In September 2011, a local US government announced a change in the local input requirements for the participation in certain public purchases.



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Inception date: 01 Sep 2011 | Removal date: open ended

Public procurement preference margin

Under the Hire Houston First policy, which took effect for solicitations for procurements published on or after September 1, 2011, 'It is the policy of the city 'of Houston, Texas' to use the city's spending powers 'to ensure that' a portion of citizens' tax dollars remain in the local economy for economic benefit of the citizens by utilizing all available legal opportunities to contract with city and/or local businesses.' To benefit from this program a 'business must be either: (1) headquartered in the incorporated limits of the city or the local area, as applicable; or (2) have an established place or places of business in the incorporated limits of the city or the local area from which 20% or more of the entity's workforce are regularly based, and from which a substantial role in the entity's performance of a commercially useful function or a substantial part of its operations is conducted.'
The policy provides with respect to contracts of $100,000.00 or more that in purchasing any personal property that is not affixed to real property, if the city receives one or more bids from a bidder that is a city business and whose bid is within three percent of the lowest bid price received by the city from a bidder who is not a city business, the city shall choose either the lowest bidder; or the bidder that is a city business. The preference rises to five percent for smaller contracts.