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Public Statements

Gov. Perdue's NC Preference Program Directed $22.6 Million in Spending to 44 in-state Businesses in 2011

Press Release

By:
Date:
Location: Raleigh, NC

Thanks to Gov. Bev Perdue's NC Business Preference program, 44 North Carolina companies received 80 state price-match contracts worth more than $22.6 million in 2011. An additional seven contracts worth $203,801 was awarded in January 2012.

Eight of the awards for 2011 were for more than $250,000 each, with the single-largest award of $13.4 million to Jernigan Oil Co., Inc. of Ahoskie for fuel, oil,grease and lubricants. It qualified for NC Business Preference consideration because its original bid was within $10,000 or 5 percent of an offer from an out-of-state company.

"In some cases, as little as $50 meant the difference between securing a contract or losing one to an out-of-state firm," Gov. Perdue said. "Every dollar spent in North Carolina helps our business owners stay afloat and provide jobs for our workers. This is essential as we continue to recover from the global economic recession."

As part of her effort to set government straight and grow jobs, Gov. Perdue created the NC Business Preference as a price-matching option for North Carolina businesses bidding on state contracts. Including the January 2012 contracts, the total amount awarded since Executive Order 50 was issued in March 2010 is now more than $25.89 million.

Under the program, which is implemented by the N.C. Division of Purchase and Contract, if a North Carolina-based business is not the low bidder on a state contract, but submits a bid within 5 percent or $10,000 of the lowest bid, whichever is less, the North Carolina business will receive the opportunity to match the out-of-state bidder's price and secure the contract.

The eight greater-than-$250,000 awards by amount for 2011 include the following North Carolina vendors:

· Jernigan Oil Co. Inc. of Ahoskie (Hertford County) was awarded a $13.4 million contract over an out-of-state bidder to provide fuel, oil, grease and lubricants, a total reduction of $20,880 on eight line items.

· Red Star Oil Company Inc. of Raleigh (Wake County) was awarded a $2.7 million contract instead of an out-of-state bidder for fuel, oil, grease and lubricants, an overall reduction of $18,980.

· R.W. Moore Equipment of Raleigh (Wake County) was awarded a $2.4 million contract to provide road and highway equipment, a decrease of $6,880.

· Arrow Equipment of Greensboro (Guilford County) was awarded a $714,852 contract with road and highway equipment, a drop of $1,512 from its original bid.

· Potter Oil & Tire Company of Aurora (Beaufort County) was awarded a $601,475 contract for fuel, oil, grease and lubricants, lowering its bid by $6,813 rather than allowing the award to go to an out-of-state bidder.

· Sandhills Propane Company Inc. of New Bern (Craven County) was awarded a $261,296 contracts for fuel, oil, grease and lubricants, a decrease of $7,920.

Numerous smaller bids also were awarded -- including 18 under $10,000 and one for $141 -- allowing North Carolina companies to boost their bottom line with state business. The full award list is posted at http://www.pandc.nc.gov/EO50MonthlyReports.htm.


The seven January 2012 awards were divided among five vendors, including:

· United Restaurant Equipment Company of Raleigh (Wake County) was awarded a contract for $80,784 for compartment trays, a decrease of $1,986 under its initial bid.

· Pomona Pipe Products of Greensboro (Guilford County) was awarded a contract for $42,646 for aluminum box convert, a decrease of $740.

· Thompson & Little Company of Fayetteville (Cumberland County) was awarded a $30,294 contract for meat slicers, a reduction of $954.

· FreshPoint Inc. of Morrisville (Wake County) was awarded a $4,945 contract for mixed salad and lettuce, a drop of $128.

· FreshPoint Inc. of Morrisville (Wake County) was awarded a $25,679 contract for apples, a reduction of $269 to avoid the award going out of state.

· FreshPoint Inc. of Morrisville (Wake County) was awarded a $8,233 contract for mixed salad and lettuce, a drop of $48.

· Edward Don and Co. of Macon (Warren County) was awarded a $12,220 contract for a Solid Door Reach-In Freezer, a decrease of $340 to meet the out-of-state bid.

Gov. Perdue reminds North Carolina businesses bidding on contracts to follow the procedures for Executive Order No. 50 and to check the box titled "Resident Bidder requests the price-matching preference."

Interested businesses can go to the Department of Administration's Division of Purchase and Contract website http://www.pandc.nc.gov/index.htm for specific details on how to bid and get answers to frequently asked questions. It is important that all bidders fully complete the affidavit and demonstrate their qualifications for the price-matching preference. Companies that do not follow the procedures and complete all the forms cannot be considered.


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