Preferences
Disadvantaged Business Enterprise (DBE)
Information on the Small Business, Minority Owned, or Women Owned Business (MBE/WBE) can be obtained by contacting the Montana Department of Transportation Disadvantaged Business Enterprise (DBE) Program.
Reciprocal Preference Law
Montana's reciprocal preference law, section 18-1-102, Montana Code Annotated, requires a Montana "public agency," when determining the lowest responsive and responsible bidder, to allow a Montana resident bidder a preference against the bid of a nonresident bidder from any "state" or "country" that allows a preference for its resident bidders. The reciprocal preference is only applied against other "states" and "countries" and not other public entities such as political subdivisions. For instance, if the low bidder is from a state that grants a 10 percent preference to its own resident bidders, 10 percent must be added to that bidder's price when evaluating the bid if it would benefit a Montana resident bidder.
For state agencies, this reciprocal preference applies to the purchase of goods and printing and for construction, repair, and public works of all kinds. However, political subdivisions (including local governments) are only required to apply the reciprocal preference to contracts for construction, repair, and public works and not to contracts for the purchase of goods and printing.
|
State |
Goods |
Construction |
Printing |
|---|---|---|---|
| Alaska |
5% |
5% |
-- |
| Hawaii |
-- |
7% |
15% |
| Idaho |
-- |
-- |
10% |
| Michigan |
-- |
-- |
100% |
| New Mexico |
5% |
5% |
-- |
| North Dakota |
-- |
-- |
100% |
| Ohio |
5% |
-- |
5% |
| South Carolina |
7% |
-- |
-- |
| West Virginia |
2.5% |
-- |
-- |
| Wyoming |
5% |
5% |
10% |
Table updated as of 03/04.
Please note: If it appears that a reciprocal preference might apply, agencies should call Brad Sanders at (406) 444-1459.
Application under the Montana Procurement Act
(1) Procurement officers must apply a reciprocal preference to invitations for bid for goods, printing, and nonconstruction services for public works as defined in section 18-2-401(9), Montana Code Annotated, but only if federal funds are not involved and only if it will benefit a Montana resident bidder. "Nonconstruction services" means work performed by an individual, not including management, office, or clerical work, for:
- the maintenance of publicly owned buildings and facilities, including public highways, roads, streets, and alleys;
- custodial or security services for publicly owned buildings and facilities;
- grounds maintenance for publicly owned property;
- the operation of public drinking water supply, waste collection, and waste disposal systems;
- law enforcement, including janitors and prison guards;
- fire protection;
- public or school transportation driving;
- nursing, nurse's aid services, and medical laboratory technician services;
- material and mail handling;
- food service and cooking;
- motor vehicle and construction equipment repair and servicing; and
- appliance and office machine repair and servicing.
(2) A resident bidder must complete a Montana Resident Preference Affidavit to verify resident eligibility and this affidavit must be on file with the General Services Division before a bid award can be made. If the nonresident bidder is still the lowest responsive and responsible bidder after the preference adjustment has been made, the contract price is the price bid, not the adjusted price.
(3) The business name and federal identification number on the Montana Resident Preference Affidavit must match the business name and federal identification number on the submitted bid documents in order to be considered for the application of reciprocal preference.
