Procurement bill advancing in committee draws concern over in‑state preference

Representative Schallenberger presented HB 511, a procurement amendment that would give a modest scoring preference to in‑state vendors (a 10% evaluation bonus) when competing proposals are otherwise close. The sponsor said the preference would be implemented through objective checks—a certificate of existence, at least one year in business in Utah, a principal place of business and good standing with the Division of Corporations—and would not affect contract price or apply to lowest‑price procurements.

Senator Johnson and others warned that the measure could undermine competitive neutrality, reduce competition and potentially increase long‑term costs for taxpayers. "I'm just can't support this bill," Senator Johnson said, citing concerns about structured favoritism and erosion of best‑value procurement principles. Representative Schallenberger and supporters replied that similar preferential scoring exists for certified small or disadvantaged businesses and that the policy could be tweaked after observing effects.

Committee debate included questions about how to prevent shell entities from qualifying and whether the 10% bonus should be tied to price. The sponsor clarified the bonus affects scoring only and not contract price. After extended questioning and discussion of tradeoffs, the committee recorded a 3–1 voice vote to move to the next agenda item, effectively advancing consideration but leaving some members unconvinced.

The bill will be tracked for how scoring changes might be implemented administratively and whether the legislature will revisit the percentage or definitions in subsequent sessions.