Governor: State Contracts Should Focus on Michigan Companies

Whitmer signs executive directive putting “Michigan Jobs First”

Gov. Gretchen Whitmer recently signed an executive directive revamping the state’s purchasing process ensuring that Michigan companies have priority when bidding for state contracts.

The “Michigan Jobs First” executive directive aims to improve the number of contracts that are awarded to companies that create good-paying jobs in Michigan. Currently, 70% of state contracts are awarded to in-state bidders, according to a news release issued by the governor’s office.

“Michigan is home to the hardest-working people and best businesses in the world, and our state should work to ensure that more of our Michigan tax dollars support Michigan workers and businesses at every opportunity,” said Whitmer, who signed the directive at Lecom Utility Contractors in Roseville. “We want Michigan to be a home for opportunity for everyone, which begins with supporting businesses that provide fair wages and good benefits. This executive directive will strengthen our commitment to these priorities and bring the greatest possible benefit to Michigan’s businesses, workers and families.”

The directive expands the list of factors used to determine whether a bid from a potential supplier would provide the best value to the state. Contracts will be awarded based partially on:

  • The overall economic impact the potential supplier’s bid will have on Michigan businesses and workers;
  • The wages and benefits offered by the supplier to its workers;
  • The supplier’s track record of labor and environmental compliance; and
  • The supplier’s commitment to economically disadvantaged zones.

In addition to expanding best-value factors, the executive directive also ensures that Michigan businesses are given full preference when the state makes purchasing decisions.

Under the state’s previous process of awarding bids, the Department of Technology, Management and Budget only used price, quality, transition costs, experience, market share, timeliness and agreement to terms in making best-value determinations. Whitmer’s directive still takes into account those factors, but also includes the Michigan Jobs First factors to weigh the bidder’s overall impact.

To increase transparency in the bidding process, the governor said the Department of Technology, Management and Budget only would generate an annual report to measure the overall economic impact of the directive on Michigan businesses and workers.

In 2018, the state awarded 8,813 contracts for a value of $2.14 billion, according to the news release.









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