purchasing

Ohio Resident Bidder Preference

Revised September 10, 2020

Title 1: State Government
Chapter 125: Department of Administrative Services – Office Services
125.09: Bid conditions or terms - preferences.

(A) Pursuant to section 125.07 of the Revised Code, the department of administrative services may prescribe such conditions under which competitive sealed bids will be received and terms of the proposed purchase as it considers necessary; provided, that all such conditions and terms shall be reasonable and shall not unreasonably restrict competition, and bidders may bid upon all or any item of the supplies or services listed in such notice. Those bidders claiming the preference for United States and Ohio products outlined in this chapter shall designate in their bids either that the product to be supplied is an Ohio product or that under the rules established by the director of administrative services they qualify as having a significant Ohio economic presence.

(B) The department may require that each bidder provide sufficient information about the energy efficiency or energy usage of the bidder's product or service.

(C) The director of administrative services shall, by rule adopted pursuant to Chapter 119. of the Revised Code, prescribe criteria and procedures for use by all state agencies in giving preference to United States and Ohio products as required by division (B) of section 125.11 of the Revised Code. The rules shall extend to:

  • (1) Criteria for determining that a product is produced or mined in the United States rather than in another country or territory;
  • (2) Criteria for determining that a product is produced or mined in Ohio;
  • (3) Information to be submitted by bidders as to the nature of a product and the location where it is produced or mined;
  • (4) Criteria and procedures to be used by the director to qualify bidders located in states bordering Ohio who might otherwise be excluded from being awarded a contract by operation of this section and section 125.11 of the Revised Code. The criteria and procedures shall recognize the level and regularity of interstate commerce between Ohio and the border states and provide that the non-Ohio businesses may qualify for award of a contract as long as they are located in a state that imposes no greater restrictions than are contained in this section and section 125.11 of the Revised Code upon persons located in Ohio selling products or services to agencies of that state. The criteria and procedures shall also provide that a non-Ohio business shall not bid on a contract for state printing in this state if the business is located in a state that excludes Ohio businesses from bidding on state printing contracts in that state.
  • (5) Criteria and procedures to be used to qualify bidders whose manufactured products, except for mined products, are produced in other states or in North America, but the bidders have a significant Ohio economic presence in terms of the number of employees or capital investment a bidder has in this state. Bidders with a significant Ohio economic presence shall qualify for award of a contract on the same basis as if their products were produced in this state.

Title 1: State Government
Chapter 125: Department of Administrative Services – Office Services
125.11 Contract award.

(E) The director of administrative services shall publish in the form of a model act for use by counties, townships, municipal corporations, or any other political subdivision described in division (B) of section 125.04 of the Revised Code, a system of preferences for products mined and produced in this state and in the United States and for Ohio-based contractors. The model act shall reflect substantial equivalence to the system of preferences in purchasing and public improvement contracting procedures under which the state operates pursuant to this chapter and section 153.012 of the Revised Code. To the maximum extent possible, consistent with the Ohio system of preferences in purchasing and public improvement contracting procedures, the model act shall incorporate all of the requirements of the federal "Buy America Act," 47 Stat. 1520 (1933), 41 U.S.C. 10a to 10d, as amended, and the rules adopted under that act.

Title 1: State Government
Chapter 125: Department of Administrative Services – Office Services
125.56 Printing to be executed within state - exception.

(A) Except as provided in division (B) of this section, all printing under sections 125.43 to 125.76 of the Revised Code, shall be executed pursuant to section 125.11 of the Revised Code.

(B) Division (A) of this section does not apply to printing contracts requiring special, security paper of a unique nature if compliance with division (A) will result in an excessive price for the product or acquiring a disproportionately inferior product.

(C) As used in this section, "excessive price" means a price that exceeds by more than five per cent the lowest price submitted on a non-Ohio bid.

Title 1: State Government
Chapter 153: Public Improvements
153.012 Preference to contractors having principal place of business in Ohio.

