Virginia House Bill HB164

Virginia 2024 Regular Session

• Introduced: 1/2/24
• Refer: 1/2/24

Caption

Procurement; preference for local products and firms by localities.

Impact

The implications of HB 164 are significant for local governance and economic development. It empowers local government bodies to prioritize their own community businesses during procurement processes, which can lead to increased support for local economies. The preference for local products is expected to create a more favorable environment for local businesses, thus potentially stimulating job creation and economic growth within localities. This bill seeks to ensure that taxpayer dollars are spent in ways that benefit the communities they are derived from.

Summary

House Bill 164 aims to amend the procurement regulations in Virginia by giving local governments the authority to prefer local products and firms during the bidding process. The bill allows counties, cities, and towns to support local businesses by adding preference in the case of tie bids while also permitting the selection of higher bids that include local products or services, provided they are not more than 10% above the lowest bid. This legislative change is intended to enhance community support for local economies and encourage local purchasing in public contracts.

Contention

However, the bill has also sparked discussions regarding fairness and the potential for increased costs in procurement. Critics of HB 164 argue that the preference for local products could disadvantage non-local suppliers who may offer better prices or quality. This raises concerns about competition and the efficient use of public funds. Additionally, there are considerations related to how this bill will be enforced and the extent to which it might limit the variety of options available to local government procurement officers.