AZ HB2858

Arizona bidders receive a 1% preference increase over out-of-state bidders when two or more bids are identical in price, quality, delivery terms, warranties, past performance, and specifications for contracts under section 41-2533.

Out-of-state bidders face a reciprocal percentage increase equal to whatever preference their home state gives to in-state bidders, with the Department required to publish a list of state preferences by January 1 each year.

The preference applies only to bid evaluation purposes and cannot result in this state paying a higher actual price for contracts.

The preference does not apply to purchase orders exceeding $1,500,000 in aggregate during a fiscal year.

To qualify as an "Arizona bidder," a business must be authorized to transact business in Arizona, have paid all assessed state taxes, and maintained headquarters in Arizona for at least 12 consecutive months (or employ 500+ full-time Arizona residents with employer-provided healthcare).