Introduction
These guidelines are intended to provide information about North Dakota’s purchasing preference laws and related rules to employees who purchase for the state, bidders, and the general public. Please contact the OMB State Procurement Office at infospo@nd.gov or call 701-328-2740 if you have any questions or suggestions for improving these guidelines.
Preference Defined
The term “preference” as it relates to government purchasing is an advantage in consideration for award of a contract given to particular types of products or vendors. Preferences are commonly based upon the bidder’s residence, business classification (e.g., small, minority-owned, etc.), location within an economically challenged area, or the origin of product offered.
Reciprocal Preference Law
The sixty-eighth legislative assembly repealed this law.
Tie Bid Preference
N.D.C.C. § 54-44.4-05.1 states in the event that two or more bids or proposals contain identical pricing or receive identical evaluation scores.
- Preference must be given to a resident North Dakota bidder, seller, vendor, offeror, or contractor as defined in section 44-08-02.
- If a tie still remains, award shall be made in accordance with N.D.A.C. § 4-12-11-05.
Other Preference Laws
North Dakota also has several other preference laws:
When purchasing coal, state agencies and institutions must comply with N.D.C.C. § 48-05-02.1 which describes how to apply preference for bidders supplying coal mined in North Dakota.
During the 2003 legislative session, Senate Concurrent Resolution No. 4018 was passed which urges all publicly supported entities that purchase food to support North Dakota producers and processors by purchasing food products grown or produced and processed in North Dakota.
Effective July 1, 2008, N.D.C.C. § 54-44.4- 07 will encourage the Office of Management Budget, the institutions of higher education, state agencies and institutions to purchase environmentally preferable products. Where practicable, bio-based products should be specified. The Office of Management and Budget, in coordination with the State Board of Higher Education, shall develop guidelines for a bio-based procurement program.
N.D.C.C. § 54-44.4-08 requires that at least twenty percent of the total volume of paper and paper products purchased for state agencies and institutions contain at least twenty-five percent recycled material. The Office of Management and Budget must track compliance.
N.D.C.C. § 46-02-15 requires that if practicable, all state, county, and other political subdivision public printing, binding, and blank book manufacturing, blanks and printed stationery must be awarded to a resident North Dakota bidder as defined in N.D.C.C. § 44-08-02. Also see N.D.A.C. § 4- 12-16-01.
N.D.C.C. § 54-44.4-07 requires that where practicable, specifications for purchasing newsprint printing services should specify the use of soybean-based ink. The North Dakota Soybean Council and the Agriculture Commissioner shall assist the Office of Management and Budget in locating suppliers of soybean-based inks and collecting data on the purchase of soybean-based inks.
N.D.C.C. § 44-08-22 requires that any state entity or any political subdivision may not purchase a flag of the United States of America unless the flag is manufactured in the United States of America. Items that are not flags, but which bear a likeness of the flag, such as food, clothing, lapel pins, a paper product or other non-flag items are excluded from this law.
All North Dakota citizens are encouraged to purchase United State flags made out of hemp and manufactured in North Dakota. See House Concurrent Resolution No. 3004 for more information.
N.D.C.C. § 39-22-25 states that a manufacturer or franchiser may not offer to sell directly or sell indirectly, any new motor vehicle to a consumer in this state, except through a new motor vehicle dealer holding a franchise for the line make covering the new motor vehicle. This section does not apply to manufacturer or franchiser sales of new motor vehicles to the federal government, charitable organizations, or employees of the manufacturer or franchiser. Any person violating this section is guilty of a class A misdemeanor.
General:
- Effective August 1, 2011, N.D.C.C. § 25-16.2 states that if acceptable commodities or services are produced or provided by a work activity center at fair market price, any state entity or political subdivision may enter a contract to purchase directly from the work activity center without obtaining competition. See subsection 2(e) of N.D.C.C. § 54-44.4-05 for more information.
Construction Stakes:
- N.D.C.C. § 25-16.2-02 requires contracts for highway construction stakes to be awarded to North Dakota work activity centers for the developmentally disabled, unless no work activity center bids on the contract
Small and Disadvantaged Businesses
North Dakota state procurement law does not require any preference based upon business classification (e.g., small, minority-owned, etc.). The North Dakota Department of Transportation has a Disadvantaged Business Enterprise (DBE) Program to encourage the development and use of companies owned and controlled by minorities, women, and socially and economically disadvantaged individuals on federally aided highway construction projects.
Contact the ND DOT Civil Rights Division at civilrights@nd.gov or call at 701-328- 2576.