CHAMBER MEMBER SURVEY

FEBRUARY 2000

The Volusia County Council is considering a local bid preference ordinance. This would provide Volusia-based companies an advantage in receiving County contracts/business as opposed to companies outside of Volusia. In FY 1998, 88 percent of the county contracts went to local firms.

Advantages – It would keep County tax dollars “at home” i.e. going to businesses that are based in Volusia.

§ County tax dollars would go to a local labor force and materials owned by Volusia citizens.

§ Contracts with Volusia companies could have a better “trickle down.” effect in our local economy.

Disadvantages – It would disrupt the overall bid process whereby the contract goes to the lowest bidder.

§ No neighboring counties have this ordinance and it could place local companies at a disadvantage when bidding if those counties retaliate with their own local-preference ordinance (or similar measure).

§ It places Volusia in an “us vs them” mode when we should be building closer relations with neighboring counties i.e. economic development.

The proposal under consideration is:

§ optional and only goes into effect when a majority of the County Council agrees to implement it;

§ would be used for contracts up to a maximum of $1.5 million;

§ based on a 3-level sliding scale –

§ 3 percent difference allowed on bids from $25,000 to $200,000;

§ 2 percent difference on bids between $200,001 to $500,000;

§ 1 percent up difference to $1.5 million (maximum advantage to a local company - $14,999)

Should the County Council adopt a local bid preference ordinance? 41.1 % Yes 58.9 % No

If yes, why they should -

· It proved opportunities for the local businessman and woman; Keeps the dollars local and there by it turns over with the community; we have to first help ourselves before we can help others. However, I don't believe that the lowest bid is always the best route.

· It is important to keep local money in our area. I do not believe it should go to companies outside of Volusia County. Other counties already give their locals preference and keep Volusia county companies from getting these bids.

· We need to do all we can to keep payroll dollars in Volusia that we can plus the businesses that pay taxes hear should receive preference.

· We should pump as much money as possible into our local economy.

· Keeping the money local is worth the small dollar impact.

· I am tired of seeing our money go to out of town companies or national agencies. Our businesses can do just as good of a job, i.e, security on tract for county was awarded to national company instead of local companies who were low bid, i.e. me

· I believe that locals should have preference in all counties as long as they can meet the qualifications of the bid process.

· For the small cost difference to the county, the trickle down effect significantly outweighs cost.

· Qualified local contractors will be responsive to problems and will turn the money over in the community.

· Money circulated in the county has a value several times its face value as it is put back into circulation HERE and used time and time again, also it is difficult to compete with the bigger companies outside the county as they generally have more resources. If they want to do business here let them open an office and get involved financially and bring more employment to this area, isn’t that what we are trying to do.

· Local contractors provide jobs for our local community whose money is spent locally and supports the many local agencies – United Way, Red Cross, Museum, and Chambers.

· Other counties (i.e. Polk, Lake) do and obviously, it benefits local business, as it should.

· County taxpayer money would stay in the local economy; puts our workers to work. 5

· We want to encourage business to locate here to do business – not export everything.

· To put money back into the local economy this in turn increases taxes and values of local properties.

· Economic value given to support Volusia growth and development.

· It should be more expedient to deal with locals. 4

· If the firm is qualified and it is in the best interest of the county. The other option is to use qualified local subcontractors. This option allows the use of more local trades.

· Because money that stay in the county is taxable in the county as income to the business and spent by the employee in the county) sales taxes. However, there should be a cap to prevent abuse.

· The contract now goes to the lowest bidder.

· Because this keeps money in the county allowing companies to reinvest in the area.

· Within reason.

· The only preference a local business should get over other business on a bid should be based on factors besides the lowest bidder i.e. reputation, experience, know how. If a local company is within a percentage of the lowest bidder, but obviously will do a better job or because of the nature of the job is more qualified then he should get a preference.

· Need to support our own – too much money going out of county. However, there should be 3 exceptions:

· If local bid is 10 percent more that out of county, allow local vendor to rebid the contract

· If the service cannot be provided locally

· If quality is not provided……

If No, why they shouldn’t

· Local firms enjoy the advantage of proximity and should be able to compete fairly with outside firms.

· Disrupts bid process; local companies have inherent advantage.

· Volusia may still have something to learn from neighboring counties. Need to join together, not pull apart.

· Out of town businesses have the additional expense of travel and at times hotel rooms. If local firms can’t compete, even with this advantage, then more taxpayers’ money shouldn’t be spent.

· The final bid should be given to whoever is the best qualified regardless of location of business.

