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Reciprocal Preference Law
North Carolina (NC)
Preference     Conditions                                                                                               

General Statute
§ 143.59  

(a) Preference
The Secretary of Administration and any State agency authorized to purchase foodstuff or other products, shall, in the purchase of or in the contracting for foods, supplies, materials, equipment, printing or services give preference as far as may be practicable to such products or services manufactured or produced in North Carolina or furnished by or through citizens of North Carolina: 
Provided, however, in giving such preference no sacrifice or loss in price or quality shall be permitted.
Further, preference in all cases shall be given to surplus products or articles produced and manufactured by other State departments, institutions, or agencies which are available for distribution. 

(b)  Reciprocal Preference
For the purpose only of determining the low bidder on all contracts for equipment, materials, supplies, and services valued over twenty‑five thousand dollars ($25,000), a percent of increase shall be added to a bid of a nonresident bidder that is equal to the percent of increase, if any, that the state in which the bidder is a resident adds to bids from bidders who do not reside in that state.    

(c) Definitions  

  1. Resident Bidder- a bidder that has paid unemployment taxes or income taxes in this State and whose principal place of business is located this this State.
  2. Nonresident Bidder - a bidder that is not a resident bidder as defined in (1).
  3. Principal place of business- The principal place from which the trade or business of the bidder is directed or managed. 

A bidder and offeror, as well as bid and proposal, are interchangeable.  

(d) Exemptions
A reciprocal Preference shall not apply to procurements made under
G.S. 143-53(a)(5) and G.S. 143-57. 

(e) Award of Contract
When a contract is awarded by the Secretary using the provisions of subsection (b), a report of the nature of the contract, the bids received and the award to the successful bidder shall be posted on the Internet as soon as practicable.

(f)  Resident Bidder Notification 
When the Secretary puts a contract up for competitive bidding, the Secretary shall endeavor to provide notice to all resident bidders who have expressed an interest in bidding on contracts of that nature.  The Secretary may opt to provide notice by electronic means only.

Executive Order No. 50

The North Carolina Governor has established a second in-state (but not reciprocal) preference by Executive Order.  This preference is applied to bids on goods (but not services) submitted by resident North Carolina vendors, if the lowest bid from a resident vendor is within $10,000 or within five (5) percent (whichever amount is less) of the lowest bid.  In such a case, the resident bidder may opt to match the lowest price and receive the bid award.  
For more detailed information, please visit North Carolina General Statutes at: