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Indiana companies will soon have an edge when competing for Fort Wayne contracts.
The City Council on Tuesday overwhelmingly supported a bill to give preferences to Hoosier companies seeking certain city work.
Its 8-1 preliminary vote is a reversal for the council, which killed a similar bill 5-4 last year along with opposition from Mayor Tom Henry’s administration. This time, Councilman Mitch Harper, R-4th, was the lone opponent of the bill, which now has Henry’s blessing.
Councilwoman Karen Goldner, D-2nd, said the bill will help keep tax dollars local so they can cycle throughout the community.
“It’s foolish to turn our backs on local companies,” she said.
City Purchasing Director Jim Howard argued against the bill last year, but Tuesday he said the newer bill makes sense. Logistically, he said it will be easier to manage because the state, not the city, will be responsible for certifying Indiana businesses. Howard also said the preferences would change few contracts, but it was important to help local companies.
The law gives a 5 percent preference on purchases worth up to $500,000, a 3 percent preference on contracts between $500,000 and $1 million and a 1 percent preference on contracts worth more than $1 million. It also grants 5 percent preferences on service contracts conducted through a formal request-for-proposal process.
The bill would not affect bids on works board projects, such as street construction, nor would it affect the hiring of consultants or lobbyists. It also would not be required for joint purchases with other governments, but Howard said it could still be used if the others agreed. The bill would apply to about $35 million worth of purchases annually, Howard said.
Harper said he was troubled by the bill because it could hurt local companies’ ability to get contracts elsewhere. While the number of city government contracts affected by the bill would be small, he said other communities, such as Van Wert, Ohio, might react to such action and create their own preferences. This would make it more difficult for local companies to sell their goods across the country and world.
“Those are where the real jobs are,” he said.
The council amended the bill so it will expire in two years without further action. Several members said such a trial would be a good test.
The council will likely conduct a final vote on the bill next week, but final votes rarely stray from preliminary ones.