· We have tried it before and it caused bad relationships with other areas. We do not need to give the Council authority to impose it on an individual basis.

· It additional costs to taxpayers.

· Open competition to all qualified bidders will save taxpayer money in the longer term.

· Contracts need to be awarded to the most qualified contractor with the best price and reputation for quality and meeting deadline.

· A bid is a bid – best price benefits all taxpayers. 2

· Open market dynamics.

· Indirect benefit to county taxpayer is not enough to warrant upsetting free enterprise.

· Not a wise business practice. Lowest and best is the only sensible policy.

· It is anti-competitive and tends to serve special interests. If the local businesses can compete, they may get the job anyway.

· I think that companies in our county must remain competitive – the ordinance may interfere with that.

· 88 percent already goes to locals – good record; fear retaliation. 4

· Need to get bids from out of State – favor competition?

· Should be open to have the best-qualified company do the work so taxpayers get best value for dollars spent.

· This ordinance would only cost the county money (i.e. outsiders have lower bids, etc) would be damaging to relations with outside counties.

· We want the best price for the county regardless.

· Council is responsible for tax dollars to be spent at the best cost for the job.

· Tax dollars is not the only problem; competitive bidding is required to hold down costs, local could afford that edge.

· Some contracts may require an expertise level not affordable locally. Contract managers should always try to get the best buy possible.

· Disadvantages outweigh advantages and our local companies need to be competitive with outside companies.

· Lowest bid should be the criterion, all other attributes being equal.

· Competition is good for the economy.

· Go for the best value. Should be concerned with Internet vendors taking dollars by the millions out of the area during Bike Week and Biketoberfest.

· This proposal is an example of the kind of thought process that keeps Volusia County’s manufacturing economy non-existent.

· With 88% of the county contracts going to local firms in 1998, (what was the 1999 percentage?) it would not be worth the extra 12 % to alienate our neighboring counties. Keeping these counties in the loop would build better relations, and would not give them a reason to retaliate with a similar ordinance.

· This entire area is in the midst of trying to grow business to a larger, universal scale. A local referendum could damage long term development and growth from outside investors (who may work with their outfits, but still spend a lot locally). I don't profess to be an expert on this situation, but everywhere I go to do business or to network the one prevailing stigma of this area is that it is still an old boys network and business growth is confined to an elite, established circle of individuals and families. The Daytona area has gotten itself where it is due to myopic visions of growth and extreme bipartisanship, if indeed we want to catch up to the rest of the country and the world we need to think more universally and not try to restrict growth any more than it already has been. Another line of thought on this is what if the local outfit isn't totally qualified for the job, would building projects be put at risk in both materials and workmanship just to keep the business in county. In closing, we have to realize that Volusia is not an island of growth but merely a small piece of the fast developing corridor of growth that runs from Daytona to Tampa. We have alienated ourselves from each other for so long (mainland business vs. beachside interests) and it has stifled our development away from a beachy, honkytonk town. To do this again on a much bigger level, wouldn't fare well for our long-term development.

· We do not need a bad reputation with our surrounding counties.

· It is anti-competitive and not good economic policy. Should not give our tax dollars to companies that can not compete on a local level.

· Free markets work best with as little governmental intervention as possible. Tariffs and local preference regulations would only stimulate similar protectionist measures by our neighbors. The public is best served by getting the most bang for the buck.

· If our local vendors cannot compete against Seminole and Orange counties, etc. then they shouldn't get a preference.

· Local companies need to bid competitively with everyone else. If they can't be competitive with the resources they use within the County (especially the lower cost of living here) against the outside bidders, then they should not win the contract.

· Any measure that limits competition is bad for everyone involved.

· Leads to inflated cost to citizens of Volusia for such projects and reduces the competitive spirit required to keep potential suppliers at their most competitive pricing.

· I would like to include the problem of defining a Volusia business. It is easily circumvented. In my office complex there are at least three companies that are never there. They simply use it as a
Volusia address. I support a waited scale for any contract. Lowest price should never be the
only factor considered. Past work performance, quality of workmanship, ability to complete the job, etc.

