18-1-102. State contracts to lowest bidder -- reciprocity. (1) (a) Except as provided in subsection (1)(b), in order to provide for an orderly administration of the business of the state of Montana in awarding public contracts for the purchase of goods and for construction, repair, and public works of all kinds, a public agency shall award:
     (i) a public contract for construction, repair, or public works to the lowest responsible bidder without regard to residency. However, a resident bidder must be allowed a preference on a contract against the bid of any nonresident bidder from any state or country that enforces a preference for resident bidders. The preference given to resident bidders of this state must be equal to the preference given in the other state or country.
     (ii) a public contract for the purchase of goods, if the goods are comparable in quality and performance, to the lowest responsible resident bidder whose:
     (A) bid is not more than 3% higher than that of the lowest responsible nonresident bidder;
     (B) offered goods are Montana-made and whose bid is not more than 5% higher than that of the lowest responsible nonresident bidder; or
     (C) offered goods are Montana-made and whose bid is not more than 3% higher than that of the lowest responsible resident bidder whose offered goods are not Montana-made.
     (b) The transportation commission or the department of transportation may not enter into a contract for [a federal-aid highway project,] a state-funded highway project[,] or a construction project with a bidder whose operations are not headquartered in the United States unless:
     (i) the foreign country in which the bidder is headquartered affords companies based in the United States open, fair, and nondiscriminatory access to bidding on highway projects and construction projects located in the foreign country; and
     (ii) the department of transportation has entered into a reciprocity agreement with the foreign country that addresses:
     (A) the equal and fair treatment of bids originating in the United States and in the foreign country;
     (B) specific ownership requirements and tax policies in the United States and in the foreign country that may result in the unequal treatment of all bids received, regardless of their origin;
     (C) the means by which contractors from both the United States and the foreign country are notified of highway projects and construction projects available for bid; and
     (D) any other differences in public policy or procedure that may result in the unequal treatment of bids originating in the United States or in the foreign country for projects located in either the United States or the foreign country.
     (c) (i) If both subsections (1)(a)(ii)(B) and (1)(a)(ii)(C) are applicable to bids for a contract, the contract must be awarded to the resident bidder whose offered goods are Montana-made if the bid is:
     (A) not more than 3% higher than that of a resident bidder whose offered goods are not Montana-made; and
     (B) not more than 5% higher than that of the nonresident bidder.
     (ii) However, a combination of preferences under this subsection (1)(c) may not exceed 5%.
     (2) The preferences in this section apply:
     (a) whether the law requires advertisement for bids or does not require advertisement for bids; and
     (b) to contracts involving funds obtained from the federal government unless expressly prohibited by the laws of the United States or regulations adopted pursuant to federal laws. (Bracketed language void on occurrence of contingency--sec. 3, Ch. 306, L. 1999.)

     History: En. Sec. 1, Ch. 183, L. 1961; amd. Sec. 1, Ch. 197, L. 1969; R.C.M. 1947, 82-1924; amd. Sec. 1, Ch. 468, L. 1985; amd. Sec. 2, Ch. 512, L. 1987; amd. Sec. 1, Ch. 32, L. 1991; amd. Sec. 1, Ch. 306, L. 1999.