Ohio preference: Overview, definition, and example
What is Ohio preference?
Ohio preference refers to specific provisions or policies under Ohio state law that give preference to certain local or in-state businesses when awarding contracts, conducting government procurements, or engaging in other economic transactions. These preferences are designed to support Ohio-based businesses, encourage local economic growth, and foster job creation within the state.
Ohio preference laws typically apply to government contracts and may give Ohio-based companies an advantage over out-of-state businesses, ensuring that state funds are used to benefit the local economy. These preferences might be granted based on factors like the location of the business, the employment of Ohio residents, or the sourcing of materials from within the state.
Why is Ohio preference important?
Ohio preference is important because it promotes the state’s economic development by ensuring that a portion of public contracts and funds remain within the state. It provides a competitive advantage to local businesses, helps create jobs for Ohio residents, and stimulates economic activity within Ohio’s borders.
For businesses, Ohio preference policies can serve as an incentive to establish operations within the state or expand their presence, knowing that they may have preferential treatment when competing for government contracts. For the state government, these policies help support local businesses and foster a more vibrant, self-sustaining economy.
Understanding Ohio preference through an example
Imagine the state of Ohio is issuing a contract for a public construction project. Under Ohio preference policies, local contractors based in Ohio might receive a scoring advantage when bidding for the project. If a contractor from another state bids for the same project, their bid might be considered less favorably, even if it’s lower, because Ohio’s preference laws prioritize in-state businesses. This preference helps ensure that state funds are more likely to be spent on local businesses, thereby benefiting the local economy through job creation and business growth.
In another example, Ohio might have a law that gives preference to Ohio-based companies when the state government is purchasing materials for public works projects. A company that manufactures its materials within Ohio could be awarded a contract over a competitor from another state, based on the state’s preference for local suppliers.
An example of an Ohio preference clause
Here’s how an Ohio preference clause might appear in a government procurement contract:
“In accordance with Ohio Revised Code § [X], preference shall be given to Ohio-based businesses in the award of contracts. Bidders who are Ohio residents or have their principal place of business within the state of Ohio will receive a preference of [X]% in the evaluation of their proposal. All bidders are required to provide proof of their Ohio status upon submission of their bid.”
Conclusion
Ohio preference is a policy that gives local businesses an advantage in securing government contracts and procurement opportunities within the state. It encourages economic growth by prioritizing Ohio-based businesses and fostering job creation in the state. By implementing these preference laws, Ohio helps strengthen its local economy and ensures that taxpayer dollars contribute to the prosperity of Ohio residents and companies.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.