With respect to the award of any contract for the construction, reconstruction, improvement, enlargement, alteration, repair, painting or decoration of a public improvement, including any highway improvement, made by the state or in whole or in part supported by the state, except for a contract for products produced or mined in Ohio or for a contract financed in whole or in part by contributions or loans from any agency of the United States government, preference shall be given to contractors having their principal place of business in Ohio over contractors having their principal place of business in a state which provides a preference in that state in favor of contractors of that state for the same type of work. Where a preference is provided by another state for contractors of that state, contractors having their principal place of business in Ohio are to be granted in Ohio the same preference over them in the same manner and on the same basis and to the same extent as the preference is granted in letting contracts for the same type of work by the other state. If one party to a joint venture is a contractor having its principal place of business in Ohio, the joint venture shall be considered as having its principal place of business in Ohio.

Ohio Administrative Code
123:5 Division of Purchasing
Chapter 123:5-1 General Provisions

123:5-1-06 Implementation of domestic, Ohio bid preference.

(A) Procedure for applying bid preference for United States and Ohio products

  • (1) Bids will first be evaluated to determine whether a bid response is for a domestic source end product. Information furnished in the bid response by the bidder shall be relied upon but may be verified in making the determination. Any bid response that does not meet this requirement may be removed, except in those circumstances where the director of the department of administrative services or his designee determines compliance would result in the state paying an excessive price or acquiring an inferior product as described in paragraph (A)(3) of this rule.
  • (2) Following the determination at paragraph (A)(1) of this rule, the bids shall be evaluated so as to give preference to Ohio bids for products produced or mined in Ohio or a border state. If the Ohio bid preference is determined to be applied then the preferences under rules 123:5-1-14 and 123:5-1-16 of the Administrative Code shall not be applied. Where the preliminary analysis of bids identifies the apparent low bid as an Ohio bid or a border state bid, the director or the director's designee shall proceed with evaluation and award procedure provided for in rule 123:5-1-07 of the Administrative Code.
  • (3) Where the preliminary analysis identifies the apparent low bid as one other than an Ohio bid or border state bid, the director or the director's designee shall apply the following preferences:
    • (a) If the apparent low bid is one other than an Ohio bid or border state bid offering a domestic source end product, apply five per cent to the price. For purposes of the Ohio preference, "excessive price" shall be construed to mean a price that exceeds by more than five per cent the lowest price submitted on a non-Ohio bid.
    • (b) If the apparent low bidder offers a foreign product, apply six per cent to the price. For purposes of "Buy American," a price is excessive if the price on the lowest domestic or Ohio bid exceeds the lowest foreign price by more than six per cent.
    • (c) If sufficient competition does not exist or if it is determined that all prices are excessive, the department may cancel the bid in its entirety, may re-bid the intended purchase, or award the contract.

123:5-1-11 Model system of preference.

The department of administrative services establishes the following model system of preferences which may be used voluntarily by counties, townships, and municipalities for purchasing contracts. See the appendix to this rule which sets forth the model system of preferences in the form of a sample ordinance or resolution.

(B) Bid preference

  • (1) Following the determination at paragraph (A) of this rule, the bids shall be evaluated so as to give preference to Ohio bids for products produced or mine in Ohio or a border state .
  • (2) Where the preliminary analysis of bids identifies the apparent low bid as an Ohio bid or a border state bid, the county, township, or municipality shall proceed with evaluation and award procedure. Where the preliminary analysis identifies the apparent low bid as one other than an Ohio bid or a border state bid, the county, township, or municipality shall apply the following preferences:
    • (a) if the apparent low bid is one other than an Ohio bid or border state bid offering a domestic source end product, apply five per cent to the price. For purposes of the Ohio preference, "excessive price" shall be construed to mean a price that exceeds by more than five per cent the lowest price submitted on a non-Ohio bid.
    • (b) if the apparent low bidder offers a foreign product, apply six per cent to the price. For purposes of Buy American, a price is excessive if the price on the lowest domestic or Ohio bid exceeds the lowest foreign price by more than six per cent.

State of Ohio Procurement Manual
2.4 Procurement Considerations
2.4.1.3 Buy Ohio and Buy American

Buy Ohio and Buy American bid preferences are enabled by RC 125.09, RC 125.11, and OAC 123:5-1-06. These preferences permit bids containing products that are produced in Ohio or a border state, or the United States of America, to be selected for contract award even if they exceed prices offered in bids not containing Ohio, border state, or American products by no more than 5% or 6%, respectively. State Agencies should apply these preferences when making purchases under their direct purchase authority, specify which preference(s) will be applied in the solicitation, and request information as to the point of manufacture and the location of the supplier.