When the Anderson Redevelopment Commission awarded a $2.11 million contact to an Indianapolis company last week, you could almost hear a collective groan from the Madison County business community.
E&B Paving, an Anderson company, had bid $2.12 million, coming in just $8,192 higher than Renascent Inc. of Indianapolis. That’s just four-tenths of 1 percent more for the job, to build a roundabout near Scatterfield Road at East 59th Street and to realign 60th Street near the Applewood shopping center.
Giving the contract to E&B would have benefited a local business and its employees, as well as the local tax base.
But the redevelopment commission’s hands were tied by a state law that stipulates such contracts must go to the lowest bidder or to the bidder with the most advantageous offer.
In a case where one company had a great deal more experience or had done far better work than the lower bidder, a government unit could choose the higher bidder. But such considerations have to be backed by documented evidence, lest the decision invite litigation.
So, E&B Paving bid four-tenths of a percent higher and lost the job. That’s the way it goes.
But does it have to be that way?
Back in 2011, the state legislature passed a “buy local” law that enabled local government to give preference to local companies when awarding public works contracts.
Local bidders, under the buy local law, had a 5 percent cushion on bids below $50,000, a 3 percent preference on bids between $50,000 and $100,000, and a 1 percent preference on bids over $100,000.
Under the buy local law, the redevelopment commission could have chosen E&B Paving for the roundabout project.
Alas, the buy local law was repealed soon after it went into effect. It simply proved too confusing. The definition of a “local” business wasn’t clear and many worried that the law would lead to corruption of the sealed bid process.
That’s a legitimate concern. Above all, the selection of contractors for public works must be fair and must protect taxpayer dollars.
Still, it’s a shame that local businesses can’t get some sort of a leg up in the bid process without compromising the integrity of the system. Perhaps the legislature will take up the issue again next year.