Policy 3670: Local Construction Contracting (Rules)

Qualification for Local Construction Contracting Preference 

On an annual basis beginning with July 1st of each fiscal year, a vendor desiring to receive a bid discount for local construction contracting may submit appropriate documentation to the Executive Director of Facilities and Operations. Appropriate documentation shall include the following: 

1. Proof of completed submittal of Certification of a Michigan Based Business as determined by the Michigan Department of Technology, Management, and Budget. and
2. Proof it has its primary business operations located within the municipality of the City of Grand Rapids, Michigan for the past six months (on company letterhead). or 
3. Proof it has been certified as a Micro-Local Business Enterprise by the City of Grand Rapids and has its primary business operations within the municipality boundaries of the City of Grand Rapids (on company letterhead). 

A firm may submit the same documentation with its sealed bid or proposal in order to qualify for the bid discount. 

Non-Local Vendors 

A non-local vendor may qualify for a bid discount if it voluntarily subcontracts with businesses that meet the above documentation requirements. Proof of subcontractors meeting these requirements must be submitted with the sealed bid or proposal in order to qualify for the discount. 

Local subcontractor participation will be based on the value of the local subcontracts as compared to the total bid or proposal 

Joint Venture Bidding 

Contractors that engage in joint venture bidding with a local, small emerging business partner will need to submit documentation of participation level with the sealed bid or proposal. The local bid discount will be based on the value of the local, small emerging business partner as compared to the total bid or proposal. 

Eligibility/Verification 

The District may request documentation at the conclusion of a project for which a bid discount was received verifying eligibility with local bid discount criteria. If it is determined that a vendor did not actually meet the terms of local preference, disqualification from future consideration of a local purchasing preference may occur for a period of five years unless excused by the Superintendent or Designee.