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Counties may get financial leeway

Bill supporters say small businesses will benefit the most.

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By Tom Stafford, Staff Writer 10:28 PM Friday, January 27, 2012

SPRINGFIELD — The Ohio Legislature last year increased the amount of goods and services townships and villages can buy without formal bids to $50,000.

To help small businesses compete for contracts, Ohio Rep. Bob Hackett, R-London, has introduced a bill to do the same for county governments.

He and co-sponsor Rep. Ross McGregor, R-Springfield, may get calls from cities wanting the same thing.

“Simply stated, $25,000 is not the same as it was eight years ago,” Hackett said in a news release. “Updating the minimum (to $50,000) ... will help local governments attain essential products and services more efficiently.”

Hackett said the legislation also will allow counties to work with small businesses “that have a track record but can’t bid (formally) because they’re not big enough to get a performance bond.”

The bill’s text says it would continue to require counties to “solicit informal estimates from no fewer than three persons” for contracts below the $50,000 limit.

“I’m not going to say it wouldn’t help,” said Clark County Administrator Nathan Kennedy, but he said the change would not affect county operations greatly. Counties can still buy materials without formal bids by piggy-backing onto formal state bids awarded for many of the services and products it needs.

Springfield City Manager Jim Bodenmiller, however, said an increase for cities would be “very helpful” because it would “save us a lot of administrative time going through bids and having private companies fill out the bids.”

Susan Cave, director of the Ohio Municipal League, agreed.

“Things cost more for cities these days. To periodically look at the limits and raise them for rising prices and inflation is a good idea,” Cave said. “We will work toward getting the cities raised to the same levels.”

The proposed bill also would:

• Allow the state’s commerce director to adjust the $50,000 bid limit annually, following a percentage change in a U.S. Department of Commerce index of the nation’s gross domestic product.

• Allow counties to award contracts of up to $100,000 without bids in case of an emergency.

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