ANNOUNCED AS TEMPORARYNo
Public procurement preference margin
On June 16, 2009 both chambers of the South Carolina General Assembly overrode the governor’s veto, and hence enacted into law, a bill (now Act No.72) that establishes a preference for in-state firms in government procurement. The bill reads in relevant part as follows:
(B)(1) When evaluating pricing for purposes of making an award determination, the procurement officer shall decrease by seven percent the price of any offer for a South Carolina end product.
(2) When evaluating pricing for purposes of making an award determination, the procurement officer shall decrease by two percent the price of any offer for a United States end product. This preference does not apply to an item to which the South Carolina end product preference has been applied …
(C)(1) When evaluating pricing for purposes of making an award determination, the procurement officer shall decrease a bidder’s price by seven percent if the bidder maintains an office in this State and either:
(i) maintains at a location in South Carolina at the time of the bid an inventory of expendable items which are representative of the general type of commodities on which the award will be made and which have a minimum total value, based on the bid price, equal to the lesser of fifty thousand dollars or the annual amount of the contract;
(ii) is a manufacturer headquartered and having an annual payroll of at least one million dollars in South Carolina and the end product is made or processed from raw materials into a finished end product by that manufacturer or its affiliate (as defined in Section 1563 of the Internal Revenue Code); or
(iii) at the time of bidding, directly employs or has a documented commitment with individuals domiciled in South Carolina that will perform services expressly required by the solicitation and the total direct labor cost to bidder for those individuals to provide those services exceeds fifty percent of the bidder’s total bid price.
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