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Reciprocal Preference Law
North Dakota (ND)
Preference  Conditions

General Information                      

Reciprocal preference law applies to the Office of Management and Budget, any other state entity, and the governing body of any political subdivision when purchasing any goods, equipment, and contracting to build or repair any building, structure, road or other real property, and professional services.
[ref. N.D.C.C. § 44-08-01]. 
A “resident” North Dakota bidder, offeror, seller, or contractor is one who has maintained a bona fide place of business within North Dakota for at least one year prior to the date on which a contract was awarded.
[ref. N.D.C.C. § 44-08-02]. 
Tie bid preference must be given to bids or proposals bids submitted by North Dakota vendors.
[ref. N.D.C.C. § 44-08-01.1]. 
If a tie remains, preference must be given to approved vendors on the State Bidders List
[ref. N.D.C.C. § 54-44.4-09(4)]
[N.D.A.C. § 4-12-11-05] may apply].  


When purchasing coal, state agencies and institutions must comply with N.D.C.C. § 48-05-02.1 which describes how to apply preference for bidders supplying coal mined in North Dakota.  


During the 2003 legislative session, Senate Concurrent Resolution No. 4018 was passed which urges all publicly supported entities that purchase food to support North Dakota producers and processors by purchasing food products grown or produced and processed in North Dakota. 

(Environmentally Preferable Products and Bio-based Products)

N.D.C.C. § 54-44.4-07 encourages the Office of Management and Budget, institutions of higher education, state agencies and institutions to purchase environmentally preferable products.  Where practicable, bio-based products and soybean-based ink should be specified.  The Office of Management and Budget, in coordination with the State Board of Higher Education, shall develop guidelines for a bio-based procurement program.

Recycled Paper

N.D.C.C.  § 54-44.4-08 requires that at least 20% the total volume of paper and paper products purchased for state agencies and institutions contain at least 25% recycled material.  the Office of Budget and Management must track compliance.


N.C.D.C.  § 46-02-15 requires that if practicable, all state, county and other political subdivision public printing, binding and blank book manufacturing, blanks and  printed stationery must be awarded to a resident North Dakota bidder as defined in N.D.C.C. § 44-08-02. See also N.D.A.C. § 4-12-16-01

Soybean-based Ink

N.D.C.C § 54-44.4-07 requires that where practicable, specifications for purchasing newsprint printing services should specify the use of soybean-based ink. 

American Flags

N.D.C.C. § 44-08-22 requires that any state entity or political subdivision may not purchase a flag of the United States of America unless the flag is manufactured in the United States of America.  Items that are not flags, but which bear a likeness of the flag, such as food, clothing, lapel pins, a paper product or other non-flag items are excluded from this law.  

Direct Manufacturer Motor Vehicle Sales

N.D.C.C. § 39-22-25 states that a manufacturer or franchiser may not offer to sell directly or sell indirectly, any new motor vehicle to a consumer in this state, except through a new motor vehicle dealer holding a franchise for the line make covering the new motor vehicle.  This section does not apply to manufacturer or franchiser sales of new motor vehicles to the federal government, charitable organizations, or employees of the manufacturer or franchiser.  Any person violating this section is guilty of a class A misdemeanor.  

Work Activity Centers


N.D.C.C. § 25-16.2 states "If acceptable commodities or services are produced or provided by a work activity center at fair market price, and state entity or political subdivision may enter a contract to purchase directly from the work activity center without obtaining competition."  A "work activity center" is defined as "a facility, licensed by the department of human services, which is located in the state and operated by a nonprofit corporation organized for the primary purpose of employing and providing rehabilitative activities for individuals with physical disabilities, developmental disabilities, or chronic mental illnesses." 

(Also see N.D.A.C. § 4-12-09-06)  

Construction Stakes

N.D.C.C § 25-16.2 requires that the office of management and budget or the department of transportation must award any contract for highway grade stakes to work activity centers.