Last week, a traffic signal and street maintenance contract sparked city council discussion about the possibility of creating a preference for local contractors. The bid for the maintenance ultimately went to Mark One Electric, based in Kansas City, Kan. However, the second lowest bid by Total Electric Contractor’s Inc., cost only $833 more than Mark One Electric but is owned by a Shawnee resident.

The decision prompted discussion between a couple of city council members and turned into my next internship project. I finished helping to compile research for a multifamily apartment complex recycling proposal a couple of weeks ago, and now I will start preliminary research into local preference policies and ordinances in cities throughout the country.

Basic research so far has shown that many cities across the nation have such policies. In Lawrence, for example, a bid from a local business no more than 1 percent or $10,000 more than the lowest bid may be preferred in the city.

Other cities give even more preference to local businesses by including a 5 percent total cost deduction (only in the purpose of comparing cost of a bid at face value) for local businesses or giving contracts to local businesses automatically if the cost falls within a certain range of the lowest bid price.

Most cities cite a hope to spur the local economy as motivation for such a local preference type policy or ordinance. The general theory is that by giving bids to local businesses, more money will be spent in the city raising revenues such as sales taxes in the city and also promoting an increase in local jobs.

In the coming weeks, I am looking forward to exploring the topic and compiling information in a helpful manner. While the city must ultimately weigh the positives and negatives such a policy could bring, it is encouraging that the city hopes to explore additional ways to grow the local economy.