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
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.)