A partnership between the Mesa Chamber of Commerce and the Mesa Unified School District seeks to use more local businesses to provide services and goods to the state’s largest school district.
Under the agreement, Mesa will “actively seek out” chamber members for purchases below $50,000. The district and the chamber will instruct local companies on the bidding process for purchases above $50,000, according to a press release.
“We know the importance of buying local and the Mesa Chamber of Commerce helps us locate the suppliers we need right here in our community,” Bill Munch, director of purchasing for the school district, said in a press release.
soricobob posted at 6:21 am on Sat, Mar 10, 2012.
You mean to tell me that this is news? Mesa hasn't done this before, but thousands of schools across the country do this regularly. 1. Banks, Discount Clubs, Auto Dealers sponsor breakfasts and lunches during pre-school training so they come in and give a sales pitch for 20 minutes; 2. During the year, at in-service, lunches are sponsored by local businesses looking for members among the staff; 3. Friday "treats" are sent in by businesses looking for teacher business; 4. PTO/A's are involved with local businesses for promotion of events.
If you don't know this, contact someone from another state!
gilbertwatchdog posted at 8:29 pm on Tue, Mar 13, 2012.
As usual, the devil (in political announcements like this) is in the details.
At first glance, this "local first" announcement sounds great for east valley business owners (and especially for Mesa business owners), but just like the State of AZ proclamations about bids below "X" amount need at least one WOSB bidder "when applicable" those two words virtually eliminate all real opportunity.
Let's examine Mesa's proclamation to see if it is a "empty proclamation" as well.
Mr. Munch announces that he "opposes having criteria that would give extra weight to local businesses when comparing vendors" and adds that "non-Mesa businesses sometimes will win out because of better service or pricing".
Ever wonder why, Mr. Munch?
Many states (and local agencies) have a local vendor first preference, but not the State of AZ or Mesa Schools. Right off the bat that means that a vendor from outside AZ doesn't have to concern themselves with that pesky State of AZ tax, Maricopa County tax, and yes Mesa local taxes.
That eliminates 9.05% from their cost (compared to a local Mesa vendor). Any wonder why Amazon is willing to fight so hard to convince our state government that (even though they have multiple warehouse locations in the Phoenix area) they (Amazon) should not be considered a local company that has to collect local sales tax? Amazing their abilility to win more business when one business is tax exempt and another has to charge an extra 9.05%, isn't it?
Gee, Mr. Munch, I'd really be impressed if you could tell us the number of times companies (outside of AZ) have won your business with a higher price (but better service). I'd bet that would be a very short list indeed.
If local residents (and business owners) are the source of revenue (through their various taxes), what's the harm in actually helping those local folks with real incentives? At least eliminate (on paper) the tax disadvantage against local companies when evaluating contract awards (and not just on $50,000 and lower buys, but everything purchased).
Eliminate the use of multi-year state and education contracts that suck millions in revenue from local companies (that would otherwise be competitive) with various restrictions on local businesses that are not faced by their out of state competitors. Far too often I see bids where additional restrictions or requirements are placed on local vendors that are specifically exempted for the out of state companies we compete against.
Local businesses might win a much higher share of that business if our government and education procurement officials didn't make it harder for local business to compete in the first place.
Until that happens, all the announcements about "local first" don't mean squat without real change within the procurement model at state, local, and educational levels.