Orland Park Can Now Pay More to Favor Local Vendors

Is a local vendor more deserving of a village contract if the services cost more than those provide by out of towners?

On Monday night, the Orland Park village board unanimously approved a resolution that allows local vendors to win village contracts even if they haven't provided the lowest bid. The "local vendor purchasing policy" means Orland Park may pay more money for a project in an effort to support local businesses even if a non-local company could perform the same job for less money.

Where this started: Orland Park has implemented "buy local" campaigns before, reminding residents, in one instance, that vehicle sales taxes are paid depending on where you live rather than where you buy the car.

The new vendor policy passed the village Finance Committee on Sept. 7. At the time, the main concern was how to pass a "buy local" resolution on a village scale while still having the flexibility to award the lowest and "most responsible" bidder.

Language was then added to the policy that allows the village to choose an out-of-town vendor if they are considered the best choice in the board's opinion.

Why should we care? As taxpayers, we may have to pay more for the same work. An award standard based on home turf sounds good, but if it costs taxpayers more money for a job of similar quality, does this really support the community? Could this favor business owners with close ties to village government? Ultimately, the effect depends on how often this is enacted and how much more money is spent as a result.

Who has weighed in? The resolution passed without any discussion, but Assistant Village Manager Ellen Baer spoke with Patch after the meeting.

As part of the resolution, the village can't award a contract to a local vendor when the difference between bids exceeds a certain percentage, she said. In the case of a $2 million project, a local bid could not exceed a non-local bid by more than $20,000. On a $10,000 project, the local vendor's bid could not exceed $200 above the lowest non-local bidder. The policy doesn't apply for any projects above $2 million.

"The percentages are at such a low rate intentionally so that the cost (to the village and the taxpayer) is not exorbitant," Baer said. "The percentages are there to protect the taxpayers of Orland Park. That's why they're so low."

What's next? Because all village projects for 2010 have either begun or the contracts have been signed, the taxpayers won't see the implications of this policy until next year. Check back with Orland Park Patch and we'll update you on how much money this will cost residents and business owners.