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Local Bidder Preference is a decision by the government to direct purchases to certain companies based on location. When accepting bids for projects, a percentage increase is added to out-of-town bidders bid prices, to give local bidders an advantage in the bidding process.
A Local Preference Scheme, covering all levels of public procurement, was introduced in 1978. The objective was to maximize purchases by government, local authorities and parastatals from resident manufacturers.
LOCAL PREFERENCE ISSUE Such local vendors typically propose that special consideration should be made in the form of a local preference policy, allowing the local company to receive an award even though their offer is not the lowest responsive bid.
Procurement policies help organisations lower costs by procuring services and contracts at the best value. It helps to gain better visibility into the organisations budget. Efficiency: A good procurement policy ensures products are always of the highest quality.
What is the Local Bidder Preference Program? The Local Bidder Preference Program (the LBPP) is a program established by the City Code of Ordinances to: encourage business with the City; help foster the creation of employment and business opportunities; and generate additional revenue for the City.
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The role of the purchasing policy is to define standard methods and procedures for the Company to purchase products and services from different vendors. This policy covers all expenses for the company including items like taxes, payroll payments, etc.

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