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Port to tighten procurement rules after trustees, council debate 'best value' and local preference

January 09, 2025 | Galveston , Galveston County, Texas


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Port to tighten procurement rules after trustees, council debate 'best value' and local preference
Trustees on the Port of Galveston said they will revisit procurement policy language after council members and trustees raised concerns that the term “best value” is ambiguous and can produce inconsistent results when comparing local and non‑local bidders.

Wharves finance committee chair Sheila (identified in the meeting) told trustees and council members that the port’s procurement policy currently uses the term “best value,” which can include non-price factors such as local hiring, continuity of operations, and past change‑order history. She said committee members had debated awarding a contract to a vendor judged to be better for the local economy despite a marginally higher bid, and that the committee voted on a selected bidder based on those broader criteria.

Trustees said they would bring a tightened procurement policy back in the first quarter to clarify how best value is defined, whether a local preference matrix or fixed percentage could be included, and how “lowest responsible bidder” criteria are documented. Members suggested using a pre-advertised scoring matrix so bidders understand up front how local participation, existing operations in Galveston County, workforce retention and change‑order history factor into evaluations.

Why it matters: Council members said clearer rules will reduce bid protests and litigation risk, improve transparency, and help local businesses compete. Trustees emphasized the need to preserve competitive procurement while also encouraging local participation where the differential is small.

Next steps: Port staff said they will draft proposed language and, where appropriate, a scoring matrix or amendment to the procurement policy and present that in Q1 for board consideration. The board’s finance committee and legal counsel will review proposed changes before implementation.

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Scribe from Workplace AI
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