Texas Attorney General Opinion: JM-712 Page: 1 of 7
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THE ATTORNEY GENERAL
OF TEXAS
May 28, 1987
jm MlATrox
ATTORNEY GENERAL
Mr. R. E. Stotzer, Jr. Opinion No. JM-712
Engineer-Director
State Department of Highways Re: Applicability of the out-of-
and Public Transportation state bidder provisions of article
Dewitt C. Greer Highway Bldg. 601g, V.T.C.S., to an Arkansas
11th and Brazos Streets statute which gives preference to
Austin, Texas 78701 certain bidders on highway con-
struction projects
Dear Mr. Stotzer:
You have submitted the following facts. In the course of
awarding contracts for highway projects during the month of April,
1987, the State Department of Highways and Public Transportation
(hereinafter the department) received bids for a particular project,
the lowest of which was submitted by an Arkansas firm. Contracts for
highway improvements must generally be awarded through a competitive
bidding process to the lowest bidder. V.T.C.S. arts. 6674h; 6674i.
Article 601g, V.T.C.S., however, creates a limited exception to this
procedure for contracts which-do not involve federal funds. Attorney
General Opinion JM-484 (1986). The latter statute provides the
following in pertinent part:
The state or a governmental agency of the state
may not award a contract for general construction,
improvements, services, or public works projects
or purchases of supplies, materials, or equipment
to a nonresident bidder unless the nonresident's
bid is lower than the lowest bid submitted by a
responsible Texas resident bidder by the same
amount that a Texas resident bidder would be
required to underbid a nonresident bidder to
obtain a comparable contract in the state in which
the nonresident's principal place of business is
located.
V.T.C.S. art. 601g, 5l(b).
The state of Arkansas has enacted a number of statutes which
favor certain bids on state contracts over others. The most relevant
to this opinion are Arkansas Statutes sections 14-293 and 14-614.2.
The first section establishes a preference for firms "resident in
Arkansas":p. 3297
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Texas. Attorney-General's Office. Texas Attorney General Opinion: JM-712, text, May 28, 1987; (https://texashistory.unt.edu/ark:/67531/metapth273150/m1/1/?q=%22%22~1: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.