· The proposed plan is complex enough that it will likely not be used. Instead, in order to continue saving taxpayers money, the lowest bidder will likely continue to be chosen even if that vendor is not located within Volusia County. As a taxpayer, I would like the county to invest our tax dollars wisely and prudently. If the best deal can be obtained out of the county then so be it. Just because the vendor is local doesn't mean that he offers the best deal. Whatever plan is adopted, I hope it's simple enough that even the county councilmembers can understand it. Many "local" companies have Home Offices in other parts of the state. Are> we then Local or not? If 88% of the work went to local companies already> how much more work can they handle? We have such a shortage of skilled tradesmen and women that it's difficult enough to do the work we have! The large contracts that come into this area i.e.: The Ocean Walk, The Court house, are out of town hard bidders that team up with local harder bidders to take the lowest possible bid and build their projects. I for one do not want or need to be altering my pricing hoping that a few percent would get me that job. The out of county big hitters can work us smaller companies into lower profits and returns.

If they really want to help local companies, get the local builders to develop a better relationship with local sub-contractors. There is a very limited amount of trust between General Contractors in this area and the local Sub- Contractors. Creating a Team approach with local builders and subs will allow locals a better chance at building our future. Recently there was a meeting concerning the new Technical Training Center. Did you notice the Builder----- Out of towners!!!! This could be the training center that molds the young people who build the next generation of buildings in Volusia!!! Should we limit the bidders to Volusia contractors? I believe Flagler County involved in this deal. Would they get an exemption for their Contractors?

· Keep competition in the market place for all Florida companies. This proposal and percentages should be for all firms in Florida. These percentages should pertain to contracts bid on by firms outside of Florida. Give Florida based companies the chance and pull the state together on behalf of Florida companies.

· Volusia County businesses need to be competitive in central Florida as well as the state.

· Has the potential to lead to deceptive practices. Will greatly eliminate bids from outside contractors.

· Doesn’t the lowest price benefit taxpayers the most?

· Volusia County businesses need to compete based on ability and value...not on artificial preferences based on location. Few businesses can survive depending on local (county or city) business alone. This would have a chilling effect on the business community.

· Protectionism does not work. It’s a good old Boy Politics as usual.

· It is valiant to want to keep as many tax dollars as possible local but it does not make good business sense to sever your options. The lowest bidder does not necessarily mean the best quality but consider the repercussions of the opposite. Your best local bidder may not be capable of providing the workmanship necessary for certain projects. If such regulations as proposed are passed, Volusia would have no alternative if it were ever put in such a situation. We would wind up spending 2-3 times more money on repairs, maintenance and improvement on issues that might never have been. By essentially eliminating competition (some businesses in Volusia have no direct local competition), you are encouraging the creation of a new set of standards and practices that may be less than desirable. Consider all possible scenarios of needs vs availability, keeping in mind deadlines and costs.

Volusia should be focused on developing ties with other counties and not perpetuating the self sufficient, I-can-handle –it, we’re fine on our own attitude towards development and growth. We need to use local bidding businesses as much as possible to build a solid base of capable, reliable companies. This will improve the image of Volusia and its workforce. We can then show ourselves capable of acting and reacting in an efficient and effective manner that will continue to provide a basis for continued economic growth. It is time for us to get in the game!

The County should strive to insure that as many qualified Volusia-based businesses are eligible to bid on County contracts. 89.4% Agree 4.2% Disagree 6.4% No Opinion

The County should keep tax dollars ‘at home’ to benefit our local economy.

65.8% Agree 23.5% Disagree 10.6% No Opinion

· Within limits

· But only within reason by encouraging maximum local firm participation.

· To the extent that it is possible while keeping an open bidding process. The county should enhance its relations with other Central Florida counties on common issues i.e. economic development

The County should enhance its relations with other Central Florida counties on common issues i.e. economic development, transportation.

95.5% Agree 1.1% Disagree 3.4% No Opinion

Because a company submits the lowest bid, it still may not be in the County’s best interest in terms of quality, completion of the job, meeting completion deadlines.

93.2% Agree 5.6% Disagree 1.2% No Opinion

· If the bid specifications are written correctly, the low bidder will be in the County’s best interest.

Volusia’s economy is stagnant & this measure would benefit our economy.

34.2% Agree 47.2% Disagree 18.6% No Opinion

· You will still need outside involvement

· Stagnation is due to a much larger problem.

· Agree that we are stagnant but disagree that this measure would benefit the economy.

Neighboring counties will not retaliate with their own local-preference ordinance.

17.1% Agree 53.4% Disagree 29.5% No Opinion

· May have local businesses demand such action, but do not believe it will be substantial or impact us to any extent because ordinance still allows for major contracting outside and to do local if within certain parameters.

· No way to tell but it would not be good if they did retaliate. Building stringer relationships will be good for all involved.

· Possibly, but that’s the chance we take…

· Neighboring counties would not be that shortsighted

117 responses

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