200 KAR 5:400. Kentucky resident bidder reciprocal preference.

 

      RELATES TO: KRS 45A.050(7), 45A.070(1), 45A.090(2),

45A.180(1), 45A.182(1)(c), 45A.365, 45A.370, 45A.375, 45A.695, 45A.745,

45A.825, 45A.853, 160.303, 162.070, 164A.575, 164A.590, 176.010, 176.082.

      STATUTORY AUTHORITY: KRS 45A.494

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 45A.494(6)

requires that the Finance and Administration Cabinet promulgate administrative

regulations to establish the procedure by which a reciprocal preference shall

be given to Kentucky resident bidders. This administrative regulation establishes

the procedures by which a reciprocal preference shall be given to Kentucky

resident bidders.

 

      Section 1. Definitions. (1) "Contract"

is defined by KRS 45A.490(1).

      (2) "Nonresident bidder" is

defined by KRS 45A.494(3).

      (3) "Public Agency" is defined

by KRS 45A.490(2).

      (4) "Resident bidder" is

defined by KRS 45A.494(2).

      (5) "Response" means any bid or

response submitted to a solicitation.

      (6) "Solicitation" means an invitation

for bid, request for proposal, advertisement for bid, or another formal method

of soliciting a contract issued by a public agency.

 

      Section 2. Claiming Resident Bidder Status.

(1) Any individual, partnership, association, corporation, or other business entity

claiming resident bidder status shall submit along with its response a notarized

affidavit that affirms that it meets the criteria to be considered a resident

bidder as set forth in KRS 45A.494(2).

      (2) If requested, failure to provide

documentation to a public agency proving resident bidder status shall result in

disqualification of the bidder or contract termination.

 

      Section 3. Determination of Residency for

Nonresident Bidders. (1) The state of residency for a nonresident bidder, for

purposes of this administrative regulation, shall be its principal office as identified

in the bidder’s certificate of authority to transact business in Kentucky as

filed with the Commonwealth of Kentucky, Secretary of State.

      (2) If the bidder is not required to obtain

a certificate of authority to transact business in Kentucky, its state of

residency shall be the mailing address provided in its bid.

 

      Section 4. Applying the Reciprocal Preference.

(1) Once all responsible and responsive bidders to a solicitation have been

scored and ranked, the residency of each bidder shall be identified.

      (2) A preference equal to the preference

given or required by the state of the highest evaluated nonresident bidders shall

be given to all responsive and responsible resident bidders.

      (3) The responses shall then be rescored

and re-ranked to account for any applicable preferences.

      (4) In awarding a contract, resident

bidders shall only receive preference against nonresident bidders residing in a

state that gives a preference to bidders from that state. This preference shall

not be applied against nonresident bidders residing in states that do not give

preference against Kentucky bidders.

      (5) If a procurement determination

results in a tie between a resident bidder and a nonresident bidder, preference

shall be given to the resident bidder.

      (6) This administrative regulation shall not

result in a nonresident bidder receiving a preference over another nonresident

bidder. (37 Ky.R. 1109; Am. 1627; eff. 2-4-2011.)