

New Mexico Statutes, §13-4-2. For the purpose of awarding a public works contract using a formal bid process, a public body shall deem a bid submitted by a:

  • (1) resident contractor to be 5.0% lower than the bid actually submitted;
  • (2) resident veteran contractor with annual revenues of one million dollars or less to be 10% lower than the bid actually submitted;
  • (3) resident veteran contractor with annual revenues of more than one million dollars but less than five million dollars to be 8.0% less than the bid actually submitted; and
  • (4) resident veteran contractor with annual revenues of five million dollars or more to be 7.0% less than the bid actually submitted.

When a public body awards a contract using a formal request for proposals process, not including contracts awarded on a point-based system, the public body shall award an additional:

  • (1) 5.0% of the total weight of all the factors used in evaluating the proposals to a resident contractor;
  • (2) 10% of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual revenues of one million dollars or less;
  • (3) 8.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual revenues of more than one million dollars but less than five million dollars; and
  • (4) 7.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual revenues of five million dollars or more.

When a public body makes a purchase using a formal request for proposals process, and the contract is awarded based on a point-based system, the public body shall award an additional percentage of the equivalent as follows:

  • (1) 5.0% of the total possible points to a resident contractor;
  • (2) 10% of the total possible points to a resident veteran contractor that has annual revenues of one million dollars or less;
  • (3) 8.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual revenues of more than one million dollars but less than five million dollars; and
  • (4) 7.0% of the total weight of all the factors used in evaluating the proposals to a resident veteran contractor that has annual revenues of five million dollars or more.

When a joint bid or joint proposal is submitted by a combination of resident veteran, resident or nonresident contractors, these preferences shall be calculated in proportion to the percentage of the contract, based on the dollar amount of the goods or services provided under the contract, that will be performed by each contractor as specified in the joint bid or joint proposal. The preferences in this section pertaining to resident veteran contractors with annual revenues of more than $1,000,000 but less than $5,000,000 and those pertaining to annual revenues of $5,000,000 or more are limited to an aggregate ten million dollars per year. A contractor shall not be awarded both a resident contractor preference and a resident veteran contractor preference.

New Mexico Statutes, §63-9F-6. In the invitation for proposals or bids from telecommunications companies to design and implement a telecommunications relay system that enables impaired individuals to communicate with unimpaired individuals, New Mexico residency is given a weight of five percent of the total weight of all evaluation factors and any business that qualifies as a resident business shall receive a 5.0% preference.

New Mexico Administrative Code, §1.4.1.25. All statutory preferences to resident businesses, resident veteran businesses, resident contractors, and resident veteran contractors must be applied in regard to invitations for bids and requests for proposals in accordance with statute in determining the lowest bidder or offeror.

New Mexico Administrative Code, §1.4.2.8. When bids are received only from nonresident businesses and resident businesses or from nonresident businesses and resident manufacturers and the lowest responsible bid is from a nonresident business, the contract shall be awarded to the resident business or, as applicable, resident manufacturer whose bid is nearest the bid price of the low nonresident business bidder if the bid price of the resident bidder or manufacturer is made lower than the nonresident's bid when multiplied by a factor of 0.95. When bids are received from nonresident businesses, resident businesses, and resident manufacturers and the lowest responsible bid is from a nonresident business, the contract shall be awarded to the resident manufacturer, or to the resident business if no resident manufacturer is eligible for award, whose bid is nearest the bid price of the low nonresident business bidder if the bid price of the resident manufacturer is made lower than the nonresident's bid when multiplied by a factor of 0.95.

New Mexico Administrative Code, §1.4.3.8. In public works construction procurements, when bids are received only from nonresident contractors and resident contractors and the lowest responsible bid is from a nonresident contractor, the contract shall be awarded to the resident contractor whose bid is nearest the bid price of the low nonresident contractor if the bid price of the resident contractor is made lower than the nonresident's bid when multiplied by a factor of 0.95. The resident contractor preference is the only bidding preference that applies to public works construction contracts.