WEST
VIRGINIA PURCHASING DIVISION
PROCEDURES HANDBOOK
PROCEDURES HANDBOOK |
Below are examples of various scenarios relating to Vendor
Preference.
Example #1: Award to Resident Vendor Due to Preference Application
| Vendor | Original Bids | Preference Given |
| Resident Vendor | $114,000.00 | 5.0% |
| Out-of-State Vendor | $109,000.00 | None |
Step 1: Calculation of Preference Adjustment
| Out-of-State Vendor Original Bid | $109,000.00 |
| Preference Adjusted Bid(Original bid multiplied by 1.05) | $114,450.00 |
Step 2: Comparison
| In-State Vendor Bid | Out-of-State Vendor Bid with Preference Adjustment | Comparison Result | |
| Resident Vendor #1 (5% Preference) |
$114,000.00 | $114,450.00 | Out-of-State Bid is Higher |
Skip Step 3 and 4 since
out-of-state vendor is high and only one in-state vendor bid.
Step 5: Award to in-state vendor
Example #2:
Award to Non-Resident Vendor Because Preference Not
Sufficient to Overturn Award
| Vendors | Original Bids | Preference Given |
| Resident Vendor #1 | $110,000.00 | None |
| Resident Vendor #2 | $112,500.00 | 2.5% |
| Resident Vendor #3 | $115,000.00 | 5.0% |
| Out-of-State Vendor | $109,000.00 | None |
| Out-of-State Vendors Original Bid | $109,000.00 |
| Bid Adjusted for 2.5% Preference (Original bid multiplied by 1.025) | $111,725.00 |
| Bid Adjusted for 2.5% Preference (Original bid multiplied by 1.050) | $114,450.00 |
Step 2:
Comparison
| In-State Vendors | In-State Vendor Bid | Out-of-State Vendor Bid Adjusted for Preference Requested | Comparison Result |
| Resident Vendor #1 (No Preference) | $110,000.00 | $109,000.00 | Out-of-State bid is lower |
| Resident Vendor #2 (2.5% Preference) | $112,500.00 | $111,725.00 | Out-of-State bid is lower |
| Resident Vendor #3 (5.0% Preference) | $115,000.00 | $114,450.00 | Out-of-State bid is lower |
Example
#3:
Award to Resident Vendor When Application of Preference
Leads to Conflicting Award
| Vendors | Original Bids | Preference Given |
| Resident Vendor #1 | $110,000.00 | None |
| Resident Vendor #2 | $112,500.00 | 2.5% |
| Resident Vendor #3 | $114,000.00 | 5.0% |
| Out-of-State Vendor | $109,000.00 | None |
Step 1:
Calculate Preference
Adjustment
| Out-of-State Vendor Bid | $109,000.00 |
| Bid Adjusted for 2.5% Preference | $111,725.00 |
| Bid Adjusted for 5% Preference | $114,450.00 |
Step 2: Comparison
| In-State Vendors | In-State Vendor Bid | Out-of-State Vendor Bid Adjusted for Preference Requested | Compariston Result |
| Resident Vendor #1 (No Pref.) | $110,000.00 | $109,000.00 | Out-of-State bid is lower |
| Resident Vendor #2 (2.5% Pref.) | $112,500.00 | $111,725.00 | Out-of-State bid is lower |
| Resident Vendor #3 (5.0% Pref.) | $114,000.00 | $114,450.00 | Out-of-State bid is Higher |
Skip Step 3 since out-of-state vendor's bid adjusted for
preference is higher than an in-state vendor's bid.
Step 4:
Comparison
of In-State Vendors without regard to preference
| In-State Vendors | In-State Vendor Bid | |
| Resident Vendor #1 | $110,000.00 | Lowest in-state bidder |
| Resident Vendor #2 | $112,500.00 | Higher than Vendor #1 |
| Resident Vendor #3 | $114,000.00 | Higher than Vendor #1 |