Certified Professional Public Buyer (CPPB) Practice Test

When evaluating bids with a local preference, which company should receive the award based on total low bid?

1. Company A

2. Company B

3. Company C

4. Company D

The correct answer is: Company B

When evaluating bids with a local preference, the key factor is that the bids are measured not just by the total amount, but also by the influence of local conditions or regulations that might favor local businesses. In many procurement processes, a local preference policy is designed to support businesses that contribute to the local economy or provide jobs in the area. In this case, if Company B is the entity that offers the total low bid after factoring in any local preference adjustments, then it is the appropriate choice for the award. This could mean that, while other companies may have submitted lower bids in a straightforward comparison, when local preference is applied, Company B emerges as the most competitive. Local preference might adjust the bids by either providing a percentage discount to local companies or adding a margin to non-local bids, which ensures that local bidders have a fair chance of winning procurement contracts. When assessing bids under a local preference policy, it's crucial that the total bid consideration aligns with the objectives of the local preference, ensuring the award supports local economic development while still adhering to the principles of fairness and transparency in public buying practices.