news-record.com

With an executive order Feb. 17, Gov. Bev Perdue made it easier for North Carolina businesses to compete for state contracts.

If only she had as much influence in the nation’s capital as she has in Raleigh.

Perdue took time out from the National Governors Association annual meeting in Washington, D.C., this week to complain to U.S. Transportation Secretary Ray LaHood about paltry federal funding for a big highway project and appeal to the Small Business Administration for a new loan program. The outcome? Well, you can’t expect the feds to grant every wish of cash-strapped states.

Perdue can be more successful when looking for ways North Carolina can better take care of its own interests. Her recent executive order aims to do that.

It lets “North Carolina resident bidders” match a low bid on a state contract if its own first bid came within 5 percent or $10,000, whichever was lower, of the best offer.

State law already allows the state to favor resident companies as long as there is “no sacrifice or loss in price or quality.” But the state has never taken full advantage of that provision.

It should. The advantages of giving state business to in-state firms are obvious. They keep jobs here and generate more state and local tax revenue.

Certainly, taxpayers must get their money’s worth when the state purchases products and services. The bidding process must be fair. But giving North Carolina-based companies a second chance to match a low bid, as long as they were close the first time, will cost taxpayers nothing while boosting the local economy.

There are potential pitfalls. Defining a “resident” company can be tricky, as many firms maintain facilities in several states or even countries. One very large bidder for state contracts is Thomas Built Buses in High Point, which is owned by Germany’s Daimler AG. That should not be a disqualification, as most jobs and income would stay in North Carolina. However, the governor’s initiative could backfire if other states reciprocated by making it more difficult for North Carolina companies to win their business.

Perdue’s office didn’t offer any analysis of how much additional income might accrue to North Carolina firms through this initiative or how much might be lost by neighboring states. There ought to be a positive impact on North Carolina’s economy, but the state should measure the effects and make periodic reports.

Perdue has touted herself as the “Jobs Governor” without much evidence to back up the boast. But this may be one example of the power of an executive order.